Frost: Accident, Insurance Costs Drive N. American Class 6-8 Truck OE Safety Systems Market
December 14, 2006 // Published as a news service by IHS
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The emergence of several innovative, effective and robust safety enhancement technologies is greatly improving the safety value of North American heavy trucks.
According to Frost & Sullivan, this not only offers fleets the opportunity to reduce their accident and insurance costs, but also enables truck manufacturers to influence purchases through the integration of these systems.
New analysis from Frost and Sullivan of the North American class 6-8 truck original equipment (OE) safety systems market found accrued revenues of $334M in 2005, with estimates to reach $631.6M in 2012.
With accident and insurance costs constantly rising, analysts said North American fleet operators are finding it increasingly difficult to do business. A single collision involving fatalities can push a fleet toward bankruptcy.
Lawsuits claiming a truck driver's negligence in a crash due to drowsiness, fatigue or simply the inability to perceive an impending vehicular instability leading to an accident, may set a precedent and expose fleet operators to substantial financial risks.
Safety systems can not only prevent financially devastating accidents, but can also ensure safe driver behavior. Analysts said class 6-8 truck OE safety systems augment driver's perception and control abilities by presenting real-time information regarding key vehicle dynamics and the performance of various vehicle parameters, alerting the driver of impending vehicle instabilities and risks.
"Driver information and warning systems and chassis control systems, which offer faster payback periods and high returns on investment (ROI), are likely to experience steady increase in demand," said Frost & Sullivan industry analyst Sandeep Kar.
Analysts suggest market participants develop marketing tools that help substantiate cost benefits, ROI and payback value offered by safety systems. It is vital that suppliers invest in educating the trucking industry and regulators regarding the safety features of these systems. Growing awareness among fleets regarding the value proposition of these systems and their ability to provide attractive ROI to fleets is likely to incite growth in the class 6-8 truck OE safety systems market.
Suppliers can market their products directly to fleets through the aftermarket, thereby enhancing consumer awareness of products and initiate market penetration. This can enable suppliers to identify areas for improvement to develop reliable and robust systems. Analysts said it is essential that suppliers focus on the development of cost-effective integrated safety solutions.
"Strategic alliances and partnerships among truck manufacturers, system suppliers, fleets and federal regulators can help expedite the development and introduction of industry-relevant effective safety systems," said Kar.
"The development and introduction of integrated safety systems based on standardized sensing, control and human machine interfacing technologies are essential to catalyze the market's growth by enabling market participants to provide maximum applications at optimal overall costs."
Source: Frost & Sullivan.