ADAS Aftermarket

ADAS Aftermarket Snapshot

[322 Pages] According to Persistence Market Research, the ADAS Aftermarket revenue totalled US$ 1,058.2 Mn for 2022. The top 5 market players will have a sizable share of the ADAS Aftermarket in 2022, driving up demand for ADAS Aftermarket. The overall ADAS Aftermarket is expected to reach US$ 2,774.1 Mn by 2033, growing at a CAGR of 9.1% from 2023 to 2033.

The advanced driver assistance system (ADAS) includes a wide array of active and passive devices designed to support the driver by enhancing the safety and security of the driver, passengers, and pedestrians while driving. It has many crucial components that aid in the system's proper operation, including cameras, sensors, software, and radar. Automated or driverless vehicles are becoming increasingly popular around the world. The market for vehicle ADAS aftermarket is propelled by the improved environment perception made possible by the sensor fusion method. Additionally, it is projected that the rules governing safety systems would accelerate the growth of the market for ADAS Aftermarket.

The global ADAS Aftermarket accounts for ~ 32 to 35% of its parent market of the ADAS market.

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Demand Analysis of ADAS Aftermarket from 2017 to 2022 Vs Market Outlook for 2023 to 2033

From 2017 to 2022, the market for ADAS Aftermarket increased at a 6.8% CAGR and is projected to grow at a value of a CAGR of 9.1% in the forecast period 2023 to 2033. Because of the introduction of new breakthroughs, the automobile industry is expanded and still expanding over the years, which accelerated the growth of the ADAS aftermarket sector in the historic period. As a result, major suppliers of ADAS technology are adapting their business plans to match consumer preferences in order to keep up with the pace of this industry.

The covid-19 pandemic severely impacted the aftermarket of ADAS in the historic period, as major automotive spare parts manufacturers were forced to suspend their production facilities due to the spreading of infection in various regions of the world. However, at the end of 2021, the market for ADAS aftermarket is showing steady and expected recovery as the manufacturing facility of automakers resumes when the infection graph gets declined. Moreover, the ADAS aftermarket for automobiles will expand as a result of the ongoing price reduction of sensors like radars and cameras brought on by their increased use in the automotive industry. This is anticipated to boost the market to reach US$ 2,774.1 Mn by the end of 2033, in contrast with the market of US$ 763.3 Mn in the year 2017.

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What are the drivers for the ADAS Aftermarket?

The primary factor driving ADAS Aftermarket is the surge in demand from automotive manufacturers from the global automotive sector, rising awareness towards the safety and comfort of passenger cars, and stringent government regulations.

In the upcoming years, the overall market growth is anticipated to be impacted by the increased demand for cutting-edge technologies including night vision, drowsiness monitoring, and road sign recognition systems. Due to rising government rules to boost road safety and decrease accidents, the demand for traditional ADAS systems, such as autonomous emergency braking systems and adaptive cruise control systems, is anticipated to increase tremendously. The introduction of self-driving automobiles is expected to transform commuting. The complexity of driving has been decreased owing to ADAS technologies' features including lane monitoring, emergency braking, stability controls, and others. Autonomous vehicles use cutting-edge systems and technology, such as LiDAR, radar, ultrasonic sensors, and high-definition cameras, to collect data. The number of benefits provided by the ADAS system is driving the targeted market.

However, the average lifespan of automobiles has grown due to innovation in the automotive industry. Customers are maintaining their old cars rather than exchanging them or scrapping them. There is a tremendous demand for ADAS due to the growth in vehicle age. This also positively influenced the market and is predicted to benefit the ADAS aftermarket similarly in the forecasted period.

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What are the Key Opportunities for ADAS Aftermarket Manufacturers across the Globe?

The lucrative growth opportunities like the electrification of vehicles, a trend of autonomous driving in the vehicle, and the introduction of multifunctional sensors in the developing automotive industry are set to pave the market development for the ADAS aftermarket in the upcoming years.

In the area of vehicle automation, the electrification of vehicles is generating abundant growth potential. Therefore, the majority of the industry leaders are making substantial investments in autonomous vehicle technology. One of the key conditions for vehicle automation is ADAS integration. Companies are anticipated to achieve a near-to-accurate level of vehicle automation through the integration of various ADAS sensors, including radar, LIDAR, and cameras. These multifunctional sensors are used lucratively in electric and autonomous cars producing market growth opportunities for ADAS aftermarket.

