Driver Monitoring System Market Size, Share, Trends, Growth and Forecast 2032

Driver Monitoring System Industry Prospective:

The global driver monitoring system market size was worth around USD 3.55 billion in 2023 and is predicted to grow to around USD 10.67 billion by 2032 with a compound annual growth rate (CAGR) of roughly 13.00% between 2024 and 2032.

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Driver Monitoring System Market: Overview

A driving monitoring system is a novel safety feature in automotive vehicles designed to facilitate automotive safety during driving. It is also known as a driver state sensing (DSS) system and has witnessed a significant growth rate in recent times. It uses a mounted camera and advanced sensors to track the driver’s behavior while driving. It also assists in issuing alerts or warning signs, if the system detects distraction or neglect from the driver's end.

According to market analysis, driver monitoring systems are projected to generate significant revenue in the coming years mainly influenced by government mandates and regulatory requirements.

In addition to this, a surge in the number of road accidents worldwide has resulted in greater use of safety features in vehicles including passenger and commercial automotives. A driver monitoring system traditionally consists of two segments. The primary aspect deals with the use of hardware items such as driver-facing cameras and lasers or infrared light-emitting diodes (LEDs).

The segment component is the software program designed to collect data points from the driver, analyze the information, and react to draw the driver's attention to the road. Modern software solutions available in the market are highly advanced as they can track if the driver is blinking more than usual or even feeling drowsy thus sending alarms or alerts for preventing any mishap or accident.

Key Insights:

• As per the analysis shared by our research analyst, the global driver monitoring system market is estimated to grow annually at a CAGR of around 13.00% over the forecast period (2024-2032)
• In terms of revenue, the global driver monitoring system market size was valued at around USD 3.55 billion in 2023 and is projected to reach USD 10.67 billion by 2032.
• The market is projected to grow at a significant rate due to the favorable government policies to promote the adoption of DSS.
• Based on the vehicle type, the passenger vehicles segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the sales channel, the original equipment manufacturer (OEM) segment is anticipated to command the largest market share.
• Based on region, Europe is projected to dominate the global market during the forecast period.

Driver Monitoring System Market: Growth Drivers

Favorable government policies to promote the adoption of DSS will drive market demand rate

The global driver monitoring system market is expected to grow due to the growing number of government policies encouraging the adoption of advanced safety features in automotives. For instance, the Indian market is regulated by the mandates issued by the Ministry of Road Transport & Highways. It requires that all vehicles under the AIS-184 regulations and M, N2, and N3 categories should be equipped with Driver Drowsiness and Attention Warning Systems. Market analysis indicates that regions such as the US and European countries had regulations mainly focusing on fatigue among professional drivers.

However, the regions have recently introduced new laws requiring advanced safety-promoting parameters in all types of vehicles including passenger cars. Chapter II, Article 6 of the Regulation (EU) 2019/2144 of the European Parliament encourages the use of intelligent speed assistance, driver drowsiness and attention warning, alcohol interlock installation facilitation, advanced driver distraction warning, reversing detection, emergency stop signal, and event data recorder.

The increasing number of road accidents worldwide and surging vehicle density on roads will be crucial to the industry’s overall revenue in the long term. As per the findings of the National Safety Council, more than 13,200,000 crashes occurred in the US in 2021. Growing cases of underage and drunk driving are some of the leading causes of road accident-related fatalities.

Rising introduction of EVs and advanced automotives to generate significant market revenue

One of the key factors that could fuel greater demand for advanced monitoring systems is the surge in the production and application of electric vehicles (EVs) and highly innovative automobiles. EVs, for instance, are widely popular for leveraging sophisticated technologies that help improve the overall driving experience and offer greater safety. In addition to this, the global driver monitoring system market can benefit from the increased sale of luxury and mid-luxury vehicles in the passenger automotive segment.

For instance, in January 2024, EXEED, the luxury brand of Cherry Auto, announced the launch of the Cloud-Enhanced Driver-Assist™ system in association with WBTL ADAS and Mobileye. With this move, the company has become the first one in China to offer cutting-edge DSS tools.

Driver Monitoring System Market: Restraints

Complexities associated with integrating and maintaining DSS in existing vehicles will impact overall revenue

The global industry for driver monitoring systems is expected to be restricted due to the complexities associated with integrating DSS in existing vehicles. For instance, legacy automotives may not be compatible with advanced driver monitoring systems requiring structural and functional modifications.

In addition to this, maintenance of DSS can be expensive, especially in areas with limited access to solution providers for DSS repair and management. The adoption rate of driver monitoring systems in low-income and middle-income economies is relatively slow, further impacting overall revenue.

