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.”

For more information on companies in this article

Related Content

  • e-hailing expected to dominate ride hailing market by 2025
    July 26, 2017
    According to the latest research by MarketsandMarkets, the ride hailing market is projected to grow at a CAGR of 19.81 per cent from 2017, to reach a market size of US$276 billion by 2025. The market is primarily driven by rising urbanisation and declining car ownership. The report says e-hailing is expected to dominate the ride hailing market; it solves the problem of the first and last mile connectivity for passengers. It is predominant in urban areas because of declining trend of car ownership and increa
  • TRL: In-vehicle tech is developing – but the driver isn’t
    August 19, 2019
    The evidence base for distracted driving has failed to keep up with technological developments, argue TRL’s Neale Kinnear and Paul Jackson. New research is urgently needed
  • Vision technology: the future in focus
    November 23, 2018
    Just a few years ago, terms such as ‘embedded’ and ‘polarisation’ were buzzwords. But now they are real and present examples of vision technology in action – and, Adam Hill finds, the ITS industry is waking up to a number of possible applications Every aspect of the intelligent transportation systems industry moves quickly – but developments in camera technology change with a rapidity which can appear quite bewildering. And with ITS providers constantly searching for an edge against fierce competitio
  • Hella and Autoliv sign license and cooperation agreement
    May 18, 2012
    Hella Aglaia Mobile Vision, a subsidiary of Hella KGaA Hueck & Co., and Autoliv have agreed to cooperate and further develop their automotive forward-looking vision systems together. As part of the agreement that bundles the competencies of both companies, Hella Aglaia is selling an exclusive license on monovision based algorithms for traffic sign recognition (TSR), lane detection and light source recognition to Autoliv. By monitoring traffic signs, TSR helps the driver to keep the correct speed and follow