Move Towards Active Safety Drives Demand for Obstacle Sensing Technologies

Radar and Vision Sensors Hold Strongest Revenue Growth Potential

LONDON, February 28 -- The European automotive industry is witnessing a growing trend towards installing active safety systems in vehicles. This is one of the biggest factors propelling the demand for obstacle sensing technologies. The industry's increasing focus on preparing a vehicle for practically any emergency has created a need for various kinds of sensors in vehicles today.

"The critical role played by sensors, and the absence of a definitive sensor that fulfils the equally important requirements of obstacle sensing and classification, has created an attractive market for various competing and complementing technologies," remarks Frost & Sullivan ( http://transportation.frost.com) Research Analyst Karthikeyan Vijayakumar.

Valued at approximately 14.4 million euros in 2004, the European market for obstacle sensing technologies is likely to increase substantially to reach 194.7 million euros in 2015 at a compound annual growth rate of around 26.7 per cent. This is largely due to the introduction of vision and short range sensors as well as the growing penetration of long range radar sensors in passenger and commercial vehicles.

Vision and short range radar sensors are likely to experience very strong growth over the next ten years in both the passenger and commercial vehicle segments due to compelling advantages such as lower cost and multifunction capability. The introduction of applications such as emergency brake assist in the new version of the Mercedes S class is likely to enhance the demand for 24 Ghz short range sensors.

On the other hand, vision sensors offer road user/object classification in addition to highly precise detection, making them ideally suited for multiple applications such as blind spot detection, emergency braking, night vision and lane detection warning (LDW). These sensors also offer the opportunity to introduce low-cost safety systems, which considerably increases their potential in cost-conscious segments.

Long range radar sensors are also set for a steady increase in growth, with revenues in 2015 expected to be more than 11 times those in 2004. Currently in the growth phase of their lifecycle, long range sensors are likely to contribute more than 80 percent of the revenues in the obstacle sensing technologies market in 2015.

As vehicle manufacturers begin installing safety systems in not just luxury, but also in mass-market vehicles, long range radar sensors will establish a strong presence in the mainstream D segment passenger cars. The installation of radar-based adaptive cruise control (ACC) systems in vehicles such as the BMW 3 series and the Volkswagen Passat already reflects this trend.

Increasing installation in D segment passenger cars as well as in the heavy commercial vehicles sector is likely to strengthen the demand for long range sensors.

However, despite steady increases in demand, the market's revenue growth is not likely to keep pace with the growth in unit shipments. Obstacle sensors are in danger of becoming a commodity product and this is impacting their pricing, which is in turn affecting market revenues.

"To remain competitive in the obstacle sensing technologies market, suppliers need to keep the mergers and acquisition option open," says Mr. Vijayakumar. "They also need to be present in both the passenger car and commercial vehicle markets segments to avail the benefits brought by economies of scale."

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 The Market for Obstacle Sensing Technologies in Passenger Cars and Commercial Vehicles in Europe, 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, fax number, e-mail address and source of information. Upon receipt of the above information, an overview will be sent to you through e-mail.

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.

List of Keywords in this Press Release: Obstacle sensing technologies, Europe, passenger cars, commercial vehicles, active safety, vision sensors, short range sensors, long range radar sensors, blind spot detection, emergency braking, night vision, lane detection warning, LDW, vehicle manufacturers, adaptive cruise control, ACC

List of Key Industry Participants:

Car Manufacturers: Audi, DaimlerChrysler, Fiat, Ford, Honda, Nissan Technical Centre Europe, PSA, Renault, GENERAL MOTORS/OPEL GERMANY, Toyota, Volkswagen, Volvo

Truck Manufacturers: DaimlerChrysler, Man, Volvo, Iveco, Scania, Daf

Suppliers: Delphi, IMS Vision, Omron Corporation, IBEO Automobile Sensors GmbH, Robert Bosch, Asin Seiki, Siemens VDO, TRW Automotive, Valeo/Iteris/Raytheon, Visteon, Mobileeye, Continental, Hella KG Hueck & Co., Autoliv