Skip to main content

Heavy cost of car safety systems gives buyers pause

New research by Frost and Sullivan finds that constant technological innovations in automotive safety warrant frequent updates to legislation. With the number of fatalities and injuries on the rise, legislative authorities in Europe are taking a keen interest in the safety of pedestrians, passengers and drivers. This enhanced focus on safety has far-reaching ramifications for the automotive industry.
September 11, 2013 Read time: 3 mins
New research by Frost & Sullivan finds that constant technological innovations in automotive safety warrant frequent updates to legislation.

With the number of fatalities and injuries on the rise, legislative authorities in Europe are taking a keen interest in the safety of pedestrians, passengers and drivers. This enhanced focus on safety has far-reaching ramifications for the automotive industry.

The automotive industry marketed most active safety technologies, especially adaptive cruise control (ACC), autonomous emergency braking system (AEBS), and forward collision warning (FCW), as optional features due to consumers’ limited awareness of their importance. However, with the 1690 European Commission mandating the fitment of electronic stability control (ESC) and considering AEBS for city driving, vehicular safety fitments are becoming the norm.

There are likely to be more regulatory changes based on the functionalities of advanced driving assistance system (ADAS) applications such as lane departure warning (LDW), AEBS, pedestrian detection, and intelligent speed adaptation (ISA) systems. These functionalities are especially relevant because they have been considered under 'other significant projects' by the Euro New Car Assessment Program (6437 Euro NCAP).

Even though car makers are including novel safety systems in their vehicles, they are not finding many takers for it in the price-sensitive non-luxury vehicle segments. For a low-cost vehicle, at any given price band, the add-on cost of ADAS functionalities will constitute a high percentage of the vehicle sticker price, while the same for a luxury car would constitute a smaller percentage, even if the ADAS is a sophisticated add-on such as Night Vision System or ACC with Stop and Go.

“Certain consumers tend to prefer lifestyle features to ADAS functionalities. To ensure the safety of customers despite their preferences, OEMs can take the onus of making 'lifestyle' vehicles safe,” said Frost & Sullivan automotive and transportation research Analyst Nivedita Manoharan. “An obvious solution would be to make available cost-effective retrofit ADAS systems, software or applications and mandate their fitting on vehicles in operation.”

Even in favourable economic conditions, ADAS’ uptake had not been encouraging in the developed markets. Though consumer awareness of value-added features, such as blind spot detection (BSD) and night vision systems is rising, they are not impressed by ADAS’ value proposition at the point of sale.

Further, the decline in new vehicle sales has lengthened the replacement rates of vehicles, pushing the timeline for reaching zero fatalities. Even with the increasing deployment of ADAS retrofit solutions, better consumer acceptance, and legal assistance, the soonest this goal can be reached is 2030.

Legislative and regulatory changes are likely to disrupt industry dynamics, and increase competitiveness. For instance, if vehicle-to-vehicle and vehicle-to-infrastructure communication becomes the mainstay of inter-vehicular communication, it can be used to cater to various ADAS functionalities. However, these technologies also pose cyber-security issues and privacy issues; and the laws for tackling it are still loosely interpreted, and in some cases, misinterpreted.

“Unless amendments are made to the existing framework for cyber laws, the growth of such technologies may be shunted,” noted Manoharan. “Safety has become a long-standing inflection in the automotive industry with binding impact on legislation; after all, zero fatality or complete safety is the new green.”

Related Content

  • April 19, 2013
    Global ADAS market forecast to reach US$261 billion by 2020
    Analysts at ABI Research forecast that the global market for ADAS systems will increase to more than US$261 billion by the end of 2020, representing a CAGR of 41%. “ADAS systems are increasingly being offered by mass-market OEMs such as Ford and Volkswagen,” said Gareth Owen, research analyst at ABI Research. “Whilst the majority are offered in bundles and sold as optional “driver-assist” packages, a growing number of OEMs are starting to fit some ADAS systems as standard equipment.” A key catalyst driving
  • May 14, 2015
    eCall mandate: a cost burden for car manufacturers?
    The European Parliament has mandated that all newly approved car and light-van models will have to be equipped with eCall boxes as standard fitment from 31 March 2018. eCall boxes are emergency call devices enabling rescue services to respond with faster road assistance based on knowledge of the exact location of the accident. The 2014 ban on telephone roaming charges across Europe will establish a favourable scenario for an interoperable eCall or telematics solution. However, while the European Commissi
  • June 5, 2014
    TRW showcases driver assist systems
    TRW Automotive demonstrated its driver assist systems (DAS) and outlined expected trends in sensor technologies during the company's recent bi-annual Ride and Drive event at the Hockenheimring in Germany. According to Andrew Whydell, TRW Electronics’ director of product planning, DAS has and will continue to be a focal point for the automotive industry as governments and industry bodies strive to reduce road fatalities worldwide. For example, the European New Car Assessment Program (EuroNCAP) and the Ins
  • October 16, 2015
    Collision avoidance system market expected to grow at 22per cent to 2019
    The latest report from RnR Market Research forecasts the global collision avoidance system market to grow at a CAGR of 22.02 per cent over the period 2014-2019 The report, Global Collision Avoidance System Market 2015-2019, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the Americas, APAC, and EMEA; it also covers the landscape of the global collision avoidance system market and its growth prospects in the coming years. It includes a discussion