Automotive ADAS Aftermarket

Global Automotive ADAS Aftermarket Market to Reach US$14.4 Billion by 2030

The global market for Automotive ADAS Aftermarket estimated at US$6.8 Billion in the year 2024, is expected to reach US$14.4 Billion by 2030, growing at a CAGR of 13.3% over the analysis period 2024-2030. Passive Park Assists Technology, one of the segments analyzed in the report, is expected to record a 14.8% CAGR and reach US$9.8 Billion by the end of the analysis period. Growth in the FCWS & LDWS Technology segment is estimated at 10.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.8 Billion While China is Forecast to Grow at 12.5% CAGR

The Automotive ADAS Aftermarket market in the U.S. is estimated at US$1.8 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$2.2 Billion by the year 2030 trailing a CAGR of 12.5% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 12.5% and 11.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 9.6% CAGR.

Global Automotive ADAS Aftermarket – Key Trends & Drivers Summarized

Why Is the Aftermarket for ADAS Experiencing a Surge in Demand?

The automotive Advanced Driver Assistance Systems (ADAS) aftermarket is undergoing significant expansion as vehicle owners increasingly seek to retrofit safety technologies into older or base-model vehicles. With road safety becoming a global priority and ADAS features such as lane departure warning, adaptive cruise control, and collision avoidance no longer exclusive to high-end cars, consumers are recognizing the benefits of enhancing their existing vehicles. This trend is especially prevalent in developing regions where newer vehicles with built-in ADAS may be unaffordable for a large segment of the population. Instead of purchasing new vehicles, consumers are opting for cost-effective retrofitting solutions that allow for the integration of select ADAS functionalities. The market’s growth is further propelled by insurance incentives, regulatory pushes, and fleet modernization efforts. As cities become more congested, the need for technologies that assist with parking, proximity sensing, and pedestrian detection is also becoming more pronounced, encouraging vehicle owners to adopt ADAS solutions even after the point of sale.

How Are Technological Advancements Reshaping ADAS Retrofitting?

The feasibility and popularity of ADAS aftermarket solutions have been greatly influenced by advancements in sensor miniaturization, wireless technologies, and plug-and-play installation kits. Today’s ADAS retrofit kits are equipped with compact radar, LiDAR, and camera modules that can be mounted with minimal modifications to the vehicle body. These kits often come with centralized processing units that sync with mobile apps or in-vehicle displays, enabling seamless user interaction and diagnostics. Modern systems also offer AI-powered features such as real-time object detection, behavioral analytics, and predictive alerts, all packaged in aftermarket-compatible formats. Additionally, advances in software algorithms have improved the adaptability of ADAS solutions to various vehicle makes and models, expanding the potential market reach. Another technological leap has been the introduction of cloud-based platforms that allow updates to ADAS firmware over-the-air, keeping the systems current with evolving standards and real-world data. These developments are bridging the technological gap between factory-installed and retrofitted systems.

What Is Driving Consumer and Commercial Interest in ADAS Retrofits?

A confluence of consumer behavior shifts and operational needs in commercial sectors is creating strong momentum in the ADAS aftermarket. On the consumer front, heightened safety awareness, particularly among families and senior drivers, is prompting interest in affordable driver-assist upgrades. The convenience and reassurance provided by features such as blind-spot monitoring and forward-collision alerts make them particularly appealing. Meanwhile, commercial fleet operators are increasingly viewing ADAS retrofits as a strategic investment for minimizing accidents, reducing insurance costs, and enhancing driver accountability. As logistics and ride-hailing services scale up operations, ensuring vehicle safety through cost-effective upgrades becomes essential. Furthermore, used car dealerships are retrofitting vehicles to increase their resale value, especially in competitive urban markets where safety features can be a dealmaker. Educational campaigns and test programs offered by ADAS system providers and road safety organizations are also raising awareness about the tangible benefits of retrofitted driver assistance technologies.

What Are the Underlying Forces Fueling Market Growth?

The growth in the automotive ADAS aftermarket is driven by several factors. The aging vehicle fleet in both developed and emerging markets is a key driver, creating a large base of vehicles eligible for safety upgrades. Technological maturity in radar, camera, and sensor modules has lowered the entry barrier for installation, making these systems more accessible to vehicle owners. Rising urban traffic density and the resultant increase in minor collisions have led drivers to seek assistance systems that can reduce risk in stop-and-go traffic. Additionally, cost-conscious consumers are opting for retrofitting rather than replacing their vehicles, especially in the wake of economic slowdowns. Regulatory pressures are indirectly influencing growth as well, with governments encouraging the use of safety technologies through awareness programs and policy recommendations. In commercial sectors, growing liabilities associated with fleet-related accidents are pushing operators to embrace ADAS retrofits for both economic and reputational reasons. Lastly, the emergence of tech-driven automotive service providers specializing in ADAS integration is making these solutions more widely available and professionally installed, further accelerating market expansion.

SCOPE OF STUDY:

The report analyzes the Automotive ADAS Aftermarket market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Technology (Passive Park Assists Technology, FCWS & LDWS Technology, Other Technologies); End-Use (Passenger Cars End-Use, Commercial Vehicles End-Use)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 41 Featured) -

• Aptiv PLC
• Autoliv Inc.
• Bosch Mobility Solutions
• Continental AG
• Denso Corporation
• Ficosa International S.A.
• Garmin Ltd.
• Gentex Corporation
• Harman International
• HELLA GmbH & Co. KGaA
• HL Mando Corporation
• Hyundai Mobis
• Magna International Inc.
• Mobileye N.V.
• NXP Semiconductors N.V.
• Robert Bosch GmbH
• Valeo S.A.
• Veoneer Inc.
• Visteon Corporation
• ZF Friedrichshafen AG

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