The collision avoidance system market is expected to grow at a CAGR of 9.31%, reaching a market size of US$87.803 billion in 2030 from US$56.307 billion in 2025.
To decrease the intensity of a mishap, systems designed for safety purposes are collision-evading devices. Issues like these are used mostly in industries like mining, construction, and automotive, among many others. Collision avoidance systems include lasers, cameras, radars, LIDAR, and even sensors that detect possible crashes before they happen and warn the drivers before it’s too late. The worldwide growth rate for traffic accidents is the main driving force behind the collision avoidance technology market. Increasing concentration on occupational safety in sectors like warehouse management is increasing traction for collision avoidance technologies.
Moreover, collision avoidance technology reduces the number of traffic accidents and lessens their effects on pedestrians and car occupants. The market for anti-collision systems has grown as a result of rising consumer awareness, updated safety agency ratings, and continuous research and development by leading industry players. For example, ZF, Mobileye, and Toyota Motor Corp. worked together to develop and provide advanced driver assistance systems (ADAS). The integration of these systems into different vehicle platforms throughout the Toyota Group will guarantee improved driving assistance and safety features for cars to come.
The rise in traffic jams and accidents results from various factors, including but not limited to drivers' distractions, tiredness or fatigue, and lack of proper teamwork, which can cause crashes and harm other people’s lives. This makes collision avoidance technologies, which drivers can use to avoid crashes or even stop them altogether on the front and back sides of vehicles, more crucial. Another reason why the global market for these devices is growing is that car insurance is becoming cheaper with the introduction of such systems.
Improving the safety of the public and reducing the frequency of road accidents are some of the goals of the government, which has introduced new policies and programs. By instituting innovative operations and rules, the government is making strident efforts to establish safer roads. The rising awareness among various authorities has propelled growth in the international market for anti-collision systems, leading to the adoption of trains, planes, and submarines worldwide. Furthermore, new players are constantly entering the industry and developing improved products to meet the increasing demands of the automotive sector. This will likely result in a decrease in accident rates, subsequently increasing consumer interest in their products.
sensors, along with Light Detection and Ranging (LiDAR), constitute another major trend driving the need for high-quality optical components such as precision lenses and specialized glasses. These parts are critical in enhancing more precise and effective collision avoidance systems across different spheres, such as the aerospace and automotive industries. In addition, there is an increased focus on sustainability and environmental conservation among market players. Consequently, most manufacturers have now turned to recyclable or eco-friendly materials in collision avoidance systems. Some manufacturers are investigating bio-based polymers or lightweight composites instead of traditional metals or plastics. Additionally, these eco-friendly initiatives correspond with the rise in energy-efficient products demanded by the transportation and industrial sectors.
Due to the high installation costs, especially in price-sensitive markets, the widespread adoption of collision avoidance systems has been significantly hampered. Though several safety benefits are accruable from these systems, such as reduced accident incidences and potential insurance premium savings, some manufacturers and consumers may consider their initial installation costs high. The cost includes potential maintenance and calibration costs throughout the vehicle's lifetime and the purchase and installation of the required hardware and software.
Customers who value affordability in price-sensitive markets might be discouraged from choosing cars with collision avoidance systems due to the additional expense of these features. Furthermore, manufacturers must balance integrating collision avoidance systems and other cost-cutting strategies.
The disposable income of consumers in the Asia Pacific region has been increasing in nations like China, India, Indonesia, and Thailand. Customers' rapid adoption of collision avoidance systems has enabled market growth in this area.
Currently, some automakers are integrating parking assistance systems that used to be exclusive to a segment with higher prices into their mid-range or smaller vehicles to distinguish themselves from the competition. The use of ADAS systems is just beginning in price-sensitive nations such as India because buying a car requires money, while collision avoidance systems do not appear to make much difference in terms of safety; hence, people do not know them well enough. However, there have been various awareness campaigns, government initiatives, and programs; hence, this trend has been improving steadily with time.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Collision Avoidance System Market Size in 2025 | US$56.307 billion |
| Collision Avoidance System Market Size in 2030 | US$87.803 billion |
| Growth Rate | CAGR of 9.31% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in Collision Avoidance System Market |
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| Customization Scope | Free report customization with purchase |