Driver Monitoring System Market– Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Passenger Car, Commercial Vehicle), By Monitoring Type (Driver State Monitoring, Driver Health Monitoring), By Technology Type (Image Sensing, Pressure Mats, Infrared Sensing, Strain Gauges, Steering Angle Sensors, Interior Camera, Others), By Region & Competition, 2020-2030F

Market Overview:

Global Driver Monitoring System Market was valued at USD 1.29 Billion in 2024 and is expected to reach USD 2.08 Billion by 2030 with a CAGR of 8.30% during the forecast period. The global driver monitoring system (DMS) market is witnessing robust momentum as automotive manufacturers integrate advanced safety technologies to address rising concerns over driver distraction, fatigue, and inattentiveness. Growth is driven by the increasing adoption of Level 2 and Level 3 autonomous vehicles that require reliable in-cabin monitoring to ensure driver readiness and engagement. For instance, the automotive industry is undergoing a significant transformation with the rise of connected vehicles. Studies indicate that by 2030, nearly all new vehicles sold around 95% will be equipped with connectivity features. Stringent regulatory frameworks mandating safety systems such as camera-based driver attention detection, particularly in premium and commercial vehicle segments, are accelerating system integration across model portfolios. Trends in the market include a shift from camera-only solutions to multi-sensor platforms incorporating infrared sensors, eye-tracking algorithms, and facial recognition technologies to enhance accuracy in real-time behavioral detection.

Market Drivers

Regulatory Push for In-Cabin Safety Technologies

Governments and safety authorities across the globe are introducing mandates to ensure vehicles are equipped with driver monitoring systems (DMS), particularly in light of rising incidents linked to drowsy or distracted driving. Regulatory frameworks are evolving to require technologies capable of detecting driver attentiveness and issuing alerts to reduce collision risks. This regulatory momentum is catalyzing adoption across both passenger and commercial vehicle categories. DMS is increasingly being positioned as a mandatory safety component, alongside seatbelt reminders and airbags. The scope of such mandates is expected to broaden with the advancement of autonomous driving levels, where a clear distinction between active and passive driving modes must be established. As a result, automotive OEMs are under pressure to meet these evolving compliance benchmarks, thereby fueling demand for camera-based and sensor-integrated driver monitoring systems.

Rising Integration in Semi-Autonomous Vehicles

The progression toward semi-autonomous driving, especially Levels 2 and 3, has led to growing dependence on in-cabin monitoring to ensure driver engagement. DMS acts as a crucial fail-safe mechanism by determining whether the driver is alert and capable of taking control when needed. Without such a system, reliance on automation can increase risk rather than reduce it. This has positioned DMS as a key enabler in bridging manual and autonomous driving capabilities. Automakers are leveraging advanced sensors and AI to offer real-time feedback on driver behavior, head movement, gaze direction, and eyelid closure. These systems not only support safe vehicle handovers but also allow deeper analytics and system adaptation based on driving behavior. For instance, the demand for connected vehicles is rising, driven by increasing consumer expectations for advanced in-car technology and seamless connectivity. Hyundai India has surpassed 675,000 connected car sales since 2019, reflecting the growing preference for smart mobility solutions. In 2023 alone, Hyundai recorded sales of 185,000 connected cars, a 24% growth compared to 2022, when the figure stood at 149,000 units. The brand’s connected car penetration has reached 36% in its overall sales, showcasing the rapid adoption of in-car connectivity features.

Shift Toward AI-Powered Behavior Recognition

Traditional monitoring tools are evolving into intelligent systems driven by AI and machine learning algorithms. These platforms can now predict risky driving behavior by analyzing subtle cues such as facial micro-expressions, blinking frequency, steering irregularities, and posture changes. This advancement significantly enhances the capability of DMS to preempt fatigue or distraction before it escalates into a hazard. As AI models are trained with diverse driving behavior datasets, the accuracy of these systems improves, enabling nuanced responses such as activating lane-assist features, slowing down the vehicle, or issuing audio-visual alerts. The shift toward behavior prediction rather than reaction opens up new design possibilities in automotive safety architectures. For instance, in 2022, 42,795 people lost their lives in vehicle crashes, with 94% of these incidents attributed to human error. Autonomous vehicles (AVs) have the potential to eliminate or significantly reduce human error, which could lower fatalities by up to 90%, potentially saving USD 190 billion annually. The U.S. AV market is projected to exceed USD 75 billion by 2030, reflecting a 350% growth from 2023. Furthermore, last-mile AVs for public transportation demonstrated over 33% energy savings compared to private vehicles.

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Key Market Challenges

System Accuracy in Diverse Operating Conditions

A major challenge facing driver monitoring systems is maintaining consistent performance across different lighting, weather, and user behavior scenarios. Infrared cameras and facial recognition sensors can suffer from degraded performance in extreme sunlight, nighttime conditions, or when drivers wear sunglasses or masks. This limitation undermines reliability, leading to false negatives or false positives, which can diminish user trust in the system.

Cost Constraints in Mass Market Deployment

Despite the safety benefits, the inclusion of advanced DMS poses cost concerns for OEMs aiming to introduce the technology in entry-level and mid-range vehicles. High-resolution cameras, thermal imaging sensors, and AI processors significantly increase the bill of materials and system complexity. While premium segments can absorb the additional costs, price-sensitive markets may resist adoption unless costs are reduced. OEMs are exploring modular or software-based systems that can use existing vehicle hardware to reduce integration expenses.

