Automotive Airbag Market
Automotive Airbag Market (Application: Frontal Position, Side Position, Side Curtains, Rear Position, and Knee Position; Component: Airbag Inflator, Diagnostic Monitoring Unit, Crash Sensor, and Others; Vehicle Type: Passenger Vehicle, Commercial Vehicle, and Electric Vehicle; Seat Configuration: Single Row Configuration, Lounge Configuration, Double Row Configuration, and Others; Fabric: Coated and Non-Coated; Material: Polyester Fiber, Nylon, and Others; and Sales Channel: OEM and Aftermarket) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2021-2031
Press Release :
Social Programs Create Driver Safety Awareness amid Coronavirus Crisis
Expectations for a swift economic recovery have plummeted, as the COVID-19 virus continues to affect businesses globally. This has affected the demand for non-essential goods such as automobiles, thus impacting the expansion of the global automotive airbag market.
The global vehicle production is estimated to witness a slowdown due to the ongoing coronavirus crisis. This is anticipated to directly affect business activities in the automotive airbag market. Amid all turbulence, Carma Project is taking advantage of the pandemic situation to boost its credibility credentials by launching the COVID-19 Program that rewards vehicle owners with US$ 50 for replacing their defective Takata automotive airbag. Since millions of vehicle owners continue to drive their vehicles to reach essential businesses amid the pandemic, this program aims to create awareness about driver safety.
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Improving Sensor Technology, Precautions Help Prevent Airbag Injuries
The automotive airbag market is projected to clock a robust CAGR of 8% during the forecast period. However, it has been found that a high-speed crash can impose enough of a risk with the large bag bursting into the driver’s face causing to snap the driver and co-passenger’s neck. Hence, manufacturers are increasing awareness that airbag effectiveness lies on precautions taken by the driver and passengers. Companies are improving the sensor technology in airbag systems to prevent potential airbag injuries in case the driver or passenger has slid too far forward in the car seat.
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Next-gen Sensor Tech, Collaborations Lower Airbag Injury Probability
The automotive airbag market is predicted to undergo a significant change in the upcoming decade with the proliferation of sensors in vehicles to gather information that ensures various control units interact better. This involves airbags, belt tensioners, and other vehicle functions to swiftly recognize an impending accident.
Japan-based auto manufacturer Honda has joined forces with Autoliv, a Sweden-based airbag manufacturer company, to lower the probability of any injury in a variety of crashes. Investments in R&D are the key to gain a competitive edge over other manufacturers in the automotive airbag market. They are increasing efforts to bring the airbag closer to the passenger to prevent possible airbag injuries.
New Mandate for Road Safety in India Grabs Attention of Airbag Manufacturers
Lucrative opportunities in the India automotive airbag market are grabbing the attention of stakeholders. Manufacturers are rejoicing over the new mandate by the Indian Government to make dual airbags compulsory in all passenger cars. Such developments are anticipated to boost safety in entry-level Indian cars. As such, Asia Pacific is predicted to dictate the highest share of the market, which is explained since India ranks among top five car manufacturing countries in the world.
The Ministry of Road Transport and Highways in India has recently made an announcement to promote passenger safety in cars. Companies in the India automotive airbag market are capitalizing on this opportunity, as the new mandate is also based on suggestions of the Supreme Court Committee on road safety.
Novel Rear Seat Airbags Create Incremental Opportunities for Sedan Car Makers
Rear seat airbags are a breakthrough innovation in the automotive airbag market. The new Mercedes S-Class is gaining popularity for one-of-its-kind rear seat airbags that protect passengers in case of a frontal crash. Manufacturers in the automotive airbag market are taking cues from such innovations to increase their research in rear seat airbags that are suitable for sedans. Carmakers and airbag manufacturers are anticipated to partner in making safe sedans that improve the overall ergonomics such as accommodating child seats, incorporating an optional belt bag and inflatable seat belts.
Manufacturers are boosting their production capabilities in airbag systems that can be installed at the back of the front seat.
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A long recovery time for the automotive industry post coronavirus pandemic has compelled airbag manufacturers to adopt plug & play manufacturing strategy and a robust financial, investment, and debt planning to stay afloat. The automotive airbag market is projected to cross US$ 26.9 Bn by 2031. However, airbag injury is one of the key concerns of vehicle owners, which is estimated to inhibit market growth. Hence, companies should gain hands-on knowledge to study real-world crashes and innovate in electronic airbag systems integrated with sensor technology that detects impending accident and lowers injury probability.
Automotive Airbag Market: Overview
- Automotive airbags are vehicle passenger restraint systems that help protect the head and chest of the passenger in case of vehicle collision or crash. The airbags are designed in a way that they respond and inflate in milliseconds, providing a cushioning effect to vehicle passengers. The automotive airbags market is estimated to expand consistently during the forecast period.
