Published: 16 November 2016
Technavio analysts forecast the global automotive parking sensors market to grow at a CAGR of close to 24% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global automotive parking sensors market for 2016-2020. It also presents the vendor landscape and a corresponding detailed analysis of the top six vendors in the market. The report also outlines the challenges faced by vendors and the market at large and identifies the key trends that are emerging in the market.
According to Siddharth Jaiswal, a lead analyst at Technavio for automotive electronics research, “The global automotive parking sensors market is growing and is expected to witness strong adoption during the forecast period, owing to the system’s contribution toward vehicle safety and convenience.”
Technavio’s automotive analysts highlight the following three factors that are contributing to the growth of the global automotive parking sensors market:
- Accidents during parking maneuvers to push adoption of parking sensors
- Increased safety awareness to boost the growth of the parking sensors market
- Stringent safety regulations push adoption of parking sensors
Accidents during parking maneuvers to push adoption of parking sensors
It is estimated that across the globe, 1.24 million people die in road accidents each year. Road accidents due to obstruction in driver vision by external factors account for about 11%, and accidents at junctions or reversing due to the same reason account for 19%. Additionally, reduced visibility at night is another factor contributing to untoward incidents during reversing and parking. This has increased the need for advanced driver assistance system (ADAS), such as blind spot detection (BSD), in vehicles. Most of these ADAS use sensors, thus leading to an increase in the demand for automotive parking sensors.
Increased safety awareness to boost the growth of the parking sensors market
The quest for automobile safety is one of the key drivers in the development of advanced driver and automobile safety systems. Advanced safety and security features are no longer limited to luxury vehicles. Consumers are now more aware about safety systems and technologies, and are taking interest in improving the safety systems in their vehicles. A consistent increase in demand for compact and mid-sized vehicles equipped with advanced safety features in markets like India and China is expected to propel the growth of the market for parking sensors during the forecast period.
The growing concern about passenger safety has compelled many automobile manufacturers to implement driver assistance systems that make use of in-vehicle and external sensors. “Driver safety system manufacturers, such as Continental, Bosch, and Autoliv, have been collaborating with OEMs to develop and manufacture low-cost ADAS for compact vehicles. This is expected to help attain economies of scale and reduce the price of safety systems, and thereby result in their increased implementation in low-cost vehicles during the forecast period,” says Siddharth.
Stringent safety regulations push adoption of parking sensors
Advanced safety systems, such as LDWS, NVS, ACC, BSD, driver monitoring systems, help minimize the impact of collisions, fatalities, and improve overall vehicle safety. Hence, with governments in Europe, the Americas, and APAC implementing stringent safety regulations, the development and adoption of these systems is expected to increase during the forecast period.
Rising vehicle accidents owing to driver fault is pushing the authorities in respective regions to establish regulatory standards for adopting advance technologies in vehicles, with the aim of minimizing accidents and fatalities. For instance, 76% of global vehicle fatalities are due to the fault of driver, and this creates the need for advanced assistance systems that will reduce the inefficiency of drivers. Thus, legislative pressure will compel automotive manufacturers to install automotive safety systems which augurs well for the growth of the automotive parking sensors market.