STRINGENT SAFETY STANDARDS ARE EXPECTED TO DRIVE THE MARKET
In the United States, motor vehicle crashes resulted in a death toll of 32,719 and injured over 2.3 million in 2016. In addition to the terrible personal toll, these crashes have a huge economic impact, with an estimated annual cost of USD 242 billion, which is an average of USD 784 for every person in the United States. Federal Motor Vehicle Safety Standards (FMVSS) are the federal regulations for the United States in automotive safety-related components, systems, and design features.
Europe also took a major step toward ensuring vehicle safety on 1st November 2014, by making new safety features mandatory for every new car, van, truck, and bus sold in the European Union, as per the General Safety Regulation (EC) No 661/2009.
In addition to the standard electronic stability control systems (ESCs), all new cars sold in Europe must be equipped with new safety features, such as ISOFIX child seat anchorages, driver seatbelt reminders, tyre pressure monitoring systems, etc. Safety systems, such as gear shift indicators and tyre pressure monitoring systems, also help drivers in ensuring less fuel consumption.
From 1 November 2015, it was compulsory to equip all new trucks and buses with advanced emergency braking systems and lane departure warning systems, to ensure the safety of the trucks and other vehicles and passengers.
ADDITION OF SAFETY FEATURES IN VEHICLES CAN BE A MAJOR CHALLENGE
Vehicles equipped with advanced safety features, like lane departure warning systems, blind spot detection, or any other advanced driver assistance systems, require more components, sensors, or any other kind of hardware and software, which would eventually add significant cost to the vehicle. Nowadays, safety regulations enacted by the governments and international organizations are mandating the requirement of certain basic safety features, such as airbags and cameras, even in the low-cost vehicles has increased the final purchase price of the vehicles. This might pose a challenge to the automotive safety market, as a rise in vehicle cost is anticipated to have a negative effect on the consumer preference toward buying a low-cost vehicle.
ASIA-PACIFIC IS EXPECTED TO REMAIN THE MARKET LEADER
As more than 50% of vehicles, globally, are produced in Asia-Pacific, there has been a considerable increase in the macroeconomic indicators of major countries in the region, such as ASEAN Countries, China, Japan, South Korea, and India. It can be directly co-related to the factor that Asia-Pacific is expected to hold the highest share, in terms of demand, for safety features across the globe.
AUTONOMOUS VEHICLE ARE EXPECTED TO CREATE A MAJOR OPPORTUNITY
Currently, vehicles that are expected to be driven without the help of a driver have created a need for stringent safety regulations. 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. These features would be solely responsible for the safety of passengers.
The Mordor Intelligence report estimates that the global automotive safety market may register a CAGR of 5.5% over the forecast period (2018-2023).
Mordor Intelligence is a market intelligence and advisory firm operating in 14 industry segments, serving over 600 clients globally.