Automobile Safety technologies Market - The automobile safety technologies market is growing due to stricter regulations and increased accidents. It includes active safety systems that prevent accidents and passive systems that mitigate injury. - Key segments are airbags, seatbelts, and new technologies like blind spot detection. The market is led by companies like Bosch and Continental and is expected to reach $166 billion by 2025. - Factors driving growth include regulations, accidents, new features from manufacturers, and income growth in emerging markets. However, high costs can restrain the market.

1. Automobile Safety
technologies
Market
Date: 09 November 2020
Author: Mona Swarnakar

2. Table of Content
• Executive Summary
• Current market scenario
• Market Segmentations
• Type – Active and Passive
• Market Growth
• Market Drivers
• Market Restraints
• Key Trends
• Competitive Landscape
• Company Profiles
• Investment/ R&D
• Top safest cars in 2020
• Opportunity Analysis
• Key Developments
• References

3. Executive Summary
Automobile Safety technology is a growing market as the market is
driven by multiple factors such as increasingly stringent rules and
regulation related to vehicle safety, increasing number of accidents,
increasing demand for the luxury vehicles, growing purchasing
power of the consumers, and the rise in the demand for the
passenger vehicle in the emerging market .
World Health Organization (WHO) findings suggest that around 1.25
million people die due to road accident and millions get injured
every year. As a result of increasing number of accidents, many
countries are implementing a new regulations such as wearing seat
belt and child restraint regulations.
While the seatbelts segment holds a major share of the market
across all regions, adoption of airbags in developing countries is also
estimated to boost the safety systems market.
Many manufacturer are coming up with new technologies, such as
adaptive cruise control, blind spot detection, drowsiness monitoring
system, lane departure warning system, head-up display, night vision
system, park assist, e-call telematics, and tire-pressure-monitoring
system technologies, which will protect the driver and passengers
from serious injuries during vehicle crash.
However, the high cost of safety system is a restraining factor for the
market growth as many low segment cars opt only for the
mandatory features such as airbags and seatbelts.

4. Current Scenario
• Globally various governments are trying to implement new rules and regulations, where all automobile manufacturer need to pass the crash test and
airbags are made compulsory for all the passenger vehicles. Hence the technologies in automotive safety and security system have undergone significant
changes in recent years. However, still there are needs of improvements in road infrastructure or policy interventions to bring down the incidences of
fatalities on the roads, and still there are needs for major improvement in markets like India and Brazil.
• European countries in general are at the forefront of vehicular safety. Sweden was one of the earliest proponents of eliminating crash deaths, when its
Parliament adopted the Vision Zero Policy in 1997. Sweden currently has one of the world's lowest traffic-related fatality rates.
• In the US, The Federal Motor Vehicle Safety Standard (FMVSS) has made it mandatory for all vehicles to have front seatbelts. The front passenger and driver
airbag is mandatory in North America. Whereas China’s New Car Assessment Program has made it mandatory for all vehicles to have frontal airbags.
Considering China witnesses a high rate of vehicle production, the demand of airbag is likely to increase.
• In 2019, the government of India introduced new rules and regulations, requiring automobile manufacturers to provide air-bags, and ABS to bring down the
number of accidents on roadways and increase protection for vulnerable road users like cyclists and two-wheeler riders. The government is also planning to
mandate on more safety features like AEB (autonomous braking system), Lane assistance, ESC (Electronic Stability Control) among others by 2022.
• COVID-19 did have a strong impact on the automotive safety technologies market at the market witnessed shut-downs and along with uncertain economic
outlook have made car sales plummet all around the world (the only exception probably is South Korea, due to strong currency effects and strong growth
among all OEMs). An increase in insolvencies is foreseeable and it could also hit top market players. Around 90 percent of the Top 100 companies could slide
into negative margin territory, only Chinese suppliers might continue their growth path and therefore, as China’s government is giving tax benefits, rebates
or cash to interested car buyers since April 2020.
• However in 2-3 years the market is expected to grow significantly as consumers too are increasingly getting aware of technologies that make their vehicles
safer and are willing to pay extra for safety. Hence the consumers are adopting Advanced Driver Assistance Systems (ADAS). With increased connectivity
among vehicles and the infrastructure, as well as the industry’s move towards autonomous mobility, the role of ADAS is only going to increase manifold in
the coming years.
• In this COVID-19 pandemic, one of the major safety system provider, OEM Continental, is helping to improve the drivers and passenger’s safety when
traveling and planning to develop a partition panel made of plastic film for passenger car interiors that protects drivers and passengers against COVID-19
during transport.

