Automotive Active Safety System Market Segmentation By Product (Tire-Pressure Monitoring System, Lane Departure Warning, Adaptive Cruise Control, Night Vision System, Driver Monitoring, Anti-Lock Braking System, Blind Spot Detection and Others); By Vehicle Type (Passenger Cars, Light Commercial Vehicle, Heavy Commercial Vehicles and Others); By Fuel Type; By Offering - Global Demand Analysis & Opportunity Outlook 2027
Buy Now Report ID: 617 | Published Date: Feb 13, 2023
Formation of Stringent Rules and Regulations
Growing use of mobile phones while driving is raising the concern for formation of stringent rules and regulations in order to reduce the number of road accidents and ascertain the safety of the passengers, thereby driving the demand for automotive active safety systems in the market.
Rising Demand for Safety Features
To reduce the rising number of road accidents, there is a huge requirement of safety features such as clear visibility of the road in fog, better grip, anti-lock braking system, early warning symbols and electronic stability control among others in the vehicles. The rising demand for the active safety systems in motor vehicles is estimated to support the growth of the market during the forecast period.
Rising Demand for Vehicles
According to OICA’s (International Organization of Motor Vehicle Manufacturers) production statistics, around 95 million cars and commercial vehicles were produced during 2018. Growing use of personal vehicles for long distance road trips and for travelling to workplaces is boosting the demand for vehicles with the pre-installed safety features. These factors are is anticipated to fuel the growth of the market in upcoming years.
The market is estimated to observe vibrant growth on account of growing demand for installation of safety features in new vehicles. Moreover, rising government rules and regulations for preventing, minimizing and avoiding the road accidents is anticipated to drive the market growth. Additionally, growing use of mobile phones for calling, surfing and messaging while driving is raising the demand for safety features in vehicles such as early warning signals, better grip and anti-lock braking system among others. Furthermore, growing number of road trips and long distance travelling is increasing the requirement for safety system in the vehicles which in turn is fueling the growth of automotive active safety system market.
The automotive active safety system market is anticipated to record a CAGR of 11.25% over the forecast period i.e. 2019-2027. The market is segmented by vehicle type into passenger cars, light commercial vehicle, heavy commercial vehicles and others, out of which, passenger cars segment is anticipated to hold leading shares in the market owing to growing demand for safety features and rising awareness about prevention of accidents while driving. Further, the market is segmented by product into tire-pressure monitoring system, lane departure warning, adaptive cruise control, night vision system, driver monitoring, anti-lock braking system, blind spot detection and others, out of which, the blind spot detection segment is expected to have a robust growth on account of growing alertness about the system applications and security features.
High Capital Requirement
Requirement of high initial investment in the business is restricting the new players and medium and small enterprises from entering into the active safety system market which in turn is expected to hamper the growth of the market over the forecast period.
Our in-depth analysis of the global automotive active safety system market includes the following segments:
By Product
By Vehicle Type
By Fuel Type
By Offering
By Region
On the basis of regional analysis, the global automotive active safety system market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in North America is anticipated to acquire leading position in the automotive active safety system market on the back of rising demand for active safety systems in the vehicles. Additionally, growing government rules and regulations regarding the safety of the passengers and minimizing the number of road accidents is estimated to fuel the growth of the market. Also, rising sales of passenger vehicles and pre-installed safety features is expected to drive the growth of the active safety system market during the forecast period.
Further, the market in APAC and Europe is estimated to witness robust growth owing to growing adoption of stringent government rules and regulations to prevent road accidents. Moreover, developing economy and increasing disposable income of individuals in emerging economies such as India and China is anticipated to support the market growth in Asia Pacific region.
The global automotive active safety system market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Harshita Srivastava, Saima Khursheed
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