Analysis on the development trend of ADAS aftermarket

Currently, most of the automobile stock market (that is, vehicles in use) still do not have ADAS systems provided by the original manufacturers, which has become a major development opportunity for the ADAS aftermarket market.

The aftermarket does not need to pass original manufacturer certification, so the product types and types are more diverse. The single front camera imaging solution is currently the most common aftermarket product, which generally provides three forward collision warning functions: FCW, PCW and LDW.

Aftermarket ADAS system

Definition and Features of Aftermarket ADAS Subsystems

ADAS subsystems that are not standard or optional equipment are independently developed by third-party companies, and ADAS subsystems that are implemented through retrofitting are called aftermarket ADAS subsystems. The retrofitting methods include those that require dismantling the vehicle body and those that do not. The characteristics of retrofit ADAS are easy installation, high compatibility and affordable prices, but these advantages are also disadvantages. Many products claim that they do not require professional installation and calibration and are compatible with various models. This also means that when one machine is suitable for multiple models, it is impossible to make the optimal design for various models. For example, the placement of the display and the host cannot be customized for the car model, and it is also difficult to adjust according to the traffic conditions of each country. In addition, since aftermarket products do not need to be certified by the original manufacturer, only some components will use automotive-grade products, such as the ACE-Q100 IC. 

The stock market is the focus of aftermarket product development

Since 2018, affected by the fluctuations in the global economic environment, new car sales in major countries have declined, and the downward trend is expected to continue until 2022. When the attitude towards buying new cars is conservative, consumers extend the service life of vehicles in use through repairs and aftermarket equipment, which increases the demand for aftermarket (AM) products in the stock market. The automotive industry began to develop ADAS systems in 2000. With the continuous evolution of technology, various subsystems have been installed in high-end models of various car manufacturers and are constantly improving. However, regulations cannot list all ADAS systems as standard equipment. One of the important factors is the price of the car. Therefore, many important ADAS systems are included in the New Car Assessment Program (NCAP) standards of various countries, but they are not mandatory. Now, although the ADAS system-equipped models of passenger cars have gradually been transferred from high-end to mid-range, many countries have promoted the installation of ADAS systems in cars through mandatory regulations, but at the same time, a problem is revealed: the regulations only impose mandatory requirements on new cars, but old cars are not restricted. In addition to the large difference in the condition of old cars, it is more difficult to ask people or manufacturers to bear additional costs. However, because the technology of old cars is outdated and there are problems such as parts wear and tear, ADAS systems are more needed to reduce accidents. The average age of vehicles in the US stock market is about 12 years, and in Europe it is 11 years, so most vehicles do not have ADAS systems. In addition to the huge stock market, the reasons that attract manufacturers to invest in the development of the ADAS subsystem market include that most products in the aftermarket are standard products, which do not need to undergo long-term factory verification and can be quickly put on the market. In addition, it is not difficult to obtain components such as sensors and chips, which reduces the threshold for investment in development. At present, most ADAS systems in the original equipment market are still provided by traditional Tier 1 manufacturers such as Autoliv, Aptiv, Bosch and Continental. It is not easy for other manufacturers to enter. In addition, the verification time of the original equipment market is long. Therefore, if the original equipment and aftermarket markets are operated at the same time, it will help manufacturers to continue to obtain revenue. In addition to Mobileye, which has both front-end and after-sales products, many Chinese start-ups have also set their sights on this market, including Kaiyi Technology, SmartEye, Hammerhead Technology and Weipai Intelligent Technology. Taiwan's Chi Mei Automotive Electronics has also invested in this. These manufacturers have all set their sights on the commercial vehicle market. 

Aftermarket ADAS subsystem types

At present, aftermarket ADAS subsystems are mainly based on warning functions that do not intervene in the three major control systems of the vehicle (steering wheel, brake and accelerator), including blind spot detection (BSD), lane departure warning (LDW), forward collision warning (FCW), pedestrian and bicycle collision warning (PCW), front vehicle distance monitoring and warning (HMW), speeding warning (SLI), road sign recognition reminder (TSR), driver management system (DMS), tire pressure monitoring (TPMS), 360-degree panoramic parking assistance (SVC) and image reversing assistance (PAS).

