According to Inkwood Research, the aftermarket ADAS market in GCC was valued at $XX million in 2018 & estimated to reach $338.56 million by 2027, with a CAGR of 12.67% during the forecast period. The base year considered for the study is 2018 & the estimated period is between 2019 and 2027.

Factors responsible for the GCC aftermarket ADAS market growth are:

• High demand for safety features in vehicles
• Stringent government regulations regarding vehicle safety
• The rise in demand for used cars
• The positive outlook of aftermarket

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The aftermarket advanced driver assistance systems market is driven by the growing demand for safety features in automobiles. According to the RTA, UAE witnessed road fatalities growing from 675 in 2015 to 725 in 2016. According to the Ministry of Interior’s General Directorate of Traffic, an average number of road accident deaths per 100,000 persons in Qatar is 5.5 while the global average is 17.4. Therefore, the demand for safety features is expected to increase due to an increase in the number of road accidents. In turn, augmenting demand for aftermarket ADAS solutions in the GCC region.

As of 2018, ADAS in passenger vehicles segment accounted for 77.71%, which is leading the GCC aftermarket ADAS market. High production, increased registration of passenger cars, and lesser complexity as compared to commercial vehicles are important factors contributing to the increasing market sales. ADAS solutions find major applications in the passenger vehicles segment, where these systems are considered essential for critical safety of the vehicle as well as the driver. The automotive industry has been striving to push features that aid in minimizing the impact of collisions, reduce fatalities, & improve overall vehicle safety, in turn, fuelling the growth of the aftermarket ADAS market during the forecasting period. Further, the GCC countries, particularly the UAE & Saudi Arabia, have a highly active used car market. As buyers change new car models in a short period, the region has a large market for used cars. The demand for used cars is rising faster than that of new cars, mainly due to changing customer habits, as they become more budget-conscious given the weak economic conditions. The UAE has the largest market for used cars with sales in 2015 estimated at $ 3.0 billion. Therefore, in order to increase the safety of both pedestrians & car drivers, the market of aftermarket ADAS in passenger cars is anticipated to increase at a significant rate.

With the increasing adoption of ADAS solutions in the aftermarket, newer challenges have been introduced. Factors like ADAS malfunctions, human behavioral adaptation, and the adverse impact of the environment, are hindering the market growth. Different sensors working together in large numbers leads to a greater possibility of operational failures in ADAS due to slow data transmission rates. For example, in forwarding assist camera, the rate of data transmission becomes slow due to high-resolution images. Moreover, usage of software & wireless network in ADAS makes it prone to cyber threats.

The report on the GCC aftermarket ADAS market includes segmentation on the basis of vehicle type.

Market by Vehicle Type:

• Passenger cars
• Light commercial vehicles
• Heavy commercial vehicles

Geographically, the GCC aftermarket Advanced Driver Assistance Systems (ADAS) market has been segmented into six major countries, which includes:

• United Arab Emirates
• Saudi Arabia
• Kuwait
• Oman
• Qatar
• Bahrain

The growth of the aftermarket ADAS in GCC market can be attributed to the rising populace & high disposable income coupled with significant infrastructure developments. The automotive manufacturing is expected to gain momentum in the markets of the GCC, as governments look to diversify their economies away from hydrocarbons & production provides an attractive alternative. Further, the influx of new & used vehicles in the Gulf Cooperation Council (GCC) region is expected to boost the demand for aftermarket ADAS solutions. Additionally, owning a car in GCC countries is a lot easier due to the convenient tax structure, attractive financing options, and insurance. Further, the region, in particular, UAE, is witnessing a growing trend of vehicle customization. Saudi Arabia & the UAE are the largest aftermarket ADAS markets in the region as both the countries together captured around 71% of the revenue share in 2018. The Saudi Standards, Metrology & Quality Organization announced in August 2015 that they are going to impose automakers & automotive dealers in Saudi Arabia with some safety requirements according to the new iteration of the Technical GCC Specification. These regulations include safety features such as ABS, ESC, Smart Braking, Airbag, and other ADAS systems. Such an increased focus on safety systems in the country is expected to boost the market for automotive aftermarket ADAS in the Kingdom of Saudi Arabia. Moreover, the hot temperatures & challenging desert conditions of Saudi Arabia & the surrounding Gulf Cooperation Council states also put stress & strain on vehicles, leading to high demand for aftermarket ADAS.

The Gulf Cooperation Council (GCC) aftermarket ADAS market has been segmented based on vehicle type into passenger cars, light commercial vehicles, & heavy commercial vehicles.

The key companies operating in the GCC aftermarket ADAS market are;

• Continental AG,
• Intellivision Technologies Corporation,
• Mobileye N.V,
• Robert Bosch Gmbh
• Valeo S.A.
• Other Companies

Most of the companies look for strategies such as merger & acquisition, partnership, contracts, agreements, and new product launch to gain a competitive edge over other companies. For Example, in March 2019, Denso took a $5 million stake in Airbiquity Inc. Airbiquity operates in automotive telematics technology & connected vehicle services. In February, 2019, Hewlett Packard Enterprise (HPE) & Continental collaborated to develop a new platform for vehicle data to sharing in order to increase driver safety.  In January 2019, Intel & Mobileye dedicated substantial resources towards the development of fully self-driving vehicles.

Key findings of the GCC aftermarket ADAS market are:

• The automotive manufacturing is expected to gain momentum in the markets of the GCC, as governments look to diversify their economies away from hydrocarbons & production provides an attractive alternative.
• To overcome the technical challenges in sensors, manufacturers are trying to integrate multiple ADAS functions on a single platform to handle data from various sensor types, i.e., Sensor Fusion
• Technological advancements & innovations are the essential factors proliferating the growth of aftermarket ADAS market in the automotive industry.

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