(MENAFN- Straits Research) Report Description Market Synopsis
The global automotive airbag market is expected to grow at a CAGR of approximately 11.8% during the forecasted period, i.e., 2021–2026, with an estimated revenue of USD 139.64 billion.
Market Drivers
Automotive Airbags: Increasing Adoption to Reduce Fatal Road Accidents and Injuries
An airbag is a safety device installed in a vehicle to protect the driver and passengers from severe injuries or death during an accident. The airbag is made of polyester or nylon and is designed to inflate quickly during a collision. It comes in a variety of sizes and shapes. The airbag is a gas-inflated cushion built into the steering wheel, door, roof, or seat and uses a crash sensor to activate a rapid expansion to protect against the impact of an accident. Previously, an airbag system was known as a Supplementary Restraint System (SRS) or an air cushion restraint system (ACRS).
The tremendous growth in passenger vehicle production due to the growing middle-class population, shifting lifestyle choices, and increasing preferences for electric vehicles are the major drivers that fueled the automotive airbag market. The International Organization of Motor Vehicle Manufacturers computed that 77 million passenger and commercial vehicles were produced in 2020. Cars account for roughly 71% of global annual motor vehicle production.
Further, the rising disposable income of consumers and the necessity of commuting will drive demand for automobile materials in the automotive airbag market over the forecast period. Likewise, increasing safety regulations concerning driver/passenger safety during an accident, raising awareness about road traffic safety, smart sensor technologies, and new airbag designs are vital factors that will augment the automotive airbag market during the forecast period.
Raising Awareness Regarding Road Safety Drives the Market
Road accidents have resulted in high consumer awareness in the wake of critical injuries and deaths caused. Preliminary data from the National Safety Council US estimated that 42,060 people have died in automobile accidents in 2020. A primary market trend that will drive growth during the forecast period is the rising general public awareness. Consumers are spending more on safety features as their disposable income rises.
Consumer spending on pre-installed safety systems in vehicles has increased, creating more investment opportunities for major players. The incorporation of active and passive safety systems in automobiles also provides better comfort and driving experience to end-users. The primary factor that influences the purchase of safety features is technology. Consumers' purchase decisions are based on factors, including trustworthiness, safety, and comfort. This, in turn, leads to increased consumer awareness of vehicle safety, boosting the market growth.
Stringent Safety Regulations and Government Policies Spur Market Growth
Due to increasing road accidents, government agencies have imposed strict safety regulations on vehicles. The European Union's safety regulation requires all passenger cars to have airbags, which is expected to boost growth in the region. The increasing demand for high-speed engines and high-performance vehicles has increased the risk of fatalities in traffic accidents.
Automakers must provide adequate safety systems and sturdy vehicle structures. The inclusion of automotive airbags in vehicles is designed to protect occupants from accidents. It can have a positive impact on the market. The Indian Ministry of Road Transport and Highways has issued a Gazette notification mandating the installation of an airbag in the front seat of a vehicle and next to the driver, making dual airbags mandatory in all new and existing vehicles from 2021.
Segmental Overview
The Front Airbag Segment Retains a Gigantic Market Share
The automotive airbag market is divided into driver front airbags, passenger front airbags, side airbags, knee airbags, curtain airbags, pedestrian airbags, and others, depending on the type. Passenger front airbags are expected to gain significant traction in the global airbag market during 2021 and 2026. It is largely due to the benefits of passenger front airbags, which include a low risk of injury or death and low insurance rates. According to the National Highway Traffic Safety Administration, frontal airbags saved 50457 lives between 1987 and 2017.
Since most of the accidents are head-on collisions, frontal airbags are the most effective in reducing fatalities. The curtain-type segment is also expected to contribute to the market's growth. These airbags reduce the risk of severe head injuries for passengers sitting on the side of the vehicle by about half. In addition, the increasing use of curtain-type airbags in commercial vehicles is expected to boost demand, resulting in market expansion.
Increasing Demand for Passenger Vehicles Amplifies the Market
The automotive airbag market is divided into passenger vehicles and commercial vehicles. Passenger vehicles are likely to account for a sizable portion of the global market for automotive airbags. Due to the development of roadways and increased market access, there has been a tremendous increase in demand for passenger vehicles. This expansion has had a positive impact on the automotive airbag market.
