The impact of ADAS on the automotive aftermarket

Sept. 29, 2017
According to both Mitchell and CCC, despite increased adoption of ADAS in many vehicles, both frequency and severity of crashes continue to increase.

Recently, I have had multiple conversations with a number of very intelligent people about Advanced Driver Assistance Systems (ADAS) and the impact they have on the automotive aftermarket industry. Each of these conversations have been interesting, and while opinions have varied, one thing is certain – the role of technology in the automotive aftermarket is only increasing. Some are very concerned about the impact of ADAS on the automotive aftermarket, and others appear ambivalent about the technology. The more conversations I have, the more I realize that there is much uncertainty on ADAS impact on the automotive aftermarket.

The Consultants

Recently, KPMG released a report that spelled out a rather gloomy future for companies that operate in the collision repair segment, including OEMs, parts distributors, paint distributors, and collision repairers, suggesting that the industry could see as much as 75% decrease in parts replacement business as a result of autonomous vehicle technology.

My friend and colleague  James Carter, Principal Consultant at Vision Mobility sees a similar dreary future for the industry.  In a recent report titled “Who Stole My Company” he states “As the convergence of new technologies into a “CASE” platform (Connected, Autonomous, Shared, Electric) occurs, people will be able to access their mobility cheaply through pay as you go systems.” James is very active in the mobility space, and sees autonomous technology and ADAS having a significant impact on industry profitability as well. He believes we are on the cusp of a major shift in how consumer purchase, service and use automobiles. “As the popularity of such autonomous car sharing services grow, many current industries and businesses associated with Automotive and car ownership will begin to dwindle and finally fail.”

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