Aftermarket ADAS calibrations in shops now exceed two million per year and the forecast for ADAS parts is expected to be $676 million in 2025
Research Triangle Park, N.C.—Mechanical repair shops are now projected to overtake collision shops in the volume of ADAS calibration and service work, representing a reversal of growth.
“Change is already well underway in the Collision sector, with the coming years bringing a strong growth opportunity to the Mechanical repair space,” states a new research report, ADAS Aftermarket Service Ecosystem 2035: Navigating the ADAS Adoption Curve, that provides insights into the projected growth, service opportunities and industry shifts being driven by advanced driver assistance systems.
“As ADAS-equipped vehicles increasingly exit their warranty period and find their way to aftermarket shops, we see very strong growth of calibration activity in the mechanical segment.”
The research in the MEMA report notes that ADAS calibrations now exceed two million per year in the aftermarket, except for glass replacement calibrations, which presently are more than one million per year.
Aftermarket ADAS Parts Forecast
Aftermarket for ADAS parts is forecast to be $676 million in 2025, increasing to above $1.07 billion in 2029, and eventually to $1.7 billion in 2035. The research projects a CAGR of 9.5% through 2035 for parts opportunities:
“Current data indicates a robust annual parts growth rate of 17%, driven by advancements in vehicle safety technologies, regulatory mandates, and consumer demand for enhanced driving experiences. However, as the market matures and technology saturation increases, growth is projected to taper to approximately 6% annually by 2035. This trajectory underscores the need for service providers to adapt to a dynamic market landscape, characterized by shifting demands for skilled technicians, updated diagnostic tools, and evolving business models.”
New Solutions and Business Models Emerge
The aftermarket is witnessing the emergence of new business models that address issues facing repair shops. Those “problems” are a direct result of ADAS-equipped vehicles in the car parc, but they also represent a new opportunity for present and future aftermarket players.
MEMA’s report highlights introductions and impacts in several segments:
Tools and Equipment
Calibration of ADAS systems requires several hardware and software elements, including mats, targets, measurement devices and the software (operated through a diagnostic tool) to perform vehicle calibrations. Both have been largely provided in the existing tool and equipment space.
Mobile Technicians
Mobile techs have traditionally serviced diagnostic challenges in the Mechanical sector, though the rapid rise of ADAS activity in the Collision sector has led to an increase of mobile technicians. The research states that 15 years ago, there were approximately 1,000 mobile technicians in the U.S. Now the number is closer to 5,000.
ADAS Mapping Software
ADAS mapping software assists shops in identifying ADAS systems that are present on a vehicle and the corresponding OEM’s service requirements for each system.
Calibration Centers
Performing a static calibration regularly requires a large space requirement that demands more room that many shops can — or have — to use. The report notes that in addition to the tools, software and technicians required to perform the calibration, many vehicles have been sent to dealerships for required calibrations.
However, that is changing. Shops that specialize in ADAS calibration are increasing growing in numbers as a dealer alternative.
Where some might find ADAS challenging to their business models, there are those that see opportunities. MEMA stresses:
“The Aftermarket has seen some maturation in capability to service ADAS systems, with new businesses forming and new products introduced since the publication of our last forecast. This speaks to the entrepreneurial capabilities in finding solutions for consumers.”
Click here to download the full report.
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