ADAS Aftermarket

ADAS Aftermarket Outlook (2024 to 2034)

The global ADAS aftermarket is estimated to be valued at US$ 1,238.2 million in 2024 and is forecast to reach a value of US$ 3,040.6 million by 2034, with a projected CAGR of 9.4% from 2024 to 2034.

The ecosystem is poised for significant development, driven by lucrative growth prospects such as vehicle electrification, the trend towards autonomous driving, and the integration of multifunctional sensors within the evolving automotive sector.

The surge in vehicle electrification is a prime driver, offering substantial growth avenues. Industry leaders are heavily investing in autonomous vehicle technology, recognizing its pivotal role in the automotive landscape. A crucial prerequisite for vehicle automation is seamless ADAS integration.

Companies are actively working towards achieving a high level of vehicle automation by amalgamating diverse ADAS sensors like radar, LIDAR, and cameras. These multifunctional sensors, particularly prevalent in electric and autonomous vehicles, present lucrative opportunities, thereby propelling the growth trajectory of the ADAS aftermarket.

Report Attributes	Details
Estimated Market Value (2024E)	US$ 1,238.2 million
Forecasted Market Value (2034F)	US$ 3,040.6 million
Global Market Growth Rate (2024 to 2034)	9.4% CAGR
OES (Original Equipment Suppliers) Segment Growth Rate (2024 to 2034)	9.9% CAGR
Passenger Cars Segment Growth Rate (2024 to 2034)	8.8%
North America Market Share (2024)	24.7%
East Asia Market Share (2024)	35.2%
Key Companies Profiled	Robert Bosch GmbH Continental AG ZF Friedrichshafen AG Denso Corp. Aptiv Plc Valeo SA Magna International Inc. Veoneer Inc. Aisin Corporation

Which Factors are promoting the Growth of ADAS Aftermarket?

Evolving Consumer Demand for Advanced Technological Features in Automobiles

The surge in demand for the ADAS Aftermarket is primarily propelled by heightened requests from automotive manufacturers worldwide, driven by a collective emphasis on passenger car safety, comfort, and stringent government regulations.

The market growth trajectory is expected to be influenced by the escalating demand for advanced technologies like night vision, drowsiness monitoring, and road sign recognition systems. This heightened demand is a response to increasing government mandates aimed at enhancing road safety and reducing accidents. Thus, there is a projected significant surge in the adoption of conventional ADAS systems such as autonomous emergency braking systems and adaptive cruise control systems

The continuous advancements in ADAS technology, including innovations in sensors, cameras, radar systems, and software, contribute significantly to market growth. As these technologies become more sophisticated and efficient, there is a heightened interest among consumers in upgrading their vehicles to benefit from these enhanced safety and convenience features, further driving the growth of the ADAS aftermarket.

The Rising Demand for Autonomous Vehicle

The advent of self-driving vehicles is poised to revolutionize commuting significantly. This transformation is attributed to the simplification of driving tasks facilitated by various features of ADAS technologies, encompassing lane monitoring, emergency braking, stability controls, and more.

Autonomous vehicles rely on sophisticated systems and state-of-the-art technology, including LiDAR, radar, ultrasonic sensors, and high-definition cameras, to gather extensive data. The multitude of benefits offered by the ADAS system stands as a driving force propelling growth within the targeted market landscape.

What are the key Challenges Faced by ADAS Aftermarket?

Technological Complexities may hinder the Market Growth

Keeping up with evolving safety regulations and standards across different regions can be challenging. Compliance with diverse and stringent requirements poses hurdles for aftermarket manufacturers and service providers.

The rapid evolution of ADAS technologies brings complexities in installation, calibration, and maintenance. Specialized knowledge and equipment are required, posing challenges for smaller repair shops and technicians. ADAS components and systems can be expensive, affecting their accessibility in the aftermarket. Retrofitting older vehicles with these systems can be cost-prohibitive for some consumers.

ADAS systems serve as precursors to full autonomy. Integrating these systems seamlessly into future autonomous vehicle frameworks while maintaining compatibility and safety standards presents a considerable challenge. Educating consumers about the benefits, limitations, and maintenance requirements of ADAS systems remains essential. Many users may not fully understand the capabilities or necessity of these technologies.

Country-wise Insights

The North America ADAS aftermarket is poised for exceptional growth, projecting a CAGR of 8.3% through 2034. It is primarily attributed to increasing demand in key countries, notably the United States and Canada. In 2024, the United States will dominate with an estimated 85.1% market share.

Meanwhile, the East Asia ADAS aftermarket is anticipated to exhibit substantial progress, aiming for a 10.5% CAGR through 2034. In East Asia, China emerges as the key player in the industry, commanding a significant share of 81.7% in 2024.

What is the Growth Scenario of the ADAS Aftermarket in the United States?

“Proliferating Automobile Sales to drive ADAS Aftermarket”

Attribute	United States
Market Value (2024)	US$ 260.5 million
Growth Rate (2024-2034)	8.2% CAGR
Projected Value (2034)	US$ 573.5 million

The United States is forecast to hold 84.2% of the North American market share by the end of 2034. In this region, the ADAS (Advanced Driver Assistance Systems) aftermarket is experiencing significant growth, largely propelled by the strong presence of leading automotive and spare parts manufacturing firms. The rapid and widespread integration of ADAS systems within vehicles further drives this expansion.

