Market Trends of Automotive Safety Systems Industry
This section covers the major market trends shaping the Automotive Safety Systems Market according to our research experts:
Lane Departure Warning Systems Expected to Witness Highest Demand During Forecast Period
The consistent rise in vehicle accidents due to abrupt lane changes creates global concerns among consumers and governments. Thus, continuous technological advancements in the automotive industry are constantly adding new features to automobiles to reduce road accidents and enhance the safety of both passengers and drivers in both vehicles, driving the implementation of advanced driver assistant systems (ADAS), which may aid in propelling the market for LDWS. Suppliers in the market are helping the OEM to maintain innovation in vehicle safety standards. For instance:
In April 2021, Denso Corporation developed an advanced driver assistance technology featured in Lexus LS and Toyota Mirai. The system is equipped with LiDAR sensors and an advance driver system electronic control system (ADS ECS) to detect the shape and identify the distance of objects.
In July 2021, Magna International Inc. acquired Veoneer to strengthen their advanced driver assistance system (ADAS), including stereo vision sensor and lane warning system, business by Veoneer technology offerings, customer base, and geographic footprint on a global scale.
Apart from passenger cars, the demand for LDWS is also increasing in commercial vehicles, especially in large trucks. According to research, the majority of accidents caused in both passenger and commercial vehicles occur due to human error, and there are safety systems currently available that can mitigate this. The cost-benefit analysis performed on the LDWS technology states that installing LDWS in large trucks can potentially prevent as many as 6,372 crashes, 1,342 injuries, and 115 death annually.
Furthermore, rising consumer safety concerns have been propelling the need to implement advanced driver assistant systems (ADAS). Today, autonomous cars and connected vehicles are gaining consumers' interest and are anticipated to gain wider acceptance over the forecast period. The advanced driver assistance systems (ADAS) featured are expected to diminish the penetration gap between traditional cars and tomorrow's cars.
Moreover, With the rising technological advancements in the automotive industry, end-users are ready to spend more on the latest technologies, which enhance the driving experience and increase the safety of drivers and riders.
North America Expected to Occupy Significant Share in the Market
The increasing number of electric vehicles in the automotive industry paves the way for more autonomous vehicles to be introduced in different sectors. The more autonomous vehicles in a market, the better is the chance and potential for the current safety systems market to grow and expand.
As the majority of the automotive sector in North America is already equipped with the majority of safety systems, the market is saturated from what the condition was a few years ago. The United States, the lone bedrock of the North American automotive hub, contributes at least 3% to the country's overall gross domestic product (GDP). In addition, the country is one of the largest manufacturers in the luxury car market, with net revenue of USD 5 billion in 2021. Luxury car maker BMW, in 2021, reported record-breaking sales of over 336,600 units vehicles.
Most motor vehicle collisions are primarily due to human errors. According to the US Department of Transportation's National Highway Traffic Safety Administration (NHTSA) organization, almost one-third of the traffic-related fatalities in Virginia (220 crashes) specifically involved alcohol-impaired driving. The Canadian government announced the safe testing of every vehicle and deployment of automated and connected vehicles while spreading awareness regarding driver assistance technologies.
In May 2022, GM announced its constructive partnership with INRIX Inc. in order to provide safety solutions data directly to the US Department of Transportation through its analytics-assisted cloud-based application under its Safety View by GM Future Roads & Inrix initiative.
In 2021, Hyundai launched its updated model for Santafee. The car is packed with various safety features. The SmartSense safety features in Hyundai Santafee include a range of camera, radar, and motion detection technologies, such as forward collision avoidance assist (FCA). It is designed to detect vehicles, pedestrians, or cyclists that are directly in front of the vehicle. Highway driving assist (HDA), parking collision-avoidance assist, lane following assist (LFA), blind-spot collision-avoidance assist (BCA), rear cross-traffic collision-avoidance assist, safe exit assist (SEA), and adaptive cruise control (ACC) are also included.
Thus, the above-mentioned factors indicate a positive outlook for the market during the forecast period.