5. Market Segmentation by type
Active Safety
System
Automotive Safety technology is categorized in to two segments: Active Safety Systems and Passive Safety Systems.
Passive Safety
System
• Constantly monitor the performance and surroundings of a vehicle
• Can prevent accidents from happening altogether or help the driver to reduce the impact
• Avoid or mitigate an accident pre impact. So before its happen
• Example: Anti-lock braking (ABS), Electric stability control (ESC), Autonomous emergency
break (AEB), Lane departure warning (LDW), Adaptive Cruise Speed (ACS), Blind Spot
Detection (BSD), Road Sign Recognition (RSR), Driver Monitoring (DM), Tyre pressure
monitoring system (TPMS)
• Protect the occupants of a vehicle and other road users if a crash occurs
• Reduce impact of an accident and or the level of the injury
• Mitigate the consequences of an accident during and after impact
• Examples: Seat belt, Airbags, Seat Belt (SB), Deformation Zones, Child Safety System (CSS),
Pedestrian Safety System (PSS), Occupant Sensing System (OSS), Whiplash Protection (WLP)

6. Market Growth
The automotive safety market size is expected to reach 166 million in 2025 from 83 million in 2017, with a CAGR of 9 percent.
• Increasing demand for a safe, efficient, and convenient driving
experience and stringent safety regulations across the globe are
driving the market for automotive safety system.
• The market has grown gradually in the recent past as consumers
are switching from standard fitting option to ABS. This is owing to
government regulations and growing concerns of OEMs about
passenger's safety.
• Many automotive suppliers and OEMs such as Bosch,
Continental, Delphi Technologies, ZF Friedrichshafen are focusing
on the development of active safety system to be upfront in the
competitive environment.
82.8
90.6
98.7
107.6
117.3
127.9
139.4
151.9
165.6
0
20
40
60
80
100
120
140
160
180
2017 2018 2019 2020 2021 2022 2023 2024 2025
Market Size (in million)
• North America is expected to be remain the largest safety systems market whereas Asia-Pacific is expected to grow at the highest
CAGR during the forecast period.
• In terms of countries, the US will remain the major market in the North American active safety systems market. While China and
India will be major growth countries in the Asia-Pacific region due to increasing production of automobiles, increasing passive safety
systems per vehicle, and the introduction of more stringent regulations. Also in India, the Government has allowed 100% foreign
direct investment (FDI) with no minimum investment criteria for the automotive sector. Additionally, certain countries such as South
Korea and Japan, have strong technological capabilities that are having a positive impact.

7. Market
Drivers
Market
Restraints
• Rising Awareness Towards Safety & Security - Rising vehicle accidents worldwide is driving the demand for
automotive safety & security.
• Increasing Population and Growing Per Capita Income in Emerging Regions – The favorable FDI including
growing population and rising per capita income is driving the demand for the vehicle safety in emerging
regions such as China and India.
• Implementations of new government rules and regulations
• Introductions of new features by the manufacturers
• Significant growth in automobile sector
• High cost of safety system – The automotive safety features, while are in demand, also results in an
increase in vehicle cost. An example is that of ADAS, which is a very high-tech sensors, which helps in
preventing sudden jerks and reducing number of injuries and death, needs very high-end sensor and
hence are associated with high cost.
Market Drivers and Restraints

