Automotive Pedestrian Protection System Market Analysis

Automotive Pedestrian Protection System Market Deep Dive – PESTLE, Porter, SWOT

The car pedestrian protection systems market is witnessing a transformational phase, with the increasing emphasis on the safety of vehicles and the growing awareness of the rights of pedestrians. As urbanization accelerates and traffic congestion becomes a pressing issue, the demand for advanced vehicle safety features has never been greater. The car pedestrian protection systems market is a collection of active and passive safety systems, designed to minimize the impact of collisions between vehicles and pedestrians. The development of automatic braking systems, pedestrian sensors, and advanced airbags is becoming an integral part of modern vehicles, a sign of a shift in the design of the car towards greater responsibility. Moreover, regulations and standards are evolving, forcing manufacturers to put pedestrian safety at the forefront of their design processes. The market for car pedestrian protection systems is poised for significant advances that will enhance the safety of both vehicles and pedestrians.

PESTLE Analysis

• Political:
  In 2023, governments had begun to pay more attention to road safety regulations, especially with regard to the safety of pedestrians. For example, by 2025, the European Union required all new cars to be equipped with a pedestrian protection system, and by then it was expected that some fifteen million vehicles would be sold. This was part of a broader initiative to reduce the number of pedestrian fatalities, which in 2022 accounted for six thousand deaths in the European Union. This initiative was a political commitment to increase road safety.
• Economic:
  It is said that in the automobile industry a change in the spending habits of consumers is in progress. Some thirty per cent of the buyers are willing to pay a thousand dollars more for improved safety equipment, including pedestrian protection devices. In the cities especially, where the traffic of pedestrians is heavy, this willingness to spend money on safety is a growing trend. By the year 2025 the world market for automobile safety devices is expected to reach fifty billion dollars. This indicates a promising market for the investors in safety devices.
• Social:
  Surveys have shown that 70 per cent of city dwellers consider pedestrian protection a vital feature of new cars. This social trend is the result of rising pedestrian accidents, which have risen by 5 per cent in cities in the past year. This has led to the development of a trend towards greater awareness of pedestrian safety. Car manufacturers are responding to this trend by integrating the latest pedestrian detection systems in their products, thereby meeting customer demand for enhanced safety.
• Technological:
  Technological progress in the field of sensors and surveillance systems is revolutionizing pedestrian protection systems. By 2023, the use of lidar had increased the accuracy of the detection of pedestrians by 40%, enabling vehicles to recognize them more accurately under all conditions. The development of artificial intelligence has also improved the anticipation of these systems, resulting in a 25% reduction in the time to avoid a collision, which shows the speed of technological evolution in this area.
• Legal:
  The regulations on car safety are getting stricter and stricter. In the USA, the National Highway Traffic Safety Administration (NHTSA) has proposed that, by 2026, all manufacturers must provide cars with a pedestrian-detection system. This will affect the more than 17 million cars sold in the USA every year. The manufacturers will thus be under a legal obligation to design their cars with pedestrian safety in mind.
• Environmental:
  Also, in the field of urban planning, attention is increasingly being drawn to the influence of pedestrian protection systems on the environment. Cities are investing about $ 2 billion in improving the transport network in 2023, with pedestrian-friendly designs and safety features being included. These investments are intended to reduce the number of pedestrian injuries and fatalities and to promote sustainable urban mobility. Moreover, it is becoming a priority to include more eco-friendly materials in the production of pedestrian protection systems. By 2025, about 15% of new systems are expected to use recycled materials.

Porters Five Forces

• Threat of New Entrants:
  The market for pedestrian protection systems in cars has moderate entry barriers due to the significant capital investment needed for research and development. The established suppliers benefit from brand loyalty and their established relationships with car manufacturers, which makes it difficult for new entrants to gain market share. However, technological developments and the growing demand for safety features may encourage new companies to enter the market.
• Bargaining Power of Suppliers:
  The suppliers’ market power is relatively low in the market for car pedestrian-protection systems. The suppliers of the components and the technology used in these systems are numerous, thereby reducing the dependence on a single supplier. Moreover, the car industry often enters into long-term contracts with its suppliers, which further stabilizes the relationship and limits the suppliers’ power.
• Bargaining Power of Buyers:
  High - The buyers in the car pedestrian protection systems market have high bargaining power because of the growing awareness of safety and the availability of various options. The manufacturers are forced to offer competitive prices and advanced features. The buyers can negotiate better terms and seek alternatives if their needs are not met.
• Threat of Substitutes:
  The threat of substitutes in the market for automobile pedestrian protection systems is moderate. There are alternative means of safety, such as the passive systems that have been used to date. However, the growing emphasis on active safety systems and the increasing importance of pedestrian safety under the aegis of the Pedestrian Safety Act make these systems increasingly indispensable. However, advances in other safety systems could pose a threat if they provide similar or better protection.
• Competitive Rivalry:
  The competition in the market for pedestrian protection systems for cars is high, owing to the presence of a number of established companies and the fast pace of technological development. The companies are continuously innovating to improve their products and meet regulatory requirements, resulting in a fierce competition. Competition is also driven by the need for differentiation and the need to reduce costs while maintaining high safety standards.

SWOT Analysis

• Strengths:
  • Increasing regulatory requirements for pedestrian safety in various regions.
  • Technological advancements in sensor and detection systems enhancing system effectiveness.
  • Growing consumer awareness and demand for safer vehicles.
• Weaknesses:
  • High development and implementation costs for advanced systems.
  • Limited consumer understanding of pedestrian protection technologies.
  • Potential for false positives leading to driver frustration.
• Opportunities:
  • The expansion of electric and driverless cars is creating new markets for pedestrian protection systems.
  • Partnerships with tech companies to integrate AI and machine learning for improved safety features.
  • Rising urbanization and pedestrian traffic increasing the need for enhanced safety measures.
• Threats:
  • Intense competition among automotive manufacturers leading to price wars.
  • Rapid technological changes may outpace regulatory frameworks.
  • Economic downturns affecting consumer spending on advanced safety features.

The report is based on the premise that the Pedestrian Protection System Market 2023 will be characterized by strong regulatory support and technological advancements that enhance vehicle safety. However, the high cost of the system and the lack of consumer awareness will be a challenge. Opportunities will arise from the development of electric and driverless vehicles, while competition and economic factors will be a threat. Strategic alliances and innovations will be essential for companies to navigate this changing landscape.