Toronto, Ontario -- Mechanical shops are likely to benefit more from the advanced driver assistance systems boom than collision facilities, even as the systems drastically reduce the volume of repairs, a new study has found.
The report, ADAS Aftermarket Service Ecosystem 2035: Navigating the ADAS Adoption Curve, predicts the global ADAS market is entering a period of significant expansion and that the market for ADAS parts and services will grow at a compound annual growth rate of 9.5 percent through 2035.
It isn’t clear how much the collision repair facilities of the near future will benefit from this ADAS boom. MENA predicts that by 2031, mechanical repair shops will manage a greater volume of this ADAS calibration and service work than repair facilities.
To make things more difficult for collision facilities, ADAS technologies are expected to reduce the overall volume of business for repair facilities. To date, MENA says the adoption of ADAS technologies has led to a reduction in collision claims of between 20 and 46 percent.
The aftermarket for ADAS parts is also experiencing robust growth. Forecasts indicate that the market will reach $676 million in 2025 and surpass $1.07 billion by 2029 before climbing to $1.7 billion by 2035.