Moreover, the United States market commands a substantial share of the ADAS aftermarket, buoyed by improved economic conditions across the automotive industry. Factors such as increasing mortality rates and a surge in sales of high-end vehicles contribute to this growth trend.

What is driving the ADAS Aftermarket in China?

“Growing Automotive Industry to Boost the ADAS Aftermarket Market Growth in China.”

Attribute	China
Market Value (2024)	US$ 356.6 million
Growth Rate (2024-2034)	10.3% CAGR
Projected Value (2034)	US$ 954.0 million

China is forecast to hold an 80.7% share of East Asia market revenue by 2034. The expansion of the automotive industry in China, including the production of traditional and electric vehicles, has significantly contributed to the increasing availability and integration of ADAS in vehicles.

The country's technological advancements and a growing emphasis on innovation have also fostered a fertile environment for the development and deployment of ADAS solutions

China's ascension in the advanced driver assistance systems aftermarket is attributed to two key factors: the increasing integration of advanced electronics in automobiles worldwide and the substantial manufacturing output of traditional and electric vehicles within China itself.

Government initiatives, such as the promotion of adaptive cruise control and emergency brake systems, are strategically designed to incentivize domestic Original Equipment Manufacturers (OEMs) to actively participate in this burgeoning market.

Category-wise Insights

Based on the vehicle type, the passenger car segment is estimated to hold a 58.1% market share in 2024. Simultaneously, the light commercial vehicle segment is anticipated to secure a 34.5% share, contributing significantly to the ADAS aftermarket growth. Based on sales channels, the OEM (Original Equipment Supplier) segment marks its dominance in the industry, with a share of 60.3% in 2024.

Which is the most Popular Vehicle Type?

“High Demand Predicted for the Passenger Car Segment”

Attribute	Passenger Car
Segment Value (2024)	US$ 719.4 million
Growth Rate (2024 to 2034)	8.8% CAGR
Projected Value (2034)	US$ 1,669.3 million

Based on vehicle type, the passenger car segment is forecasted to hold 54.9% of the ADAS aftermarket share by 2034. The prevalence of advanced driver assistance systems in passenger vehicles surpasses their adoption in other vehicle categories. Unfortunately, passenger vehicles contribute significantly to global fatality incidents, driving the urgent need for enhanced safety measures.

As a response to this alarming trend and to bolster driver safety, there's been a widespread installation of ADAS systems, particularly driver monitoring systems (DMS) and night vision systems (NVS), in a substantial volume of passenger vehicles worldwide.

This widespread integration of ADAS technologies in passenger vehicles catalyzes the burgeoning ADAS aftermarket on a global scale, aiming to mitigate accident rates and ensure improved driver safety across diverse road conditions.

Which Sales Channel Contributes The Highest Revenue to The Market?

“OEM (Original Equipment Supplier) segment is expected to Dominate Market.”

Attribute	OEM (Original Equipment Supplier)
Segment Value (2024)	US$ 746.6 million
Growth Rate (2024 to 2034)	9.9% CAGR
Projected Value (2034)	US$ 1927.8 million

The global ADAS aftermarket is predominantly led by the OES (Original Equipment Suppliers) segment in terms of sales channels, poised to maintain its dominance with a substantial value share of 63.4% during the forecast period.

OES operates with licensed rights to distribute OEM (Original Equipment Manufacturer) components from specific businesses. The rise in consumer preference for authentic replacement parts has led to a proliferation of OES entities across various regions.

This surge is driven by the growing emphasis on vehicle safety, prompting owners to invest significantly in preventive measures and prioritize vehicle servicing through OES outlets. This consumer behavior solidifies the segment's significant standing within the targeted market landscape.

Competitive Landscape

In the fiercely competitive landscape of the global ADAS (Advanced Driver Assistance Systems) aftermarket, major players employ diverse business tactics to expand their market presence. Strategies like forming joint ventures, striking agreements, and engaging in acquisitions and mergers across the value chain are common. Moreover, manufacturers stay agile by consistently launching innovative products that cater to evolving consumer needs, all while emphasizing top-notch product quality and streamlined service delivery.

• Robert Bosch GmbH is a major global supplier of automotive components and technology, particularly known for its innovations in ADAS systems like sensors, cameras, and control units.
• In November 2022, Continental is poised to introduce Advanced Driver Assistance Systems (ADAS) solutions leveraging Ambarella's "CV3" artificial intelligence (AI) system-on-chip (SoC) family. This collaborative initiative integrates high-performance, power-efficient, and scalable SoC technology designed specifically for ADAS applications. This partnership strengthens Continental's array of assisted driving solutions, propelling advancements in vehicle automation capabilities.

ADAS Aftermarket - Key Segments

• 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
  • Western Europe
  • Eastern Europe
  • South Asia and Pacific
  • East Asia
  • Middle East and Africa