Collision Avoidance Systems - Global Market Trajectory & Analytics

Current Disruptions Elicit a -15.8% Decline in Growth. Future Outlook for Autonomous Technologies Encourages a 6.4% Projected Growth Opportunity

The global market for Collision Avoidance Systems is expected to slump by -15.8% in the year 2020 and thereafter recover to reach US$62.7 billion by the year 2027,trailing a post COVID-19 CAGR of 6.4% over the analysis period 2020 through 2027. A truly global industry, the auto industry has fallen victim to the global disruption wreaked by the pandemic. While current disruptions in the automotive industry are impacting immediate term prospects, the longer-term implications of the current pandemic and the interest in non-contact, autonomous technologies bodes well for long-term growth of collision avoidance systems especially in autonomous vehicle applications. One of the impact factors is the massive disruption of the supply chain which has impacted production lines dependent in Asia, especially China for raw materials, parts and components. Lockdowns, rising unemployment & shrinking disposable incomes have knocked down consumer confidence and with it sales of new vehicles. Global automobile production is expected to register a sharp decline in 2020, as auto plants across the globe suspend production temporarily to curb the spread of COVID-19 in line with revised safety protocols to safeguard employees against the pandemic. The halt in production is expected to impact the cash flow for the automakers against the drop in demand. COVID-19 outbreak and stringent measures to contain the pandemic hold negative implications for the global automobile industry that is forecast to witness a dramatic decline of about 15% in vehicle production in 2020. Suspended vehicle production in North America coerced automakers to delay launch of new models.

In the midst of millions of units decline in sales and R&D cutbacks, autonomous cars are witnessing increased interest. The idea of driverless cars has assumed new importance in a world dependent on transportation & a pandemic that has forced social isolation & impacted how we travel. Autonomous cars are a major end-user of collision avoidance systems & the accelerated future towards mobility with minimal human interaction bodes well for post pandemic growth. Collision avoidance systems (CAS) represent a promising technology with significant potential to reduce the risk of collisions and accidents. Also popular as collision mitigating systems, pre-crash systems and forward collision warning systems, these platforms assist users in detecting an imminent obstacle or strike for averting an accident. In addition, the technology is integrated with other systems for enabling autonomous or semi-autonomous decision making and braking. Radar, LiDAR and Camera are the basic technologies applied in collision avoidance systems. The incorporation of forward-collision warning systems and automatic braking has been known to reduce crashes or at least, reduce crash intensity. Blind-spot monitoring and assist feature alerts drivers by lighting up an icon on dashboard or mirror after detecting a vehicle in blind-spot. The system also alerts drivers when they are about to turn into another vehicle. Lane departure warning and assist feature relies on sensors for monitoring the distance of a car from a lane line. Advanced systems are also capable of taking corrective action for keeping the vehicle in proper lane. On the other hand, rear cameras and parking assist reduces the risk of back-over accidents through alerts after detecting an obstacle. These cameras also assist drivers in congested parking spots. Automatic park assist is one of the latest features intended to identify a parking space and help drivers steer the car into the parking space. Adaptive headlights are generally limited to high-end models, and intended to illuminate the road during turns or when a driver maneuvers winding, narrow roads. Drowsiness detection systems detect drowsiness or eye movement of drivers and even detect the position of a car in traffic lines to identify erratic movement.

Collision avoidance systems find extensive use in the mining and automobile sectors for averting accidents. The market for these systems in the post pandemic period will be propelled by the expected adoption of automated vehicles, stringent automotive safety regulations and the ability of the technology to ensure enhanced safety and visibility. Automakers in the US, Europe and Japan have already begun testing prototype cars capable of driving autonomously. These innovative concepts are intended to reduce traffic congestion and stress while improving safety. In the aviation industry, collision avoidance systems are expected to receive a major impetus from regulatory pressure that mandates it airline operators to implement the technology for higher safety. The EU No. 1332/2011 regulation in Europe requires all flights with aircraft exceeding 5700kg or authorized to carry over 19 to adopt collision avoidance systems by 2015. In addition, non-compliant aircraft operating in the European Airspace that have planned an upgrade to ACAS II version 7.1 are likely to receive exemption for a specific period. However, these exemptions depend on registration region of the aircraft along with operating approval from EU or non-EU states. The increasing popularity of UAVs or drones is also expected to offer intriguing opportunities for collision avoidance systems (CAS) for enabling drones to navigate safety in real-time. Collision avoidance is a powerful feature that minimizes pilot's error and avoids collisions. While various drones with CAS feature small sensors mounted over the body, others come with optical radar capable of viewing objects in full 360°. Sensors rely on ultrasonic or infrared scans for assisting processors in making decisions automatically to protect the drone. These advantages along with increasing adoption of drones are anticipated to open a new window of opportunity for aircraft CAS technology.

Competitors identified in this market include, among others:

• Alstom SA
• Autoliv, Inc.
• Aviation Communication & Surveillance Systems, LLC (ACSS)
• Becker Mining Systems AG
• Delphi Automotive PLC
• Denso Corporation
• General Electric Company
• Hexagon AB
• Honeywell International, Inc.
• Mobileye N. V.
• Robert Bosch GmbH
• Rockwell Collins, Inc.
• SAAB AB
• Siemens AG
• Wabtec Corporation