Strategic Analysis of the North American Active Safety System Markets

SUMMARY

Price Pressure at Retail Level Passes on to all Participants in theAutomotive Value Chain

Vehicle manufactures in North America have been unable to significantlyincrease retail prices for new vehicles in the past few years. Price increaseshave also been offset by the growing rebates and zero percent annual percentrates (APRs), which consumers now consider a standard operating procedure whilebuying a new vehicle. System costs remain a huge challenge in a competitivemarketplace where consumers hold significant bargaining power. There is acertain price-point in each vehicle segment beyond which consumers hesitate topurchase optional equipment such as active safety systems. The pricing pressureis permeating the entire value chain of participants, from automakers to Tier-1suppliers of safety systems, and Tier-2 and Tier-3 suppliers. Suppliers ofactive safety systems cannot hope to buck the trend of falling system prices andneed to continuously reduce costs through increased production efficiencies andinnovative manufacturing technologies. As a market pull, auto insurers offerdiscounts on the premiums payable by consumers if their vehicles have certainsafety systems.

This Frost & Sullivan research evaluates the market for active safetysystems for light vehicles manufactured in North America. In addition todrivers, restraints, challenges, market dynamics and trends, a detailedopportunity analysis by vehicle segment and automakers is provided for each ofthe systems covered. This service can help clients improve the accuracy ofbusiness planning.

Publication of Crash Ratings is Leading to Higher Installation of SafetySystems

The crashworthiness safety ratings published by National Highway TrafficSafety Administration (NHTSA) and Insurance Institute for Highway Safety (IIHS)are providing one of the key impetus toward higher installation of safetysystems. "The results of the tests receive wide publicity and are easilyaccessible to the consumer anytime," says the analyst of the research."As a result, that segment of the new vehicle buying population that readsthe safety ratings now forms a substantial and growing portion of the total newvehicle buying population."

Automakers are responding to this trend by installing active and passivesafety systems in order to meet the permissible injury criteria specified underthe New Car Assessment Program (NCAP) 5-Star ratings and the IIHS ratings. Therehas been a marked increase in the deployment of occupant restraint systems suchas pre-tensioned seatbelts and occupant-sensing dual stage airbags. Automakersare also following improved safety cage construction to meet the structuralperformance and dummy kinematics criteria. Likewise, the new rollover propensityratings are expected to lead to higher installation of vehicle stability androll stability systems.

Competitive Pressures Drive Installation of Safety Systems

Fierce competition amongst the North American auto manufacturers for marketshare has led to a product differentiation race, particularly for the medium totop-end vehicle segments. Installation of safety systems is one of the tools atthe disposal of automakers to differentiate their vehicles, especially whenproduct parity on many basic functional features is getting closer. "Whilecompetition in entry-level segments continues to be based on price, with productparity much closer in the mid to higher-end segments, automakers see a greaterneed to differentiate their vehicles," explains the analyst.

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TABLE OF CONTENTS

1. Executive Summary

1. Executive Summary

• 1. Executive Summary
• 2. Total Active Safety Systems Market

1. Introduction

• 1. Overview
• 2. Types of Active Safety Systems
• 3. Definitions and Scope
• 4. Safety Legislation
• 5. North American Motor Vehicle Crash Statistics and Analysis
• 6. Vehicle Crash Tests and Safety Ratings
• 7. Key Differentiating Factors among North American; European;
• and Japanese Safety System Markets
• 8. Integration of Active and Passive Safety Systems
• 2. Key Factors Driving and Restraining Active Safety System Markets
• 1. Key Factors Driving Active Safety System Markets
• a. Publication of Crash Ratings Is Leading to Higher Installation
• of Safety Systems
• b. Greater Safety-Consciousness Amongst Consumers Drives
• Safety Systems Installation
• c. Competitive Pressures Drive Safety Systems Installation
• d. Passive Safety Systems Are Reaching Diminishing Returns
• in Terms of Lives Saved
• e. Vehicle Manufacturers Want to Differentiate their Vehicles
• f. Standardization of In-Vehicle and Vehicle-to-Vehicle
• Communications Protocols Is Advancing
• g. Discounts on Insurance Premiums for Vehicles with Better
• Safety Systems Create Consumer Pull

