ADAS Calibration Equipment Market Grows with Rising Need for Enhanced Traffic Management, Says FMI

VALLEY COTTAGE, N.Y.- Growth of ADAS calibration equipment market aligns with flourishing automotive sector. As electric vehicles (EV) are replacing conventional vehicles, carmakers are equipping smart automobiles with ADAS for enhanced traffic management, thereby fostering demand for ADAS calibration equipment.

Europe continues to lead the market, with Germany at forefront, and Italy displaying rapid CAGR. This is primarily attributed to increasing production of SUVs and mid-sized vehicles in Western Europe.  Currently generating slightly above US$ 200 Mn, the ADAS calibration equipment market is projected to create revenues nearly thrice over the next decade. Further, this FMI report estimates double-digit growth of ADAS calibration equipment market over forecast period (2019-2029).

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Passenger Vehicles Remain Top Adopter, Commercial Vehicles Catch Up

FMI reveals that adoption of ADAS calibration equipment will be significant in passenger vehicles (PV) through 2029, generating maximum revenues in Europe. Commercial vehicles (CV), on the other hand, are exhibiting faster adoption rate in majority of regions. This is attributed to increasing preference for enhanced automobile efficiency and fuel economization.

Stringent government regulations are compelling automobile manufacturers to embrace ADAS calibration equipment in PVs and CVs, echoing significant spike in their employment in 2020. Further, FMI reveals that adoption rate of ADAS calibration equipment in both the vehicle categories – PVs and CVs – is fastest in Middle East & Africa (MEA).  

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Demand Upsurge in OEMs and Service Stations

FMI discovers demand upsurge for ADAS calibration equipment from OEMs which currently hold about ~40% market share. At present, vehicles are equipped with about 60-80 sensors, which is expected to reach 200 sensors a vehicle in near future. Countries, including the US, Germany, and France, are prominent with highest installation rate of sensors per vehicle. Repair or replacement of ADAS, including cameras, and sensors, requires recalibration, as such, demand growth of ADAS calibration equipment is fastest in service stations segment.

East Asia Outpaces North America

The US represents the most lucrative ADAS calibration equipment market surpassing US$ 100 Mn by 2029 end, owing to rising production of heavy commercial vehicles (HCV). Exhibiting fastest growth rate, East Asia will surpass North America in next few years. China, owing to swelling production of compact PVs, lead the region, while South Korea and Japan reflect worthwhile prospects.

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Analysts at FMI suggest that “The market of ADAS calibration equipment will grow robustly in coming years as vehicles are getting smarter. To facilitate safe driving experience, automotive manufacturers are integrating ADAS with existing fleet. However, ADAS calibration equipment market is yet to streamline in developing countries due to lax government regulations.”

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