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

  • New ticket purchase methods expected to drive advance of US public transit
    April 2, 2015
    New analysis from Frost & Sullivan, Strategic Analysis of the US Automated Fare Collection Market in Rail and Urban Transit Systems, finds that the market earned revenues of US$324.5 million in 2014 and estimates this to reach US$634.8 million by 2021. The rising cost of fare management, coupled with the increasing presence of computing, sensors and connected devices, have made public transit systems more accessible to end users, thus boosting interest in automated fare collection (AFC) systems. With 33
  • euroFOT study demonstrates benefits of driver assistance systems
    June 26, 2012
    Today, the euroFOT consortium published the findings of a four-year study focused on the impact of driver assistance systems in the Europe. The €22 million (US$27.5 million) European Field Operational Test (euroFOT) project which began in June 2008 and involved 28 companies and organisations, was led by Aria Etemad from Ford’s European Research Centre in Aachen, Germany. The study looked at existing technologies and their potential to both enhance safety and reduce environmental impact. euroFOT also reveale
  • Need for real-time traffic information systems on the rise
    March 11, 2015
    New analysis from Frost & Sullivan, Strategic Analysis of Real-time Traffic Information Market in Europe and North America, finds that the number of real-time traffic information subscribers in North America stood at 1.9 million units in 2014 and estimates this to reach 14.2 million in 2021. In Europe, the number is expected to go up from 2.2 million in 2014 to 10.2 million in 2021. With traffic expanding at three times the rate of the economy, the research says the need for intelligent systems like real-ti
  • FIA Region I warns of ADAS ‘limitations’
    October 19, 2020
    Safety features are ‘good friends’ but drivers need to understand exactly how they work