Highway Driving Assist Market Report 2026

The highway driving assist market size has grown exponentially in recent years. It will grow from $5.39 billion in 2025 to $6.53 billion in 2026 at a compound annual growth rate (CAGR) of 21.1%. The growth in the historic period can be attributed to increase in highway accidents, early adas adoption, demand for driving comfort, regulatory safety mandates, advancements in radar and camera systems.

The highway driving assist market size is expected to see rapid growth in the next few years. It will grow to $13.09 billion in 2030 at a compound annual growth rate (CAGR) of 19%. The growth in the forecast period can be attributed to transition toward higher autonomy levels, growth in connected vehicles, rising luxury vehicle penetration, continuous sensor cost reduction, consumer focus on safety features. Major trends in the forecast period include integration of adaptive cruise control, lane centering assistance adoption, real time gps and map data usage, enhanced sensor fusion systems, rising level 2 adas deployment.

The growing number of autonomous vehicles is expected to drive the growth of the highway driving assist market going forward. Autonomous vehicles are self-driving cars that use advanced sensor technologies, computer systems, and artificial intelligence to operate and navigate without continuous human intervention. Their demand is rising due to advancements in AI and sensor technology, as well as significant investment and support from private companies and governments to enhance safety and efficiency in transportation. Highway driving assist supports autonomous vehicles by providing additional safety and redundancy, improving navigation and decision-making, and enhancing overall driving efficiency. For instance, in January 2025, according to Tesla, a US-based electric vehicle manufacturer, in Q4 2024, total production reached 459,445 vehicles with 495,570 deliveries, while full-year 2024 production totaled 1,773,443 vehicles with 1,789,226 deliveries, all equipped with Level 2 autonomous driving features. Therefore, the increasing number of autonomous vehicles is fueling the highway driving assist market.

Major companies in the highway driving assist market are focusing on innovations in automotive safety, such as hands-off Level 2 driving, which allows drivers to remove their hands from the wheel while the system maintains speed, lane position, and assists with motorway navigation. Hands-off Level 2 driving is a semi-autonomous feature where the vehicle controls both steering and speed simultaneously, with the driver remaining alert and able to intervene at any time. For instance, in November 2025, Bayerische Motoren Werke AG (BMW), a Germany-based automotive manufacturer, received international approval under UN Regulation No. 171 for its Motorway Assistant system. This certification confirms that the system can safely provide hands-off driving on highways at speeds up to 130 km/h, including intelligent lane changes, motorway interchanges, and exit slip roads, with driver monitoring and coordinated steering and braking. By combining advanced sensors, AI-driven assistance, and driver observation, BMW’s hands-off Level 2 driving sets a benchmark for semi-autonomous highway driving, ensuring both comfort and safety.

In June 2023, Magna International, a Canada-based mobility technology company, acquired the active safety business of Veoneer for US $1.525 billion. This acquisition strengthened Magna’s position in the fast-growing automotive safety and highway driving assist sector by expanding its portfolio of sensors, perception software, and integrated driver assistance systems. Veoneer, Inc., a Sweden-based automotive technology company, is known for developing advanced driver assistance, restraint control systems, and technologies that enhance vehicle safety and automated driving performance.

Major companies operating in the highway driving assist market report include Toyota Motor Corporation, Honda Motor Co. Ltd., Robert Bosch GmbH, Hitachi Ltd., DENSO Corporation, ZF Friedrichshafen AG, Qualcomm Technologies Inc., Continental AG, Magna International Inc., Aisin Corporation, Valeo SA, Texas Instruments Incorporated, Aptiv, Analog Devices Inc., Renesas Electronics Corporation, Autoliv, ON Semiconductor Corporation, HARMAN International, HELLA GmbH & Co. KGaA, Visteon Corporation, AVL, Veoneer, Mobileye.

North America was the largest region in the highway driving assist market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the highway driving assist market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the highway driving assist market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The highway driving assist market consists of revenues earned by entities by providing services such as adaptive cruise control, lane-keeping assistance, automatic emergency braking, and traffic jam assist. The market value includes the value of related goods sold by the service provider or included within the service offering. The highway driving assist market also includes sales of sensors, such as cameras, radars, and LiDAR, control units, actuators, such as steering and braking systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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