2. Key Factors Restraining Active Safety System Markets

• a. High System Costs Create an Affordability Barrier
• b. Inadequate Sophistication of Functional Technology Creates a Barrier
• c. Product Liability Issues Make Automakers Cautious in Introducing Systems
• d. Absence of Enabling Technologies Creates a Barrier
• e. Concerns about Failure Modes and Control Issues Must Be Resolved
• f. Value Proposition Is Not Compelling When Many Choices Chase
• Fewer Customer Dollars
• g. The Bundling of Safety Features with Other Features Could Be
• Turning Off Consumers

3. Industry Challenges and Technology Adoption

• 1. Key Industry Challenges
• a. Increasing System Complexity Raises Reliability Concerns
• b. Awareness of Safety in General and Safety Systems in Particular
• Needs to Be Raised
• c. Technical Challenges Remain in Systems Networking
• d. Vehicle Manufacturers Price Targets Slow the Spread of
• Safety Technologies
• e. Retail Price Pressures Pass on to All Participants in the
• Value Chain
• f. Vehicle Manufacturers Are Reluctant to Add Content in the Present
• Market Scenario
• g. Consumer Expectations for Safety as Standard Equipment Are Rising
• h. Vehicle Buying Is Not Always a Fully Rational or Informed Process
• i. Differences between North America and Western European/Japanese
• Markets Need to Be Overcome
• 2. Technology Adoption Scenario

4. Market Size Forecast

• 1. Total Market Revenues
• 2. Revenues by Vehicle Segment
• 3. Revenues by Automaker Group

5. Market Trends

• 1. System Introduction Strategy
• 2. System Offering Strategy
• 3. Competitive Analysis

6. Frost & Sullivan Awards

• 1. 2004 Rollover Safety Technology Leadership Award
• 2. 2004 Safety Systems Market Development Strategy Leadership Award
• 3. 2004 Voice of the Consumer Award -- Driver Warning Information
• and Collision Avoidance Systems
• 4. 2004 Frost & Sullivan Product Innovation Award
• 5. 2004 Frost & Sullivan Automotive Safety Systems Product Line

Strategy Award

3. Vehicle Stability Systems Market

1. Introduction

• 1. Market Engineering Measurements
• 2. Types of Vehicle Stability Systems

2. Market Overview

• 1. Key Additional Factors Driving the Vehicle Stability Systems Market
• 2. Technology Adoption Scenario
• 3. Competitive Analysis

3. Installation and Market Size Forecast

• 1. Market Revenue and Installation Rate Forecasts
• 2. Revenues by Vehicle Segment
• 3. Revenues by Automaker

4. Antilock Braking System (ABS) Market

• 1. Introduction
• 2. Price Analysis
• 3. System Installation and Market Revenue Forecasts

5. Electronic Stability Control (ESC) System Market

• 1. Introduction
• 2. Price Analysis
• 3. System Installation and Market Revenue Forecasts

6. Active Steering (ASt) System Market

• 1. Introduction
• 2. Price Analysis
• 3. System Installation and Market Revenue Forecasts

7. Active Suspension (AS) System Market

• 1. Introduction
• 2. Price Analysis
• 3. System Installation and Market Revenue Forecasts

8. Electronic Braking Assistance (EBA) System Market

• 1. Introduction
• 2. Price Analysis
• 3. System Installation and Market Revenue Forecasts
• 4. Driver Warning and Information Systems Market

1. Introduction

• 1. Market Engineering Measurements
• 2. Types of Driver Warning and Information Systems

2. Market Overview

• 1. Key Additional Factor Driving the Driver Warning And Information
• Systems Market
• 2. Technology Adoption Scenario
• 3. Competitive Analysis

3. Installation and Market Size Forecasts

• 1. Market Revenue and Installation Rate Forecasts
• 2. Revenues by Vehicle Segment
• 3. Revenues by Automaker

4. Tire Pressure Monitoring System (TPMS) Market

• 1. Introduction
• 2. Price Analysis
• 3. System Installation and Market Revenue Forecasts

5. Lane Deviation Warning (LDW) System Market

• 1. Introduction
• 2. Price Analysis
• 3. System Installation and Market Revenue Forecasts

6. Blind Spot Detection (BSD) System Market

• 1. Introduction
• 2. Price Analysis
• 3. System Installation and Market Revenue Forecasts

5. Collision Avoidance Systems Market

• 1. Introduction
  • 1. Market Engineering Measurements
  • 2. Types of Collision Avoidance Systems

  2. Market Overview

  • 1. Key Additional Factor Driving the Collision Avoidance Systems Market
  • 2. Technology Adoption Scenario
  • 3. Competitive Analysis
• 3. Adaptive Cruise Control (ACC) System Market
  • 1. Introduction
  • 2. Price Analysis
  • 3. System Installation and Market Revenue Forecasts

