Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
An ignition interlock device is a breathalyzer used in an individual’s vehicle. It requires the driver to blow into a mouthpiece on the device before starting to operate the vehicle. Amount of alcohol in a person’s breath indicates the off amount of alcohol present in an individual’s body. With IID, the ignition of a vehicle is prevented if the driver’s breath alcohol level exceeds the standard percentage on the device. Furthermore, IID is connected to the vehicle dashboard within reach from the driver’s seat. IIDs are for the people who are convicted of Driving Under Influence (DUI)/Driving While Intoxicated (DWI) offenses where the driver is charged for alcohol consumption while driving.
The North America ignition interlock device market is estimated to account for US$ 68.5 Mn in terms of value by the end of 2027.
Market Dynamics- Drivers
- Reduced suspension period is expected to drive growth of the North America ignition interlock devices market during the forecast period
If ignition interlock device is installed in the vehicle of a person who is convicted of driving under the influence, they can receive relaxation of the license suspension period. However, these relaxations differ as per state laws and the severity of the crime. For instance, in the state of Arizona on completion of 45 days of license suspension, offenders can have an IID installed in their vehicle, which can lead to relaxation of the remaining suspension period. A judge may suspend all but 9 days of the remaining jail time for offenders convicted with a BAC of 0.15 – 0.2 who have installed an IID. For offenders found guilty of driving with BAC over 0.2, installation of IID could lead to relaxation of all but 14 days of the remainder of the sentence. Thus, these factors are expected to drive growth of the North America ignition interlock devices market in the near future.
- Strong support government is expected to propel the North America ignition interlock devices market growth over the forecast period
All 50 states in the U.S. exhibit certain laws associated with IID and 23 of which states have mandatory ignition interlock programs provided for all drunk driving offenses. For instance, California has a pilot program in four of its largest counties, while Maine and Colorado's laws are not mandatory for first conviction. However, lucrative incentives offered for the installation of interlock devices on the first conviction are other factors boosting growth of the market in the near future.
US held dominant position in the North America ignition interlock device market in 2019, accounting for 88.5% share in terms of value, followed by Canada.
Figure 1: North America Ignition Interlock Device Market Share (%), in terms of Value, By Country, 2019
Market Dynamics- Restraint
- High cost associated with installation and monitoring of IID is expected to restrain growth of the North America ignition interlock devices market during the forecast period
Ignition interlock is rented by convicted drivers and has to pay a number of fees including installation, monitoring, and reinstallation if required, during the course of inspection. For instance, a standard IID costs US$70 to US$ 150 to install and around US$ 60 to US$ 80 per month for monitoring and calibration. Moreover, for first-time offenders, who are under inspection for up to 6 months, total costs associated with IID adds up to US$430 to US$ 630. In fact, some companies charge a sum of US$ 25 for each missed appointment with probation officer during the monitoring period. Hence, these factors are expected to restrain growth of the market in the near future.
- False-positive given by semiconductor technology are expected to hinder the North America ignition interlock devices market growth over the forecast period
Certain food such as Mexican food and pizzas uses alcohol as one of its ingredients. On the ingestion of such foods, alcohol and other spices react with gastric acid, which is a digestive fluid comprising of HCl that produces methane in stomach. This gas can create false positives in non-alcohol specific interlock devices This obstructs adoption of IIDs to a certain extent, which is in turn, is expected to hinder the North America ignition interlock market growth over the forecast period.
- Development of software and applications to support device usage can present lucrative opportunities
Many companies in the market are focused on developing apps that may result in increased and easy use of IID, in order to provide easier access to enrollment information and increased adoption. For instance, in 2012, Smartstart Inc. launched a smartphone app for ignition interlock and alcohol monitoring. This app by SmartStart delivers product information, training for use of the device, a location finder using Google Maps, a BrAC calculator, as well as product and enrollment information.
- Prevision value-added features can provide major business opportunities
Vendors are offering value-added features in their IIDs for product differentiation, in order to retain a competitive edge in the market. For instance, Dräger offers Interlock XT, an ignition interlock device that can be fitted with an optional camera fitting that serves as a windshield-mounted camera. Images are uploaded with corresponding detail of each event. This is mainly done for user identification purposes.
Figure 2: North America Ignition Interlock Device Market Value (US$ Mn), 2017 - 2027
The North America ignition interlock device market was valued at US$ 43.5 Mn in 2019 and is forecast to reach a value of US$ 68.5 Mn by 2027 at a CAGR of 5.9% between 2020 and 2027.
- End-use Trends
Rising use of ignition interlock device as a preventive measure to avoid company losses
In the U.S., certain commercial fleet owners install ignition interlock devices voluntarily in their vehicles to avoid accidents caused due to driving under influence. Most school buses in the region are equipped with an ignition interlock device to ensure the safety of children. In the commercial vehicles, the BAC level is lower than passenger vehicles as an accident can incur losses for the company as well as the driver.
- Technology Trends
Rising use of biometric system
One of the prominent reasons for low penetration of Ignition interlock devices is social awkwardness caused due to use of device Sober Steering Company launched a new technology for alcohol detection. This includes sensors installed in the steering wheel that can detect if a driver has been drinking, simply through touch. The sensor can detect alcohol levels and alcohol content if found to be over pre-set limits, the vehicle does not start. This is mainly designed for a fleet management system for commercial vehicles.
Value Chain Analysis
Major companies operating in the North America ignition interlock devices market are SmartStart Inc., Guardian Interlock, LLC, Lifesafer Inc., Alcohol Detection Systems, Inc., Drägerwerk AG & Co. KgaA, Alco Alert Interlock, Inc., Directed Electronics Inc., Alcohol Countermeasure Systems, Andatech, Monitech, LLC, and Intoxalock.
- Major market players are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in January 2018, Directed Electronics Inc. acquired Alcohol Detection Systems (ADS), a provider of breathalyzer-based ignition interlock devices (IIDs).
- Key players in the market are involved in product launches, in order to enhance the market presence. For instance, in February 2020, Andatech introduced ALX3000 breathalyzer.