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Advanced Driver Assistance Systems SEMA BUSINESS Advanced Driver Assistance Systems New Technology, New Challenges, Unprecedented Opportunities By Mike Imlay f you think the drive toward more vehicle autonomy and connected- ness won’t impact your business, think again. Advanced driver assis- tance systems (ADAS) and con- Inected vehicle technologies (CVT) are already flooding the OEM marketplace and rippling through the aftermarket in new and unexpected ways, reshap- ing the design, production, sales and servicing of a surprising array of parts and accessories. The only question is whether your business is ahead of, keep- ing pace with, or behind the rapid wave of opportunities heading our way. “Transformative technologies are changing how cars are designed, developed, customized, sold, serviced, shared and owned,” said John Waraniak, SEMA vice president of vehicle tech- nology. “We are witnessing one of the most fun- damental shifts in the history of the automotive industry. New vehicle technologies from ADAS to autonomy are driving this shift, and it’s also being shaped by demographic, regulatory, social and environmental pressures.” Groundbreaking Research The tremendous opportunities that lay ahead for the automotive specialty-equipment industry are underscored in a new SEMA-led Advanced Vehicle Technology Opportunities report con- ducted with Ducker Worldwide and the Cen- Connected Vehicle Systems Parking Assistance Systems ADAPTIVE Cruise Control (ACC) Lane-Departure Warning (LDW) ter for Automotive Research. It is set to be Allow vehicles to “talk” to each other Help parking in high-traffic and close- Uses radar and camera systems to maintain Monitors lane markings and alerts the driver if unveiled at the 2017 SEMA Show (see sidebar, to allow for better functionality and quarter environments. May include vehicle speed and safe driving distances a vehicle appears to be inadvertently drifting implementation of ADAS systems. backup cameras and/or 360-degree as the vehicle approaches slower-moving into an adjoining lane. p. 38). This groundbreaking research estimates cameras. vehicles. the current value of the ADAS aftermarket at just under $1 billion, with that dollar value Driver Vision Augmentation Automatic Emergency Braking (AEB) Forward-Collision Warning (FCW) Automated Performance Enhancement Systems expected to increase at a 9%–10% compound Provides enhanced views of the road Detects a forward crash with another Recognizes when a vehicle gets too close Assist the driver in regaining vehicle control annual growth rate through 2021, when it will ahead to reduce collision incidents. vehicle or pedestrian before it occurs to another vehicle and signals the driver to in traction-loss and roll-over situations. They reach $1.51 billion. Currently, passive park- Includes infrared night vision displays and alerts the driver to take correc- apply the brakes to avoid a collision. FCW include electronic stability control (ESC), which and heads-up displays. tive action or automatically applies systems boast the greatest current after- applies braking to individual wheels during assistance units make up the bulk of aftermarket the brakes. market opportunity. sudden turns. offerings, but other yet-untapped areas can be Source: SEMA/Center for Automotive Research and Ducker Worldwide Driver Assistance Technology and Aftermarket Potential Research Report 30 November 2017 SEMA News #SEMA2017 www.semanews.com 31 SEMA Advanced VehicleSEMA Technology Advanced Vehicle Technology EXECUTIEXECUTI M M – AFTERMARKET – AFTERMARKET AST AST Opportunity Study - 2017Opportunity Study - 2017 favor OEM installations; liability and TheThe market mark forThe aftermarket markaftermarket aftermarketADAS systemsystems is beingsystem being driven driven being drivenbyble a blend fety, ble of safety, consumer fety, consumer, consumerproduct ailabiproduct product ailabia enhancement a products already run the SEMA n BUSINESS installer capabilitinstaller capabilit t ita t add - ita add older- vehic older vehic cost effectiv cost solut effectiv solut ne vehicles ne vehicles insurance concerns; compatibility issues availability and installer capabilities to offer vital add-ons for older vehicles and cost-effective gamut from do-it-yourself (DIY) to profes- solutions for new vehicles. in emerging vehicle-to-vehicle and vehicle- sionally installed items, with price points SEMASEMA Advanced Advanced Vehicle Vehicle Technology Technology EXECUTIVEEXECUTIVE SUMMARYSUMMARY ––SCORINGSCORING SUMMARYSUMMARY OpportunityOpportunity Study Study - 2017- 2017 to-infrastructure across state lines; a lack of Key ADAS AftermarketKey ADAS AftermarketSystems Systems Key ADAS AftermarketKey ADAS AftermarketSystems Systems Aftermarket ADASAftermarket Systemsto ADASmatch. Systems