8. Current trends
• Automatic emergency braking (AEB) – The system detect an impending forward crash with another vehicle in time to
avoid or mitigate the crash. These systems first alert the driver to take corrective action to avoid the crash. If the driver's
response is not sufficient to avoid the crash, the AEB system may automatically apply the brakes to assist in preventing or
reducing the severity of a crash.
• Lane departure warning (LDW) / Lane keeping system (LKS)- Found on cars with sensors or cameras integrated into their
sideview mirrors, LDW alerts the driver if they start to drift out of their marked highway lane. Some vehicles sound an
alarm, some play a buzzing sound through the stereo speakers, and a few even vibrate the driver’s seat to let the
operator know they’re coloring outside the lines.
• Blind spot detection - Deploying cameras, sensors, or a combination of both, blind spot detection systems monitor the
road behind you for other cars that are potentially hiding just outside your line of sight. Very helpful on a multi-lane
highway, this tool alerts the driver if there is a vehicle in your blind spot – a place difficult to see without swiveling one’s
head about like that kid in The Exorcist.
• Adaptive cruise control (ACC) - This feature uses a series of forward-facing sensors to read the road ahead. It will
maintain your speed at the requested setting, just like traditional cruise control. If it senses a slower-moving vehicle
ahead, the system will adjust your car’s speed to match it while keeping a safe distance.
• Pre-collision systems (PCS) / forward collision warning (FCW) - This tech deploys a forward-facing camera and radar or
laser (or a combination of the two) to scan the road ahead. It is designed to alert the driver if the distance between their
vehicle and the one ahead vehicle ahead is closing too rapidly.
• Rear-view camera - Most new cars and trucks are equipped with a rear-facing camera. In fact, they are mandatory in all
new vehicles in countries such as Australia, Canada, and US. They are a boon to visibility, providing clear sightlines astern.
• Forward-facing camera systems - Generally forward facing, they passively keep an eye on the road ahead to record road
activity or calamities for later viewing. Some manufacturers have begun building them into their cars, including a few
who have adapted the technology for performance purposes. Certain models of the Corvette, for example, use the
cameras in a bid to help racers improve their lap times.
• Facial recognition software – The facial recognition is cropping up in new cars. Cadillac’s system works in conjunction
with its SuperCruise technology, watching the driver’s face and making sure they have their eyes on the road. If the car
detects an inattentive pilot, it will sound an alert and turn off the adaptive cruise control.

9. Top future safety technologies
Future
safety
technologies
Vehicle-to-Vehicle communication:
In future, the self-driving cars must communicate with
each other for a smooth operation. Understanding the
GPS coordinates and the speed to play a major role to
facilitate this and will depend a lot on the new age
sensor technology which will focus on the cars to
communicate.
Augmented Reality Windshields:
The market is focusing on night-vision cameras that can
reach into the darkness and warn you of hazards like an
animal preparing to cross the road.Active Kinematics Control:
Auto Components manufacturers like ZF and Bosch are also
working on Active Kinematics Control (AKC) for passenger cars. If
the rear wheels actively assist the front steering angle, a
passenger car enjoys enhanced agility, stability, and comfort when
changing direction.
Dynamic Infrastructure Alerts:
In addition to connecting with each other, cars will be able to hook up
with real-time infrastructure maps to monitor changing driving
parameters and road conditions. The feature can provide advance
signal such as construction zones, school zones and blind corners.
Pedal-Travel Sensor:
The pedal-travel sensor (PWG) is Bosch’s sensor series for contactless pedal-travel
measurement. Travel sensors are a core component of electric brake pedals, which are
required for regenerative braking systems in hybrid and electric vehicles. These pedals
record the driver's desired level of braking, which the systems then implement
electrically, hydraulically, or using a combination of the two.
Traction control system (TCS):
This system prevents wheel spin when starting off or
accelerating, particularly on a slippery or wet road
surface. While ABS prevents the wheels from locking
during braking by reducing the braking pressures, TCS
ensures that the wheels do not spin when driving off or
accelerating.
Integrated Brake Control (IBC):
The system supports both conventional braking features as well as
semi-automated driving functions. IBC effectively replaces the
electronic stability control (ESC) system and vacuum boosting system
formerly used to exploit the negative pressure in the engine’s air-intake
system to boost braking power and thus works across virtually all
powertrain configurations.

