Sensors in automotive market will grow to nearly 3.5 billion by 2035

Globally, automated vehicles are already being deployed in some markets, focusing currently on urban robotaxis and highway driving. The light duty vehicle (LDV) market has all the pieces needed for an expansion of next-generation advanced driver assist systems (ADAS) and automated driving systems (ADS) over the coming years. According to a new report from Guidehouse Insights, more than 90% of all LDVs sold will have some level of hands-off driving capabilities – with more than 3.4 billion sensors annually in the automotive market by 2035, growing from 897.9 million in 2023, a compound annual growth rate (CAGR) of 11.7%.

“The market for the sensors and computing platforms that are the necessary enabling technology for this higher level of automation is set to expand greatly,” says Jake Foose, Research Analyst with Guidehouse Insights. “Most ADAS systems being deployed by vehicle original equipment manufacturers are advancing to the degree that their automation will be a marketable safety feature soon. Within the next 10 years, the move to higher levels of automation will be well underway.”

Established sensor markets, like automotive camera and radar, will likely experience major growth. Less established sensors, such as lidar and thermal imaging, will become standard on many cars sold. The computing power of the average vehicle is set to grow with the higher levels of automation, according to the report.

The report, Sensors and Compute Platforms in Automated Vehicles, establishes new definitions of automated vehicles that are more consumer-oriented. The report provides an analysis of barriers and drivers to the automation market, and how those specifically impact the sensors and computing market. It supplies global outlooks for the deployment of each level of automation, each automation sensor, and the various levels of computing platforms required to handle and process the data effectively. Analyses cover the period 2023-2035 and are segmented by eight global regions and sub-regions. An executive summary of the report is available for free download on the Guidehouse Insights website.