The existing warning products on the market are mainly image recognition solutions, which use one front lens to realize multiple warning systems that monitor the road conditions ahead, including LDW, FCW, PCW, HMW, TSR, FVSA and SLI. The height limit detection warning system is aimed at the commercial vehicle market, suitable for buses, container trucks and cargo trucks with high bodies, and mostly operates in bridges and tunnels. Because the front lens solution can mostly realize the front image function, other lenses need to be installed for the ADAS sub-systems such as SVC, BSD, LCA and RCTA behind the body and the rear of the vehicle. Therefore, many manufacturers have also launched radar solutions, and the performance will vary depending on whether the radar is single-receive single-transmit or single-receive dual-transmit. In terms of non-warning, there is an intelligent headlight system (IHC) for active safety outside the vehicle, which can automatically detect oncoming vehicles or pedestrians, and then change the high and low beams to ensure the safety of other road users. This function requires reading other sensor data as the basis for switching judgment, which is an act of actively switching the headlights, so it is classified as active intervention. ADAS systems in the original equipment market have gradually moved from warnings to active intervention control, such as adaptive cruise control (ACC), automatic emergency braking (AEB) and lane keeping control (LKS), but most of them are standard equipment only for mid-to-high-end vehicles. If you choose to have these systems, the price is high or they cannot be activated due to local regulations.

Therefore, some aftermarket manufacturers have set their sights on this high-end market, but intervention in the vehicle control system requires the car manufacturer's source code, which is strictly protected by the car manufacturer and Tier 1 manufacturers, making it difficult for third-party companies to obtain. However, there are still modification manufacturers on the market that provide this service, or open source products such as Comma.ai's Openpilot to activate the ACC function on the car, but no matter which method is adopted, once the modification is carried out, the original warranty will be lost, so it is not easy for the intervention control ADAS system to penetrate the general passenger car market. ADAS aftermarket products are developing towards more comprehensive protection functions

 Added lens expansion blind spot detection function

Products that mainly use front cameras mainly focus on front collision avoidance functions, but body and rear protection must rely on other cameras, especially large trucks or buses have a strong demand for blind spot detection.

At present, most forward collision and blind spot detection products are independent of each other. In the future, we will have the opportunity to see more integrated products, which is a development direction for manufacturers specializing in large commercial vehicles. 

Using internal camera to monitor driver behavior

The driver fatigue monitoring (DMS) system is a sub-system that is about to flourish in the original equipment market. It monitors the eyes, expressions and movements of the face through the camera inside the car, and judges whether the driver is distracted or mentally deficient based on the opening and closing of the eyes, the angle of sight, yawning, turning of the head, etc.

The benefit of introducing DMS aftermarket is to prevent drivers from over-relying on ADAS products, which can lead to distraction. DMS can remind drivers to stay focused and reduce the chance of collision warnings. 

Enhanced night vision capabilities, OTA software real-time updates

In order to improve image clarity, the lenses currently used are all moving towards 1080p. In addition to resolution, it is very important for suppliers to improve the night vision capabilities of the lenses, because most car accidents occur at night. Improving night vision performance can avoid functional failure or reduced accuracy when driving on low-light routes. In addition, almost all products now have communication modules, and commercial-grade products support OTA software updates, which can continuously optimize functions. Market opportunities for aftermarket products

Great opportunities in the commercial market

The aftermarket has great opportunities in the commercial market, which can be seen from the following points:

① Strong demand

The long driving time of commercial vehicles also creates time pressure, which tests the mental and physical strength of the driver. In addition, large commercial vehicles such as buses, container trucks and large trucks have poor driving visibility, long braking distances and many blind spots due to their size and length. In addition, the injuries caused by accidents are also more serious. Therefore, there is a strong demand for ADAS in terms of usage and vehicle conditions. ② Long service life