Compared to previous expectations of the backup camera market covering the next seven years, a proposed mandate from the National Highway Traf?c Safety Administration (NHTSA) would cause sales of new cars equipped with rear-view park assist camera systems to quadruple if the measure is made into law, according to the market research firm iSuppli, which is now part of HIS, Inc.
iSuppli automotive analyst Jeremy Carlson joined the company in 2008 following its acquisition of Telematics Research Group (TRG). As a global marketing specialist focusing on advanced driver assistance systems, he recently discussed the ramifications of NHTSA’s latest rulemaking effort.
Do you anticipate OEMs fighting a government mandate to install backup cameras?
There are several comments from the automotive industry cited in the NHTSA rule, but only a few OEMs contributed. Ford, General Motors, Honda, Mercedes-Benz and Nissan all provided feedback, as well as several suppliers, and that feedback ranged from design specifications to the applicability of rear camera technology across all vehicle segments.
For example, there was commentary aimed at limiting the requirement to statistically overrepresented vehicle types in backover crashes, which would lessen the burden on OEMs, but for the most part it was constructive criticism from the industry. Based on these comments, I don’t expect OEMs to fight the rule, though it is still interesting that NHTSA is advocating a specific technology as opposed to more open performance specifications.
How would you rate the potential demand for aftermarket backup camera systems?
Safety systems remain something of a niche in the aftermarket, and rear camera systems are obviously more popular as factory options due to the ease of integration. IHS-iSuppli’s focus is on the OE side, but I wouldn’t be surprised to see healthy demand in the aftermarket for passenger vehicles, as much as 15 or 20 percent of total unit shipments, at least in these pre-mandate years. The aftermarket share of rear-camera unit sales will decrease dramatically as the mandate reaches 100 percent in September 2014, but that doesn’t mean total aftermarket units won’t rise.
As motorists see backup cameras becoming standard for OEMs, do you foresee that people with older vehicles will want to retrofit theirs with a backup camera?
It is definitely a possibility, and I do think that the mandate will have a stimulative effect for the technology in the aftermarket. Rear-camera park assist has been an increasingly popular factory option in the USA, and as it continues to grow consumer awareness and system visibility will increase. Factory options have the advantage of high levels of integration, however, and that isn’t always easily obtainable in the aftermarket, particularly if no in-vehicle display is already present.
What configurations do you think would be the most viable aftermarket backup camera system offerings?
Infotainment systems are becoming more widely available, which means more in-vehicle displays for rear camera systems. That is expected to be the option of choice for most mid-range and luxury vehicles, but many of these models also already have that combination available today. The mirror display will be the more cost-effective solution, and I would suspect it to be the option of choice for entry-level models, while the mid-range segment will see a mix of both types.
Are aftermarket backup camera systems typically suitable for a do-it-yourself installation, or would they most likely be a do-it-for-me service performed by shops?
I’m inclined to think that the majority of aftermarket installations would be performed by professionals, but I’m sure there are many knowledgeable car owners who are capable of self-installation as well. Whether those knowledgeable car folk would want this specific technology, however, is another issue.
Do you foresee people buying backup camera systems from parts stores to either install themselves or take to a local shop for installation?
There will likely be ample opportunity to buy the equipment yourself, especially with the options available online today, in addition to package deals for equipment plus installation at workshops and the like. I wouldn’t be surprised to see these deals available at retail consumer electronics stores either, as places like Best Buy are taking an active role in automotive electronics.
For more information, visit www.isuppli.com.
Compared to previous expectations of the backup camera market covering the next seven years, a proposed mandate from the National Highway Traf?c Safety Administration (NHTSA) would cause sales of new cars equipped with rear-view park assist camera systems to quadruple if the measure is made into law, according to the market research firm iSuppli, which is now part of HIS, Inc.
iSuppli automotive analyst Jeremy Carlson joined the company in 2008 following its acquisition of Telematics Research Group (TRG). As a global marketing specialist focusing on advanced driver assistance systems, he recently discussed the ramifications of NHTSA’s latest rulemaking effort.
Do you anticipate OEMs fighting a government mandate to install backup cameras?
There are several comments from the automotive industry cited in the NHTSA rule, but only a few OEMs contributed. Ford, General Motors, Honda, Mercedes-Benz and Nissan all provided feedback, as well as several suppliers, and that feedback ranged from design specifications to the applicability of rear camera technology across all vehicle segments.
For example, there was commentary aimed at limiting the requirement to statistically overrepresented vehicle types in backover crashes, which would lessen the burden on OEMs, but for the most part it was constructive criticism from the industry. Based on these comments, I don’t expect OEMs to fight the rule, though it is still interesting that NHTSA is advocating a specific technology as opposed to more open performance specifications.
How would you rate the potential demand for aftermarket backup camera systems?
Safety systems remain something of a niche in the aftermarket, and rear camera systems are obviously more popular as factory options due to the ease of integration. IHS-iSuppli’s focus is on the OE side, but I wouldn’t be surprised to see healthy demand in the aftermarket for passenger vehicles, as much as 15 or 20 percent of total unit shipments, at least in these pre-mandate years. The aftermarket share of rear-camera unit sales will decrease dramatically as the mandate reaches 100 percent in September 2014, but that doesn’t mean total aftermarket units won’t rise.
As motorists see backup cameras becoming standard for OEMs, do you foresee that people with older vehicles will want to retrofit theirs with a backup camera?
It is definitely a possibility, and I do think that the mandate will have a stimulative effect for the technology in the aftermarket. Rear-camera park assist has been an increasingly popular factory option in the USA, and as it continues to grow consumer awareness and system visibility will increase. Factory options have the advantage of high levels of integration, however, and that isn’t always easily obtainable in the aftermarket, particularly if no in-vehicle display is already present.
What configurations do you think would be the most viable aftermarket backup camera system offerings?
Infotainment systems are becoming more widely available, which means more in-vehicle displays for rear camera systems. That is expected to be the option of choice for most mid-range and luxury vehicles, but many of these models also already have that combination available today. The mirror display will be the more cost-effective solution, and I would suspect it to be the option of choice for entry-level models, while the mid-range segment will see a mix of both types.
Are aftermarket backup camera systems typically suitable for a do-it-yourself installation, or would they most likely be a do-it-for-me service performed by shops?
I’m inclined to think that the majority of aftermarket installations would be performed by professionals, but I’m sure there are many knowledgeable car owners who are capable of self-installation as well. Whether those knowledgeable car folk would want this specific technology, however, is another issue.
Do you foresee people buying backup camera systems from parts stores to either install themselves or take to a local shop for installation?
There will likely be ample opportunity to buy the equipment yourself, especially with the options available online today, in addition to package deals for equipment plus installation at workshops and the like. I wouldn’t be surprised to see these deals available at retail consumer electronics stores either, as places like Best Buy are taking an active role in automotive electronics.
For more information, visit www.isuppli.com.
About the Author
James Guyette
James E. Guyette is a long-time contributing editor to Aftermarket Business World, ABRN and Motor Age magazines.