STRINGENT SAFETY STANDARDS MANDATING THE INSTALLATION OF COLLISION AVOIDANCE SYSTEMS
In June 2015, National Transportation Safety Board (NTSB) recommended that the collision avoidance systems should become standard on all new passenger and commercial vehicles. With the growing concerns regarding both pedestrians and passenger safety, automobile manufacturers are becoming obligated to equip even their entry-level vehicles with numerous safety and driver assistance systems, such as forward collision warning (FCW) systems, pedestrian protection systems, and night vision systems. Governments across the world are trying to implement safety regulations regarding the development of safety systems in integration with cameras. For instance, in the European Union, lane departure warning system has been mandatory since November 2013 for all new heavy commercial vehicles (HCVs) and buses.
According to statistics from the National Highway Traffic Safety Administration (NHTSA), rear-end crashes kill about 1,700 people every year and injure half a million more. Additionally, out of the 6 million car accidents that occur on the US roads every year, over 40% of them (approximately 2.5 million) are rear-ended collisions that transpire, owing to the driver’s lack of attention on the road. More than 80% of these deaths and injuries may have been mitigated if the vehicles were equipped with collision avoidance systems.
Apart from the United States, approximately 53% of passenger car injuries in Japan are due to rear-end collisions. Approximately 90% of those injuries result in neck injuries, including whiplash.
A report by NTSB claimed that collision avoidance systems can prevent or lessen the severity of rear-end crashes, thus saving lives and reducing injuries.
GROWING DEMAND FOR ELECTRIC VEHICLES IS EXPECTED TO DRIVE THE COLLISION AVOIDANCE SYSTEM MARKET
Electric vehicle (EV) market has witnessed a healthy growth in the recent years with approximately 2,447,807 vehicles sold in 2016, as compared to 890,470 vehicles in 2012. This spike in sales was the result of an increase in regulatory norms by various organizations and governments to control emission levels and to propagate zero-emissions vehicles. These EVs are usually equipped with advanced safety features, like collision avoidance systems, and the increase in demand for EVs can be directly correlated to the increase in the market for such systems.
Electric vehicle company, Tesla, has been equipping its vehicles with Tesla’s Autopilot’s radar technology (that has been credited with preventing numerous injuries across the world). For instance, in January 2017, a Tesla Model S vehicle owner avoided a potential side collision with a truck, owing to the vehicle’s built-in collision avoidance system, in combination with the lane assist system.
However, consumers still prefer IC engine vehicles, due to limited or no availability of charging stations and the high cost of electric vehicles. But with the growing environmental concerns and rising pollution, along with the growing awareness of electric vehicles (through EV manufacturers marketing strategies), the future of the electric vehicles looks promising in the coming years.
EUROPE IS EXPECTED TO EMERGE AS THE MARKET LEADER BY 2023
ADAS market growth is expected to be the highest in Europe, where international luxury-car makers and tier-1s cluster, Mordor claims. By 2017, ADAS sales in Europe are expected to account for 18% of the global overall, surpassing North America to be the world’s largest ADAS market. Collision avoidance system is a major part of ADAS and the increase in such systems is expected to drive the demand for collision avoidance systems.
AUTONOMOUS VEHICLES MAY PROVE TO BE A MAJOR OPPORTUNITY
As the world is nearing toward the autonomous era, vehicles are expected to be sooner driven without the help of a driver. This has created a need for more efficient safety features, like collision avoidance systems. Autonomous vehicles are usually segmented into 5 levels, Level 1, 2, 3, 4 and 5, with 5 being the fully self-driven vehicle. As the level increases the dependency of the vehicle on driver decreases, thus increasing the use of more safety systems. Therefore, as the level increases, level 5 is expected to come in the next three decades, and thus the demand for collision avoidance systems is expected to increase as well.
However, recent accidents, such as the incident of the Uber self-driven vehicle in March 2018 killing a woman (pedestrian) as the vehicle failed to slow down, are expected to act as catalysts for the enactment of safety regulations. This may also lead to the incorporation of safety systems, such as pedestrian protection system and forward collision warning systems for autonomous vehicles. Active and passive safety systems are expected to become mandatory for autonomous vehicles as they require no manual driving.
The Mordor Intelligence report claims that the global automotive collision avoidance system market is anticipated to record a CAGR of 7% over the forecast period of 2018-2023.
Mordor Intelligence is a market intelligence and advisory firm operating in 14 industry segments, serving over 600 clients worldwide.