6. Market Participant Profiles

• 1. Vehicle Manufacturer Opportunity Analysis
  • 1. BMW of North America
  • 2. General Motors Corporation
  • 3. Chrysler Group
  • 4. Ford Motor Company
  • 5. American Honda Motor Co. Inc.
  • 6. Mercedes-Benz USA
  • 7. Nissan North America
  • 8. Toyota Motor Corporation
• 2. Key Tier 1 Supplier Profiles
  • 1. Continental Automotive Systems
  • 2. Delphi Corporation
  • 3. Robert Bosch Corporation
  • 4. Valeo Group
  • 5. Visteon Corporation
  • 6. TRW Automotive Inc.

7. Appendix

• 1. Abbreviations and Equations
  • 1. Abbreviations
  • 2. Compound Annual Growth Rate Equation
  • 3. Conversion Equations
• 2. Currency Exchange Rates
  • 1. Currency Exchange Rates
• 3. Decision Support Data (DSD) Tables
  • 1. Trade Regulations in North America
  • 2. Vehicle Platforms United States
  • 3. Global Joint Ventures and Affiliations
  • 4. Global Light Vehicles Sales
  • 5. Global Light Vehicles Production

List Of Figures

Chapter 2

• Total Active Safety System Market: Light Vehicle Production Forecasts (NorthAmerica), 2000-2010
• Total Active Safety System Market: Light Vehicle Segment Illustrative Vehicles(North America), 2003
• Total Active Safety System Market: NHTSA Frontal and Side Impact NCAP SafetyRatings (North America), 2004
• Total Active Safety System Market: NHTSA Rollover Resistance NCAP Safety Rating(North America), 2004
• Total Active Safety System Market: Insurance Institute of Highway Safety CrashRatings (North America), 2004
• Total Active Safety System Market: Market Drivers Ranked in Order of Impact(North America), 2004-2010
• Total Active Safety System Market: Market Restraints Ranked in Order of Impact(North America), 2004-2010
• Total Active Safety System Market: Revenue Forecasts for Total Active SafetySystems (North America), 2001-2010
• Total Active Safety System Market: Revenue Forecasts by System (North America),2001-2010
• Total Active Safety System Market: Average Revenues per Light Vehicle by System(North America), 2001-2010
• Total Active Safety System Market: Revenue Forecasts by Vehicle Segment (NorthAmerica), 2003-2010
• Total Active Safety System Market: Revenue Forecasts by Automaker (NorthAmerica), 2003-2010
• Total Active Safety Systems Market: 2004 Automotive Safety System ProductPortfolio Management Strategy Award (North America), 2003

