ADAS Aftermarket

Market Study on ADAS Aftermarket: Demand for Park Assist Systems to Remain Highest Over Decade

ADAS Aftermarket Market Segmented By Adaptive Cruise Control, Adaptive Front Light, Automatic Emergency Braking, Blind Spot Detection, Driver Monitoring Systems Type with Ultrasonic Sensors, Lidar Sensors, Radar Sensors, Camera Sensors, Infrared Sensors, Pressure Sensors Technology

  • November-2021
  • PMRREP32939
  • 322 Pages
  • Automotive
  • PPT, PDF, WORD, EXCEL

ADAS Aftermarket Snapshot

The global ADAS aftermarket was valued at US$ 877.6 Mn in 2020, and is slated to surge at a CAGR of 9% to reach a valuation of US$ 2.28 Bn by 2031. Ultrasonic and radar sensors, together, currently account for more than 50% share in the sales of Advanced Driver Assistance Systems (ADAS).

ADAS Aftermarket Size (2020A)

US$ 877.6 Mn

Projected Market Value (2031F)

US$ 2.28 Bn

Value CAGR (2021-2031)

9%

Collective Value Share: Top 3 Countries (2020)

48.1%

Find Out More about the Report Coverage

Companies

  • Robert Bosch GmbH.
  • Continental AG
  • ZF Friedrichshafen AG
  • Denso Corp.
  • Aptiv plc
  • Valeo SA
  • Magna International Inc.
  • Veoneer Inc.
  • Aisin Corporation
  • Hitachi Astemo, Ltd.
  • Nidec Corporation
  • Infineon Technologies AG
  • Ficosa Internacional SA
  • Hella KGaA Hueck & Co.
  • Pacific Industrial Co., Ltd.
  • Mobileye

Sales Analysis of Automotive Parts from 2016 to 2020 Vs Market Projections for 2021 to 2031

From 2016 to 2020, sales of ADAS in the aftermarket increased at 6.1% CAGR, which was slower that expected because of massive production shutdowns in 2020 due to COVID-19. China, the United States, Germany, Spain, Australia & New Zealand, and Japan accounted for a large share global demand for advanced driver assistance systems.

The automotive industry is growing quickly because of the introduction of new innovations, which is boosting the development of the ADAS aftermarket industry. As such, key ADAS technology providers are adjusting their strategies to market trends to keep up with the intensity in this space.

Driver drowsiness, loss of attention, and fatigue are factors that contribute to vehicle collisions and fatalities. As a result, demand for ADAS technologies, including backup cameras, (Lane Departure Warning Systems) LDWS, and (Forward Collision Warning Systems) FCWS is on the rise, particularly as aftermarket automotive accessories.

Furthermore, demand for customized products is also encouraging manufacturers to offer tailor-made ADAS aftermarket solutions across regions.

The arrival of self-driving cars is predicted to revolutionize commuting. With features such as lane monitoring, emergency braking, stability controls, and others, ADAS technologies have considerably decreased the complexity of driving. To acquire data, autonomous cars use advanced technologies and systems, including LiDAR, radar, ultrasonic sensors, and high-definition cameras.

With innovation in vehicle producing, the average lifespan of vehicles has increased. Customers are retaining old vehicles instead of exchanging or scrapping them. Because of increased vehicle age, there is huge requirement for ADAS.

Due to the above mentioned factors, from 2021 to 2031, the global advanced driver assistance systems aftermarket is predicted to expand at a CAGR of 9%.

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What are the Key Opportunities for ADAS Aftermarket Manufacturers?

The European Union and United States have laid out resolutions mandating all vehicles should have forward-collision warning systems and Autonomous Emergency Braking (AEB) systems. These will make ADAS a major focus for many, especially OEM vendors, manufacturers, and their suppliers.

