Despite a clear growth trajectory, leading autonomous vehicle providers currently face challenges as manufacturers struggle to move from Level 2 (partial driving automation where the driver is legally responsible) to Level 3 (conditional driving automation where the manufacturer assumes liability) and Level 4 (fully autonomous driving), but research from the analyst Berg Insight predicts higher autonomy is speeding up.
Indeed, the second edition of The global Adas and autonomous car market study found that in all, 55.6% of all sold cars globally fulfilled requirements for SAE level 1 (L1) automated driving and higher levels in 2025. By 2031, the percentage is expected to reach 76.9%. In addition, the percentage of new cars sold fulfilling L2 automated driving capabilities is forecast to grow from 35.6% in 2025 to 57.3% in 2031.
Berg Insight noted that as a subset of the L2 category, L2+ provides additional features compared with L2 systems. It estimates that eight million new passenger cars sold globally in 2025 were equipped with L2+ advanced driver assistance systems (Adas) capabilities, corresponding to an attach rate of 9.2%. This number is expected to reach 28.4 million units in 2031, corresponding to an attach rate of 31.0%.
In addition, the analyst expects about 4.8% of all new cars sold in 2031 to feature L3 capabilities. It does not believe that L4 passenger cars will scale in meaningful volumes before 2031.
A key finding of the report was that advanced Adas has now become a major differentiator in the industry. While current automakers mainly focus on L1 and L2/L2+ Adas functions, the report highlights how BMW and Mercedes-Benz have both offered L3 systems, but recently reduced their near-term emphasis on L3 and shifted focus toward more scalable L2+ systems.
In addition, Berg emphasises how Adas functions are no longer limited to premium vehicles. Mass market manufacturers are also seen to be prioritising Adas as safety ratings, regulatory requirements and competitive pressure make advanced driver assistance increasingly important across vehicle segments. Berg stresses how the regulatory environment for Adas and automated driving is playing a major role in shaping the future for the industry.
Looking regionally, the report also shows that Chinese original equipment manufacturers (OEMs) are among the most active in the deployment of sophisticated L2/L2+ Adas. Leading Chinese OEMs include BYD Auto, Changan, Chery, Geely, GWM, Leapmotor, Li Auto, NIO, Saic and XPeng.
Other OEMs cited for offering sophisticated Adas include, for example, Tesla, with its Full Self-Driving (Supervised), Ford (BlueCruise), General Motors (Super Cruise), Nissan (ProPilot 2.0/2.1), Toyota (Teammate Advanced Drive), Hyundai Motor Group (Highway Driving Assist 2), Volkswagen (IQ.Drive/Travel Assist) and Audi (Adaptive Driving Assistant Plus).
Looking at the autonomous vehicle ecosystem, the study reports that there are a number of categories of suppliers serving the market including Tier 1s, semiconductor service providers, AD software companies, Lidar suppliers and map providers. Leading global Tier 1 suppliers include Aptiv, Astemo, Aumovio (formerly Continental), Bosch, Denso, Desay SV, Forvia, HL Klemove, Hyundai Mobis, Jingwei Hirain, Magna International, Valeo and ZF Group.
The automotive semiconductor landscape for Adas and automated driving includes both providers of central compute platforms and suppliers focused on enabling semiconductor content.
Leading providers of semiconductor services highlighted by Berg include AMD, Ambarella, Black Sesame Technologies, Horizon Robotics, Infineon, Horizon Robotics, Mobileye, Nvidia, NXP Semiconductors, Qualcomm, Renesas Electronics, STMicroelectronics and Texas Instruments.
Adas software and integrated driving system providers such as Deeproute.ai, Huawei, Momenta, QCraft, Wayve, WeRide and Zhuoyu Technology are noted as being able to develop automated driving stacks, perception software and turnkey assisted-driving systems for OEMs.
Furthermore, other notable companies in the ecosystem are those firms specialising in Lidar sensors for higher-end Adas and automated driving applications. The report shows the leading Lidar sensor providers currently include Hesai Technology, Innoviz, RoboSense and Seyond. Mapping and navigation platform providers such as Amap (AutoNavi), Dynamic Map Platform, Here Technologies, NavInfo, Mapbox and TomTom provide mapping, navigation and localisation offerings.
