The adoption of automotive safety systems has increased rapidly over the last two decades. Currently, the Global Automotive Safety Systems Market is expected to grow at a CAGR of 9.43 percent from 2014-2019.
The market is expected to grow further because of increasing concern among customers and governments about consumer and vehicle safety, optimum fuel efficiency, and reduction of greenhouse gas emissions and carbon footprints.
TechNavio has identified three key trends helping to fuel market growth during the forecast period:
Adoption of Side Airbags in Low-cost and Compact Automobiles
Side airbags, which are part of the passive safety system, are inflatable devices that protect the passenger’s and driver’s head and chest in a side impact crash. There has been an increase in concerns regarding automotive safety among consumers from various socioeconomic groups worldwide, which is driving the demand for enhanced safety features across all automotive segments, including low-cost and compact automobiles.
This will help in attaining economies of scale and reducing the price of side airbag systems. The demand for compact and mid-sized vehicles is on the rise in countries such as India, which is a key market for automotive manufacturers.
Increase in Demand for Night Vision Systems from Developing Countries
The demand for automotive night vision systems (NVS) comes primarily from developed regions such as the Americas and Europe. However, the market for automobiles is growing in emerging markets, so OEMs and suppliers are focusing on these emerging markets.
Economic growth in emerging markets has improved the financial status of consumers, who are willing to pay high prices for premium vehicles in which NVS are installed. Safety installations per vehicle are increasing in the APAC region, which is raising the demand for NVS in Thailand, India, and China.
In addition, growing safety concerns, advances in technology, and continuous economic growth in the BRIC nations are also expected to lead to an increase in the demand for automotive NVS over the forecast period.
Furthermore, the sales of luxury cars, advances in technology, and high safety ratings provided by institutions such as NCAP in the US are further boosting the demand for NVS in emerging markets.
Growing Adoption of Advanced Safety Features in Automobiles
Currently, active safety systems and passive safety systems are carefully combined and designed to assist the driver in avoiding crashes and to protect passengers in case of an accident. Automotive safety systems manufacturers are developing innovative technology to remain competitive in the market. Hence, they are investing heavily in R&D to develop new products.
For instance, in September 2013, Autoliv introduced its Next Generation NVS, Night Vision Fusion Systems with HD and enhanced animal and pedestrian detection. It debuted in the new Mercedes S-Class. Its NVS use dual-infrared camera technology. The near-infrared camera captures a crisp and enhanced view of the road ahead with the help of an infrared lamp while the far-infrared camera uses a heat detection system to detect pedestrians and animals.
Toyota is also planning to deploy advanced safety systems, especially active safety systems such as pre-crash braking packages, vehicle-to-infrastructure and vehicle-to-vehicle communication systems, auto-parking features, and auto-adjust headlamp to the mass market in 2015.
In addition, Volvo Car Group redesigned their XC90 and included some of the most advanced safety features in the model such as a pedestrian detection system that works in the dark; ACC with steer resist; a collision mitigation system for animals; and a road edge and barrier detection with steer assist system to prevent vehicle rollovers.
