China ADAS And Autonomous Driving Tier 1 Suppliers Research Report 2025 L2.5/L2.9 Becomes The Fastest-Growing Market Segment With The Highest Installation Rate In New Cars

(MENAFN- GlobeNewsWire - Nasdaq) "ADAS and Autonomous Driving Tier 1 Suppliers Report, 2025: Chinese Upheaval in Assisted Driving 2.0 - Seven Key Trends"Explore the rise of domestic Tier 1 ADAS suppliers in 2025 as they outpace international competitors with advancements in mid-range chips and algorithm hardware synergy. Discover the rapid market penetration of L2.5/L2.9 in China and the transformation from high-end options to nationwide standards, all while global expansion and emerging intelligent driving trends redefine industry dynamics.

Dublin, Sept. 09, 2025 (GLOBE NEWSWIRE) -- The "ADAS and Autonomous Driving Tier 1 Suppliers Research Report, 2025 - Chinese Companies" report has been added to ResearchAndMarkets's offering.
Research on Domestic ADAS Tier 1 Suppliers: Seven Development Trends in the Era of Assisted Driving 2.0

In the L2 era, international ADAS Tier 1 suppliers monopolized the market with their first-mover technology advantage. When the industry entered the arena of L2 + and above (L2 +, L2.5, L2.9), domestic ADAS Tier 1 suppliers relied on three core capabilities to achieve breakthroughs - performance optimization of mid-range computing chips, algorithm hardware coordination of end-to-end architecture, and rapid response of localized scenarios, gradually becoming the dominant force in the market.
This qualitative change in the industry is directly reflected in the continuous expansion of domestic ADAS Tier 1 suppliers in 2022: The publisher's first report domestic ADAS Tier 1 suppliers only covered 7 companies, focusing on the implementation of basic functions; in 2023, it increased to 12 companies, incorporating algorithm-driven emerging players; in 2024, it expanded to 20 companies, covering cross-border transformation players; and in 2025, it included 25 companies.
The publisher systematically deconstructs the strategic layout (global expansion, cross-border technology), technical paths (chip selection, end-to-end intelligent driving iteration), and product portfolio strategies (intelligent driving solutions, driving-parking integration, cockpit-driving, driving-parking integration, central computing platforms and other domain control products) of 25 domestic ADAS Tier 1 suppliers in 2024-2025, and summarizes seven major evolution trends:

Trend 1: L2.5/L2.9 becomes the fastest-growing market segment with the highest installation rate in new cars

From the perspective of the incremental market (newly launched vehicles), the domestic intelligent driving installation pattern of passenger cars shows a significant trend of differentiation during 2023-2025. L2.5/L2.9 intelligent driving has grown by leaps and bounds. Only 4.57% and 3.3% of new models launched in 2023 were equipped with L2.5 and L2.9 smart driving, respectively. However, by January-April 2025, the proportion of new cars equipped with L2.5 smart driving had soared to 30.20%, and L2.9 34.82%, showing strong market penetration.
The installation rate of traditional L1-L2 intelligent driving functions continues to decline, reflecting that consumers' demand for higher-level intelligent driving functions is reshaping the market structure.

Trend 2: In 2024-2025, intelligent driving entered the 'turning point" in terms of popularization, from a 'high-end optional' to a 'nationwide standard'

In 2023, L2.9 ADAS functions targeted mid-range and high-end models. From the perspective of installation rate, models with a price of RMB250,000-300,000 and above RMB300,000 had a higher installation rate. Specifically, models with a value of RMB 250,000 to RMB 300,000 had the highest L2.9 installation rate which increases from 23.4% in 2023 to 53.5% in January-April 2025. The L2.9 installation rate of high-end models worth RMB 500,000 or more grew the fastest from 7.5% in 2023 to 32.2% in January-April 2025.
As the roadmap for intelligent driving technology gradually becomes clearer, many OEMs are focusing on urban NOA in terms of technology paths, city coverage, application and costs. Competition has entered a fierce stage. Since 2024, L2.9 has begun to spread. It first descended to models priced between RMB150,000 and RMB200,000 in 2024 and further covered models priced at RMB100,000~150,000 This shows that users' recognition and acceptance of high-level autonomous driving are gradually increasing,and high-level autonomous driving also reflects the core competitiveness of many OEMs.

Trend 3: Tier 1 suppliers of ADAS gradually form five major competitive camps

After multiple rounds of market competition, domestic Tier 1 suppliers of smart driving have gradually formed five major competitive camps. Each camp relies on differentiated technology paths and resource endowments to build unique market competitiveness:

Trend 4: Global layout accelerates, and domestic Tier 1 ADAS suppliers embark go overseas

In the era of Assisted Driving 2.0, the speed of technology iteration and localized response capabilities have become new competitive factors. Chinese companies are breaking the traditional supply chain pattern with rapid innovation in the fields of smart cockpits, domain controllers, etc. (such as cockpit-driving integration solutions, multi-sensor fusion algorithms), as well as the cost advantages brought by large-scale production.
For domestic leading Tier 1 ADAS suppliers, relying on stable growth in cash flow and deep technical accumulation, accelerating global layout has become their core strategy to break through the market ceiling and enhance international competitiveness.
For example, Desay SV is building a globally competitive intelligent driving solution system through a combination strategy of 'product adaptation + local development + ecological integration'. From 2020 to 2024, its overseas revenue increased year by year with a compound growth rate of 28.9%, reaching RMB1.708 billion in 2024.
In terms of product layout in overseas markets, Desay SV and other companies have become important partners for overseas OEMs seeking 'intelligent upgrades'. In April 2025, it demonstrated the 'chip platform + intelligent solution" collaborative model built in deep cooperation with NVIDIA and Qualcomm.

