Implementation of Strict Road Safety Regulations to Drive Demand for Automotive Airbags Globally, says TMR
The presence of established players competing against each other on the performance, price, and technology front has stirred high innovation in the global automotive airbag market, reports Transparency Market Research in a new study. System integrators operating in the global automotive airbag market are striving to obtain lead by securing original equipment manufacturer (OEM) contracts. The top three companies in the global automotive airbag market are Autoliv, TRW Automotive Holdings, and Takata Corporation. They held a combined share of 71% in 2013 in the global automotive airbag market.
The global automotive airbag is projected to exhibit an 8.1% CAGR during the forecast period of 2014-2020. The market is expected to touch a valuation of US$29.72 bn by the end of 2020 from a market worth US$17.24 bn in the year 2013. On the basis of airbag type, front airbag is expected to dominate the global automotive airbag market until 2020 with a market worth US$15.21 bn by that year. Owing to stringent road safety regulations in many developed countries, the demand for front airbag has significantly increased. The demand of front airbag is also aided by the deployment of front airbags in middle and low-end cars.
Asia Pacific to Emerge Dominant in Terms of Consumption of Automotive Airbags
Owing to the large passenger car manufacturing market in the region, Asia Pacific is predicted to dominate the automotive airbag market until 2020 with a strong CAGR of 8.5%. The factors further driving the growth of the automotive airbag market in Asia Pacific are the improving lifestyles of consumers, rising demand for vehicles and shifting consumer preferences. According to a TMR analyst, “Emerging economies such as India, Japan, and India are anticipated to develop as potential future markets for the manufacturers of automotive airbags due to the burgeoning demand for new and advanced cars in these countries.”
Rise in Safety Awareness among Consumers to Drive Demand for Automotive Airbags
Considering the rise in road accidents, governments across the world have passed stringent road safety regulations. According to the World Health Organization, the total number of deaths occurred due to road accidents worldwide were 1.20 million in 2010. Many government and non-government organizations have initiated campaigns related to road safety and precautions. Moreover, new safety directives issued in countries such as United States, Japan, and countries in Western Europe are likely to further boost the demand for automotive airbags in these regions. For instance, the National Highway Transport Safety Administration of the U.S. sanctioned a regulation mandating the installation of airbags in passenger cars. The rise in safety awareness among consumers across the world is expected to further increase the demand for airbag installation in passenger cars.
Risks Associated with Cheap Airbags to Inhibit Growth of Automotive Airbag Market
Due to the high-cost associated with the manufacturing of airbags, several original equipment manufacturers are preferring less expensive airbags in low and medium-end cars. As cheaper airbags have low resilience, low quality cushions, sensors, and inflators, and a short life span, their installation in passenger cars can risk the safety of passengers. In spite of this, many consumers prefer cheaper airbags to replace the existing ones in their cars. The shift of consumers towards cheaper airbags from the high quality automotive airbags is likely to impede the sales of automotive airbags in the coming years.
However, the placement of airbags in several low-cost cars is likely to provide lucrative growth opportunities to manufacturers of airbags. To meet the requirements of consumers, several original equipment manufacturers are investing in research and development projects to manufacture cheap and durable airbags. As a result of the high competitive rivalry present in the global automotive airbag market, the key players are focusing on the development of innovative products to enable high product differentiation.
The review is based on the findings of a TMR report titled, “Automotive Airbag Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 – 2020.”
Global Automotive Airbag Market is segmented into:
- Front Airbag
- Side Airbag
- Knee Airbag
- Curtain Airbag
- North America
- Asia Pacific
- Rest of the World
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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