Crash Tests and Safety Ratings to Spread the Importance of Active Safety Systems

PALO ALTO, Calif.--Dec. 8, 2004--Raising consumer awareness on active safety systems has been a significant challenge in the North American automotive industry. Crash tests and safety rating programs are arguably more potent than regulation-driven change and have emerged as strong drivers for building consumer awareness regarding vehicle safety.

New analysis from Frost & Sullivan (http://www.transporation.frost.com), Strategic Analysis of the North American Active Safety System Markets, reveals that revenue in this industry totaled $2.06 billion in 2003 and projects to reach $4.54 billion in 2010.

If you are interested in a virtual brochure, which provides manufacturers, end-users and other industry participants an overview of the latest analysis of the Strategic Analysis of the North American Active Safety System Markets, send an e-mail to Melina Gonzalez - Corporate Communications at melina.gonzalez@frost.com with the following information: your full name, company name, title, telephone number, fax number and e-mail. Upon receipt of the above information, an overview will be sent to you via e-mail.

A significant share of the growth expects to be from vehicle stability, driver warning, and information systems.

"The crashworthiness safety ratings published by National Highway Traffic Safety Administration (NHTSA) and Insurance Institute for Highway Safety (IIHS) are providing key impetus toward higher installation of safety systems," observes Frost & Sullivan Senior Research Analyst Anis Sayyad.

There is statistical proof that Electronic Stability Control systems (ESC) can reduce vehicle crashes and resultant loss to life and property by a substantial margin. In fact, a recent study by the NHTSA found that presence of ESC systems reduced single-vehicle crashes by 35 percent.

In response, automakers are installing active and passive safety systems in order to meet the permissible injury criteria specified under the New Car Assessment Program (NCAP) 5-Star ratings and the IIHS ratings.

They are also following improved safety cage construction to meet the structural performance and dummy kinematics criteria. Likewise, the new rollover propensity ratings are expected to lead to increased installation of vehicle stability and roll stability systems.

The challenge is to offer highly sophisticated and reliable active safety systems at a reasonable price.

Vehicle manufacturers attempt to control the costs of safety systems within a certain budgeted percentage of the total vehicle price. Top-end luxury vehicles, for instance, have a much larger outlay for safety systems compared to smaller compact cars.

"This makes it easier for safety systems, particularly when they are new and on the cusp of the cost curve, to be introduced on high-end vehicles," explains Sayyad. "As the technology matures and the system costs come down, we see a 'trickle down' effect where the systems are absorbed into lower priced vehicles."

Installation of some safety systems may turn out to be an exception to this rule. For instance, blind spot detection systems may actually prove to be more useful to consumers in relatively lower-end segments such as standard sports utility vehicles (SUVs).

While competition in entry-level segments continues to be based on price, with product parity on basic functional features getting closer in the mid to higher-end segments, differentiation and innovation are likely to play key roles in increasing market share. Installation of safety systems is one of the tools at the disposal of automakers to differentiate their vehicles.

Strategic Analysis of the North American Active Safety System Markets, part of the North American Advanced Automotive Technologies subscription-9813, evaluates the market for active safety systems for light vehicles manufactured in North America. In addition to drivers, restraints, challenges, and market dynamics and trends, a detailed opportunity analysis by vehicle segment and by automakers is provided for anti-lock braking systems, electronic stability control systems, emergency braking assistance systems, active steering systems, tire pressure monitoring systems, lane deviation warning systems, blind spot detection systems, and collision avoidance systems. Executive summaries and interviews are available to the press.

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Strategic Analysis of the North American Active Safety System Markets A716

Keywords in this release: active safety systems, North America, crash tests and safety rating programs, National Highway Traffic Safety Administration, NHTSA, Insurance Institute for Highway Safety, IIHS, New Car Assessment Program, NCAP, safety cage construction, dummy kinematics, rollover propensity ratings, stability and roll stability systems, sports utility vehicles, SUVs, anti-lock braking, electronic stability control, emergency braking assistance, active steering, tire pressure monitoring, lane deviation warning, blind spot detection, collision avoidance systems, research, information, market, trends, technology, service, forecast, market share