Chapter 3

• Vehicle Stability Systems Market: Stability System Description (NorthAmerica), 2003
• Vehicle Stability Systems Market: Revenue Forecasts (North America), 2001-2010
• Vehicle Stability Systems Market: Revenue Forecasts by System (North America),2001-2010
• Vehicle Stability Systems Market: Vehicle Stability System Installation RateForecasts by System (North America), 2003-2010
• Vehicle Stability Systems Market: Revenues by Vehicle Segment (North America),2003-2010
• Vehicle Stability Systems Market: Revenues by Automaker (North America),2003-2010
• Vehicle Stability Systems Market: Anti-Lock Braking System Price Forecasts(North America), 2001-2010
• Vehicle Stability Systems Market: Anti-Lock Braking System Unit Shipment andRevenue Forecasts (North America), 2001-2010
• Vehicle Stability Systems Market: Anti-Lock Braking System Installation RateForecasts by Vehicle Segment (North America), 2003-2010
• Vehicle Stability Systems Market: Anti-Lock Braking System Revenue Forecasts byVehicle Segment (North America), 2003-2010
• Vehicle Stability Systems Market: Anti-Lock Braking System Installation RateForecasts by Automaker (North America), 2003-2010
• Vehicle Stability Systems Market: Anti-Lock Braking System Revenue Forecasts byAutomaker (North America), 2003-2010
• Vehicle Stability Systems Market: Electronic Stability Control Systems PriceForecasts (North America), 2001-2010
• Vehicle Stability Systems Market: Electronic Stability Control Systems UnitShipment and Revenue Forecasts (North America), 2001-2010
• Vehicle Stability Systems Market: Electronic Stability Control SystemsInstallation Rate Forecasts by Vehicle Segment (North America), 2003-2010
• Vehicle Stability Systems Market: Electronic Stability Control Systems RevenueForecasts by Vehicle Segment (North America), 2003-2010
• Vehicle Stability Systems Market: Electronic Stability Control SystemsInstallation Rate Forecasts by Automaker (North America), 2003-2010
• Vehicle Stability Systems Market: Electronic Stability Control Systems RevenueForecasts by Automaker (North America), 2003-2010
• Vehicle Stability Systems Market: Active Steering Systems Price Forecasts (NorthAmerica), 2001-2010
• Vehicle Stability Systems Market: Active Steering Systems Unit Shipment andRevenue Forecasts (North America), 2001-2010
• Vehicle Stability Systems Market: Active Steering Systems Installation RateForecasts by Vehicle Segment (North America), 2003-2010
• Vehicle Stability Systems Market: Active Steering Systems Revenue Forecasts byVehicle Segment (North America), 2003-2010
• Vehicle Stability Systems Market: Active Steering Systems Installation RateForecasts by Automaker (North America), 2003-2010
• Vehicle Stability Systems Market: Active Steering Systems Revenue Forecasts byAutomaker (North America), 2003-2010
• Vehicle Stability Systems Market: Active Suspension Systems Price Forecasts(North America), 2001-2010
• Vehicle Stability Systems Market: Active Suspension Systems Unit Shipment andRevenue Forecasts (North America), 2001-2010
• Vehicle Stability Systems Market: Active Suspension Systems Installation RateForecasts by Vehicle Segment (North America), 2003-2010
• Vehicle Stability Systems Market: Active Suspension Systems Revenue Forecasts byVehicle Segment (North America), 2003-2010
• Vehicle Stability Systems Market: Active Suspension Systems Installation RateForecasts by Automaker (North America), 2003-2010
• Vehicle Stability Systems Market: Active Suspension Systems Revenue Forecasts byAutomaker (North America), 2003-2010
• Vehicle Stability Systems Market: Electronic Braking Assistance Systems UnitPrice Forecasts (North America), 2001-2010
• Vehicle Stability Systems Market: Electronic Braking Assistance Systems UnitShipment and Revenue Forecasts (North America), 2001-2010
• Vehicle Stability Systems Market: Electronic Braking Assistance SystemsInstallation Rate Forecasts by Vehicle Segment (North America), 2003-2010
• Vehicle Stability Systems Market: Electronic Braking Assistance Systems RevenueForecasts by Vehicle Segment (North America), 2003-2010
• Vehicle Stability Systems Market: Electronic Braking Assistance SystemsInstallation Rate Forecasts by Automaker (North America), 2003-2010
• Vehicle Stability Systems Market: Electronic Braking Assistance Systems RevenueForecasts by Automaker (North America), 2003-2010

Chapter 4

• Driver Warning and Information Systems Market: System Descriptions (NorthAmerica), 2003
• Driver Warning and Information Systems Market: Revenue Forecasts (NorthAmerica), 2001-2010
• Driver Warning and Information Systems Market: Revenues by System (NorthAmerica), 2001-2010
• Driver Warning and Information Systems Market: Installation Rate Forecasts bySystem (North America), 2003-2010
• Driver Warning and Information Systems Market: Revenues by Vehicle Segment(North America), 2003-2010
• Driver Warning and Information Systems Market: Revenue Breakdown by Automaker(North America), 2003-2010
• Driver Warning and Information Systems Market: Tire Pressure Monitoring SystemsPrice Forecasts (North America), 2001-2010
• Driver Warning and Information Systems Market: Tire Pressure Monitoring SystemsUnit Shipment and Revenue Forecasts (North America), 2001-2010
• Driver Warning and Information Systems Market: Tire Pressure Monitoring SystemsInstallation Rate Forecasts by Vehicle Segment (North America), 2003-2010
• Driver Warning and Information Systems Market: Tire Pressure Monitoring SystemsRevenue Forecasts by Vehicle Segment (North America), 2003-2010
• Driver Warning and Information Systems Market: Tire Pressure Monitoring SystemsInstallation Rate Forecasts by Automaker (North America), 2003-2010
• Driver Warning and Information Systems Market: Tire Pressure Monitoring SystemsRevenue Forecasts by Automaker (North America), 2003-2010
• Driver Warning and Information Systems Market: Lane Deviation Warning SystemsPrice Forecasts (North America), 2001-2010
• Driver Warning and Information Systems Market: Lane Deviation Warning SystemsUnit Shipment and Revenue Forecasts (North America), 2001-2010
• Driver Warning and Information Systems Market: Lane Deviation Warning SystemsInstallation Rate Forecasts by Vehicle Segment (North America), 2003-2010
• Driver Warning and Information Systems Market: Lane Deviation Warning SystemsRevenue Forecasts by Vehicle Segment (North America), 2003-2010
• Driver Warning and Information Systems Market: Lane Deviation Warning SystemsInstallation Rate Forecasts by Automaker (North America), 2003-2010
• Driver Warning and Information Systems Market: Lane Deviation Warning SystemsRevenue Forecasts by Automaker (North America), 2003-2010
• Driver Warning and Information Systems Market: Blind Spot Detection SystemsPrice Forecasts (North America), 2001-2010
• Driver Warning and Information Systems Market: Blind Spot Detection Systems UnitShipment and Revenue Forecasts (North America), 2001-2010
• Driver Warning and Information Systems Market: Blind Spot Detection SystemsInstallation Rate Forecasts by Vehicle Segment (North America), 2003-2010
• Driver Warning and Information Systems Market: Blind Spot Detection SystemsRevenue Forecasts by Vehicle Segment (North America), 2003-2010
• Driver Warning and Information Systems Market: Blind Spot Detection SystemsInstallation Rate Forecasts by Automaker (North America), 2003-2010
• Driver Warning and Information Systems Market: Blind Spot Detection SystemsRevenue Forecasts by Automaker (North America), 2003-2010

