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

  • Smartphones smooth the journey for visually impaired
    May 13, 2016
    Moves to make life easier and safer for vulnerable and impaired road users are gaining strength on both sides of the Atlantic. A recent webcast by the US Roadway Safety Institute, based at the University of Minnesota, showcased work in progress on a positioning and mapping methodology using Bluetooth and smartphone technologies to support situation awareness and wayfinding for the visually impaired.
  • Sign language reduces human error says Clearview
    September 26, 2019
    Wrong-way warning systems and advanced queue detection can help to reduce human error. They can also cut road accidents – and therefore road deaths, says Clearview Intelligence Where were nearly 1,800 deaths on the UK’s roads in 2018 – an average of five people dying each day. The largest single cause of serious injury is crashes at junctions (accounting for 33% of incidents), while the largest single cause of death was run-off road crashes (30%) “With vehicles increasingly being designed with saf
  • Westminster: DoT’s Ella Taylor on transport changes and challenges
    January 15, 2018
    Ella Taylor, head of innovation, connectivity and data, centre for connected and autonomous vehicles, Department for Transport (DoT) addressed the changes in the transport ecosystem, and how the government hopes to address challenges at Westminster Energy, Environment & Transport Forum Keynote Seminar. Opening the presentation, Taylor stated that changes in automation are not only affecting cars but are also creating new modes of transport. In addition, changes in business models are also enabling
  • US incident management needs national standardisation
    January 26, 2012
    I-95 Corridor Coalition's Tom Martin discusses the state of the art in incident management and what visitors to this year's ITS World Congress can expect of the first ever Emergency Responder-Incident Management Day. Developments in incident management are driven in the main by need. A bald statement, and one which holds no surprises, it nevertheless quantifies the evolutionary process within the I-95 Corridor Coalition over the last decade and more. Spread over 16 states from Maine to Florida, the Coalitio