Driver Monitoring Systems Market Expected to Reach $4.6 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Driver Monitoring Systems Market," The driver monitoring systems market was valued at $1.8 billion in 2021, and is estimated to reach $4.6 billion by 2031, growing at a CAGR of 10.2% from 2022 to 2031.

Europe is expected to dominate the global driver monitoring system market. Technical developments in the sector for efficient enforcement of safety features and better drive quality lead toward the growth of the automotive industry. The adoption of driver monitoring has increased in safety systems of automobiles with the rise in popularity of autonomous driving. The presence of supportive legislations, and cost-effective vehicles fuel the use of safety systems in cars to improve safety and comfort. Automotive manufacturers in the region have focused on reducing road fatalities by adopting various safety ensuring programs such as eSafety Aware and other informative campaigns. High intensity discharge lamps lights improve drivability at night. Automotive electronics manufacturers have prioritized the development of Infrared cameras to develop better vision assisting systems for cars. The demand for electronic equipment has rapidly increased to improve driving and vehicle safety.

Increase in the demand for light commercial vehicle mainly for the purpose of carrying cargo leads toward the growth of the industry. This segment is considered to be the fast-growing vehicle type in the driver monitoring system market due to its vital role in the transportation industry. Advancement in technology and mandatory regulations toward driver monitoring system to be installed in the vehicles boost the growth of the market as users are now concerned toward the safety of the people, vehicle, and the cargo they carry.

In addition, automobile manufacturing companies are introducing light commercial vehicles such as trucks integrated with driver monitoring system in the market, which fuels the growth of the market. For instance, in 2022, Tata motors launched 7 new light commercial vehicle trucks, along with 5 CNG heavy commercial trucks at Jio World Centre in Mumbai. The new range of light commercial trucks comprises new safety and comfort features such as ADAS, Driver Monitoring system, collision mitigation systems, lane departure warning system, tyre pressure monitoring system, and others.

The global driver monitoring system market is experiencing growth due to high demand for safety features, and stringent safety rules and regulations. However, high initial cost & complex structure is the factor hampering the growth of the market. Furthermore, technological advancements are expected to offer growth opportunities during the forecast period.

COVID-19 Impact Analysis

The spread of the COVID-19 pandemic has negatively impacted the driver monitoring system market, owing to commute restrictions, and is expected to weaken the financial performance of the market players. It has impacted the overall economy, and contributors such as market participants are formulating strategic cost-saving plans.

The sale of driver monitoring system is directly associated with automotive production and sales activities across the globe. Production loss is anticipated to increase if the lockdown in countries is extended. The global automotive production has witnessed decline by 16% in 2020 as compared to automotive production in 2019. Moreover, the global sales of automotive has witnessed drop by around 14% (Y-o-Y) from 90.42 million units in 2019 to 77.97 million units in 2020.

Although, the automotive market has struggled due to the pandemic, the driver monitoring system market has the high scope of growing opportunities in future due to factors such as the rising demand for integration of driver monitoring system in commercial vehicles, technological advancement in driver monitoring system, and high demand for safety features in automobiles from consumer-end, which in turn is expected to aid in growth of driver monitoring system market during the forecast timeframe.

KEY FINDINGS OF THE STUDY

• By type of monitoring, the driver health monitoring segment is anticipated to exhibit significant growth in the near future.
• By component, the sensors segment is anticipated to exhibit significant growth in the near future.
• By vehicle type, the heavy commercial vehicle segment is anticipated to exhibit significant growth in the near future.
• By vehicle propulsion, the electric vehicle segment is anticipated to exhibit significant growth in the near future.
• By sales channel, the OEM segment is anticipated to exhibit significant growth in the near future.
• By region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

Key players operating in the global driver monitoring system market include Aisin Corporation, Autoliv Inc, Continental AG, Denso Corporation, Intel Corporation, Magna International Inc, NXP Semiconductors, Panasonic Corporation, Robert Bosch GmbH, Texas Instruments Inc, Valeo, and ZF Friedrichshafen AG.