In addition, many car buyers are seeking smart ADAS systems and features that can improve savings and comfort, such as blind spot monitoring or parking assistance. Fully automated vehicles may be marketed not many years from now, and the great business potential of this opportunity is evident not only to car manufacturers but also to high-tech companies who spend a lot of money on R&D to develop marketable solutions for the automotive industry.

The market for ADAS sensors remains competitive with the presence of giant players with expertise in advanced technologies. In order to sustain in the market in the long run, product development is a key growth strategy adopted by key ADAS suppliers.

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What are the Restraints for ADAS Aftermarket Suppliers?

High costs associated with ADAS can reduce market growth, as this leads to increased overall car cost. The prospect of installing premium automotive features entails additional costs for consumers in terms of application, hardware, and telephone service. In addition, installation of ADAS in a car is difficult, as it requires trained workers because of the presence of sensors and electronic components.

ADAS technology operates with an average life span of around 5-6 years; however, some ADAS sensors come with life-time operations, which decreases the need for replacements.

Cost has shot up for most manufacturers as a result of higher input costs, especially raw material such as semiconductors. Consistent shortage in semiconductors is set to raise raw material expense for automakers and reverse the gains in margins.

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Which Region Offers the Largest Opportunity for Sales of ADAS in the Aftermarket?

Europe is slated to be the most lucrative market for ADAS aftermarket suppliers, rising at a CAGR of 9.3% over the forecast period. Germany is expected to hold nearly 28% market share in the European region.

Germany has the highest number of automotive manufacturers in the world, which is an important factor contributing to the growth of the market here. The number of passenger vehicles, light commercial vehicles, as well as autonomous vehicles has considerably grown in Europe since the past few years, which is one of the major drivers for the expansion of the automotive aftermarket in the region.

Country-wise Insights

Where Does the U.S. Stand in the Aftermarket for ADAS?

The United States held around 85.9% of the North American advanced driver assistance systems aftermarket in 2021. During the forecast period, the U.S. is expected to be one of the most lucrative markets for ADAS solutions due to increasing technological advances and vehicles are becoming safer, greener, and connected. With these technological transformation, ADAS has helped drivers to feel safer on the road. Also, increasing number of BEVs, PHEVs, and EVs (Electric Vehicle) in the region is also one of the major factors surging ADAS aftermarket growth in the U.S.

What is the Outlook for ADAS Aftermarket Manufacturers in China?         

China is one of the most profitable markets for manufacturers and suppliers of ADAS. This market is projected to expand at a CAGR of 9.2% through 2031.

China is a promising automotive hub because of the rising number of on-road vehicles and presence of numerous automotive active safety manufacturers. Many ADAS aftermarket manufacturers in China export their products to countries all around the world, which is increasing sales of ADAS products.

Why is Europe a Lucrative Market for ADAS Manufacturers?

Over the forecast period, Europe is expected to be one of the most appealing ADAS aftermarkets. According to the analysis, Germany accounted for 28.3% of the European market share in 2021.

Europe occupies a considerable share of the ADAS aftermarket for automobiles due to the high rate of adoption of ADAS technology and growth of the automotive sector across numerous European countries. As a result, the number of vehicles equipped with ADAS in the region has increased; Germany, the United Kingdom, France, and Italy, in particular.

In the near future, regulatory agencies in these countries are expected to adopt more stringent security standards. The European advanced driver assistance systems aftermarket is predicted to increase rapidly over the coming years.

Category-wise Insights

Which System Type Has the Most Potential for Growth in the ADAS Aftermarket?

The top system type for ADAS by volume is park assist, which is predicted to account for 19.3% share of the market by the end of 2031. Park assist is designed to provide smart parking features in vehicles. The system provides safety and security to vehicles as well as assists drivers in parking their vehicles.

Increased parking concerns across the globe, surging demand for Internet of Things-Based (IoT) technology, and increase in the number of vehicles will drive demand growth of park assist systems in the ADAS landscape.

Which Sensor Technology is Most Sought-after in ADAS?

