From USD 6,927 million in 2020 to USD 11,050 million in 2026, the global airbag control unit market is expected to grow at a CAGR of 5.7% between 2021 and 2026.
The airbag control unit detects and assesses the severity of an accident before activating the necessary restraint systems. However, if this device is damaged by variables such as humidity, physical force, or other factors, it will stop working. For example, poor wiring between the airbag module and the body control module causes the airbags to deploy without feeling an impact when a collision occurs. These items will have to be inspected before driving the car.
More than 1.3 million people die every year in traffic accidents worldwide, and the number is steadily rising. The government and the company's guidelines regarding consumer safety and security prioritize passenger safety. As a result, automobile manufacturers must include safety equipment in their vehicles. Given the widespread acceptance and government mandates, North America and Europe are the primary consumers of airbags worldwide. Asia-Pacific has emerged as a prominent airbag market in recent years.
With the ever-increasing number of accidents, governments worldwide have instructed automakers to design a better product that will protect drivers and passengers while reducing the risk of accidents. Leading automakers are responding by incorporating various safety technologies into their vehicles, including cruise control, accident warning, lane switching assistance, and airbags, among others.
Road traffic collisions claim the lives of approximately 1.3 million people each year, and most countries lose 3% of their GDP due to road accidents. Further, vulnerable road users account for more than half of all traffic fatalities. Governments worldwide have made it essential for vehicle manufacturers to install airbags in their vehicles to limit the incidence of accidental fatalities.
For example, the Indian government required all passenger vehicle manufacturers to install airbags in the front driver and co-passenger seats. In a gazette notice, the Ministry of Road Transport and Highways (MoRTH) announced a new rule that will require all new automobiles to include dual front airbags as standard equipment starting April 1, 2021.
Essentially, airbags are designed to protect drivers and passengers during a collision. However, they may occasionally fail to do so. Airbags can deploy without warning or fail to deploy when necessary. Since the passengers' heads or bodies are too close to the airbag when it deploys, it may cause severe injuries.
Frontal airbags have so far proven to be effective and beneficial in saving over 60,000 lives per year. Although airbags are designed to save lives, they can sometimes cause injury. Airbag injuries can range from facial lacerations to broken noses, depending on the severity of the incident and whether or not the airbag is defective.
Takata airbags are being recalled in millions of automobiles. When these airbags are exposed to extreme heat and humidity for an extended period, they may explode when deployed, and injuries and deaths have resulted from such explosions.
Several countries have now implemented strict vehicle and passenger safety standards worldwide. However, Latin America's largest countries, including Argentina, Brazil, Colombia, Ecuador, Mexico, and Uruguay, have opted out of such rules. These countries' governments are now evaluating UN Regulations and consumer information systems to improve safety and minimize the rate of accidental fatalities.
With a market value of USD 5,950 million, passenger vehicles are expected to expand at a CAGR of 5.4% from 2017 to 2027, while commercial vehicles are expected to increase at a CAGR of 6.7%. More than 54 million passenger automobiles were produced globally in 2019. In Europe, almost 11 million passenger cars were sold in 2020. In comparison to the previous year, the number fell by 23.3%.
Due to limited demand and manufacturing, commercial vehicles have the smallest market share. Around 23 million commercial vehicles were produced globally, while Europe manufactured 2.1 million business vehicles in 2020, much less than passenger cars.
OEMs are expected to lead the market in 2021, with a market share of 89.74% and a CAGR of 5.6% from 2017 to 2027. This is because an increasing number of manufacturers are considering outsourcing production to OEMs to reduce costs and risks. Some people believe that having a distinct brand strategy is vital.
The aftermarket has the smallest market share, as it is challenging to install airbags in non-airbag-equipped vehicles. Installing airbags necessitates a new dashboard, steering, a slew of new sensors, new wiring, and even changes to the car's internals (almost to the point of complete disassembly). This is costly, and the outcome may not be what you want.
The airbag control unit operates and controls the whole airbag system. The airbag is a critical safety feature in a car that protects passengers from severe injuries in the event of an accident. When handled carelessly, it might cause harm. As a result, the airbag control unit (ACU) is in charge of operating the entire system and communicating with all sensors to determine whether or not an airbag should be deployed in a given situation.
Asia-Pacific is the world's largest vehicle producer, with a market share of USD 3,949 million in 2017 and a CAGR of 6.6% from 2017 to 2027. All major automakers are represented in the region, including Volkswagen, Toyota Motor Corp., Honda Motor Co. Ltd., and General Motors Co. Furthermore, the Asia-Pacific market is swamped by many country-level producers.
According to our data, Asia-Pacific accounts for almost 45% of worldwide automobile production. Many of the countries in the region, particularly China and India, have some of the world's fastest-growing populations. It's no wonder that Asian economies and industries are changing, given the region's rapidly growing population. The automotive sector is one such industry. As the population grows, so does the demand for adequate mobility.
Europe is currently the second-largest area, accounting for 25.05% of the worldwide automobile airbag market. This is due to a high concentration of prominent manufacturers and many ongoing research and development operations. Furthermore, the European market has seen a significant increase in demand for electric vehicles (EVs) and enhanced driver safety systems, which has spurred the adoption of airbags. The European automobile airbag market, on the other hand, is poised to approach maturity, which will keep the industry growing steadily.
Some of the key players in the global airbag control unit market are
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