Frost & Sullivan: Safety Modules Switching Gears from Passive to Active, Pushing the Market for DAS and Safety Sensors in Europe

LONDON – June 18, 2009 – The market for driver-assist sensors (DAS), electronic stability programme (ESP), passive safety and rain sensors in Europe is growing, driven by legislations and technological advances. DAS and ESP sensors are used in safety modules that enhance driving comfort and offer improved safety to vehicle occupants and pedestrians alike. While these sensors have low penetration in the European region, they are expected to have sizeable market potential by 2015.

New analysis from Frost & Sullivan http://www.automotive.frost.com, European Automotive Original Equipment DAS, ESP, Passive Safety and Rain Sensors Market, finds that the market earned revenues of €1.75 billion in 2008 and estimates this to reach €3.16 billion in 2015, owing to an increase in DAS, rain sensors and mandatory installation of ESP systems. This research covers the following technologies: DAS, ESP, passive safety systems and rain sensors.

“The shift from passive safety systems to active safety systems is promoting the uptake of DAS including radar, lidar and vision sensors,” notes Frost & Sullivan Industry Analyst Roshan Devadoss. “Comfort and convenience features will impact the growth of rain sensors. Euro NCAP ratings will push passive safety sensors, and regulations will push the ESP sensors market.”

The European automotive original equipment DAS, ESP, passive safety and rain sensors market is propelled by several independent factors. There are varying degrees of end-user awareness about these systems. Passive safety sensors, even though mature, are still growing due to advances in MEMS technology. ESP sensors are set to mature by 2012 following legislation backing the installation of ESP modules as a standard feature.

One of the major challenges faced in the automotive sensors market is the lengthy ROI time – it is generally longer than for other industries. The development of sensors for DAS modules requires considerable investments and companies tend to be sceptical as the market for such systems is very limited while the cost of sensors is relatively high. In addition, there is a lack of legislation or standards to protect the vehicle manufacturer or the system developer in the event of failure.

“Mature technologies are still preferred over newer technologies, since the ROI on newer technologies is significantly longer, particularly in the case of DAS sensors,” explains Devadoss. “The lack of protection for vehicle manufacturers and their suppliers from legal Issues in the event of system failure is a major deterrent to offering advanced safety solution integrating DAS systems.”

Raising end-user awareness and designing proper legislation to protect the interests of vehicle manufacturers and their suppliers will expand available solutions. This, in turn, this will boost uptake rates while supporting a decline in prices.

“Insurance premium cuts such as those currently under review for Volvo City Safety together with improved legal immunity in the event of module failure will result in an increase in volume production, reducing the time frame of ROI,” says Devadoss. “Vehicle manufacturers must aggressively market the benefits of systems such as DAS, automatic wiper systems and passive roll over to boost end-user awareness.”