2025 Q4 Advanced Driver Assistance Systems 2023-2032

The ADAS market is shifting from dedicated systems to centralized platforms, presenting new challenges and opportunities for suppliers, especially in software and sensors.

The discrete ADAS market faces a challenging trajectory, characterized by strong growth followed by a decline. This decline is not from reduced functionality, but from architectural transformation. Dedicated ADAS systems are being absorbed into centralized computing platforms, creating fundamental disruption for traditional suppliers. Regional timing varies dramatically, with Chinese OEMs leading architectural change by several years. Sensor vendors face different prospects than systems suppliers, but all must adapt as value shifts from hardware to software. This analysis identifies which ADAS applications and sensors offer the strongest opportunities and explains why geographic strategies must differ significantly.