In Asia-Pacific, the number of passenger cars is increasing rapidly. It can be attributed to improved lifestyles, increased consumer purchasing power, and infrastructure development. In most countries, airbags are included as a standard feature to prevent fatalities from accidents, driving the market growth.
Impact of COVID-19
The business has been negatively impacted by the reintroduction of irregular and sudden lockdowns in various countries. It has hampered the automaker's revenue generation even more. However, since the unlocking, leading automakers Hyundai and Maruti Suzuki have seen steady increases in vehicle production and consignments in Asian countries. In October 2021, for example, Hyundai sold 300,000 units worldwide.
The market has dropped significantly. Due to the pandemic, major airbag manufacturers faced unprecedented challenges in the North American and European markets. Import and export were also impacted by the lockdowns, resulting in a delay in the supply and demand of raw materials and other components, affecting the overall market growth.
Regional Overview
North America's Dominion Over the Market
Due to technological advancements, progressive improvements in safety restraint systems, and increasing consumer awareness, North America is expected to lead the automotive airbag market. According to the Intermodal Surface Transportation Efficiency Act of 1991, all cars and light trucks sold in the United States require airbags. Thus, North American vehicle manufacturers are applying new technologies and refining their restraint systems.
The automotive airbag market in Asia-Pacific is expected to grow swiftly during the forecast period due to increasing safety concerns and demand for safety systems, particularly in the compact vehicle segment. Further, rapid technological advancements and intense industry competition have prompted automobile manufacturers in the Asia-Pacific market to adopt new technologies that improve vehicle performance and safety. Lastly, rising vehicle production in developing countries, such as China and India, and rising luxury vehicle consumption in China and Japan are expected to drive market growth during the forecast period.
Due to increased consumer awareness of vehicle safety features, the automotive airbag market in Europe is expected to grow promptly during the forecast period. Further, as safety certification becomes more widely accepted, European automakers produce vehicles that meet safety requirements. Among the world's leading automotive companies are Audi, BMW, Daimler, Porsche, and Volkswagen, and the world's largest automotive suppliers such as Bosch, Continental, and ZF.
Competitive Landscape
Some prominent players in the automotive airbag market are Autoliv Inc., Daicel Corporation, ZF Friedrichshafen AG (TRW Automotive), Aptiv PLC (Delphi Automotive), Key Safety Systems Inc. (Takata), Tokai Rika, TOYODA GOSEI, Denso Corp., Hyundai Mobis, Neaton Auto Products Manufacturing Inc., and Bradford Industries, Inc.
These companies are striving to recognize the market's needs in developing countries and expand their strategies to meet those needs. The automotive airbag market is competitive, and several companies are employing various strategies to increase their market share.
March 2021- Autoliv Inc, a global leader in automotive safety systems, has announced plans to build a new inflator plant in India. Close to Chennai, a new airbag inflator plant will be built. Customer requirements will be met while global supply chain disruptions and fluctuations are minimized by localizing inflator production.
July 2021- Toyoda Gosei Co., Ltd. has developed a new structure for the driver-side airbag that can better protect the occupant. Driver-side airbags, which are mounted in the center of the steering wheel, inflate during frontal collisions to protect the driver's head and chest. The new airbag uses an innovative donut-shaped structure to cradle and hold the occupant's head to reduce rotation during angled frontal collisions.
Global Automotive Airbag Market: Segmentation
By Types
- Driver Front Airbag
- Passenger Front Airbag
- Side Airbag
- Knee Airbag
- Curtain Airbag
- Pedestrian Airbag
- Others
By Functioning
- Passenger Vehicle
- Commercial Vehicle
By Regions
- North America (the U.S., Canada)
- Europe (Germany, France, the U.K., Italy, Spain, the Netherlands, Rest of Europe)
- Asia Pacific (China, India, Indonesia, Japan, South Korea, Malaysia, Rest of Asia Pacific)
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America)
- The Middle East and Africa (GCC, South Africa, Brazil, Egypt, Rest of MEA)
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