The global automotive industry has witnessed a significant resurgence in demand for passenger vehicles since 2023, driven by economic recovery, technological advancements, and evolving consumer preferences. The In-Cabin Monitoring Systems report explores the historical and future sales trends of passenger vehicles, the rapid penetration of Advanced Driver Assistance Systems (ADAS), and the increasing importance of in-cabin monitoring systems, such as Driver Monitoring Systems (DMS) and Occupant Monitoring Systems (OMS), in enhancing driver safety and preventing accidents.
Rising Demand for Passenger Vehicles
The post-pandemic era has seen a robust recovery in the automotive sector, with passenger vehicle sales surging across key markets. In Europe, the sales of new passenger cars climbed to 15 million units in 2023, recording year-on-year growth of 18.7%. This whooping growth was majorly driven by the adoption of electric vehicles (EVs) and government incentives. The U.S. followed the suite, reflecting a 9% year-on-year growth accounting for sales volumes of approximately 3.1 million units. China, the world's largest automotive market, recorded sales of over 26 million passenger vehicles in 2023, fueled by urbanization and rising disposable incomes. Japan and India also experienced growth, with sales volumes of 4 million and 4.1 million units, respectively, supported by increasing demand for compact and mid-sized vehicles.
This upward trend continued in 2024, with estimates indicating a 5-7% growth in global passenger vehicle sales. The shift toward electric and hybrid vehicles, coupled with advancements in automotive technology, is reshaping the industry landscape.
Doubling Penetration Rate of ADAS in Passenger Vehicles
Advanced Driver Assistance Systems (ADAS) have become a cornerstone of modern vehicles, enhancing safety and driving convenience. The penetration rate of ADAS in passenger vehicles has grown significantly over the past two years. In 2023, approximately 50% of new vehicles sold in the U.S. were equipped with ADAS features, such as adaptive cruise control, lane-keeping assist, and automatic emergency braking. Europe and China reported even higher adoption rates, at 55% and 60%, respectively, driven by stringent safety regulations and consumer demand for advanced features.
The sales of vehicles equipped with ADAS have grown by 20-25% annually since 2023, reflecting the increasing importance of these systems in reducing accidents and improving road safety.
Regulatory Policies on Accident Prevention is Driving the Growth of In-Cabin Monitoring Systems
Regulatory policies worldwide are playing a pivotal role in mandating the inclusion of in-cabin monitoring systems in vehicles. The European Union's General Safety Regulation (GSR), effective from 2022, requires all new vehicles to be equipped with driver drowsiness and attention warning systems. Similarly, the U.S. National Highway Traffic Safety Administration (NHTSA) has proposed regulations to include driver monitoring systems in vehicles to prevent accidents caused by human error, such as distracted or fatigued driving.
These policies are driving automakers to integrate DMS and OMS into their vehicles, ensuring compliance and enhancing safety standards. The focus on preventing accidents caused by human error has made in-cabin monitoring systems a critical component of modern vehicles.
Rising Adoption of DMS and OMS Integrated Passenger Vehicles
The adoption of Driver Monitoring Systems (DMS) and Occupant Monitoring Systems (OMS) has seen a steady rise in both ADAS-equipped and non-ADAS vehicles. In 2023, approximately 30% of new passenger vehicles in the U.S. were equipped with DMS, while Europe reported a penetration rate of 35%. China and Japan also witnessed significant adoption, with rates of 40% and 25%, respectively.
OMS, which monitors the presence and behavior of all occupants, is gaining traction, particularly in vehicles with ADAS features. The integration of DMS and OMS is becoming a standard practice, driven by regulatory requirements and the need for comprehensive in-cabin safety solutions.
Other Factors Driving the Growth of the In-Cabin Monitoring System Market
- Increasing Consumer Awareness about road safety is boosting demand for advanced monitoring systems.
- Technology Innovations in AI, computer vision, and sensor technology are enhancing the capabilities of DMS and OMS
- Rising Autonomous Vehicles trend has induced the need for robust in-cabin monitoring systems to ensure passenger safety
The in-cabin monitoring system market is rapidly evolving, driven by technological advancements, regulatory mandates, and increasing consumer demand for safety. As competition intensifies, suppliers are innovating to offer more advanced and cost-effective solutions, ensuring a safer and more connected driving experience.
