Falling Technology Costs Drives the Automotive Night Vision Systems Market, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Automotive Night Vision Systems markets. The global market for Automotive Night Vision Systems (NVS) is projected to reach US$2.78 billion by 2018, primarily driven by plummeting costs of camera and thermal imaging technologies coupled with growing preference for innovative safety technologies among customers of high-end luxury cars.

Automotive Night Vision Systems: A Global Strategic Business Report

Follow us on LinkedIn – The importance of driver visibility cannot be undermined, given the fact that compromised and poor visibility is widely acknowledged as a prime cause for vehicle accidents across the globe. Poor visibility especially during harsh weather conditions such as rain, dew, and snow is often cited as the prime cause for accidents, especially winter driving accidents. Pedestrian, bicycle and motorcycle fatalities are especially high, given the higher risks of these vulnerable road users going unnoticed by drivers of larger vehicles like trucks, the large dimensions of which obscure smaller objects like pedestrians, cyclists and animals from view. In addition, nighttime collisions top the lists of accidents and the numbers are often alarming. For instance, night driving increases the risk of accidents by a factor of 2. Fatality rate in most of the developed countries is pegged at 3-4 times greater during the night. This is primarily because human vision is not adapted to night time conditions, thereby increasing the need for advanced systems to increase the visibility range of drivers.

While vehicular lighting systems rely solely on driver judgment, observation and cognitive skills, newer vision technologies like night vision systems make driver judgment a non-issue by not only enhancing the driver's visibility but also by automatically identifying and detecting objects in the shadow well beyond the reach of a car's headlights. Designed to emit warning alarms of impeding collisions, night vision systems significantly reduce errors in driver judgments caused by blind spots.

Characteristic of all first-to-market technologies, NVS are expensive largely as a result of the high costs associated with enabling technologies related to resolution, sensitivity, and complex image analysis algorithms. For instance, night vision cameras capable of providing high quality and high resolution images are expensive, while the cost structure of sensors, such as, un-cooled microbolometer sensors continues to remain high. Also, unlike other expensive safety technologies like tire pressure monitoring systems (TPMS), which are legislative driven, the current lack of legislative backing for NVS makes the technology vulnerable to affordability issues. Therefore, market penetration and adoption has until now been tepid, despite the benefits offered by the system/technology. Mass commercialization has largely been limited by insufficient R&D in related technological fields, lack of inadequate funding for performance enhancement, and low cost mass production optimization, which are critical for igniting mass market appeal.

Of late, however, the market is slowing gathering steam as a result of visible declines in the cost associated with the manufacture of night-vision cameras. In the upcoming years, hardware and software prices are forecast to continue to decline as the technology moves higher up its lifecycle. Significant technological improvements in uncooled microbolometers in terms of design, size and performance will help push down costs. Average price of uncooled microbolometer is forecast to continue reducing by around 17% on a yearly basis. Falling costs of infrared camera will also help bring down the costs and strengthen market penetration rates.

In addition to technological prowess and precision, the final end-user experience remains the most critical factor that will influence the adoption and acceptance of the NVS technology in the market. The success of most automotive technologies and systems hinges onto the intuitiveness of the user interface, making the human machine interface (HMI) system the stepping-stone of success of all automotive products and solutions. The HMI of any technological solution from the consumer’s perspective provides the user experience associated with the use of the interface, which is more important than the architectural details of the solution as a whole. Poised to gain in the market are NVS capable of intelligently filtering only the required information and presenting them in a manner easy to view and interpret. The most optimum HMI is forecast to be the one that reduces visual distraction to a minimum. Head Down Display (HDD) in this regard is well positioned to score the highest gains.

Market opportunities for automotive NVS are largely dependent upon the overall health of the automobile industry. The automotive industry in turn is a barometer of the health of a country’s economy. Economic conditions determine discretionary incomes of consumers and their spending on vehicles. Global automotive production has a direct impact on the demand for automotive NVS. Higher number of cars produced translates into increased use of these systems and vice versa. Therefore, disruptions in vehicle production tend to distort opportunities in the market. Currently, however, demand for NVS especially depends largely on sales of high-priced luxury vehicles, which during the 2007 through 2009 recession witnessed significant cooling in demand. The automotive NVS market therefore bore the brunt of the recession with production cuts in light vehicles impacting demand for high-end safety technologies like night vision system.

As stated by the new market research report on Automotive Night Vision Systems, Europe represents one the largest and the fastest growing regional markets with dollar sales from the region waxing at a CAGR of about 35.4% over the analysis period.

Major players in the global marketplace include Audi AG, Bayerische Motoren Werke AG, Daimler AG, Toyota Motor Corp., Autoliv Inc., FLIR Systems Inc., Melexis Microelectronic Integrated Systems N.V., Robert Bosch GmbH, OmniVision Technologies Inc., Sirica Corp., among others.

The research report titled “Automotive Night Vision Systems: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections by annual sales in value terms (US$ Million) and volume terms (Thousand Units) for major geographic markets including the US, Japan, Europe, Asia-Pacific and Rest of World.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/


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