NEW YORK — The continuing problem of too many Class 4-8 truck safety technologies chasing too few consumer dollars has stalled their market penetration of integrated safety systems, reports Frost & Sullivan. However, the safety systems market is poised for a steep growth trajectory during the next five to seven years due to a tighter regulatory environment, introduction of integrated safety systems and availability of telematics-based safety applications.
New analysis from industry research and consultant firm Frost & Sullivan, “Strategic Analysis of North American Class 4-8 Truck Safety Systems Market,” finds the market earnings of $196.4 million in 2010 and estimates it to reach $609.8 million in 2017.
The trucking industry has been so busy over the last several years meeting Environmental Protection Agency emissions regulations that safety systems have not been front and center. Moving forward, however, Frost & Sullivan says original equipment manufacturers focusing on soft technologies and system integration will stoke higher adoption rates because of the CSA (Compliance, Safety, Accountability) regime at the Federal Motor Carrier Safety Administration, possible upcoming legislative support and energy-price volatility.
The development of integrated safety systems focused on collision mitigation, rising accident coverage costs and shortage of skilled drivers in the industry point towards the need of advanced safety technologies for trucks, according to the firm.
“In a period of truck production volatility, safety system manufacturers need to focus on soft technologies such as safety and telematics to insulate truck manufacturers and suppliers from revenue losses and strengthen potential revenue streams for long-term growth,” says Frost & Sullivan Senior Research Analyst Ananth S. “However, the lack of quantifiable research, demonstrable cost saving potential of the technology and skepticism regarding false alarms as well as warnings are restraining the market.”
In North America, the legal environment poses significant barriers for OEMs offering safety technologies as a standard, the study notes. The fear of lawsuits impedes rapid market penetration and growth of several non-mandated technologies. Improved legislative support, a clear return on investment, effective technologies reducing accidents and driver acceptance will ensure uptake of advanced safety technologies.
With the market’s evolution, truck OEMs and system suppliers must work closely with each other as well as with market groups such as telematics service providers, Frost & Sullivan says. Moreover, rising awareness and the demand for stand-alone systems, such as stability control systems, tire pressure monitoring system and lane departure warning systems, are expanding the revenue growth potential for participants.
“Within the next three to four years, the introduction of safety systems and technologies will not only deliver enhanced safety value and uptime, but will also reduce fleet operating costs and raise mobile resource productivity,” notes Ananth S. “This will encourage truck owners to invest significantly in Class 4-8 truck safety technologies such as ISS and telematics-based safety applications.”
Have your say
We won't publish or share your data