Active and Passive Safety Systems in Europe - Customer Desirability and Willingness to Pay (Passenger Vehicles) - Frost & Sullivan Press Release

Latent need for Better Safety Features Promises Opportunities for European Automobile Manufacturers

London, UK, 17 August 2005…With the growing awareness of safety levels among drivers in Europe, automobile manufacturers expect a significant increase in demand for safety features. Although around 68.0 per cent of the respondents in this Frost & Sullivan study believe they have sufficient safety features, a significant 55.0 per cent acknowledged the need for additional safety mechanisms in their vehicles, thus reflecting the expectations of the manufacturers.

The study identified that the perceptions and desirability of respondents differ across countries. For instance, while Italian drivers are more likely to consider themselves good drivers (37.3 per cent), the majority of Spanish (72.3 per cent) and UK (61.5 per cent) drivers feel the need for additional safety features. Further, vehicle owners associate the concept of “vehicle safety” with features that protect occupants in the event of a collision rather than those that prevent accidents, indicating a strong inclination to associate safety technologies with traditional, passive safety features than with more advanced, active features.

“While differences exist in perceptions and desirability across countries, ‘traditional,’ occupant protection and braking technologies are preferred over newer active technologies across Europe,” notes Frost & Sullivan (http://automotive.frost.com) Programme Manager Anil Valsan. “While anti-lock braking system (ABS) was the most preferred enhanced braking option, tyre pressure monitoring system (TPMS) and driver drowsiness warning (DDW) were accorded priority among the features that warn drivers of potential risks. “

With the tendency of respondents to perceive vehicle safety as passive protection, it is not surprising that majority of respondents across Europe desire front and side airbags. What is worth noting is that respondents generally perceive more value in occupant detection systems than additional airbags. 

Among features that aid driver vision, blind spot detection (BSD) and night vision system (NVS) were the most desirable features across Europe, with the exception of the United Kingdom. While European drivers generally accept different levels of adaptive cruise control (ACC), the study found UK drivers least likely to prefer anything beyond the basic ACC. Also, among features that help maintain the correct speed, intelligent speed adaptation (ISA) with warning was the most preferred option, whereas the technology that prevented drivers from exceeding the speed limit was the least preferred by respondents.

Only a small per cent of respondents were concerned about collisions with pedestrians. The concern was higher in Italy and Spain, reflecting the driving conditions in theses countries. However, a third of the respondents are willing to buy a vehicle that offers pedestrian protection, even if it costs more.

Although a reliable and proven technology was the most important attribute influencing the decision to purchase safety features, Frost & Sullivan also identified a number of regional differences. For instance, while manufacturers’ reputation was among the least influencing factor across Europe, it had considerable influence on drivers with young children in France and on D and E segment drivers in Germany.

The study also found that the overall awareness of the European new car assessment programme (Euro NCAP) is low across Europe, with the highest being in France (36.0 per cent) and lowest in Italy (22.0 per cent). The prevailing opinion was that a Euro NCAP rating is insufficient to assess vehicle safety and that it should also administer more impact scenarios. Despite this, Euro NCAP ratings were found to be influential in purchase decisions, with 21.0 per cent of respondents more likely to purchase a vehicle with a good rating and 32.0 per cent admitting to considering the vehicle as a purchase option.

The study saw respondents consistently underestimating the price of existing safety features, indicating a clear lack of awareness about the cost of these features. With the existence of a psychological pricing “sweet spot”, manufacturers can increase the uptake of safety features by pricing them closer to this range while simultaneously raising awareness levels through driver education.

Frost & Sullivan estimates that the European market for active and passive safety systems could generate over €6.60 billion by 2010, with active systems contributing over 53.0 per cent of the revenues. “However, manufacturers are facing a market that is currently resistant to new, active safety technologies and most of this is due to a lack of awareness,” says Valsan. “Hence, the success of a safety technology is likely to depend on how well manufacturers communicate and educate drivers in the value of these technologies and their ability to enhance safety.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Strategic Analysis of Active and Passive Safety Systems in Europe - Customer Desirability and Willingness to Pay (Passenger Vehicles), then send an e-mail to Magdalena Oberland - Corporate Communications at magdalena.oberland@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, country and source of information. We will send you the information via email upon receipt of the above information.

To view graphs indicating the perceived importance of technology in overall vehicle safety and showing awareness levels of Euro NCAP please go to: www.frost.com/pressB505

Background

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. 

For further information, please contact:

Magdalena Oberland
Corporate Communications
Frost & Sullivan
P: +44 (0) 20 7915 7876
E: magdalena.oberland@frost.com