Cost and Benefits Analysis

For the ARAIMFUSE final milestone, the cost-benefit analysis was delivered. This analysis studies the rate of penetration of ARAIM solutions in the different sectors, considering three different types of scenarios (1:Certified, 2:Certified but not mandatory and 3:Certified and mandatory).

Another important part of the CBA was the computation of the Net Present Value (Discounted Benefits – Discounted Costs) per sector. After computing it, the main conclusions per sector are:

Rail

• Equipment manufacturers: NPV expected to break even as costs are passed-on to the end-users and therefore recuperated as revenues.
• Component and receiver manufacturers: will benefit the most from the revenues from the sales of ARAIM-enabled receivers.
• End-users: the negative value is due to the choice of calculating the potential benefits for these stakeholders following a conservative approach based on the interested but “cautious” feedback from rail stakeholders on the introduction of ARAIM in the sector.

Maritime

• Equipment manufacturers: NPV expected to break even.
• Component and receiver manufacturers: the comparative advantage of having ARAIM added on to their offering would lead to increased sales and revenue, ultimately covering the cost of development and certification.
• End-users: would benefit most from the obligation of the use of ARAIM through an expected reduction in navigational incidents.

UAVs

• Equipment manufacturers: NPV is slightly negative as their revenues have been spread over 10 years in the calculations, allowing a small gap with the cost due to the discount factor used to calculate the NPV. 
• Component and receiver manufacturers: theoretically reach breakeven as well, for the same reason as equipment manufacturers.
• End-users: benefits of the introduction of ARAIM-enabled receivers were calculated regarding safety-related and cost savings revenues for the parcel delivery market.