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Autonomous Driving Regulatory Hurdles and Customer Interest in ADAS Will Improve L2+ Penetration in 2025
24-Jun-2025
Global
Market Outlook
PFT1-01-00-00-00
AU_2025_33593
The automotive industry faces challenges such as regulatory hurdles, electrification, the rise of software-defined vehicles (SDVs), semiconductor shortages, and geopolitical chaos. OEMs and value chain partners are realigning their product strategies, roadmaps, and launch timelines to adapt to these challenges. They have rerouted investments to develop and deploy hands-off, eyes-on driving technologies to differentiate their offerings from competitors and generate revenue.
In 2025, Frost & Sullivan expects more OEMs to offer L2+ ADAS solutions and expand their geographic coverage to more developed regions. In the meantime, Chinese OEMs will continue to offer hands-on ADAS solutions due to regulatory hurdles for hands-off driving systems. They will launch more models with city assist features, including navigation on autopilot (NOA), a hands-on feature; however, in the future, these vehicles can be upgraded with hands-off capability through over-the-air (OTA) updates.
In this annual autonomous driving (AD) outlook study, Frost & Sullivan analyzes the global advanced driver assistance system (ADAS) and automated vehicle forecast, including global and regional regulations, ADAS and AD feature penetration, regional markets, notable collaborations, partnerships, mergers and acquisitions, and critical predictions. The analysis also lists all major trends influencing the AD market in 2025 and discusses the top 5 trends.
The key trends discussed in this study are:
1. Hands-off, eyes-on driving
2. Vision-based ADAS
3. ADAS/AD HPC
4. New business models
5. AI in ADAS and AD
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8
The Impact of the Top 3 Strategic Imperatives on the ADAS and Autonomous Driving Industry
Research Scope
Segmentation by Automation Level
Definition for Levels of Driving Automation
Vehicle Segmentation
Global Autonomous Vehicle AV Regulations
2024—A Recap
Top 5 Predictions for 2025
ADAS and AV Overview
ADAS Stacks by Major OEMs
Strategic Imperatives
Top 10 Growth Opportunities
Top 10 Trends for 2025
Global GDP Growth Snapshot
Trend 1: Global GDP Growth
Growth Opportunity 1: Global GDP Growth
Trend 2: Inflation and Interest Rates
Growth Opportunity 2: Inflation and Interest Rates
Trend 3: Oil Markets
Growth Opportunity 3: Oil Markets
Trend 4: Labor Market
Growth Opportunity 4: Labor Market
Trend 5: US Dollar and Gold
Growth Opportunity 5: US Dollar and Gold
Trend 6: North America
Growth Opportunity 6: North America
Trend 7: Latin America
Growth Opportunity 7: Latin America
Trend 8: Western Europe
Growth Opportunity 8: Western Europe
Trend 9: Middle East
Growth Opportunity 9: Middle East
Trend 10: Asia
Growth Opportunity 10: Asia
List of Countries by Region, 2025
ADAS and AD Regulations, Europe
ADAS and AD Regulations, APAC
ADAS and AD Regulations, North America
Notable ADAS and AD Collaborations, 2024
Emerging Competitors in Related Industries
Top Trends Driving the Global ADAS and AD Industry
Trend 1—Mass-market OEMs Will Prefer ADAS Over AD
Mass-market OEMs Will Prefer ADAS Over AD
Trend 1—Hands-off Eyes-on Driving
Regulatory Overview—Hands-off Driving
Nissan Pro Pilot 2.0
Trend 2—Vision-based ADAS
Mobileye's Approach to Hands-off Driving—Supervision
Trend 3—ADAS/AD HPC
Case Study—Continental’s HPC
Trend 4—New Business Models
Trend 5—AI in ADAS and AD
Case Study—Waymo Using AI for Robotaxis
Market Assumptions
Technology Assumptions
Global Autonomy Level Forecast Analysis
ADAS and AV Sales Forecast
L4 AV Sales Forecast
Analysis by Region—North America
Analysis by Region—Europe
Analysis by Region—APAC
Top 10 Predictions for 2025
Growth Opportunity 1: Vision-based ADAS
Growth Opportunity 2: L1 and L2 Solutions for Developing Countries
Growth Opportunity 3: FoD through OTA Updates
Benefits and Impacts of Growth Opportunities
Next Steps
List of Exhibits
Legal Disclaimer
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In 2025, Frost & Sullivan expects more OEMs to offer L2+ ADAS solutions and expand their geographic coverage to more developed regions. In the meantime, Chinese OEMs will continue to offer hands-on ADAS solutions due to regulatory hurdles for hands-off driving systems. They will launch more models with city assist features, including navigation on autopilot (NOA), a hands-on feature; however, in the future, these vehicles can be upgraded with hands-off capability through over-the-air (OTA) updates.
In this annual autonomous driving (AD) outlook study, Frost & Sullivan analyzes the global advanced driver assistance system (ADAS) and automated vehicle forecast, including global and regional regulations, ADAS and AD feature penetration, regional markets, notable collaborations, partnerships, mergers and acquisitions, and critical predictions. The analysis also lists all major trends influencing the AD market in 2025 and discusses the top 5 trends.
The key trends discussed in this study are: 1. Hands-off, eyes-on driving 2. Vision-based ADAS 3. ADAS/AD HPC 4. New business models 5. AI in ADAS and AD
| Deliverable Type | Market Outlook |
|---|---|
| Industries | Automotive |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | ADAS market trends |
| Keyword 2 | autonomous driving industry |
| Keyword 3 | autonomous mobility growth |
| Podcast | No |
| Predecessor | PFG7-01-00-00-00 |
| WIP Number | PFT1-01-00-00-00 |
Global ADAS and Autonomous Driving Outlook and Growth Opportunities, 2025
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