Automotive Intelligence Park Assist System Market Analysis

Automotive Intelligence Park Assist System Market (Global, 2024)

Introduction

The market for intelligent park assist systems is about to experience a transformation, as technological developments and growing demand for enhanced vehicle safety and convenience converge. As the population continues to urbanize, the challenges of finding a suitable place to park have become more acute, spurring car manufacturers to integrate more and more sophisticated park assist systems into their vehicles. These systems combine sensors, cameras and artificial intelligence to make it easier to park, reducing the stress and complexity of maneuvering in confined spaces. The rise of smart cities and the integration of connected vehicle features will further accelerate the adoption of these systems, making them an essential element of modern car design. The evolution of the park assist systems market reflects wider trends in consumer preferences and technological developments.

PESTLE Analysis

Political

In 2024, regulations relating to the safety and automation of cars are becoming increasingly stringent. For example, the European Union has decided that from 2024, all new cars must be equipped with advanced driver assistance systems (ADAS), which includes the technology of 'parking assistance'. In the European Union alone, this regulation is expected to affect around 15 million vehicles, which will force manufacturers to invest in these systems to meet the new standards.

Economic

In the automobile industry, there is a change in the pattern of spending. A study by the market research company Ipsos has found that 30 per cent of consumers in the United States would pay an extra $1,500 for an advanced system of automatic parking. This reflects the growing demand for convenience and safety, and it is pushing manufacturers to enhance their offerings in the market for park assist systems. Moreover, the turnover of the global automobile industry is expected to reach $3.1 trillion in 2024, which will make it possible to develop these kinds of systems.

Social

According to a survey, 65% of drivers in urban areas would prefer to have their cars equipped with park assist systems, a fact which is due to the increasing complexity of urban parking. This social trend is based on a desire for greater convenience and less stress when it comes to finding a space in congested locations. As a result, the importance of efficient parking is increasing. In 2024, ride-hailing services are expected to account for up to 20 % of urban traffic.

Technological

The development of the sensors and the vision systems is advancing the development of the automobile park assist systems. By 2024, it is estimated that more than 50% of new vehicles will be equipped with a 360° camera system, which will enhance the functionality of the park assist systems. Artificial intelligence (AI) will also improve the accuracy and reliability of these systems. The AI algorithms will be able to process data from multiple sensors in real time to help the driver in a more effective way.

Legal

The legal framework for data protection and vehicle automation is being further defined. In 2024, the Californian Data Protection Act will impose strict limits on the way vehicle manufacturers can collect and use data from the park assist systems of the 10 million vehicles registered in California. These limits are of great importance for manufacturers because they impose fines of up to seven thousand five hundred dollars per violation, which makes them put data security and privacy at the top of their development priorities.

Environmental

The impact of the vehicle on the environment is increasingly subject to the attention of governments, and the regulation of the emissions of carbon dioxide is becoming more important. The American government, for example, has fixed a target of a reduction of 25% in the greenhouse effect for new cars by 2025. This target is also achieved by the park-assist system, which promotes the use of the vehicle and reduces the time spent idling while looking for a parking space, which can result in a reduction in the emissions of vehicles in urban areas.

Porter's Five Forces

Threat of New Entrants

The threat of new entrants to the global Automotive Intelligence Park Assist System Market in 2024 is moderate. As the demand for advanced driver assistance systems is increasing, there is a need for large capital investment in research and development, and a need for special technology. The advantages of the leading companies are strong, but the cost of entry is high.

Bargaining Power of Suppliers

Suppliers in the market for the car park-assist system have little bargaining power. Suppliers of the components of the system, such as sensors and software, are numerous, resulting in a competitive supply environment. The manufacturers can also change suppliers relatively easily, which limits the suppliers’ ability to influence prices and terms significantly.

Bargaining Power of Buyers

The buyers’ bargaining power is very high because of the variety of products and the intense competition among manufacturers. They can easily change brands. As they become more and more knowledgeable and want more and more features at a lower price, they are easily able to change to other brands. This forces the manufacturers to constantly change their products to keep up with the changing needs of consumers, and so increases their bargaining power.

Threat of Substitutes

The threat of substitutes in the AID market is moderate. There are alternatives to AID, such as the use of traditional parking aids and manual parking, but the growing trend towards automation and smart vehicle technology makes AID more attractive. Nevertheless, the presence of alternative technologies could represent a risk if they offer similar benefits at a lower cost.

Competitive Rivalry

Competition in the global automobile intelligent park assist system market is high as there are many players vying for market share. The high-speed development of technology and the rapid innovation of products have led to fierce competition among the automobile manufacturers and the high-tech companies. The companies are investing heavily in research and development to differentiate their products, which is intensifying competition.

SWOT Analysis

Strengths

• Enhanced safety features reducing accident rates during parking.
• Increased convenience for drivers, especially in urban environments.
• Integration with advanced driver-assistance systems (ADAS) for improved functionality.
• Growing consumer preference for smart and automated vehicle technologies.

Weaknesses

• High initial costs associated with advanced technology implementation.
• Dependence on sensor accuracy and environmental conditions.
• Potential for technical malfunctions leading to user distrust.
• Limited awareness and understanding among consumers regarding system capabilities.

Opportunities

• Rising demand for electric and autonomous vehicles incorporating park assist systems.
• Expansion into emerging markets with increasing vehicle ownership.
• Partnerships with technology firms to enhance system capabilities and features.
• Government regulations promoting safety technologies in vehicles.

Threats

• Intense competition from established automotive manufacturers and tech startups.
• Rapid technological advancements leading to obsolescence of current systems.
• Economic downturns affecting consumer spending on luxury vehicle features.
• Cybersecurity risks associated with connected vehicle technologies.

Summary

By 2024, the market for intelligent car-parking systems will be driven by strong safety and convenience benefits, as well as the demand for smart technology. However, the high costs and technical reliability problems will limit the market’s development. Opportunities are available in the growing electric and self-driving vehicle market, but the threat of competition and rapid technological change will remain. Strategic alliances and the expansion of the market will help to increase the growth potential in this evolving environment.