Market Trends of Latin America ADAS Industry
Passenger Car is Expected to Register Highest Growth
Autonomous cars and connected vehicles are gaining consumers' interest and are anticipated to gain wider acceptance over the forecast period. The advanced driver assistance systems (ADAS) featured are expected to diminish the penetration gap between traditional cars and tomorrow's cars.
Moreover, with the rising technological advancements in the automotive industry, end users are ready to spend more on the latest technologies, which enhance the driving experience and increase the safety of drivers and riders. ADAS features, such as collision warning, lane assistance, blind spot detection, etc., have a significant impact on consumer behavior and are expected to enhance vehicles' performance by reducing vehicle downtime by alerting the owner of any faults in the vehicle.
ADAS has advanced considerably, but there is still a long way to go with connected vehicle technology. V2V communication has the potential to upgrade it further, as vehicles may communicate with each other directly and share information on relative speeds, positions, directions of travel, and even control inputs, such as sudden braking, accelerations, or changes in direction.
By using this data with the vehicle's sensor inputs, it is possible to create a more detailed picture of the surrounding area and provide more accurate warnings or even corrective actions to avoid collisions.
There is a growth in government regulations pushing towards upgrading the safety standards of vehicles in the Latin American automotive industry. They also aim to replace cheap machinery with high-tech machinery to combat road accidents and environmental issues. Original equipment manufacturer (OEM) in the region is promoting the launch of new vehicles integrated with ADAS features to witness high revenue growth.
In February 2023, Volkswagen made a significant announcement, unveiling its latest sedan, the Virtus, for the Brazilian market. This state-of-the-art model is manufactured at the Chakan plant in Maharastra, India. The Virtus comes equipped with an advanced driver assistance system featuring cutting-edge technologies such as adaptive cruise control, forward collision warning, and a sophisticated maneuver braking system. This innovative combination of features aims to enhance safety and driving convenience for Volkswagen's customers in Brazil.
With these growing regulations on vehicle safety, the automotive industry will see some of the mandated ADAS features equipped in vehicles during the forecast period. Thus, in the region, automakers can capture the potential demand for the ADAS market during the forecast period. Also, with advancements in AI and IoT and with ever-growing dependence, the need for automobiles will no longer be limited to electric vehicles. ADAS software will become the driving factor for the future of the automotive industry.
Mexico Is Dominating the Latin America ADAS Market
- Increased disposable income, economic stability, and a growing preference for materialistic lifestyles are driving sales of luxury automobiles. The market in Brazil has exhibited significant growth in the integration of advanced safety and comfort features in vehicles, such as advanced driver assistance systems, vehicle infotainment, and many others.
- Growing production of vehicles with integrated advanced driver-assistance system (ADAS) features in response to rising passenger comfort and safety awareness, as well as government regulations mandating safety features, are expected to drive market demand.
- Additionally, as a result of the growing technological advancements in the automotive industry, end users are willing to spend more money on the newest technologies that improve driving experiences and increase driver and passenger safety.
- ADAS features such as collision warning, lane assistance, blind spot detection, and so on are expected to have a significant impact on consumer behavior. These features are also expected to improve vehicle performance by reducing vehicle downtime and alerting the owner of any vehicle problems.
- By 2025, due to the growing demand for increased regulation norms by the government for safety and environmental reasons, companies will see a rise in demand for mandatory features for cars to be equipped with an Advanced Driving assistant system for all upcoming vehicles.
- Original equipment manufacturers (OEMs), including Volkswagen, Hyundai, Honda, and others, have kept the Brazil market's potential hotspot for vehicle production. During these years, these vehicles are integrated with level 1 and 2 ADAS features which have engaged significant momentum.
- For instance, in March 2023, Hyundai introduced the 2023 facelift version of Creta in Brazil. The vehicle is equipped with the level-2 ADAS system. Although Autonomous Driving applications are still in their early days, they will eventually become the main feature of differentiating automotive brands. Also, they will become one of the most important revenue sources for major car manufacturers.
