Automotive ADAS Aftermarket Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Japan, Germany, France - Size and Forecast 2023-2027

Automotive ADAS AfterMarket Forcast 2023-2027

The automotive advanced driver assistance system aftermarket size is forecast to increase by USD 3.18 billion at a CAGR of 10.5% between 2022 and 2027. The market is experiencing positive growth driven by several key factors. Declining sensor prices have made advanced driver assistance systems more accessible to consumers, prompting increased adoption. Additionally, heightened consumer awareness and prioritization of automotive safety have fueled the demand for aftermarket ADAS solutions. Moreover, stringent regulations mandating the integration of safety technologies in vehicles have accelerated the market expansion, as automakers and consumers alike seek compliance and enhanced safety features.

What will be the Size of the Automotive ADAS Aftermarket during the Forecast Period?

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The market is witnessing significant growth driven by the increasing adoption of automated vehicles and advanced driver assistance systems. These systems utilize a sensor fusion method, integrating technologies like LiDAR, high-definition cameras, and ultrasonic sensors to enhance vehicle safety. Night vision and drowsiness monitoring features contribute to improved driver awareness, while road sign recognition and autonomous emergency braking systems enhance collision prevention capabilities. Additionally, adaptive cruise control systems and V2V communication further augment vehicle automation and safety. As automakers prioritize vehicle electrification and regulatory requirements for enhanced safety features, the aftermarket for ADAS solutions continues to expand, offering multifunctional sensors and advanced safety technologies to meet consumer demand and improve crash test ratings.

Market Dynamics and Customer Landscape

The market is witnessing exponential growth driven by the increasing demand for advanced safety features in vehicles. Radar, LiDAR, and high-definition cameras are integrated with software to offer sophisticated sensor fusion methods for enhanced vehicle automation. These aftermarket solutions include automated emergency braking, adaptive cruise control, and drowsiness monitoring systems, ensuring road safety. Night vision and road sign recognition systems further augment driving assistance. With a focus on electrification and connectivity, automakers are adhering to stringent regulatory requirements and crash test ratings. V2V communication and multifunctional sensors contribute to the evolution of safer and more connected vehicles globally. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

A decline in sensor prices is the key factor driving the growth of the global market. Economies of scale play a crucial role in the market to leverage the use of technology to maximize customers. This allowed the automotive original equipment manufacturers (OEMs) to reduce the overall cost of infotainment systems used in vehicles, to further penetrate the market. Due to the rise in the application of sensors in the automotive industry, the price of sensors such as radars and cameras is declining continuously. The reduced pricing is allowing aftermarket players to develop cost-effective ADAS technologies for customers. This is becoming an important driver for the rising demand for these products 

Additionally, when any technology is adopted in consumer electronics, its volume rises and the prices are reduced in the market, which is advantageous for the automotive industry. Moreover, radar sensors are another key component in the market. The products showed a reduction in their prices and are currently priced in the range of USD 50 to USD 200. The low prices of cameras and radar sensors are making these products affordable to owners of old vehicles. Hence, the decline in sensor prices will boost the growth of the global market during the forecast period.

Significant Market Trends

The growing development of aftermarket ADAS for CVs is the key trend driving the growth of the global market. Automotive companies are focused on understanding customer needs and delivering personalized solutions in a fully connected environment. AI technology is gaining popularity in ADAS as demand rises to emulate human brain functions. AI-based ADAS solution continuously learns through experience, proportionally enhancing their ability to detect and recognize surroundings. Therefore, AI-based ADAS can recognize and detect multiple objects around the vehicle. In addition, system power consumption is reduced, shortening ADAS development time. Thus, well-known ADAS manufacturers are working on developing AI-based solutions.

Moreover, well-known providers in the market have recently launched AI-based ADAS solutions to market. AI capabilities enhance NVIDIA DRIVE AutoPilot's object detection and recognition capabilities. For instance, ZF Friedrichshafen and Continental announced that they would start the production of ADAS solutions based on NVIDIA DRIVE AutoPilot in 2020. Hence, the rising development of aftermarket ADAS for CVs will boost the growth of the global market during the forecast period.

Major Market Challenge

The adoption of active ADAS technologies by OEMs is the key challenge for the growth of the market. The aftermarket adoption of ADAS is limited to passive systems that provide just alerts or warnings to drivers. The main reason for this is the low cost of passive systems. Although, automotive original equipment manufacturers (OEMs) are not limiting their offerings to passive systems as the adoption of advanced ADAS technologies such as adaptive cruise control (ACC), and advanced emergency braking system (AEBS) has been rising in large-segment vehicles. This has posed a significant technology gap between original equipment manufacturer offerings and aftermarket offerings of ADAS. This is a challenge for the growth of the market in focus.

Furthermore, the need for active ADAS technology adoption in the market is also important for increasing revenue in the global market, as passive systems will experience price declines in the future. Hence, the adoption of active ADAS technology by original equipment manufacturers (OEMs) will impede the growth of the global market during the forecast period.

Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Brandmotion LLC: The company offers automotive ADAS aftermarket products such as ADAS 1100.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• BorgWarner Inc.
• Continental AG
• CUB ELECPARTS Inc.
• Garmin Ltd.
• Gentex Corp.
• HELLA GmbH and Co. KGaA
• Intel Corp.
• Information Technologies Institute Intellias LLC
• Knorr Bremse AG
• MINIEYE
• Robert Bosch GmbH
• Samsung Electronics Co. Ltd.
• Sasken Technologies Ltd.
• Solera Holdings LLC

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

The market report extensively covers market segmentation by technology (passive park assists, FCWS and LDWS, and others), vehicle type (passenger vehicles and commercial vehicles), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. The technology segment of the market is driven by advancements in automated vehicles, including sensor fusion methods for enhanced accuracy. Key systems like road sign recognition, autonomous emergency braking, and adaptive cruise control contribute to the rise of self-driving automobiles. The integration of ultrasonic sensors improves detection capabilities, ensuring advanced safety features are optimized. Additionally, the market is influenced by the ongoing electrification of vehicles, which further augments the demand for these solutions.

By Technology

The passive park assist segment is estimated to witness significant growth during the forecast period. This segment includes rear parking sensors, reversing cameras, and rear cross-traffic alerts. Passive parking assist technology is in high demand in the aftermarket as customers seek simple, cost-effective solutions for lower-spec and older model vehicles. Continuous reduction in prices of sensors, cameras, and displays is also an important factor for the growing adoption of passive systems in the market.

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The passive park assist segment was the largest segment and was valued at USD 2.30 billion in 2017. In developed countries like the US, the introduction of various regulations has increased the popularity of rear view cameras in the aftermarket. In addition, the rear cross-traffic warning system assists drivers by alerting them of approaching vehicles and pedestrians when reversing from a parking space. In addition to blind spot monitoring, well-known vendors also offer rear cross-traffic alert systems in the market. This is because both are complementary ADAS technologies. Hence, all such factors will boost the growth of the passive part assists segment in the global market during the forecast period.

Key Regions

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APAC is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US was the key contributor to the to the market in North America in 2022. The country is witnessing the increasing aftermarket demand for ADAS technologies, due to the strong presence of prominent market players and a growth in consumer awareness about ADAS. Consumer awareness about ADAS is high in North America as most of the ADAS technologies are becoming standard in new vehicles launched in the region. Moreover, the region has the existence of a dedicated network that encourages consumer awareness about safety systems such as ADAS. The participation of aftermarket ADAS manufacturers are rising continuously, which boosts the growth of the market in North America during the forecast period.

Market Analyst Overview

The market is witnessing significant growth propelled by the increasing adoption of advanced safety features and the rising demand for software-driven solutions in automated vehicles. With the integration of the sensor fusion method and night vision technologies, automotive safety systems are becoming more sophisticated, including drowsiness monitoring and road sign recognition systems. Autonomous emergency braking and adaptive cruise control systems are key components of self-driving automobiles, enhancing vehicle safety on the roads. LiDAR, ultrasonic sensors, and high-definition cameras play pivotal roles in vehicle automation, complemented by electrification trends. As automakers prioritize vehicle safety to meet stringent regulatory requirements, connectivity and V2V communication are becoming integral aspects of automotive Advanced driver assistance system (ADAS) aftermarket solutions, ensuring enhanced road safety and crash test ratings.

The market is witnessing rapid growth driven by advancements in software and cutting-edge technologies within the automobile industry. Automotive spare parts manufacturers and Original Equipment Suppliers (OES) are leveraging sensor fusion methods and multifunctional sensors to enhance safety features like autonomous emergency braking systems and autonomous driving capabilities. As electrification of vehicles progresses, regulatory bodies are enforcing safety assessment programs to mitigate risks associated with autonomous driving. Automotive manufacturers are focusing on vehicle design and manufacturing processes to ensure efficiency and compliance with safety standards. However, the lack of adequate infrastructure poses challenges, necessitating supportive communication networks, well-marked roads, and connectivity infrastructure for V2X communication and efficient lane changes. Advanced systems for detecting objects and maintaining safe distances between vehicles are crucial for road safety.

Segment Overview

The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Technology Outlook 
  • Passive park assists
  • FCWS and LDWS
  • Others

• Vehicle Type Outlook 
  • Passenger vehicles
  • Commercial vehicles

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile 
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	170
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 10.5%
Market growth 2023-2027	USD 3.18 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	10.01
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	APAC at 33%
Key countries	US, China, Japan, Germany, and France
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	BorgWarner Inc., Brandmotion LLC, Continental AG, CUB ELECPARTS Inc., Garmin Ltd., Gentex Corp., HELLA GmbH and Co. KGaA, Intel Corp., Information Technologies Institute Intellias LLC, Knorr Bremse AG, MINIEYE, Robert Bosch GmbH, Samsung Electronics Co. Ltd., Sasken Technologies Ltd., Solera Holdings LLC, TomTom NV, Valeo SA, Veoneer Inc., and VOXX International Corp.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market forecast and size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Market growth analysis across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies

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