[April 17, 2012]

Strategy Analytics: Mass Market Advanced Driver Assistance Systems (ADAS) Boosted by Consumer Demand, OEM Competition and Legislation

Previously the preserve of the luxury sedan, demand for ADAS systems is growing over the short- to mid-term as consumer awareness increases and installation incentives become available. Discounted insurance premiums and the expected National Highway Transportation Safety Administration (NHTSA) final "Kids & Cars" determination, which would increase the number of vehicular back-up cameras, are also paving the way for wide availability.

The Strategy Analytics (News - Alert) report, "Scalability and Flexibility: Mass Market ADAS Creates Variety As Well As Cost Reduction," examines the strategies aimed at lowering system costs to make ADAS affordable in an average car.

"Customizable platforms will help manufacturers bring ADAS to the mass market," said Kevin Mak, analyst in the Automotive Electronics Service (AES) at Strategy Analytics. "A wide variety of system designs will include price points acceptable to the average consumer.

"Because the ADAS market is in its infancy, OEMs are eager to work with adaptable ADAS systems which enhance robustness, usability and performance. ADAS vendors will have to offer a variety of products within manageable price points. More safety features will run from the same ADAS hardware, so that front windshield cameras for lane departure warning will have additional offerings included to entice buyers, such as the forward collision alert, as seen in the new Buick Encore compact crossover," Mak continued.

About Strategy Analytics

Strategy Analytics, Inc. provides timely and actionable market intelligence focused on opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems and Virtual Worlds. Headquartered in Boston, MA, with offices in the UK, France, Germany, Japan, S. Korea and China, Strategy Analytics works with clients through annual multi-client services, management team workshops and custom consulting engagements. For more information, please visit http://www.strategyanalytics.com/

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