Frost & Sullivan’s recent analysis surveyed 1,200 Canadians who purchased or leased a new light vehicle in the past four years. Respondents answered questions on their safety awareness, perceptions of current safety systems, collision vulnerability, perceptions of vehicle safety, privacy and driver control, preferred systems, pedestrian protection, purchase preferences, and purchase influence.
New analysis from Frost & Sullivan’s Automotive & Transportation group projects that the Canadian active safety systems and safety restraints markets will generate approximately US$700 million in 2010.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants an overview of the latest analysis of the Customer Desirability and Willingness to Pay for Active and Passive Safety Systems in Canada, then send an e-mail to Tolu Babalola, Corporate Communications at tolu.babalola[.]frost.com with the following information: full name, company name, title, telephone number, e-mail address, city, state, and country. The brochure will be e-mailed to you upon receipt of this information.
Typically, vehicle makers introduce new technologies in upscale vehicles at high prices. Over time, they redesign the systems to reduce costs, even as they become more effective, and volume builds, which allows manufacturers to realize economies of scale. For these reasons, prices generally drop substantially, and vehicle makers then are able to offer once-exotic technologies in mid-market and even economy vehicles. Airbags and antilock brakes followed this pattern.
“Quite likely, some of the safety systems now in the development and introduction stages of their product lifecycles will do the same. Others, however, may not find favor with vehicle buyers, and thus will fall by the wayside, observes Customer Research Project Manager Rick Brown.
Developers of these systems are likely to take large losses, while developers of successful systems will reap profits for themselves and the vehicle makers that install those systems.
“Although vehicle buyers say they want safety, vehicle makers are unsure about what systems to offer, whether systems should be standard or optional, and what prices to set for optional equipment,” states Brown.
Vehicle makers can find the optimal equipment packages through trial and error, but they will arrive at that point much more quickly if they use input from consumers to determine their initial offerings. A modest investment in market research can steer market participants in the right direction, helping them invest in the most likely technologies, and to maximize their returns when systems come to market.
Frost & Sullivan’s analysis asked respondents their opinions on: Their preferred systems, warnings and level of control, their perceived prices of various safety systems, the prices that they are willing to pay for various safety systems, factors that influence their choices of safety systems, and the importance of NHTSA and IIHS safety ratings in vehicle purchase decisions.
Customer Desirability and Willingness to Pay for Active and Passive Safety Systems in Canada, part of the North American Advanced Automotive Technologies subscription (9813), includes research in the following markets: Active and Passive Safety Systems in the United States – Customer Desirability and Willingness to Pay, and the Impact of Rising Fuel Prices on US Consumers’ Driving and Vehicle Purchase Behavior. Analyst interviews with the press are available.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.