Emerging Vehicle Technologies
The aftermarket
New challenges and major opportunities
For the automotive aftermarket, these technologies present both new challenges and major opportunities. Independent repair facilities, parts manufacturers and technology providers must adapt.
This page highlights the key emerging automotive technologies impacting the aftermarket and the strategic implications for industry stakeholders.
- New vehicle architectures
- Evolving regulations
- Increasing software complexity
Software
Software-defined vehicles
One of the most transformative shifts in the automotive industry is the move toward the software-defined vehicle (SDV).
Unlike traditional vehicles, which rely on dozens of independent electronic control units, SDVs use centralized computing systems and powerful processors that control many vehicle functions through software.
Why SDVs matter
Software-defined vehicles enable:
- Over-the-air updates Remotely upgrade vehicle features.
- Continuous improvement Performance improvements continue after purchase.
- Remote diagnostics Predictive maintenance from vehicle data.
- Digital services New services and subscription-based features.
These capabilities transform vehicles into connected digital platforms that evolve throughout their lifecycle.
Impact on the automotive aftermarket
Challenges
- OTA updates may reduce some traditional diagnostic visits
- OEMs gain stronger direct relationships with drivers
- Proprietary software systems may limit third-party access
Opportunities
- New services for complex hardware-software diagnostics
- Remanufacturing of high-value electronic modules
- Expanded data and compatibility management for parts
The global market for software-defined vehicles is expected to grow rapidly in the coming decade, making SDV readiness a strategic priority for the aftermarket.
Vehicle data
Connected vehicles and vehicle data access
Modern vehicles generate vast amounts of operational data through onboard sensors and connectivity systems. This data is increasingly transmitted through telematics platforms directly to automakers.
95% of new vehicles are projected to be connected by 2030, dramatically expanding the role of automotive data.
OBD-II Standardized diagnostic access is giving way to wireless telematics that send data to OEM servers.
The shift from OBD-II to telematics
Historically, the aftermarket relied on the OBD-II port for standardized diagnostic data. Today, many vehicles use wireless telematics systems, which transmit diagnostic and performance data directly to OEM servers.
Who controls access to vehicle data?
This transition creates a major policy issue for the aftermarket.
Right to repair and vehicle data
Vehicle data access has become one of the most important issues facing the automotive aftermarket. Several legislative and regulatory efforts aim to ensure vehicle owners and independent repair shops can access repair data, including:
- The REPAIR Act (U.S. federal legislation)
- Automotive right-to-repair laws in states like Massachusetts and Maine
- Global cybersecurity and software regulations such as UNECE WP.29
These efforts seek to preserve consumer choice and competition in vehicle repair markets.
Safety systems
Advanced driver-assistance systems (ADAS)
ADAS technologies are rapidly becoming standard in modern vehicles. These systems rely on cameras, radar, LiDAR and ultrasonic sensors.
Sensors
- Cameras
- Radar
- LiDAR
- Ultrasonic sensors
Safety features
- Automatic emergency braking
- Lane-keeping assistance
- Blind-spot monitoring
- Adaptive cruise control
37.6% Studies show ADAS components can increase repair costs after a crash by up to 37.6%.
Calibration Even minor collisions or windshield replacements can require precise sensor recalibration.
Impact on repair and service
ADAS significantly increases the complexity of vehicle repair and calibration.
Opportunity: ADAS calibration services
ADAS calibration represents one of the fastest-growing service opportunities in the aftermarket. Shops that invest in the following can capture new high-value service revenue:
- Calibration equipment
- Technician training
- Controlled workshop environments
Electrification
Electric vehicles and next-generation batteries
Electrification is transforming vehicle design and service requirements. While lithium-ion batteries dominate current EVs, the industry is investing heavily in next-generation battery technologies.
- Solid-state batteries The most promising near-term innovation, with mass commercialization expected between 2026 and 2030.
- Sodium-ion batteries A next-generation chemistry the industry is investing in.
- Lithium-air batteries A next-generation chemistry the industry is investing in.
Solid-state batteries
Potential advantages include:
- Longer driving range
- Faster charging
- Improved safety
- Longer battery lifespan
Implications for the aftermarket
- EV battery systems may last longer than traditional components
- Battery serviceability remains uncertain
- EV diagnostics and high-voltage safety training will become critical skills
Security
Automotive cybersecurity
Connected vehicles introduce new cybersecurity challenges. Modern vehicles rely on complex networks of sensors, software platforms and cloud services. Protecting these systems from cyber threats has become a growing priority.
Emerging aftermarket opportunities
- Vehicle cybersecurity assessments
- Secure diagnostics and repair procedures
- Incident response and forensic analysis
- Fleet cybersecurity monitoring
Global regulations such as ISO/SAE 21434 and UNECE R155 are shaping cybersecurity requirements for vehicles and repair operations.
Sustainability
Sustainable materials, fluids and packaging
Sustainability is another key trend shaping the automotive industry.
Bio-based automotive lubricants
Bio-based lubricants use renewable materials such as vegetable oils rather than petroleum-based base oils.
- Reduced environmental impact
- High lubricity and improved performance characteristics
The global bio-lubricant market continues to grow steadily as environmental regulations increase.
Sustainable packaging requirements
New Extended Producer Responsibility (EPR) laws are expanding across the United States and globally. These regulations require companies to take responsibility for packaging lifecycle impacts, including recycling and disposal.
For aftermarket businesses, this creates both new compliance obligations and opportunities to innovate in sustainable packaging.
Connected components
Smart tires and connected components
Vehicle components themselves are becoming connected devices. Smart tires embed sensors that monitor pressure, temperature and tread wear, and can transmit that data to drivers or fleet management systems in real time.
Future developments
- Predictive tire maintenance
- Automated service alerts
- Airless tire designs
These technologies could transform tire service into a data-driven maintenance model.
Outlook
The future of the automotive aftermarket
Despite rapid technological change, the automotive aftermarket remains supported by a large and aging vehicle fleet. That fleet continues to drive strong demand for traditional maintenance and repair services.
289 million vehicles are currently in operation in the United States.
12.8 years is the average age of vehicles in the U.S. fleet.
A dual-track strategy
Industry leaders increasingly recommend a dual-track strategy. Companies that balance both strategies will be best positioned to succeed in the evolving automotive ecosystem.
- 1 Optimize service for today’s aging vehicle fleet.
- 2 Invest in the capabilities required to support future vehicle technologies.
Resources
Learn more
For deeper insights into emerging technologies and their impact on the automotive aftermarket, explore these Auto Care resources.
Meet our Team
more about Emerging Technology Committee
The primary purpose of the Auto Care Emerging Technology Committee is to influence industry standards for Intelligent Mobility Technologies.