Trend 5: The emerging medium-computing-power intelligent driving chips have become the core carrier for balancing performance and cost

The publisher 's survey on the new solutions of 25 domestic Tier 1 ADAS suppliers in 2024-2025 shows that L2.5/L2.9 mainly requires the computing power of 80-150TOPS (automotive-grade AI computing power), which is exactly offered by mid-range chips - compared with high-end chips (300TOPS and above), their unit computing power cost is reduced by more than 60%, and they can cover more than 90% of scenarios through algorithm optimization, accurately matching the mainstream market's demand for 'uncompromising performance, affordable cost'.

Trend 6: Amid the accelerated evolution of end-to-end models, the domestic intelligent driving industry chain is transforming from 'computing power competition' to 'algorithm-hardware collaborative optimization'

Starting from 2023, the evolution of end-to-end models has accelerated, and the domestic intelligent driving industry chain is transforming from 'computing power competition' to 'algorithm-hardware collaborative optimization'. Major intelligent driving chip companies have promoted intelligent driving technology to a wider market through ecological layout. From the perspective of mass production and delivery, the leading Tier 1 ADAS suppliers made breakthroughs in mass production based on end-to-end model architectures and covered many models from AITO, IM, WEY Blue Mountain, Li Auto and so on in 2024-2025.
In the dimension of technological evolution, Tier 1 ADAS suppliers accelerate breakthroughs through architecture iteration and model upgrades. Huawei built an end-to-end perception base with GOD 2.0 + RCR 2.0 in 2023, and it advanced to WEWA to realize a 'vehicle-cloud' behavior model closed loop in 2025. SenseAuto transitioned from 'perception integration' to UniAD in 2023-2024, and launched a generative intelligent driving solution in 2025, introducing reinforcement learning. With the help of 'world model + reinforcement learning', vehicles will have long-term thinking chain reasoning capabilities and make human-like decision-making. In April 2025, QCraft officially announced a one-model end-to-end solution based on a single Horizon J6M chip.

Neusoft Reach launched the next-generation two-model end-to-end solution at the end of 2024: AI Co-Driver (world restoration model) + AI Planner (decision-making & planning model)

Neusoft Reach's full-stack self-developed end-to-end model architecture is based on the AI Co-Driver. Through heterogeneous sensor fusion, the real physical world is mapped into high-dimensional vector data to provide a basis for decision-making; on the other hand, based on the AI Planner, it combines physical laws with human common sense modeling to achieve a closed loop in complex scenarios. In order to solve problems like the 'black box principle', high debugging difficulty and poor explainability of AI foundation model technology, the company has established an intrinsic safety layer for foundation model applications, aiming to empower all L2 assisted driving products with functional safety mechanisms, SOTIF mechanisms and a full-process quality system for safe development that meet the safety requirements of advanced assisted driving, and significantly improve the overall safety level.

Trend 7: Tier 1 ADAS suppliers accelerate the layout in EAI and seek a second growth curve driven by technology homology

In essence, Tier 1 ADAS suppliers enter the EAI arena to build a new growth engine through 'automotive intelligent technology spillover'. Intelligent driving and EAI are highly reused at the level of sensors (lidar/cameras), computing power platforms (automotive-grade chips), and algorithms (path planning/motion control). Tier 1 ADAS suppliers can embark on the pan-robotics field with 'automotive-grade technology'. From the perspective of the products deployed, there are 'hardware migration' and 'software empowerment'; from the perspective of access, acquisition, investment, establishment of subsidiaries, etc. are the ways.

Key Topics Covered:

1 In-depth Analysis on the Chinese ADAS Market

• Installation Volume and Installation Rate of Passenger Car ADAS System in China, 2023-2025
• ADAS Solutions for Passenger Cars in China, 2023-2025
• Four Major Trends in China's Intelligent Driving Market, 2023-2025
• Exploration of Competitive Pattern between Tier 1 Suppliers in China

2 Comparison of Products and Solutions between Tier 1 Suppliers

• 6 Major Strategic Priorities of Tier 1 ADAS Suppliers in China in 2025
• Comparison of Radar Layout between Major Tier 1 Suppliers in China
• Comparison of Front View Camera Layout between Major Tier 1 Suppliers in China
• Front View Camera Evolution of Tier 1 Suppliers
• Comparison of Lidar Layout between Major Tier 1 Suppliers
• Lidar Evolution
• Comparison of Intelligent Driving Solutions between Major Tier 1 Suppliers in China

3 Products and Solutions of Tier 1 Suppliers

• Desay SV
• Jingwei Hirain
• Baidu Apollo
• Huawei
• Neusoft Reach
• Freetech
• iMotion
• SenseAuto
• Yihang
• MAXIEYE
• Momenta
• MINIEYE
• PhiGent Robotics
• NavInfo
• QCraft
• Zhuoyu Technology
• Horizon Robotics
• Joyson Electronics
• Huaqin Technology
• TZTEK
• Lenovo Vehicle Computing
• KEBODA
• Baolong Automotive
• Qianli Technology

4 Exploration of Competition & Cooperation in Tier 1 Industry Chain

• Supply Chain Relationships in China's Intelligent Driving Market
• Exploration of Cooperation Model between Tier 1 Suppliers and OEMs in China
• Exploration of Cooperation Model between Tier 1 Suppliers and Chip Vendors in China
• Exploration of Software Development and Cooperation between Tier 1 Suppliers in China

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