Welcome!

News Feed Item

Frost & Sullivan: Europe Lagging Behind Regarding Standard ESC Fitment in Cars

Responsibility lies with dealers as well as OEMs to ensure technology uptake, which provides a solution to reach a zero-fatalities target in road traffic

LONDON, Feb. 18, 2014 /PRNewswire/ -- Electronic Stability Control (ESC) is the most dominant enabler for active and passive safety technologies. Built into a car, it is crucial to avoiding crashes caused by losing control over the vehicle. But while the technology has achieved near complete penetration in North America, Europe still lags behind, which is mainly due to the lack of legislations mandating the technology in the region. Despite the European New Car Assessment Programme (EuroNCAP) which includes tests to rate cars fitted with ESC from 2011, the technology has witnessed only minimal growth over the last two years.

According to Frost & Sullivan, the European ESC market is expected to reach a market value of close to €2 billion by 2020. Among the various original equipment manufacturers (OEMs), it is the upper tiers in the pyramid that attract maximum fitment rates, with the German Big Three claiming close to 100 percent fitment across the eight segments they cater to.

"The mass market segments, though, work differently," says Frost & Sullivan (www.automotive.frost.com) Industry Analyst, Arunprasad Nandakumar. "Across Europe, different OEMs have established varied strategies for marketing ESC for their portfolios. While the optional fitment costs the consumer anywhere between 300 to 1200 Euros, the average optional fitment rate is approximately 540 Euros across Europe. If the technology does become mandatory in 2014, it will pose a challenge to volume manufacturers. They will either have to bear the cost of the technology or pass it on to the end consumer."

While mass market OEMs, such as Volkswagen and Toyota, follow a similar strategy by providing the technology as standard in 60-70 percent and as optional in the rest of their models, a few others, such as Fiat and Hyundai, have decided to offer the technology not even as optional on over three percent of their entire product range.

Regarding rate diversity, Nissan and Renault, despite their existing alliance, serve another interesting case in point. While Renault incorporates the technology on a standard base of at least 80 percent of its line-up, Nissan only reaches 60 percent. But Renault sells about 1.6 times the volumes compared to Nissan in Europe, and the Japanese manufacturer may therefore be more sceptical to further increase the cost of its products, and thus counteract the effort to improve sales figures. In addition, ESC fitment in Japan is still below that of Europe and North America, due to home-market legislation and few Japanese suppliers.

Also American-owned Opel, a manufacturer offering the technology as standard across its portfolio in North America, only reaches 58 percent of fitment rates in Europe. While the standard fitment rate for Asian OEMs stands at 54 percent in Europe, European mass OEMs competing in the same segment are at 49 percent.

On top of that, countries such as Denmark, Sweden, and Germany offer ESC fitment as standard in most models, while countries like Greece, Malta, and Iceland fail to offer the technology even as optional in most of the available models. Dealers operating in more than one European country, fail to provide the technology equivalently. It is therefore not just the responsibility of a dealer to ensure favourable uptake of optional fitment; OEMs need to ensure availability across vehicle model line-up.

"It is understandable that fitment rates are higher among premium OEMs in comparison to volume OEMs such as Fiat, Ford Europe, and others who are faced with packaging challenges to incorporate an ESC into their existing models," Nandakumar concludes. "But the anomalies in fitment rates among various models within similar price brackets is a concern that automobile manufacturers need to assess." The trend in fitment rates is expected to change as the technology is likely to become mandatory by September 2014, ensuring that all vehicle models manufactured since will bear ESC as standard.

If you are interested in more information on this topic or would like to speak to Mr. Nandakumar directly, please send an email to Katja Feick, Corporate Communications, at [email protected], with your full contact details.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion 
Join Us:           Join our community
Subscribe:       Newsletter on "the next big thing" 
Register:         Gain access to visionary innovation 

Contact:
Katja Feick
Corporate Communications – Europe
P: +49 (0) 69 7703343
E: [email protected] 
http://www.frost.com
Twitter
: @Frost_Sullivan or @FS_Automotive
Facebook: FrostandSullivan 
Join our Forum on LinkedIn: Future of Mobility 

SOURCE Frost & Sullivan

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, will explore the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences betwee...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...