Key Market Trends

Expansion into Fleet and Commercial Applications

Driver monitoring systems are finding growing adoption in fleet-operated vehicles such as trucks, buses, and delivery vans, with the rising demand for commercial vehicle globally. For instance, as per the OICA production data, Global commercial vehicle production surged in 2024, reaching over 26.4 million units, marking a 10% year-on-year increase, as industries worldwide ramped up output to meet post-slowdown demand and infrastructure expansion. Commercial fleet operators view DMS as a tool to reduce liability, ensure regulatory compliance, and improve driver performance. These systems can track behavior like phone usage, seatbelt compliance, drowsiness, and reckless driving, allowing fleet managers to act on real-time alerts or long-term analytics. With rising fuel costs and operational risks, fleets are investing in telematics-integrated DMS to drive efficiency and safety. This trend opens a broad use-case for aftermarket DMS installations and data-driven driver scoring. This trend offers room for inclusion of fleet DMS penetration rates, accident reduction statistics, and telematics system adoption figures.

Integration with In-Cabin Personalization Features

Beyond safety, DMS is being used to enhance in-cabin user experience. Automakers are repurposing facial recognition and eye-tracking data to adjust seat position, climate control, infotainment settings, and ambient lighting based on driver preferences. This dual-functionality approach transforms DMS into a value-adding feature that supports luxury, convenience, and brand differentiation. By offering comfort alongside safety, automakers can justify the inclusion of DMS in mid- to high-end vehicles. The personalization trend aligns with rising consumer demand for tailored driving experiences. Data points like in-vehicle software usage, personalization feature adoption, and biometric interface growth rates can be used to back this trend.

Rise of Edge AI for Onboard Processing

Driver monitoring systems are increasingly adopting edge AI technologies to process data locally within the vehicle, rather than relying on cloud-based systems. Edge computing ensures faster response times, lower latency, and enhanced data privacy by keeping personal driver data on-board. This shift is driven by advancements in compact, high-efficiency AI chipsets capable of handling video analytics, facial recognition, and emotion detection. Edge AI not only enhances performance but also aligns with evolving data protection regulations. It facilitates real-time intervention without the risk of connectivity disruptions. Supporting data such as growth in edge AI chip shipments, latency benchmarks, and onboard computing capacity by vehicle model can be incorporated.

Segmental Insights

Monitoring Type Insights

In 2024, driver state monitoring emerged as the dominant segment within the global driver monitoring system market by monitoring type. This dominance is attributed to its critical role in enhancing on-road safety by detecting signs of driver fatigue, distraction, drowsiness, and inattentiveness in real time. With increasing automation in vehicles, driver state monitoring became essential to ensure that the human driver remains alert and capable of taking control when required. Technologies such as facial recognition, eye-tracking, and head movement sensors have been widely adopted to continuously assess the driver's attention level, especially in vehicles operating under semi-autonomous modes. Regulatory initiatives and vehicle safety assessment programs emphasized the integration of such monitoring systems, pushing automakers to implement robust driver state tracking features across various vehicle segments. Rising consumer awareness and demand for safety features further encouraged adoption of these systems in both personal and commercial vehicles.

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Regional Insights

In 2024, Europe & CIS led the global driver monitoring system market due to strict vehicle safety regulations and the rapid integration of advanced technologies in vehicles. Mandates for in-cabin driver attentiveness systems pushed automakers to deploy sensor-based monitoring solutions in line with evolving Euro NCAP protocols. Strong consumer demand for tech-enabled safety features supported the region’s dominant position.

Recent Developments

• In 2025, Hyundai is developing AI-powered in-car cameras to detect careless driving behaviors like phone use and drowsiness. The system monitors drivers in real time and issues alerts to enhance road safety.
• In 2025, Hyundai Mobis has launched a smart in-car monitoring system that alerts drivers when they use phones, skip seatbelts, show fatigue, or smoke, aiming to boost safety through real-time behavior detection.
• In 2025, Chinese researchers unveiled a laser-powered drone capable of near-indefinite flight by wirelessly recharging via high-energy beams. Featuring vision-based tracking and adaptive beam-shaping, the system maintained power delivery across various conditions, enabling 24-hour endurance for surveillance, disaster response, and long-range missions.
• In 2024, Magna has introduced an in-cabin safety system using facial monitoring and a breath sensor to detect driver impairment from alcohol, distraction, or fatigue, aiming to prevent unsafe driving and enhance road safety.

Key Market Players

• Denso Corporation
• Valeo S.A.
• Continental AG
• Robert Bosch GmbH
• Delphi Automotive PLC
• Visteon Corporation
• Veoneer Inc
• Jabil Inc.
• Texas Instruments
• Magna International Inc

Report Scope:

In this report, the global Driver Monitoring System Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•           Driver Monitoring System Market, By Vehicle Type:

o    Passenger Car

o    Commercial Vehicle

•          Driver Monitoring System Market, By Monitoring Type:

o    Driver State Monitoring

o    Driver Health Monitoring

•           Driver Monitoring System Market, By Technology Type:

o    Image Sensing

o    Pressure Mats

o    Infrared Sensing

o    Strain Gauges

o    Steering Angle Sensors

o    Interior Camera

o    Others

•          Driver Monitoring System Market, By Region:

o    North America

§  United States

§  Canada

§  Mexico

o    Europe & CIS

§  Germany

§  France

§  U.K.

§  Spain

§  Italy

o    Asia-Pacific

§  China

§  Japan

§  India

§  Vietnam

§  South Korea

§  Australia

§  Thailand

o    Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

o    South America

§  Brazil

§  Argentina

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the global Driver Monitoring System Market.

Available Customizations:

Global Driver Monitoring System Market report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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