Collision Avoidance System Market Report 2026

The collision avoidance system market size has grown strongly in recent years. It will grow from $49.39 billion in 2025 to $53.92 billion in 2026 at a compound annual growth rate (CAGR) of 9.2%. The growth in the historic period can be attributed to increasing vehicle safety regulations, rising consumer demand for safer vehicles, expansion of ADAS adoption in passenger cars, availability of advanced sensing technologies, growth in automotive electronics integration.

The collision avoidance system market size is expected to see strong growth in the next few years. It will grow to $76.8 billion in 2030 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to growing adoption of autonomous driving technologies, increasing penetration of collision avoidance in commercial vehicles, expansion of smart transportation infrastructure, rising demand for electric and connected vehicles, continuous advancements in sensor accuracy. Major trends in the forecast period include increasing integration of multi-sensor fusion systems, rising deployment of advanced driver assistance features, growing adoption of autonomous emergency braking solutions, expansion of vehicle-to-vehicle communication systems, enhanced focus on real-time hazard detection.

Rising demand for automated vehicles is expected to drive the growth of the collision avoidance system market in the coming years. Automated vehicles are capable of sensing their surroundings and operating without human intervention. They rely on collision avoidance systems - including sensors, cameras, emergency braking, and lane-keeping technologies - to control the vehicle and prevent accidents. For example, according to the National Highway Traffic Safety Administration, a U.S.-based government agency, by 2030, approximately 4.5 million self-driving vehicles are expected to be on U.S. roads. Therefore, the increasing adoption of automated vehicles is fueling growth in the collision avoidance system market.

Key players in the collision avoidance market are integrating Advanced Driver Assistance Systems (ADAS) into their offerings to maintain a competitive edge. ADAS technologies provide warnings to drivers, assist with vehicle control, and in some cases, take autonomous actions to prevent or mitigate collisions, enhancing overall driving safety. For instance, in January 2023, MG Motor, a UK-based automotive company, launched the Next-Gen Hector, featuring a Level 2 Autonomous ADAS system with 11 advanced driver assistance features and over 75 connected car functions via i-SMART technology. Safety features include airbags, a 360-degree camera, and stability controls.

In June 2023, Magna, a Canada-based automotive parts and technology company, acquired Veoneer’s Active Safety business for an undisclosed amount. This acquisition is aimed at strengthening Magna’s ADAS portfolio and enhancing its capabilities in sensors, software, and systems integration. Veoneer Active Safety, based in Sweden, specializes in active-safety solutions, including sensors and software for automotive manufacturers, with a focus on improving vehicle safety and automation performance.

Major companies operating in the collision avoidance system market are ZF Friedrichshafen AG, General Electric Company, Mobileye Global Inc., Denso Corporation, Robert Bosch GmbH, Wabtec Corporation, Alstom SA, Autoliv Inc., Honeywell International Inc., Ride Vision Ltd., LILEE System Ltd., Knorr-Bremse AG, Hella GmbH & Co. KGaA, Becker Mining Systems AG, Hexagon AB, Saab AB, Rockwell Automation Inc., Hyundai Mobis, Analog Devices, Murata Manufacturing Co. Ltd., Infineon Technologies, Panasonic Corporation, Continental AG, Siemens AG, Aptiv Plc, Magna International Inc., Valeo India Pvt. Ltd., NXP Semiconductors, Texas Instruments Incorporated, STMicroelectronics N.V., Renesas Electronics Corporation, Aisin Seiki Co. Ltd., Sensata Technologies Inc., First Sensor AG, LeddarTech Inc., Quanergy Systems Inc., Velodyne Lidar Inc., Ouster Inc., Luminar Technologies Inc.

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

The collision avoidance systems market consists of sales of electronic stability control (ESC), pedestrian detection systems, and cross-traffic warnings, sensors, such as lasers, GPS, and artificial intelligence. 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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