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ABI Research: Lower Costs Mean More Intelligence in Cars

LONDON — Adaptive cruise control (ACC) has been an option on high-end luxury vehicles for more than a decade, but in the next few years it will become available on mid-size and family vehicles. Costs have been falling slowly but steadily over the years, and now a new development promises to bring significant price reductions for the consumer.

“The highest cost component of ACC has always been the radar sensor,” says ABI Research principal analyst David Alexander, “and now the cost advantages of silicon technology are going to take effect. We project that, by 2016, the lower costs will play a big part in increasing volumes and push the global market value up to $30 billion.”

While cameras and lidar sensors are still contributing to ACC systems, especially for the low-speed and stop-and-go features, the core component is still the radar sensor. With Freescale Semiconductor announcing in November 2010 that its Xtrinsic chipset is going into production, the new silicon-germanium technology will allow automotive radar sensors to benefit from the efficiency of the latest CMOS manufacturing techniques. Other suppliers are likely to follow.

ABI Research still doesn’t see any proposed financial incentives to encourage the public to invest in speed control systems, but the latest NCAP (New Car Assessment Program) assessments are now including driver assistance systems, and manufacturers will have to start offering them to maintain high star ratings. Research has shown that both ACC and ISA can have beneficial effects on traffic flow when used in sufficient numbers.

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ABI Research

2 comments on “ABI Research: Lower Costs Mean More Intelligence in Cars

  1. hwong
    January 22, 2011

    My friend's mini van crashed into the pole while doing parallel parking. This could have been avoided if he has a camera that dispplay what's going on behind the back. And yes, that would mean that insurance will not have pay for his own damage. So having an intelligent car will reduce the payout of insurance companies. Theoretically, the insurance company will pass that benefit back to the consumers. Things will  be good for everyone.

  2. Clairvoyant
    January 24, 2011

    In my opinion, even though cars continue to get safer to drive, and new features are added to avoid accidents, I doubt insurance companies will start giving anything back to the customer. Does anyone here have information on how insurance prices compared, say 20 years ago, to prices today?

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