The future scope of these systems is vast, with advancements in artificial intelligence (AI) and machine learning enabling more sophisticated monitoring capabilities. By 2030, it is estimated that 70-80% of new vehicles globally will be equipped with DMS and OMS, driven by regulatory mandates and consumer demand for safer vehicles.
Key Questions Answered
- Which OEM brands, car models (trim wise) are equipped with active driver monitoring and occupant monitoring system? And what are their sales volume?
- Who are the leading DMS and OMS technology suppliers?
- What are the recent design wins of system providers with OEMs and Tier 1s? And what are the estimated revenues of their orders
- What are the shipments of these leading in-cabin monitoring system (ICMS) active DMS and OMS suppliers?
- What is the total addressable market (TAM) of in-cabin 3D sensing active DMS and OMS technologies, globally, breakdown by ADAS and autonomous vehicles, and breakdown by geographies?
- What are the ASPs of in-cabin 3D sensing DMS and OMS sensors - NIR camera and mmW radar? What will be the expected price erosion?
- What is the status of driver monitoring (DMS) and occupant monitoring system (OMS) in-cabin 3D sensing technologies in China, United States, and Western Europe?
- What are the differentiating factors of the leading DMS and OMS suppliers in the market?
- How is the status of competition between the leading Tier 1s in DMS and OMS market?
- What are the key driving factors, challenges, and opportunities in the future for in-cabin 3D sensing DMS and OMS market?
- What is the total demand and addressable market for VCSEL, APDs, SiPMs suppliers in the in-cabin 3D sensing DMS and OMS market?
Table of Contents
1. Executive Summary2. Scope of this Report
Executive Summary
DMS and OMS Rely on a Combination of Technologies to Monitor In-Cabin Activities
Driver Monitoring Systems (DMS) and Occupant Monitoring Systems (OMS) rely on a variety of technologies, each with its strengths and limitations. The major four sensing technologies that are discussed in this edition of research study are 3D Sensing, Wide Angle & High-Resolution Cameras, Infrared Sensors, and Radar.
3D Sensing
- 3D sensing employs depth-sensing cameras based on VCSEL (Vertical-cavity surface emitting laser) or ToF (Time of flight) solution. This technology enables real-time monitoring of occupants, including driver drowsiness, seatbelt usage, child presence detection, and gesture control for infotainment systems.
- Providing precise depth perception and spatial awareness, improving object and occupant detection are few of the major pros of 3D sensing technology. However, high implementation costs and data privacy due to continuous monitoring are the major limitations of this technology.
- The key players offering 3D sensing in this technology include Infineon Technologies, Omnivision, Qualcomm, LGE, Lumentum, and Sony Depthsensing Solution.
Wide Angle & High- Resolution Cameras
- High-resolution cameras capture real-time images of the driver and occupants, enabling behavior analysis. Wide-angle cameras use a broad field of view (FoV) to capture the entire cabin interior, enabling comprehensive monitoring of occupants and their activities. These cameras are often paired with AI algorithms to analyze visual data in real time.
- Wide FoV offers significant advantages, full cabin visibility and minimizing blind spots. Also, it is highly cost effective compared to 3D sensing. However, it also faces notable challenges, including less accuracy due to lack of 3D spatial awareness, performance degradation in low-light or overly bright conditions and possible blocking of camera’s view by objects or occupants.
- Seeing Machines, Bosch, Continental, Veoneer, and Magna are few of the well-known players that offers camera-based systems for occupant detection and driver monitoring, focusing on safety and convenience.
Infrared Sensing System
- Infrared (IR) sensing uses thermal imaging or near-infrared (NIR) light to detect heat signatures or monitor occupants, even in complete darkness.
