The automotive industry has always been a competitive market but the environment has definitely changed and competition has increased over the past couple years. OEMs are looking for new areas of innovation to differentiate and win. The result is a plus for the consumer as we’re seeing more features from safety to entertainment making their way down into the mid and low-end segments.
The industry has made great advancements in protecting drivers from injury but that attention is increasingly focused on accident prevention. Airbags, crumple zones and stability control have become mainstream, advanced driver assistance systems (ADAS) represent the next wave of innovation in auto electronics.
For me, ADAS is one of the most interesting areas of development and differentiation today. It is also predicted to be one of the fastest growing segments in automotive electronics. iSuppli forecasts a 29% annual growth rate for ADAS in North America alone, reaching 30.7 million vehicles by 2017.
Why the focus on ADAS? It’s true, safe driving experiences have always been a goal for automakers. There is a convergence of forces at play though today from government regulations to the need to differentiate from the competition as I noted above. New regulations are upping the ante for automakers as studies suggest 80% – 90% of crashes are caused by driver error. Accident prevention is now the grand prize.
Here are some key data points that support this movement:
- Accidents caused by distracted drivers caused 6,000 deaths and another 500,000 were injured in 2008 (NHTSA reports)
- 97.5% common accidents can be eliminated with ADAS technologies (Continental: Norbert Hammerschmidt)
Common ADAS features include adaptive cruise control, blind-spot monitoring, lane-departure warning and night vision. The futuristic and controversial ADAS features are the ones that actively help drivers avoid accidents by taking control away from the driver. The capability relies on a network of cameras, sensors, radars and lasers. While these new capabilities are heralded to prevent accidents from occurring and saving lives they come with a high price tag that could hamper adoption.
Dean McConnell, director-PSAD Customer Center at Continental was quoted in a recent Wards Autoworld safety article citing component costs:
- $2,200 for adaptive cruise control, forward collision warning and braking systems
- $400 for blind spot detection
- $550 for lane departure warning
Radars and lasers in the car sound like something out of a James Bond movie – auto electronics are definitely getting much more complex. The challenge will be to see how the supply chain can innovate and simplify this complexity and at a price point that allows for widespread adoption. And this all needs to happen while adhering to the same stringent demands for components to live through the life of the car. No small feat.
I think it is an exciting time to be involved in the automotive ecosystem. The gauntlet has been laid by Volvo when they stated their goal for an “injury proof” car by 2020. How will the industry respond? Can cost be controlled to drive these innovations mainstream?
Great post. ADAs are really becoming a huge selling point. Especially, the adaptive cruise control. Cars are getting smarter and smarter!