Chapter 5

• Collision Avoidance Systems Market: System Descriptions (North America), 2003
• Collision Avoidance Systems Market: Adaptive Cruise Control System PriceForecasts (North America), 2001-2010
• Collision Avoidance Systems Market: Adaptive Cruise Control System Unit Shipmentand Revenue Forecasts (North America), 2001-2010
• Collision Avoidance Systems Market: Adaptive Cruise Control System InstallationRate Forecasts by Vehicle Segment (North America), 2003-2010
• Collision Avoidance Systems Market: Adaptive Cruise Control System RevenueForecasts by Vehicle Segment (North America), 2003-2010
• Collision Avoidance Systems Market: Adaptive Cruise Control System InstallationRate Forecasts by Automaker (North America), 2003-2010
• Collision Avoidance Systems Market: Adaptive Cruise Control System RevenueForecasts by Automaker (North America), 2003-2010

Chapter 6

• Market Participant Profiles: BMW Active Safety Systems Installation Forecasts(North America), 2003-2010
• Market Participant Profiles: BMW Active Safety Systems Revenue Forecasts (NorthAmerica), 2003-2010
• Market Participant Profiles: GM Active Safety Systems Installation Forecasts(North America), 2003-2010
• Market Participant Profiles: GM Active Safety Systems Revenue Forecasts (NorthAmerica), 2003-2010
• Market Participant Profiles: Chrysler Active Safety Systems InstallationForecasts (North America), 2003-2010
• Market Participant Profiles: Chrysler Active Safety Systems Revenue Forecasts(North America), 2003-2010
• Market Participant Profiles: Ford Active Safety Systems Installation Forecasts(North America), 2003-2010
• Market Participant Profiles: Ford Active Safety Systems Revenue Forecasts (NorthAmerica), 2003-2010
• Market Participant Profiles: Honda Active Safety System Installation Forecasts(North America), 2003-2010
• Market Participant Profiles: Honda Active Safety System Revenue Forecasts (NorthAmerica), 2003-2010
• Market Participant Profiles: Mercedes-Benz Active Safety System InstallationForecasts (North America), 2003-2010
• Market Participant Profiles: Mercedes-Benz Active Safety Systems RevenueForecasts (North America), 2003-2010
• Market Participant Profiles: Nissan Active Safety System Installation Forecasts(North America), 2003-2010
• Market Participant Profiles: Nissan Active Safety Systems Revenue Forecasts(North America), 2003-2010
• Market Participant Profiles: Toyota Active Safety Systems Installation Forecasts(North America), 2003-2010
• Market Participant Profiles: Toyota Active Safety Systems Revenue Forecasts(North America), 2003-2010

Chapter 7

• Total Active Safety System Market: Exchange Rate (Canada:U.S.), 2002-2004
• Total Active Safety System Market: Exchange Rate (Europe:U.S.), 2002-2004
• Total Active Safety System Market: Exchange Rate (Japan:U.S.), 2002-2004
• Total Active Safety System Market: Exchange Rate (Mexico:U.S.), 2002-2004
• Total Active Safety System Market: Exchange Rate (UK:U.S.), 2002-2004