Ultrasonic and radar sensors accounted for more than 50% of the market in 2021, owing to the fact that ultrasonic sensors can measure the distance to a wide range of objects regardless of shape, color, or surface texture. They are also able to measure an approaching or any receding object.

Radar sensors enable essential safety and comfort features, including adaptive cruise control and automatic emergency breaking systems, where a vehicle can steeply decelerate without driver involvement to avoid potential collision.

Impact of COVID-19 Crisis

The automotive sector was badly affected by COVID-19 as production was stopped, which resulted in a decline of vehicle sales as well as that for aftermarket components.

ADAS solution providers suffered losses due to decreased production and demand for automobiles. COVID-19 kept people at home, which resulted in less use of vehicles, and badly impacted ADAS consumption.

The industry is slowly recovering as many production facilities have resumed operations, which has resulted in positive sales figures for ADAS. Increase in online sales of ADAS parts has also accelerated the aftermarket.

Competitive Landscape

The global ADAS in autonomous driving market is competitive, with major players striving to acquire large market shares. Major ADAS software suppliers are focusing on marketing and sales activities to maintain existing customers as well as acquire new customers to increase their revenues.

Over the last few years, the ADAS aftermarket has seen a variety of growth strategies implemented by key players, including acquisitions, mergers, and partnerships. To increase their revenue share, aftermarket ADAS companies are investing in R&D and new products for the future of ADAS.

  • In 2020, Hyundai Motor Group entered a joint venture with Aptiv. The JV will work on the commercialization of the SAE Level 4/5 platform for rob taxi, fleet operators, and automotive manufacturers.
  • In 2019, Velodyne Lidar, Inc. announced that they acquired a mapping and localization software and some other assets from Mapper technology. This acquisition will help Velodyne for the development of the Vella™ software.

ADAS Aftermarket Report Scope

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

  • USD Million for Value
  • Units for Volume

Key Regions Covered

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

Key Countries Covered

  • U.S.
  • Canada
  • Mexico
  • Brazil
  • Germany
  • France
  • Italy
  • Spain
  • U.K.
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Australia & New Zealand
  • GCC
  • Turkey
  • South Africa
  • Northern Africa

Key Market Segments Covered

  • System Type
  • Technology
  • Sales Channel
  • Vehicle Type
  • Region

Key Companies Profiled

  • Robert Bosch GmbH
  • Continental AG
  • ZF Friedrichshafen AG
  • Denso Corp.
  • Aptiv plc
  • Valeo SA
  • Magna International Inc.
  • Veoneer Inc.
  • Aisin Corporation
  • Hitachi Astemo, Ltd.
  • Nidec Corporation
  • Infineon Technologies AG
  • Ficosa Internacional SA
  • Hella KGaA Hueck & Co.
  • Pacific Industrial Co., Ltd.
  • Mobileye

Report Coverage

  • Market Forecast
  • Brand Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Segments Covered in ADAS Industry Analysis

ADAS Aftermarket 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

ADAS Aftermarket by Technology

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

ADAS Aftermarket by Sales Channel

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

ADAS Aftermarket by Vehicle Type

  • Passenger Cars
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles

ADAS Aftermarket by Region

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

- FAQs -

The worldwide ADAS aftermarket is currently valued at close to US$ 1 Bn.

Sales of ADAS solutions are slated to surge at a CAGR of around 9% from 2021 to 2031.

The United States, Germany, Spain, China, Australia & New Zealand, and GCC countries are lucrative markets for ADAS technology, with Europe projected to hold the highest market share of more than 35%.

Tier-1 firms such as Robert Bosch, Denso Corporation, Continental AG, Aptiv plc, and ZF Friedrichshafen AG accounted for around 36% of worldwide revenue in 2020.

The aftermarket for ADAS products is expected to surge at 9.2% CAGR through 2031.

Ultrasonic sensors and radar are the most sought- after technologies in ADAS solutions.

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