ADAS at a turning point: from innovation to industrialization

As the automotive industry pushes beyond electrification and connectivity towards true automated mobility, the main 2025 events Yole Group attended, IAA Mobility in Munich and AutoSens & InCabin in Europe/USA, offered a clear view of where ADAS is headed.

The overall message was clear: hands-free driving is entering the mainstream, sensor fusion and computing platforms are reaching maturity, and the real challenge ahead lies in scaling these systems reliably rather than simply inventing new ones.

Yole Group analysts Anas Chalak and Pierrick Boulay take a deep dive into the state of the automotive industry, shedding light on the latest semiconductor innovations, challenges, and technological breakthroughs shaping its future.

Explore the highlights you may have missed from this year’s major automotive events and gain valuable insights into the trends driving transformation across the sector.

This article also builds on Yole Group’s Automotive White Papers – Vol. 1 and Vol. 2, which provide an in-depth analysis of key domains, from ADAS and electrification to AI-driven computing and memory technologies.

Join us as Yole Group continues to navigate the semiconductor ecosystem at the core of automotive innovation.

At IAA Mobility (Sept 9-14, Munich), the show floor was more than just flashy EVs: it included live demonstrations of higher-level driving aids. A dedicated driving zone on the A94 autobahn for L3/L4 automation, showcasing scenarios such as work/ construction zone assistance, emergency-vehicle alerts, among several others. But L3/L4 is still far from being mainstream in Europe. L2+ or hands-free driving on highways is the main target of OEMs. The partnership between BMW and Qualcomm clearly highlighted this with the launch of the iX3 with Snapdragon Ride Pilot.

Sensors themselves are evolving: next-gen radar SoCs (longer range, higher resolution), thermal imaging for AEB, the fusion of camera, radar, LiDAR (where used), and AI-driven perception stacks. Sensor fusion and perception stacks, in particular, are vital to the centralization of architecture and the shift towards Software Defined Vehicles (SDV). SDV was a key topic at IAA and multiple Tier-1s showcased their platforms, including ZF, Valeo, Bosch, and Aumovio.

AutoSens & InCabin Europe 2025 brought together the entire automotive perception ecosystem: more than 1,200 attendees, 140+ exhibitors, with one in three participants representing OEMs or Tier-1 suppliers.

Experts continued the discussion on how perception technologies are evolving from hardware sensors into complete systems.

Carmakers and suppliers showed that the challenge is no longer inventing new hardware, but making sensors work together efficiently and affordably. There is a clear trend toward satellite camera architectures, where data is processed centrally rather than inside each module. This reduces redundancy but demands precise manufacturing and calibration. The number of cameras per car continues to increase, with four expected by 2030.

Speakers repeatedly emphasized cost control and reliability. In imaging, the focus is on achieving the same optical quality at a lower cost through hybrid glass-plastic lenses, simplified alignment, and automated calibration. The goal is industrial maturity: making high-performance cameras at the scale and price that the market now requires.

InCabin Europe and USA revealed how vehicles are learning to understand their occupants. Driver and Occupant Monitoring Systems (DMS/OMS) are now seen as central elements of incabin intelligence. Integrated mirror modules were among the most discussed solutions, combining cameras, infrared illumination, and processing behind the mirror glass, covering both driver and passengers without visible hardware.

These systems are not limited to compliance with Euro NCAP 2026 or GSR 2. They are becoming part of a broader ecosystem that merges safety, convenience, and personalization. The same sensors used to detect drowsiness or seatbelt misuse can also recognize occupants, adjust climate or seating preferences, and enable new in-car experiences.

A new theme that emerged strongly at Autosens & InCabin this year was the use of sensors to support a connected and personalized cabin experience.

As vehicles become extensions of digital life, cameras, radar, and microphones are being used not only for safety but also for entertainment, comfort, and productivity.

Occupant monitoring can trigger personalized settings for music, lighting, or temperature. Eye-tracking and gesture recognition can simplify infotainment control. Even work-oriented features, such as automatic posture adjustments or attention tracking during video calls, are being developed.

This expansion beyond safety illustrates how in-cabin sensing is becoming part of the vehicle’s human–machine interface, turning the car into an adaptive space: one that connects, protects, and engages its passengers.

2025 shows tell a coherent story: ADAS is entering a maturity phase. The early “pilot” era of prototypes and proof-of-concepts is giving way to deployment, a new generation of hardware, tighter validation, and real-world user experience. For OEMs and suppliers, this means the big challenge now is about cost, scale, reliability, and data rather than just capability.

Stay tuned on www.yolegroup.com for more insights!

Anas Chalak is a Technology & Market analyst, Imaging at Yole Group.

Anas is a member of the Imaging & Display team, within the More than Moore activities. He follows and researches imaging technology activity to provide market and technology analyses, and contributes to the production of relevant reports and projects.

Previously, Anas conducted research in the field of nanoscience and nanotechnology during his master’s at the “Institut des Nanotechnologie de Lyon”, France, focusing on the development of an integrated mid-infrared (MIR) photonic platform on SiGe to generate a configurable supercontinuum light source. Later, he worked for a year as a research engineer on the optical optimization of reception components for a 3D heterodyne FMCW imaging system at CEA-Leti in Grenoble, France.

Anas obtained a Master’s in Nanoscale Engineering from École Centrale de Lyon, France, where he developed a highly multidisciplinary background in micro-nanoscale phenomena and semiconductor devices, and their applications. “

Pierrick Boulay is Principal Analyst, Automotive Semiconductors at Yole Group.

Pierrick works in the fields of solid-state lighting and lighting systems, carrying out technical, economic, and marketing analyses. In addition, he leads the automotive activities within the company.

Pierrick has authored several reports and custom analyses on topics such as automotive lighting, LiDAR, sensing for ADAS vehicles, and VCSELs.

Prior to Yole Group, Pierrick has worked in several companies where he developed his knowledge of lighting and automotive. In the past, he has primarily worked in R&D departments on LED lighting applications.

Pierrick has a Master of Science in Electronics from ESEO (Angers, France).

Source: www.yolegroup.com