10. Competitors Analysis
• The global automotive safety systems market is highly competitive, with
both safety systems manufacturers and OEMs are competing. Some of the
major players dominating the market are Continental AG, Robert Bosch, ZF
Friedrichshafen AG, Denso Corp., Magna International, and Hyundai Mobis,
among others. In addition, to meet the increasing standards for safety features
in the vehicles, major ADAS manufacturers in the market have started
investing in R&D activities.
• Bosch started to rise through ranks in 2014 when it acquired ZF
Friedrichshafen’s steering systems and was ranked first in 2019. In the
meantime ZF Friedrichshafen’s succeeded with a takeover bid to TRW
shareholders and the merger was completed in 2015. This is one of the largest
supplier acquisitions in history, the automotive component manufacturer
emerged as a new heavyweight in the automotive parts market.
• In addition to investments in the numerous technologies of the future,
corporate carve-outs and the liquidation of traditional company divisions and
technologies are being driven forward. Looking at the five major German
automotive suppliers Bosch, Continental, ZF Friedrichshafen, Mahle and
Schaeffler, over 40 start-ups and tech companies have been taken over or
provided with venture capital in the past three years.
• Covid-19 and an uncertain economic outlook have made car sales plummet
across the globe in early 2020 and require restructuring measures for
automotive suppliers. This leads to a double burden of investment pressure
and crisis management driving the management agenda.

11. Companies Headquarter Revenue in 2019
(in mn. EUR)
Revenue in 2018
(in mn. EUR)
Key Products
Robert Bosch GmbH Germany 47,000 47,600 Powertrain solutions; chassis systems controls; electrical drives, car multimedia, electronics,
steering systems & battery technology
Continental AG Germany 44,478 44,404 Advanced driver assistance systems, electronic brakes; stability, management, tires, foundation
brakes, chassis systems, safety electronics, telematics, powertrain electronics, injection
systems & turbochargers
Denso Corporation Japan 43,307 42,572 Thermal, powertrain control, electronic & electric systems; small motors, telecommunications
Magna Canada 35,169 35,605 Body exteriors & structures; power & vision technologies; seating systems & complete vehicle
solutions
ZF Friedrichshafen Germany 33,597 33,975 Transmissions, chassis components & systems, steering systems, braking systems, clutches,
dampers, active & passive safety systems, driver assist systems including camera, radar & lidar
Aisin Japan 32,012 31,945 Body, brake & chassis systems, electronics , drivetrain, & engine components
Hyundai Mobis South Korea 29,378 24,604 Automotive electronics, infotainment, ADAS, EV systems, module systems, lighting, airbag &
brakes
Lear US 17,669 18,444 Seating & electrical systems (E-Systems)
Aptiv* Ireland 12,805 12,589 Electrical & wiring products, body controls, infotainment, safety, & autonomous driving
technologies
Valeo France 19,477 19,124 Micro hybrid systems, electrical & electronic systems, thermalsystems, transmissions, wiper
systems, camera/sensor technology, security systems, interior controls
Faurecia France 17,768 17,525 Seating, emissions control technologies & interior systems
*In Dec. 2017, Delphi Automotive spun off its powertrain segment as Delphi Technologies, while Aptiv emerged as an electrical architecture and autonomous technology business.

12. Investment/R&D by manufacturers
• In 2020, Envisics received an investment of ~$50m from Hyundai Mobis, General Motors Ventures, SAIC Motors and Van Tuyl companies following the
successful closing of its series B strategic funding round. Hyundai Mobis will jointly develop autonomous driving specialized AR HUDs with Envisics,
targeting mass production by 2025. AR HUDs can display graphics that interact with the driver’s FOV, overlaying critical information directly onto the
real world.
• DENSO Corporation has established the Pittsburgh Innovation Lab, a new U.S. R&D center designed to strengthen open innovation and enhance
technology development that enables automated driving. In 2020, the company has established six advanced R&D centers in U.S., Israel, Canada, and
Finland.
• In 2019, Hyundai Motor Group (Hyundai Motor, Kia Motors and Hyundai Mobis ) announced investment of $1.6 billion in a joint venture to develop
self-driving vehicle technologies with auto supplier Aptiv and $400 million in R&D resources and others.
• In 2016, Bosch inaugurated its first phase of expansion of its R&D Centre in Bengaluru, India and invested around $48 million (INR 350 crore). The
company generates about 83% of its total sales in India from its mobility (automotive components) business and it will continue to be in that ratio.
• In 2018, 2019 and 2020, Magna stepped up its R&D spending and added $300 million all together to help develop technologies such as electrification
and autonomous vehicles.
• In 2019, Infineon expanded its development sites in Linz and Graz, Austria. The company’s new RF development center will be involved in developing
new RF components such as radar ICs for automobiles, with its focus on 77-GHz radar chips for ADAS.
• In 2018, Continental inaugurated its new R&D center in Queretaro state capital, with an investment of US$ 59 million. The new R&D will focus on
developing software, algorithms, tests and mechanics. Also, it includes automatic driving for specific points, such as detection of blind spots,
pedestrians, potential danger of crossroads and alerts of objects around the vehicle, among others.
• In 2019, ZF Friedrichshafen AG established a third Chinese R&D center in Guangzhou, southern China. The new center will develop key technologies
and system solutions for ZF that we can also use in other market regions. The company already has two development centers in China, both located in
Shanghai, supports customers throughout the Asia-Pacific region.
• In 2019, Valeo invested $3.4 million (INR 25 crore) to set-up an R&D test lab facility in Chennai, India. The new facility will further strengthen the
technical competence and emerged as a global software development hub for the company that offers complete products conception capabilities such
as mechanical design, simulation, embedded software development, computer vision, and machine learning among others to Valeo’s global customers.

