Autonomous vehicles

Thursday 10 April 2025 - Integration of In-Cabin Sensors Into Software-Defined Vehicles and AI Features; An overview of regulations in Europe, China, USA, and Japan, and how regulations affect the adoption rate of in-cabin sensing technologies; An analysis of different in-cabin sensor technologies and the future trends; A key summary and analysis of how AI and vehicle software are linked with in-cabin sensors; Market opportunities and forecast overview

The global passenger car market is witnessing a pivotal shift in advanced driver-assistance systems (ADAS), with Level 2+ (L2+) technologies rapidly outpacing Level 3 (L3) deployments. IDTechEx forecasts significant growth, with L2+/L3 revenues in Europe projected to exceed US$4 billion by 2042.

Front and side radars serve distinct yet complementary roles in ADAS, making them essential for autonomous vehicles. IDTechEx explores the latest radar developments and explores autonomy leveling up, with Level 2+ asserting itself within the US and Europe's autonomous vehicle markets.

As regulatory frameworks such as the EU's Advanced Driver Distraction Warning (ADDW) near enforcement, automotive OEMs increasingly integrate in-cabin sensing technologies with software-defined vehicle architectures. This shift, evident at CES 2025, marks a pivotal moment in the automotive industry as OEMs leverage existing hardware—such as infrared and RGB cameras—to develop new revenue streams and enhance user experiences.

The automotive radar market is forecast to hit 500 million annual sales in 2041. Learn more about key growth opportunities in this short overview.

Newly established radar startups worldwide have raised nearly US$1.2 billion over the past 12 years; approximately US$980 million of which is predominantly directed toward the automotive sector. Through more than 40 funding rounds, these companies have driven the implementation and advancement of radar technologies in key areas such as autonomous driving and Advanced Driver Assistance Systems (ADAS).

Radars have had a place within the automotive sector for over two decades, beginning with the first use for adaptive cruise control and many other developments taking place since. With radar technology becoming cheaper and, therefore, more widely available, ADAS system features are offered by many vehicle manufacturers. IDTechEx predicts that the automotive radar market will grow with a CAGR of 4.8% between 2024 and 2034.

Infrared sensors are becoming more popular in vehicles for advanced driver assistance systems (ADAS), in-cabin sensing, and driver monitoring systems (DMS), largely due to advancements in vehicle safety and awareness. This increasing adoption of ADAS on regular vehicles alongside safety regulations will create more opportunities for IR technologies.

A free collection of insights from our industry experts, sharing some of the key technology innovation trends shaping the next decade.

The automotive industry has been using radar for two and a half decades. During that time, it has transformed from enabling luxury features on the most expensive cars, to being used ubiquitously for basic safety features in almost all new cars. This article goes through the three most important takeaways from the report. Starting with the huge growth that will be driven by side radars used in short-range applications.