Indeed, DIY backup cameras (total million(total units millionupfit) units upfit) (total million(total dollars million upfit) dollars upfit) 5-Year CAGR 5-Year CAGR Passive ADAS systems have the lowest overall complexity and the largest presence in the U.S. Department of Transportation stan- 5-year CAGR: 4.5% 5-year CAGR: 4.5% 5-year CAGR: 9.1% 5-year CAGR: 9.1% and rearview mirror replacements with Blind Spot WarningBlind Spot14% Warning 14% aftermarketPassivePassive ADASADAS currently, systemssystems have have with the the limitedlowest lowest overall overall presence complexity complexity for active and and the the systems largest largest presence presence due to in in system the the aftermarket aftermarket complexity, currently, currently, OE with with access 6.6 6.6 1,511.8 1,511.8 limited presence for active systems due to system complexity, OE access and pricing requirements dards to build and test to; and continuing integrated view screens are now popular andlimited pricing presence requirements. for active systems due to system complexity, OE access and pricing requirements 5.3 5.3 Lane DepartureLane Departure 11% 11% cybersecurity concerns. 976.9 976.9 Warning Warningofferings at virtually every big-box chain. Ready or not, however, ADAS and CVT Passive Park AssistPassive However,Park8% Assist 8% it’s not just traditional vehicle Passive ForwardPassive Forward AftermarketAftermarket ProductProduct AdoptionAdoption Likelihood Likelihood are already exploding onto the scene, and sound14% and14% entertainment manufacturers Collision WarningCollision Warning aftermarket sales and service outlets will 2016 2016 2021 2021 2016 2016 2021 2021 Heads Up Heads Upthat are jumping into the ADAS/CVT SystemsSystems Type Type DefinitionDefinition 12% 12% Display Display High Heads-Up Display Heads-Up Display High soon be grappling with the need for the Passive Park Assist Passive Park Assist marketplace. Entirely new companies are SystemsSystems that that will alertwill oralert Blind-Spot Warning Lane-Departure Warning Blind-Spot Warning Lane-Departure Warning orSystems warn that the will driver alert toor warnwarn the the driver driver to to take take Passive Forward-Collision Warning Passive Forward-Collision Warning PassivePassive take action in order for right equipment and skilled personnel to forming around those technologies—and actionaccidentaction in in order order prevention. for for accident accident preventionprevention keep up with market growth. While OEMs Key Drivers of Aftermarket Adoption of ADAS Systems: for good reason. have a tight grip on these technologies Key DriversKey of AftermarketDrivers of Aftermarket Adoption of Adoption ADAS Systems: of ADAS Systems: “We’ve been coming across National Systems that will SystemsSystems that that will will overtake overtake Lower cost of systems Ability to utilize ADAS Increase interest in safety Some systems have the overtake driving drivingdriving controls controls after after now, it’s expected that new legislation and Safety Council and other government Active controls after relative to OEM products, systems on older vehicles systems among end users. ability for easy self- Complexity/ Price Complexity/ Active Complexity/ Price Complexity/ Lower cost ofLower systems costrelative of systems relative identifyingidentifyingidentifying a apotential potentiala Ability to utilizeAbility ADAS to utilize ADAS Some systemsSome have systems the have the collisionpotentialcollision collision. which areto OEM often productsincludedto OEM which products areand whichlower systemstrim are levels on that oldersystems did vehicles on older vehiclesIncreased interestIncreased in safety interest installation in safety (i.e.,ability passive for easy ability self- forreports easy self -on the safe-driving movement and Media Conference: in aoften higher included trim level.often in a includedhigher trim in a highernot andoffer trim lower the option. trimand levels lower that trim did levels thatsystems did amongsystems end users among endparking usersinstallation assistance). (i.e.installation passive (i.e. passive System System System System finding that there’s a huge opportunity for New Tech for Old Cars; level level not offer thenot option offer the option parking assistance)parking assistance) SystemsSystems that that provide provide the aftermarket,” said Jeff Varick, president Systems that provide * System: denotes a product unit paired with an electronic control unit driversdrivers with with with additional additional additional The Billion-Dollar Tech Source: Market Feedback, Ducker Analysis (ECU) and warning functions; there are multiple systems produced OtherOther informationinformationinformation or or ways orways ways to to on a single vehicle. of Brandmotion. Low Low
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