- These sensors work effectively in total darkness, unlike traditional cameras and capable of detecting heat signatures, reducing privacy concerns. Moreover, IR sensors are often small and easy to integrate into vehicle interiors and can distinguish between living beings and inanimate objects providing accurate presence detection. On the flip side, IR technology cannot capture fine facial features or gestures and comes with higher implementation costs compared to standard cameras.
- The leading players such as FLIR Systems provides thermal imaging solutions for in-cabin detection, while Omnivision offers NIR-based sensors. Valeo is also one of the key suppliers of IR-based systems for occupant detection and driver monitoring.
Radar Sensing
- Radar technology uses radio waves to detect and monitor occupants, providing a non-intrusive way to track movement, presence, and vital signs like heart rates and breathing patterns, to detect driver fatigue or health emergencies 4D imaging radar technology is being used by some of the players to monitor vital signs of driver and passengers making it suitable for OMS applications.
- Radar works well in low-light, fog, or other challenging conditions, and can detect through objects. This sensing technology is less intrusive i.e. operates without direct line-of-sight, reducing occlusion issues. However, Radars have lower spatial resolution compared to cameras or 3D sensors. Moreover, advanced algorithm is required to interpret radar signals accurately. Also, higher cost compared to cameras and limited ability to detect facial expressions are few other cons of Radar senors.
- The key suppliers of radar based in-cabin sensing system includes Continental, Infineon Technologies, NXP Semiconductors, Vayyar, Novelic, and Texas Instruments.
Each technology comes with its own set of strengths and limitations, and to achieve optimal performance, many in-cabin monitoring systems integrate multiple technologies through a process known as sensor fusion. For example, Aptiv combines cameras and radar to deliver comprehensive monitoring, enabling both driver and occupant monitoring within a single system. Similarly, Magna employs a hybrid approach to improve accuracy and reliability, especially in demanding environments. By merging the advantages of two or more technologies, these systems achieve robust performance, enhanced accuracy, and greater efficiency. However, this increased complexity often leads to higher overall system costs.
Comparison of Technologies
Competition Among Leading Players:
The in-cabin monitoring system market is highly competitive, with leading players such as Seeing Machines, Continental, Bosch, and Veoneer vying for market share. Tier-1 suppliers are aggressively competing to provide built-in monitoring systems, offering automakers integrated solutions that enhance safety and compliance.
Each player is leveraging its strengths in technology, partnerships, and time-to-market to capture a larger share. As the demand for advanced safety features grows, suppliers are innovating to offer solutions that cater to varying levels of vehicle autonomy, from Level 2 to Level 4.
Key Insights
- Bosch and Aptiv lead in market share and design wins, thanks to their strong partnerships with major OEMs and advanced sensor fusion technologies.
- Seeing Machines and Smart Eye excel in AI-powered camera systems, making them preferred choices for luxury and high-end vehicles.
- Continental and Valeo are gaining traction with radar-based OMS and camera-radar fusion systems, particularly in Europe and the U.S.
- Magna and Harman focus on cost-effective solutions, making them popular among mid-range vehicle manufacturers.
- AEVA stands out with its LiDAR-based OMS, targeting Level 3-4 autonomous vehicles, though its time-to-market is longer due to the complexity of the technology.
- LG and Gentex are emerging players, with LG focusing on camera-radar systems and Gentex specializing in camera-based DMS for mainstream v
Companies Mentioned
- Aptiv
- BHTC
- Bosch
- muRata
- Magna
- Valeo
- Continental
- Gentex Corporation
- Nextium
- SmartEye
- Seeing Machine
- LG
- Sony
- ST Microelectronics
- Lumentum
- Ficosa
- Brainchip
- Qualcomm
- Indie
- Appen
- Datagen
- Stanley
- Viavi
- iEE
- Novelic
- Smartmicro
- Imec
- Omnivision
- Eye4NIR
- Eyeris
- Cipia
- Tobii
- Multicoreware
- Veoneer
- DTS (Xperi)
- Affectiva
- Panasonic
- Harman
- Melexis
- Garmin
- Anyverse
- Ansys
- Vayyar
- Smart Radar Systems
- Hyundai Mobis
- Nvidia
- Osram
- Renesas
- Visteon
- ZF
