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

  • Proposed system to take guesswork out of choosing a freeway lane
    March 17, 2014
    A fledgling advanced lane management assist system can take the guesswork out of selecting the right lane on a congested freeway, as its inventor Robert Gordon explains. As drivers we’ve all done it and control room staff see it all the time – motorists on congested freeways switching into what they perceive is a faster lane, only to come to a halt a few moments later and watch vehicles in the other lanes continue to move past. Now, by re-analysing readily available data in an advanced lane management as
  • US enforcement regulation to deliver clearer guidelines?
    February 2, 2012
    Jim Tuton of American Traffic Solutions looks at the evolution of automated enforcement in North America "Technological regulation will become more sophisticated at the federal level, giving states clearer guidelines" Jim Tuton In just 20 years, photo enforcement in North America has grown from a single speed camera in a small town in Arizona to thousands of photo traffic enforcement cameras which are now operating in 350 communities spread across 27 states and three Canadian provinces. Most of these p
  • Google maps the future of traffic and travel information?
    March 16, 2012
    Will the relentless growth of Google lead to it becoming the ultimate provider of travel information services? Huw Williams investigates Google’s strategy and David Crawford discovers what two principal rivals are doing to keep pace. In the first weeks of 2012 one company staked two divergent claims on the future of transport. One is the science fiction of only a decade ago, turned into reality: the driverless car. The other seems more prosaic, yet in its own way is just as significant a marker of the futur
  • New Zealand introduces Zero Carbon Bill
    May 10, 2019
    The government of New Zealand has unveiled a plan to achieve zero carbon emissions by 2050. Prime Minister Jacinda Ardern, says: “To address the long-term challenge of climate change, today we introduce the Climate Change Response (Zero Carbon) Amendment Bill to Parliament.” James Shaw, minister for climate change, says: “The critical thing is to do everything we can over the next 30 years to limit global warming to no more than 1.5 degrees Celsius and the Zero Carbon Bill makes that a legally bindin