However, the need for ADAS technology is anticipated to increase as consumers want more vehicle-based safety features in cars to assist the driver and prevent collisions of vehicles. Also, launching cutting-edge ADAS system parts with a range of operational advantages while also adhering to market rules will aid market participants in maintaining product differentiation and fortifying their positions in the global ADAS market. These various beneficial factors create growth opportunities for the ADAS aftermarket manufacturers.

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Country-wise Analysis

How is the US market for ADAS Aftermarket likely to explode?

U.S. is one of the most lucrative markets for ADAS Aftermarket in the North America region, and it is hold around 23.8% value share of the global ADAS Aftermarket.

The presence of prominent automotive and spare parts manufacturing companies and the rapid adoption of ADAS systems in the vehicle are leveraging the growth of the ADAS aftermarket in this region. Additionally, the US holds a significant share of the ADAS aftermarket due to its improved economic conditions across the industry, rising mortality rates, and rise in high-end vehicle sales.

Where Does China stand in the market for ADAS Aftermarket?

In 2023, ADAS Aftermarket demand in China is anticipated to grow at a 9.3% CAGR. Across the East Asia region, China is expected to hold a prominent share of the global market during the forecast period of 2023–33.

The rising use of cutting-edge electronics in the automotive industry and the significant production of automobiles and electric vehicles in China are both responsible for the country's rise in the ADAS aftermarket. Government policies like the adoption of adaptive cruise control and emergency brake systems are meant to entice local OEMs to enter the market.

What is the Outlook for the ADAS Aftermarket in Europe region?

Europe is anticipated to expand at a CAGR of 8.8% from 2023 to 2033. Throughout the forecast period of 2023–2033, Europe is anticipated to hold a significant share of the global market.

The region’s National authorities have been actively promoting ADAS research and policy for the past ten years. To expedite the adoption of these ground-breaking transport innovations across Europe, a regulatory framework was adopted. The EU is urged to prioritize the long-term development of systems with a high potential for safety improvement and work toward the early implementation of systems with benefits for safety. This increasing adoption with stringent government regulation increases the sales ADAS system and its aftermarket in the region.

Category-wise Insights

Which Vehicle Type of ADAS Aftermarket remains Significant?

The passenger vehicles segment leads the ADAS Aftermarket by vehicle Type and it is having a value share of 64.5% in the global market.

The deployment of the ADAS systems in passenger vehicles is more when compared with other types of vehicles. Passenger vehicles are involved in the greatest number of fatality incidents worldwide. To reduce this accident number and for driver safety, the installation of the ADAS system is being done in passenger vehicles in large numbers. ADAS systems such as driver monitoring systems (DMS) and night vision systems (NVS) are installed in a heavy number of passenger vehicles globally; this increases the market for ADAS aftermarket worldwide.

Which sales channel account for Higher Sales in the ADAS Aftermarket?

The OES (Original Equipment Suppliers) segment dominates the global ADAS Aftermarket by sales channel and is expected to hold its position until the end of the forecast period, having a value share of 54.2%.

OES has a franchisee to sell OEM components from a particular business. Due to the public's increasing demand for using genuine replacement parts for cars, the number of OES is increasing in multiple regions. Due to the growing importance of vehicle safety, owners are spending a significant amount on preventative measures and servicing their vehicles at OES, owing to which this segment has a prominent share in the targeted market.

Competitive Landscape

The global ADAS aftermarket is highly consolidated and competitive. The key players in the ADAS aftermarket are striving for a larger market share by using a variety of business strategies, such as joint ventures, agreements, and player acquisitions and mergers throughout the value chain. Additionally, manufacturers continuously introduce new products to meet consumer demand while focusing on product quality and efficient service delivery.

Some of the key developments are:

• In April, 2021, Denso Corporation developed advanced driver assistance products for new Lexus LS, and Toyota Mirai.
• In September 2021, Continental AG and Beijing Horizon Robotics Technology R&D Co., Ltd. announced a Joint Venture contract.

ADAS Aftermarket Industry Report Scope

Key Segments Covered in ADAS Aftermarket Industry Research

By System Type

• Adaptive Cruise Control
• Adaptive Front Light
• Automatic Emergency Braking
• Blind Spot Detection
• Driver Monitoring Systems
• Forward Collision Warning
• Lane Departure Warning / Lane Keep Assist
• Park Assist
• Tire Pressure Monitoring Systems
• Night Vision Systems

By Technology

• Ultrasonic Sensors
• Lidar Sensors
• Radar Sensors
• Camera Sensors
• Infrared Sensors
• Pressure Sensors

By Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

By Sales-Channel

• OES (Original Equipment Suppliers)
• IAM (Independent Aftermarket)

By Region

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa