Collision Avoidance System Market – Another Leap of Faith Towards Technology
Even after making a tremendous progress regarding vehicle safety since 1960s, making improvements in passive safety features such as air bags, seat belts, crash zones, and lighting, still the number of people who die in road accidents is increasing. According to the World Health Organization (WHO), approximately 1.35 million people die in road accidents, costing most countries 3 per cent of their gross domestic products. These road crashes cause loss to both human lives and public property, leading to huge financial losses that the economy has to incur. Moreover, significant further gains in reducing crash costs is more difficult to achieve by proceeding with these passive safety technologies alone. Consequently, there is a need to keep investing in technologies in order to reduce the severity of crashes or even complete mitigation of collisions.
Number and Rate of Road Traffic Death per 100,000 Population: 2000-2016
Source: Knowledge Sourcing Intelligence Analysis
Collision avoidance system (CAS) is a warning system which is designed to reduce the severity of a collision and help prevent rear-end collisions with vehicles that are either stationary or going in the same direction. CAS is also known as collision mitigating system, forward collision warning system, and pre-crash system. This system in vehicles alerts the driver in case of an imminent rear-end collision both at low speed and high speed.CAS attempts to actively warn drivers in case of an approaching collision event, providing drivers adequate time to take appropriate corrective actions to mitigate or completely avoid the accident. According to the U.S. National Highway Traffic Safety Administration (NHTSA) collected data, around 88 per cent of rear-end collisions are caused due to the driver’s lack of attention and following vehicle too closely.
Rising number of road accidents worldwide is pressurizing governments as well as global organizations to increase their focus on reducing this rising number by implementing several regulations and standards so as to make sure that the vehicle is safe for the passengers. For example, in the U.S., the Electronic Stability Control (ESC) standard has been adopted since 2012 for all new vehicles. Also, the European NCAP requires auto manufacturers to provide the emergency autonomous braking solution in all passenger vehicles manufactured by them in order to achieve the highest safety rating given by the agency. All these regulations that have been and/or are planned to be implemented across various regions/countries is significantly driving the global collision avoidance system market.
Collision Avoidance System Market Size, US$ Billion, 2019 and 2025
Source: Knowledge Sourcing Intelligence Analysis
Global automotive giants, with the support of governments and global organization, are continuously revolutionizing the personal transport by investing heavily in autonomous vehicles in order to reduce road accidents and fatalities. As of March 2018, the number of companies having permits to test autonomous vehicles on road in the State of California alone totalled to 52. Autonomous vehicles hold promising results to reduce high cost of crashes and transport infrastructure, road congestion, and others. In 2019, the industry body for the automotive sector in Germany- VDA- announced to invest over €40 billion in electric mobility during the next three years.
Collision avoidance system is not only being used in the automotive sector, it has also been incorporated in machines and equipment that are used across material handling and mining industry. Governments in different regions/countries have put workers’ safety regulations in place in order to limit or eliminate the number of accidents at hazardous workplaces. According to the OSHA (Occupational Safety and Health Administration), part of the United States Department of Labor, workers possess the right to have safe and healthy working conditions and it is the duty of the employer to provide the safe workplace to all of its employees. The member states of the European Union (EU) are free to adopt tougher rules and regulations aimed to ensure safety of workers when transposing EU directives into national law.
Despite the high rate of automation in different industries, the chances of workplace fatalities has not completely eliminated, if reduced to some extent. As such, the demand for collision avoidance systems is rising across the material handling as well as mining industry. These systems are increasingly being incorporated into material handling systems as well as mining equipment and machines as there has been a growing focus on workers’ safety across different industries. For example, collision avoidance systems for cranes are designed to prevent crane-to-end stop and crane-to-crane collisions which increases operator’s safety and reduce system maintenance costs. In the mining industry, lack of visibility requires collision avoidance systems and other technologies to help minimize the risk of accidents and injury while improving efficiency and reducing costs. According to the U.S. Mine Safety and Health Administration, the country’s mines recorded 24 fatalities in 2018 with seven involved in a collision. Although this was the lowest number of mining fatalities on record, collisions still pose a great threat to the safety of people working in mines for which the demand for collision avoidance systems is booming to limit or eliminate these risks.
However, the recent COVID-19 global pandemic outbreak has severely impacted many industries including mining and automotive. With temporary halt in the production and global supply chain disruption due to mandatory lockdown measures to curb the spread of the coronavirus, this global pandemic has also indirectly impacted the collision avoidance system market.
Despite of this decline in manufacturing activities, growth of these industries in the medium and long run will continue to drive investments in safety features and technologies in the coming future in order to reduce the economic burden caused by human deaths and loss of public property.
ABOUT THE AUTHOR:
Anjali Joshi is a senior market research analyst at Knowledge Sourcing Intelligence. She oversees a team of analysts and is known for the quality of market intelligence she delivers to the clients which range from start-ups and Non-profit Organizations to Fortune 500 companies. Anjali’s keen understanding of international business and market dynamics, coupled with her years of experience working in this industry, allows her to analyse current and future trends across both global and clients’ target markets and help them in making informed decisions.
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