13. Market opportunities
North America to hold the largest market
share in next few years, followed by
APAC and Europe in safety system
The market growth in the APAC region
can be accredited to the rising market
demand for safety technologies in the
region
Huge investment in R&D, partnerships,
and new product launches of
autonomous cars will increase the
opportunities for the manufacturers in
the next 5 years
Growing demand for driver assistance
features and increasing stringency of
vehicle regulations by government to
drive the market
Rising safety concerns among the end
consumers will drive the market in the
near future
Huge opportunity in the commercial and
2-wheller vehicle segment as many
countries' government are making
compulsory regulations to prevent
highway/road accidents.

14. Key Developments
• In Oct 2020, An automated valet parking system co-developed by Bosch and Mercedes-Benz for use with the new Mercedes-Benz S-
Class will be implemented at Stuttgart Airport, allowing owners to use their smart phones to tell their car where to park without
being in the driver’s seat.
• In Oct 2020, Lear Corporation announced its Xevo software business has partnered with REEF Technology to allow consumers to
find, reserve and pay for parking spaces from their in-vehicle touchscreen.
• In Mar 2020, San Diego based Self-driving truck startup announced partnership with auto parts supplier ZF to develop and
commercialize the technology for autonomous trucks. Both the companies will co-develop production-quality technologies including
cameras, LiDAR, radar, steering and ZF’s automotive-grade central computer ZF ProAI.
• In Mar 2020, Volkswagen announced the launch of a new software operating system that it hopes will make accidents involving its
cars a thing of the past by 2050. Next generation cars will be equipped with software, sensors and processors that enable vehicles to
anticipate and avoid accidents, and to keep learning new reflexes.
• In Jul 2019, Ford joined hands with telecom service provider Vodafone to test and develop new connected vehicle technology that
will help the vehicle owners to find parking spots in congested urban areas.
• In Oct 2020, Fisker Inc, which is going public through a merger with Magna International Inc. will supply the vehicle platform and
build the electric carmaker's Ocean SUV.

15. The Insurance Institute for Highway Safety (IIHS) announced the top safest cars of 2020. Hyundai
Motor Group, which includes the Hyundai, Kia and Genesis brands, had the most winners overall
with 14. Mazda had the most Top Safety Pick+ winners, whereas Subaru was in second place.
TOPSAFETYPICK+TOPSAFETYPICK
• Small cars: Honda Insight, Mazda 3 hatchback, Mazda 3 sedan, Subaru Crosstrek hybrid
• Midsize cars: Mazda 6, Nissan Maxima, Subaru Legacy, Subaru Outback (built after October 2019), Toyota Camry
• Midsize luxury cars: Lexus ES, Mercedes-Benz C-Class sedan, Tesla Model 3
• Large luxury cars: Audi A6, Genesis G70 (built after December 2019), Genesis G80
• Small SUVs: Mazda CX-3, Mazda CX-5, Subaru Forester
• Midsize luxury SUVs: Acura RDX, Cadillac XT6 (built after October 2019), Hyundai Nexo, Lexus NX, Mercedes-Benz GLE-Class (built
after July 2019), Volvo XC90
• Large SUV: Audi e-tron Sportback 4-door SUV
• Small cars: Honda Civic coupe, Civic hatchback, Civic sedan, Hyundai Elantra, Elantra GT, Hyundai Veloster, Kia Forte, Kia Soul, Subaru
Crosstrek, Subaru Impreza sedan, Impreza wagon, Subaru WRX, Toyota Corolla sedan, Corolla hatchback
• Midsize cars: Honda Accord, Hyundai Sonata, Nissan ALtima
• Midsize luxury cars: BMW 3 series, Volvo S60
• Large car: Kia Stinger
• Large luxury car: Audi A7
• Small SUVs: Chevrolet Equinox, Ford Escape, Honda CR-V, Hyundai Kona, Hyundai Tuscon, Kia Sportage, Lexus UX, Lincoln Corsair,
Toyota RAV4, Volvo XC40
• Midsize SUVs: Ford Edge, Hyundai Palisade, Hyundai Santa Fe, Kia Sorento, Kia Telluride, Mazda CX-9, Subaru Ascent, Toyota
Highlander, Volkswagen Tiguan
• Midsize luxury SUV: Lexus RX, Lincone Aviator, Mercedes Benz GLC, Volvo XC60
• Large SUV: Audi Q8