- The global automotive airbag market was valued over US$ 12.1 Bn in 2020. It is estimated to expand at a CAGR of 8% from 2021 to 2031. Rise in consumer awareness about automobile safety features, such as safety restraint systems that enhance vehicle safety in case of vehicle collision or crashes, is expected to drive the automotive airbag market globally. Key industry players are engaged in design and development of innovative products for automotive airbag that significantly reduce probabilities of injury to vehicle passengers in case of a vehicle crash. For instance, in September 2019, HYUNDAI MOBIS announced the development of integrated ECUs for seatbelts and airbags that use radar sensors to predict accidents and deploy safety systems according to the position of vehicle occupants in order to improve efficiency and safety of these devices.
Drivers of Automotive Airbag Market
- Rise in traffic congestion and increase in vehicle density in larger cities coupled with human error during driving are anticipated to increase the probability of vehicle collision. Consumers are demanding vehicles with advanced safety features in order to be prepared for such unforeseen scenarios. The number of people buying cars that provide safety while compromising little on mileage is increasing globally. Rise in demand for safety in vehicles is compelling automakers to incorporate advanced safety features in their vehicles. For instance, majority of vehicles is currently being installed with parking assistance, adaptive headlights, emergency braking, forward collision warning, and different type of airbags, among other features.
- Technological advancements by market players, which enhance vehicle passenger safety, is driving the market. For instance, in March 2020, HYUNDAI MOBIS announced that it had successfully developed a roof airbag, which prevents passengers from being ejected out of the sunroof and getting injured in case of a rollover accident.
Challenges for Automotive Airbag Market
- Long-term exposure to high heat and humidity can cause these airbags to explode when deployed. Such explosions have caused injuries and deaths. For instance, in the U.S., wrongful deployment of airbags has led to the death of 22 people. This, in turn, has resulted in vehicle recalls, in which automakers identify vehicles using the vehicle identification number (VIN) and check for damaged airbags.
- However, such vehicle recalls affect the consumer trust and hamper brand image. For instance, The National Highway Traffic Safety Administration, (NHSTA) U.S. advised consumers to not drive 2001-2003 Honda and Acura, 2006 Ford Ranger, and Mazda B-Series vehicles, which were equipped Takata company’s airbags. NHSTA advised to replace airbags in these vehicles, as these vehicles were at a far higher risk for an airbag explosion that could injure or kill vehicle occupants. Therefore, vehicle recalls owing to airbag malfunction are expected to hamper the market.
COVID-19 Impact on Automotive Airbag Market
- The COVID-19 pandemic has caused a majority of businesses across the globe to crumble, owing to forced shutdown of production and manufacturing activities. This has led the global economy to contract to its lowest growth rate. Majority of businesses in every industry are codependent and part of major supply chain in the market. Disruption in supply chain attributing to stoppage of transportation and shipping services, and reduced demand for vehicles across the globe have led the global automotive industry to contract in Q1 and Q2 of 2020.
- However, various countries have announced several aggressive monetary policies starting from Q3 of year 2020 in order recover from economic losses caused by the corona pandemic. The global economy is expected to start to recover from year 2021.
Segmentation of Automotive Airbag Market
- The global automotive airbag market has been divided based on application, component, vehicle type, seat configuration, fabric, material, sales channel, and region
- Based on application, the frontal position segment accounted for a higher share of the global automotive airbag market. Airbags for drivers are compulsory in several countries globally. Additionally, several government mandates are compelling automakers to install airbags on the front passenger side. This, in turn, led the segment to account for a major share.
- In terms of component, the global automotive airbag market is dominated by the diagnostic monitoring unit segment. In the automotive airbag assembly, the average cost of the diagnostic monitoring unit is higher as compared to the cost of other components; consequently, leading the segment to account for a major share of the global market, in terms of revenue.
- Based on vehicle type, the passenger segment accounted for a major share of the global automotive airbag market, in terms of revenue. The segment accounted for more than 70% share, in terms of revenue, of the global market in 2020. Globally, the volume of passenger vehicles produced each year surpasses the number of commercial vehicles. The number of airbags are installed in sedans, utility vehicles and hatchback vehicles combined surpasses the number of airbags that are installed in commercial vehicles. This, in turn, led the segment to account for a large share of the global market.
- Based on sales channel, the OEM segment held a major share, in terms of revenue, of the global automotive airbag market. Vehicles are fitted with airbags at the assembly stations of OMEs. This has led the OEM segment to account for more than 90% share of the global market in terms of revenue. The aftermarket segment held a relatively minor share of the global automotive airbag market.
