Strategic Analysis of the North American Safety Restraint Systems Markets

SUMMARY

Price Pressure at Retail Level Percolates down the Entire Automobile Value Chain, Even to Safety Restraint System Companies

North American vehicle manufacturers have been constrained to increase retail prices due to the pervasive trend of rebates and zero-percent annual percent rate (APR) on automobiles. This pricing pressure trickles down to the entire value chain of participants from automakers to Tier I, Tier II, and Tier III suppliers. Since consumers have started getting used to these rebates as a standard operating procedure. Safety restraint systems suppliers are under immense pressure to reduce costs by increasing production efficiencies, shifting production to low cost countries and through the use of innovative manufacturing technology.

This Frost & Sullivan strategic analysis service provides an overview of and an outlook for the North American safety restraint system markets. It has been segmented into occupant restraint systems, pedestrian, and vehicle crash compatibility systems. The research provides detailed revenue and market forecasts to help design marketing strategies and maximize growth. It enables companies to align their positioning strategies to benefit from the changing markets and obtain maximum return on investment.

Regulations Drive Uptake of Safety Restraint Systems

Normally, regulatory activity deals with the crashworthiness of vehicles and the prevention of fatality or injury through passive safety systems such as safety restraints. The National Highway Traffic Safety Administrations (NHTSA) proposed upgrade to Federal Motor Vehicle Safety Standard 214 (FMVSS-214) for side-impact protection mandates a variety of side impact protection ? curtain/side airbags or any other ? to be implemented by 2006 to 2009. Installation of frontal airbags on both the driver and passenger sides in all passenger cars and light trucks has been compulsory for some time now.

The NHTSA is also reported to be considering the possibility of enforcing the use of improved seatbelts and stronger roofs to prevent rollover fatalities. Some innovations being considered by the NHTSA include pre-tensioners that eliminate slack by getting activated within a split second of the beginning of a rollover, seatbelts that are integrated into the seat instead of being anchored to the B-pillar, four-point seat belts, and retractors that pull passengers into seats. "The NHTSA is also considering mandating shoulder seatbelts for center rear seats," says the analyst of this research. "Currently, only a lap belt is required for this seat."

Healthy Consumer Demand and Legislative Pressures Boost Market Growth

Manufacturer-level revenue for the safety restraint systems are estimated to reach $4.11 billion in 2010 on the strength of significant growth in unit shipment for a few important safety systems. This demand is likely to be driven by automakers installing safety systems in response to mounting demand, competition, and legislative requirements. "System prices are, however, expected to decline for all the systems by different degrees due to technology and productivity improvements as well as the economies of scale as volumes grow," notes the analyst.

TABLE OF CONTENTS

1EXECUTIVE SUMMARY

Executive Summary

Executive Summary

2TOTAL SAFETY RESTRAINT SYSTEMS MARKET

Introduction

Overview

Types of Safety Restraint Systems

Definitions and Scope

Safety Legislation

North American Motor Vehicle Crash Statistics and Analysis

Vehicle Crash Tests and Safety Ratings

Key Differences among International Markets

Integration of Active and Passive Safety Systems

Key Market Drivers and Restraints

Key Market Drivers

Key Market Restraints

Industry Challenges and Technology Adoption

Key Industry Challenges

Technology Adoption Scenario

Market Trends

Total Market Size Forecast

System Introduction Strategy

System Offering Strategy

Competitive Analysis

Frost & Sullivan Awards

2004 Frost & Sullivan Automotive Safety Systems Product Line Strategy Award

2004 Safety Restraints Market Leadership Award

2004 Occupant Classification Technology Leadership Award

2004 Rollover Curtain Inflator Product Innovation Award

3OCCUPANT RESTRAINT SYSTEMS MARKET

Introduction

Market Engineering Measurements

Types of Safety Restraint Systems

Safety Restraint Adoption and Performance Parameters

Installation and Market Size Forecast

Market Size and Installation Rate Forecast

Revenue Forecast by Vehicle Segment

Revenue Forecast by Automaker Group/Nameplate

Seatbelt System Market

Introduction

Price Analysis

System Installation and Market Size Forecasts

Driver Airbag System Market

Introduction

Price Analysis

System Installation and Market Size Forecasts

Front Passenger Airbag System Market

Introduction

Price Analysis

System Installation and Market Size Forecasts

Front Side Airbag System Market

Introduction

Price Analysis

System Installation and Market Size Forecasts

Rear Side Airbag System Market

Introduction

Price Analysis

System Installation and Market Size Forecasts

Curtain Airbag System Market

Introduction

Price Analysis

System Installation and Market Size Forecasts

4OCCUPANT CLASSIFICATION SYSTEMS; CRASH COMPATIBILITY; AND PEDESTRIAN SAFETY

Occupant Classification Systems

Introduction

Types of Occupant Classification Systems

Competitive Analysis

Crash Compatibility

Key Factors Impacting Crash Compatibility

Overview

Pedestrain Safety

Key Factors Impacting Pedestrian Safety

Overview

5MARKET PARTICIPANT PROFILES

Vehicle Manufacturer Opportunity Analysis

BMW of North America

General Motors Corporation

Chrysler Group

Ford Motor Company

American Honda Motor Co. Inc.

Mercedes-Benz USA

Nissan North America

Toyota Motor Corporation

Key System Supplier Profiles

Autoliv Inc.

TRW Automotive Holdings Corp.

Takata Corporation

Delphi Corp.

6APPENDIX

Abbreviations and Equations

Abbreviations

Compound Annual Growth Rate Equation

Conversion Equations

Currency Exchange Rates

Currency Exchange Rates

7DECISION SUPPORT DATABASE

Decision Support Database

Trade Regulations in North America

Vehicle Platforms United States

Global Joint Ventures and Affiliations

Global Light Vehicle Sales

Global Light Vehicle Production