16. References
• https://www.who.int/violence_injury_prevention/publications/road_traffic/2pager-Vehicle-final.pdf
• https://www.pathpartnertech.com/active-and-passive-safety-systems-in-cars/
• https://www.breakawayhonda.com/blogs/35/uncategorized/the-difference-between-active-and-passive-safety/
• https://carbiketech.com/active-safety-passive-
safety/#:~:text=Active%20Safety%20includes%20set%20of,collision%20in%20the%20first%20place.&text=However%2C%20the%20airbags%2C%20seatbelts%
2C,called%20the%20passive%20safety%20systems.
• https://www.counterpointresearch.com/yet-another-set-automotive-regulations-comply-india/
• https://www.tapellalaw.com/blog/2016/october/types-of-automotive-safety-systems/
• https://www.consumerreports.org/cro/2012/04/guide-to-safety-features/index.htm
• https://www.electronicspecifier.com/products/sensors/active-and-passive-automotive-safety-systems
• https://www.financialexpress.com/auto/car-news/after-airbags-abs-indian-cars-to-get-autonomous-safety-features-by-2022-all-you-need-to-know-about-the-
new-mandates/1480100/
• https://www.statista.com/statistics/200002/international-car-sales-since-1990/
• https://www.jabil.com/blog/advanced-driver-assistance-systems-future.html
• https://image-src.bcg.com/Images/MEMA-BCG-A-Roadmap-to-Safer-Driving-Sep-2015_tcm9-63787.pdf
• https://ec.europa.eu/transport/road_safety/sites/roadsafety/files/ersosynthesis2016-adas15_en.pdf
• https://www.mckinsey.com/~/media/McKinsey/Industries/Automotive%20and%20Assembly/Our%20Insights/Capturing%20the%20advanced%20driver%20ass
istance%20systems%20opportunity/Capturing_the_advanced_driver_assistance_systems_opportunity.pdf
• https://www.automotiveworld.com/articles/comment-the-safety-promise-of-5g-hinges-on-data-storage/
• https://thedriven.io/2020/10/15/bosch-and-mercedes-benz-launch-autonomous-parking-in-germany/
• https://auto.economictimes.indiatimes.com/news/auto-technology/self-driving-truck-startup-tusimple-partners-with-zf-autonomous-truck-
technologies/74872612
• https://auto.economictimes.indiatimes.com/news/auto-technology/volkswagen-hopes-new-software-will-banish-accidents-by-2050/74607079
• https://www.prnewswire.com/news-releases/xevo-and-reef-technology-team-up-to-offer-contactless-parking-payments-301143958.html
• https://auto.economictimes.indiatimes.com/news/passenger-vehicle/uv/fisker-closes-deal-for-supplier-magna-to-build-its-suv-take-stake-in-startup/78685114

17. https://www.linkedin.com/in/mona-swarnakar-
2698111a/?msgControlName=reply_to_sender&msgConversationId=6704748808410152960&msgOverlay=true
s.mona8@gmail.com
The report is prepared based on sources and data that I believe to be reliable, but I make no representation to its accuracy or completeness. Since the report is prepared
using certain third-party sources, there could possibly be errors in the report and hence I, Mona Swarnakar, will not be responsible if people use this data. Usage of data from
this report will be solely and entirely at the risk of the recipient.
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