Advanced driver assistance systems (ADAS) are revolutionizing the automotive aftermarket, creating new opportunities and expanding the market significantly, according to an industry leader.
These safety systems are not just about adding technology to vehicles; they are significantly expanding the market. Paul McCarthy, president of MEMA Aftermarket Suppliers, highlighted the impact of ADAS at the group’s Technology Conference, which was held virtually after hurricanes cancelled the in-person event in Florida.
He noted that ADAS is an attractive vehicle option for consumers because it makes long-distance trips easier and more enjoyable. “Hands-free driving on the highway is already here, and if you’ve tried it, it’s addicting,” McCarthy said.
This technology, he added, allows people to drive safely for longer periods, even as they age, making traffic jams more bearable and driving less demanding.
People are back on the road, adding as much to the odometer as they did pre-pandemic, McCarthy observed. ADAS also supports the trend of people spreading out, which was seen during and continued after the pandemic. This trend is expected to grow the vehicle population over time.
“And as we spread out the lives that we lead, need even more cars,” he said.
With all this ADAS, it leads to more content on vehicles, including new product categories and an explosion of sensors, which are profitable for the aftermarket. McCarthy emphasized that ADAS is contributing to a significant increase in vehicle usage.
“It’s making our time in the vehicle less onerous — more valuable — by making driving demand less of us. We can drive further and listen to a lot more podcasts,” he said, with a quick joke at the end.
This increased usage supports the trend of de-densification, where people are spreading out and requiring more vehicles to support their lifestyles.
With these new categories of products and the growth of sensors creating demand, the aftermarket industry benefits from this trend
“The aftermarket makes good money off of sensors,” McCarthy noted. “So all of this is coming from just one vehicle technology shift. We haven’t even mentioned electrification.”
Image credit: Depositphotos.com
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