Automotive Airbag Market: Regional Analysis
- The global automotive airbag market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- Asia Pacific accounted for a major share of the global automotive airbag market. Presence of a large number of automakers as well as major airbag manufacturers across Asia Pacific has led to the region’s major share of the global automotive airbag market. For instance, in terms of vehicle production, in 2019, Asia Pacific accounted for more than 50% of total global production. Majority of airbags is installed in the vehicle at the time of vehicle assembly.
- Enactment of stringent safety standards across countries in Asia Pacific, such as China, India, Thailand, and Malaysia is anticipated to boost the automotive airbag market. For instance, in India, as per Government mandates, all new passenger vehicles manufactured in the Indian market starting April 1, 2021, would have to be launched with dual front airbags as standard fitment.
- All factors mentioned above are likely to boost the automotive airbag market in Asia Pacific during the forecast period
Automotive Airbag Market: Competition Landscape
- Key players operating in the global automotive airbag market include
- Aptiv Inc.
- Autoliv Inc.
- Calsonic Kansei Corporation (Mareli)
- Continental AG
- Delphi Automotive
- Denso Corporation
- Hella GmbH & Co. KGaA
- Hyundai Mobis Co. Ltd
- Joyson Safety Systems
- Magna International
- Nihon Plastic Company Co. Ltd
- Robert Bosch GmbH
- Takata Corporation
- Toyota Gosei
- Valeo SA
- ZF Friedrichshafen
- Key players operating in the global automotive airbag market are expanding their presence by engaging in mergers and acquisitions or establishing new facilities. For instance, In November 2020, INVISTA announced expansion of nylon polymer manufacturing capacity in China to 190,000 tons per year with an additional capacity of 40,000 tons per year to cater the constantly growing local demand. Increased demand for engineering polymers used in automotive, electrical & engineering markets, such as light weighting, powertrain parts optimization, electrification, and automation are driving the demand for nylon polymers in China.
- Additionally, Joyson Safety Systems has devised an ambitious plan to expand its manufacturing capacity through the construction of huge plants in four regions across the world. The upgrade and expansion of the manufacturing plant in Hungary was completed in November 2019. It is expected to be one of the world’s largest and most automatic automotive airbag factory.
Automotive Airbag Market – Scope of the Report
Transparency Market Research’s recent report on the automotive airbag market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the automotive airbag market analyzes the scenario for the period of 2017 to 2031, wherein, 2020 is the base year and 2021 to 2031 covers forecast data. This report enables readers to make important decisions with regard to their business, with the help of a wealth of information enclosed in the study.
This TMR study on the automotive airbag market also provides data on the developments made by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape. Presented in a clear sanctioned manner, this report on the automotive airbag market gives readers an individual understanding of the market.
Key Questions Answered in This Report on Automotive Airbag Market
- How much value will the automotive airbag market generate by the end of the forecast period?
- Which segment of the market is likely to account for the maximum market share by 2031?
- What are the impact factors and their effects on the market for automotive airbags?
- What regions currently contribute the maximum share to the overall automotive airbag market?
- What are the indicators expected to drive the automotive airbag market?
- What region is likely to be a lucrative market during the forecast period?
- What are the essential strategies by key stakeholders in the automotive airbag market to expand their geographic presence?
- What are the major advancements witnessed in the automotive airbag market?
- How regulatory norms affected the market for automotive airbag market?
This report answers these questions and more about the automotive airbag market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their business.
Automotive Airbag Market – Research Methodology
This TMR report on the automotive airbag market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. Market volume is determined by country wise model mapping of vehicle through internal & external proprietary databases, and relevant patent and regulatory databases. The competitive scenario of the automotive airbag market is supported by an assessment of the different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data, current trends and announcement by key players, researchers of the automotive airbag market arrive at predictions and estimations, and calculate the forecast for the market.
This report uses an analytical triangulation method to estimate the numbers and figures of the automotive airbag market, with both a bottom-up and top-down approach.
This detailed assessment of the automotive airbag market, along with an overview of the landscape, is provided based on a careful examination of the avenues related to this industry. Analysts’ conclusions on how the automotive airbag market is estimated to expand are based on carefully vetted primary and secondary sources.
Automotive Airbag Market – Segmentation
This report on the automotive airbag market provides information on the basis of application, component, vehicle type, seat configuration, fabric, material, sales channel, and region.
This study also discusses underlying trends and impact of various factors that are driving the automotive airbag market, along with their influence on the evolution of the market.
This study also offers Porter’s Five Point Analysis, value chain analysis, regulatory scenario, and a SWOT analysis of the automotive airbag market in order to elaborate the crucial growth tactics and opportunities for market players contributing to the market.