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

  • NXP Delivers V2X Chipset for Mass-Production Secure Connected Cars
    June 3, 2015
    NXP Semiconductors RoadLINK V2X chipsets – for Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) communication – will be put into highvolume manufacturing for Delphi Automotive. Having secured a partnership with a leading global automaker, Delphi’s platform is expected to be first to market and on the roads in as little as two years.
  • InfoConnect delivers accurate travel information on all levels
    August 1, 2012
    Deryk Whyte provides an overview of how the New Zealand Transport Agency's InfoConnect concept was developed. Historically, the New Zealand Transport Agency (NZTA) (formerly Transit New Zealand) has faced challenges in communicating effectively with road users, its customers, about highway-related events or incidents in a timely, accurate manner. Prior to 2007, Transit relied on a third-party organisation to collect and disseminate national road condition information. This often resulted in incomplete infor
  • Consumer interest builds for 'gateway' automated vehicle technologies, says study
    April 29, 2016
    Trust in automation technology is very much age dependent, as younger consumers have a notably higher level of confidence in the technology than their older counterparts, according to the J.D. Power 2016 US Tech Choice Study, which says trust in automation technology is a critical step toward the future of automated vehicles. The study was conducted in February through March 2016 and is based on an online survey of more than 7,900 consumers who purchased/leased a new vehicle in the past five years.
  • Call for a new vision for ITS in America
    February 1, 2012
    An ITIF report published at the beginning of this year stated that America is falling behind other developed nations in terms of ITS technologies and their deployment to address safety, congestion and environmental challenges. The report asked for a stronger commitment from the US federal government (see 'Just crawling along', interview with senior ITIF analyst Stephen Ezell, ITS International March-April 2010, pp.NA1-NA2) in order to address what it sees as increasing disparities with other countries. The