ADAS Services Demand: Why It’s Time to Invest

Car ADAS driving stock photo

Are you prepared for the unprecedented demand for advanced driver-assistance systems (ADAS) services? With more than 1 million vehicles requiring these services already each year, and projections of even greater need in coming years, now is the time to act.

Read on to discover why it’s wise to develop your own business plan around ADAS calibration and repair services—ASAP!

Demand for ADAS Services is Growing Fast

By 2025, roughly half of the cars in North America will be ADAS-equipped. By 2030, it’s estimated to be about 75%. ADAS technology has gradually infiltrated the U.S. car market since the early 2000s. With recent advances in technology and industry standards, ADAS-equipped cars will soon be the norm.

Take Automatic Emergency Braking (AEB), for example. In 2020, only 11% of registered vehicles were equipped with this feature. However, starting in 2022, all new light passenger vehicles made in the U.S. have included this feature.

It’s important to note that automakers have been working toward this deadline since signing a 2016 pledge. With that change, AEB is expected to be on 43% of all registered vehicles by 2026.

% Registered Vehicles with ADAS Features20202026
Automatic Emergency Braking (AEB)11%43%
Blind-Spot Monitoring (BSM)19%45%
Front Crash Prevention17%48%
Lane Departure Warning (LDW)14%44%
Source: Highway Loss Data Institute (April 2022)

ADAS Sensors Have to Be Calibrated

To operate, ADAS systems rely on radar, lidar, and camera sensors mounted throughout the vehicles. After many common situations like adjacent repairs and collisions, these sensors need to be calibrated to ensure that each ADAS feature can function properly. That’s where ADAS service centers, providing ADAS repair and calibration, come into play.

How often will vehicles need ADAS calibration? It helps to consider that calibration is needed in conjunction with regular, everyday car services. When sensors are replaced after damage, removed and reinstalled by ADAS technicians (like during a windshield replacement), or jarred out of alignment by a fender bender, they need to be calibrated for ADAS to provide the most accurate assistance.

For example, when a windshield is replaced, ADAS calibration is required when window-mounted sensors are removed and reinstalled on the new windshield. As more and more vehicles are outfitted with ADAS technology, local ADAS service providers, outfitted with trained ADAS service specialists, will be needed to calibrate and repair them.

Calibrations Require Professional Service Providers

ADAS service providers currently offering ADAS repairs and calibrations are few and far between. It takes ample space, special equipment, and expertise to get your calibration bays up and running and profitable. Getting over these hurdles is a big reason why most vehicles needing calibration are sent to dealerships.

In fact, 90% of mechanical shops send to the dealer and a mere 30 % of collision shops are capable of doing ADAS calibrations in-house. By 2030, 200 million vehicles will be ADAS-equipped, driving a $3 billion per year ADAS calibration services market.

With the huge rise in the number of passenger vehicles that have ADAS technology, there is an increasingly urgent demand for ADAS calibration centers and services. Offering ADAS calibration services at your shop is a smart way to capitalize on this huge surge in the market while providing a valuable service to vehicle owners in your area.

ADAS Offers a New Revenue Stream

By 2025, ADAS calibrations are estimated to be a $1.7 billion business. With the anticipated surge of vehicles needing ADAS repairs, it is important to consider who will be responsible for calibrating—a process that requires precise technical skills and equipment. It is not a simple task, as each vehicle and its associated ADAS system has its own requirements and complexities.

Before you can calibrate any car, investments in training, new equipment, and building upgrades are needed. That’s probably why collision shops outsourced $177 million worth of ADAS calibration work in 2021.

Currently, most calibrations are done at dealerships, but many say that model won’t be effective long-term. ADAS parts and services are expected to experience >17% CAGR through 2030. As a result, it’s anticipated that independent, third-party calibration centers or existing auto shops (that make the investment) will fill the demand gap.

Car ADAS Solutions Can Give You a Leg Up on the Competition

Opening a dedicated ADAS calibration center or offering ADAS calibration services in your shop can be a great business opportunity! As the automotive industry moves towards a future of automatic and assisted driving, the need for sensor calibration and other ADAS services will continue to grow.

Don’t let common challenges deter you from looking into an ADAS services plan for your business. Those who provide these services will be well-positioned for success in the coming years. 

Learn how Car ADAS Solutions can help you open your own ADAS calibration center.

Ready to talk to someone about your own ADAS services solution? Contact Car ADAS Solutions today!

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