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

  • Funding shortfall for US Interstate upgrades
    May 11, 2012
    Andrew Bardin Williams investigates tolling on the federal Interstate system as maintenance and upgrade requirements increasingly outpace funding The I-95 corridor through North Carolina is one of the most heavy trafficked interstates in the US, seeing upwards of 46,000 vehicles per day in some stretches-and North Carolina’s Department of Transportation (NCDOT) estimates this number will to rise to 98,000 vehicles per day by 2040. Along with the rest of the federal interstate system, the North Carolina str
  • EVs: Time for a rethink
    December 14, 2021
    Given a growing body of evidence that EVs are not the clean, green machines they are made out to be, Andrew Bunn suggests they can only be part of the puzzle – not the answer to environmental problems
  • ITS industry needs more effort to get to the future
    January 19, 2012
    Eric Sampson, visiting professor at Newcastle University and City University London and ambassador for ITS-UK, provides a retrospective on the last couple of decades and takes a look at what the ITS industry still needs to do to get to where it needs to be
  • Growth of telematics-based pay as you drive car insurance systems
    July 17, 2012
    Car insurance made cheaper by telematics has returned to news headlines in the UK this year. Will it really take off this time and can vehicle tracking provide an effective tool for enforcing or encouraging insurance compliance? Jon Masters reports Will 2012 go down as the year that telematics-based car insurance took off? In the UK at least, a groundswell of new policies, with premiums priced on the basis of tracked and analysed driving style, suggests a turning point has been reached. Some would argue t