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In-cabin Monitoring System (ICMS): Technology, Market, Opportunities, Competition, 2025-2035

Driver Monitoring System (DMS) and Occupant Monitoring System (OMS) using Infrared (NIR), 3D sensing (VCSEL in ToF), Wide-angle Cameras, and Radar; in-cabin 3D sensing market for ADAS and autonomous vehicles; OEM, Tier 1, and Tier 2 supplier mapping

Published: 05 Mar 2025

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Key Highlights

This 80+ pages study examines the in-cabin 3D sensing market applications of active driver monitoring, occupant monitoring, child-detection monitoring for ADAS (level 1, level 2, level 2+), autonomous vehicles (level 3, level 4), and robotaxis

ADAS equipped passenger vehicle sales, 2024 and beyond
Total addressable market for in-cabin monitoring system (ICMS) for DMS and OMS
In-cabin sensing system equipped vehicles and future demand by ADAS and autonomous vehicles
In-cabin sensing technologies – Infrared, 3D Sensing, Wide-angle camera, radar shipment and TAM value
Status of in-cabin 3D sensing market for DMS and OMS across China, United States, and Europe
Sales Demand for VCSEL and Photodetectors (APD, SiPM, SPADs)
Industry Partnerships – DMS and OMS suppliers with OEMs and Tier 1s
Status of competition between leading Tier 1 suppliers
Drivers, Challenges, and Opportunities for stakeholders

Exhaustive Coverage

This report covers-

Passenger Vehicle Sales Trends- 2023-2024 (Historical), 2025-2035

ADAS and Autonomous Vehicle Sales Trends, breakdown by Levels of Automation

ADAS /Level 2 and below
Level 2 and Above- Conditional Automation, Highway AutoPilot and Park Pilot, Robotaxis

Market Penetration of ICMS (DMS & OMS) in each level of autonomy -

Market Penetration of DMS across China, US, Western Europe, Japan, S.Korea, Canada, Eastern Europe, Asia Pacific, Middle East & Africa, and South America

Market Volume/ Number of Vehicles equipped with ICMS technology

In-cabin Monitoring Systems (ICMS) by Applications

In-cabin DMS Applications
In-cabin OMS Applications
In-cabin Gesture Recognition Systems Applications

Market Penetration of Infrared (NIR) camera-based sensing in DMS and OMS Market

Penetration of Radar (mmW/4D) based sensing in DMS and OMS

Market Penetration of 3D Sensing (VCSEL and ToF) based system in DMS and OMS

Market Penetration of LiDAR based sensing in DMS and OMS

Calculated ASPs of 3D Sensing, Infrared Camera Sensing, and Radar Sensing Technology

Market Size by Value of 3D Sensing, Infrared Camera Sensing, and Radar Sensing Technology for DMS and OMS Applications

Potential impact of -

Regulations Mandating Driver Monitoring System in EU, US, China and others.
Partnership mapping of DMS and OMS sensing system providers and Tier-1s with OEMS
Impact on sales volume, 2025-2035
Mass production volume by leading players
Impact on the product pricing

Components used in In-cabin Monitoring System (ICMS)- Penetration, market volume (2025-2035), partnership mapping with system providers, trends and leading players

VCSEL in ToF technology
IR LED
Avalanche Photodiodes (APDs)
SiPM (Silicon Photomultiplier)

Market Overview

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. This new report Edition 2025 of In-Cabin Monitoring Systems 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.

Technology Comparison

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.

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.

Competition

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 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?