Driver Monitoring System Market: Opportunities

Increases rate of innovation in the industry will generate expansion possibilities in the future

The global driver monitoring system market is expected to generate growth opportunities due to the increasing rate of innovation in the industry. The key focus is on enhancing the overall performance of the device including response speed and accuracy in detecting changes in driver behavior.

In October 2024, Solaris, one of the leading producers of intercity and city buses in Europe, announced that the new drive monitoring system by Smart Eye was approved by the company for further application. Smart Eye launched the novel system in 2023. It is powered by computer vision and Artificial Intelligence (AI) for detecting early signs of drowsiness among drivers. The company had designed the tool for it to adhere to future safety regulations including upcoming camera-based driver distraction detection and General Safety Regulation mandate in Europe.

In February 2024, Rosmerta, a leading technologies company operating in the Indian market, launched an AI-powered Driver Monitoring & Alert System. The solution is integrated along with a vehicle tracking management system. The company is currently targeting fleet operators by providing them access to real-time tracking video and drive behavior monitoring using Artificial Intelligence.

Driver Monitoring System Market: Challenges

High cost of implementation and lack of standard frameworks create hurdles in the future

The global driver monitoring system industry is expected to be challenged by the high cost of developing and implementing advanced DSS. In addition to this, the industry lacks the existence of standard global frameworks and market players must invest in making changes to the technologies to meet regional legal guidelines. The process can be time-consuming and result in monetary setbacks.

Driver Monitoring System Market: Report Scope

Driver Monitoring System Market: Segmentation

The global driver monitoring system market is segmented based on vehicle type, technology, sales channel, and region.

Based on the vehicle type, the global market segments are heavy commercial vehicles, light commercial vehicles, and passenger vehicles. In 2023, the highest growth rate was listed in the passenger vehicles segment. The growing demand for personal automotives and increased vehicle density on roads is promoting a segmental growth rate. In addition to this, greater demand for safety features in passenger vehicles will help create higher revenue in the segment. In 2023, the light commercial vehicle unit held control over nearly 23.05% of the final market share.

Based on technology, the global market segments are pressure sensors, infrared sensors, camera sensors, radar sensors, Lidar sensors, and ultrasonic sensors.

Based on the sales channel, the global market divisions are aftermarket and original equipment manufacturer (OEM). In 2023, the highest return on investment (ROI) was registered in the original equipment manufacturer (OEM) segment. The introduction of new regulations worldwide promoting the use of DSS in new vehicles has helped the segment thrive in 2023. Moreover, changing consumer demands, especially toward safety features will create higher segmental revenue. Over 69% of UK citizens are reported to be in favor of installing sophisticated safety attributes in vehicles.

Driver Monitoring System Market: Regional Analysis

Europe to register the highest revenue during the projection period

The global driver monitoring system market will be led by Europe during the forecast period. Countries such as Germany, Spain, the UK, France, and others will help fuel regional market growth rates. According to the recent law in Europe for vehicle safety, all vehicles, starting 7th July 2024, should be equipped with Advanced Driver Assistance Systems (ADAS). In addition to this, consumer acceptance of safety tools in vehicles has been positive over the years further encouraging the market players to experiment with the installation of DMS.

In May 2024, the Union Technique de l'Automobile, du Motorcycle et du Cycle (UTAC) organization announced its new services to smoothen the process of implementing the latest regulations in Europe related to the installation of Advanced Driver Distraction Warning and Driver Drowsiness and Attention Warning systems. North America is a prominent market for DSS with Canada and the US leading the regional growth rate. The surge in the number of vehicle owners across North American nations will be critical to shaping the region’s overall market presence.

In 2023, North America dominated nearly 14% of the global revenue. Additionally, an increased rate of innovation and investments in cloud-based DSS systems are expected to create growth opportunities for North America.

Driver Monitoring System Market: Competitive Analysis

The global driver monitoring system market is led by players like:

• Guardian Optical Technologies
• Smart Eye
• Panasonic Automotive Systems
• Seeing Machines
• OmniVision Technologies
• Zendrive
• Tobii
• Aptiv
• Sighthound
• Nauto
• Eyesight Technologies
• Valeo
• Lytx
• Netradyne
• MINIEYE.

The global driver monitoring system market is segmented as follows:

By Vehicle Type

• Heavy Commercial Vehicle
• Light Commercial Vehicle
• Passenger Vehicle

By Technology

• Pressure Sensor
• Infrared Sensor
• Camera Sensor
• Radar Sensor
• Lidar Sensor
• Ultrasonic Sensor

By Sales Channel

• Aftermarket
• Original Equipment Manufacturer (OEM)

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa