Market Overview
The global airbag control unit market is predicted to increase at a CAGR of 5.7% from USD 6,927 million in 2020 to USD 11,050 million in 2026. By 2030, with an expected valuation of USD 7321.37 million Asia Pacific will be the largest market for Airbag Control Units. For the period 2022 to 2030, the expected CAGR of Airbag Control Units for the regions of Asia Pacific is 7.10%.
Every year, more than 1.3 million people die in traffic accidents around the world, and the number is rapidly climbing. Passenger safety is a top priority for the government and the firm when it comes to consumer safety and security. As a result, car manufacturers are required to add safety features to their automobiles.
Before deploying the relevant restraint systems, the airbag control unit detects and analyses the severity of the accident. This gadget, on the other hand, will stop working if it is damaged by causes such as dampness, physical force, or other circumstances. When a collision happens, improper wiring between the airbag module and the body control module, for example, leads the airbags to deploy without experiencing the impact. Before driving the car, these components will need to be examined.
Market Dynamics
Asia pacific airbag control unit market drivers
Asia-Pacific produces about half of all automobiles throughout the globe. Many of the countries in the region, particularly China and India, have among the fastest-growing populations on the planet. Given the region's rapidly rising population, it's no surprise that Asian economies and industries are evolving. One such industry is the automotive industry. The demand for adequate mobility develops in lockstep with the population.
The need for pedestrian airbags has been increasing recently. When a vehicle is poised to collide with a pedestrian, these are immediately deployed. In the approaching years, the industry is likely to be driven by rising income levels and more awareness about safety. The Indian Ministry of Transport has announced that car manufacturers would be required to add mandatory safety measures from July 1, 2019. Driver airbags, seat belt reminders, speed alerts, and parking systems must all be included in this. Over the anticipated time, knee airbags are expected to increase rapidly. Consumer demand for active leg protection and bolster seat replacement has increased.
With a market share of USD 3,949 million in 2017 and a CAGR of 6.6 per cent between 2017 and 2027, Asia-Pacific is the world's largest vehicle manufacturer. Volkswagen, Toyota Motor Corp., Honda Motor Co. Ltd., and General Motors Co. are just a few of the major automakers represented in the region. In addition, many country-level producers have flooded the Asian-Pacific market.
Asia-Pacific accounts for over 45 per cent of global vehicle production, according to our estimates. Many of the countries in the region, especially China and India, have some of the fastest-growing populations in the world. With the region's rapidly rising population, it's no surprise that Asian economies and industries are shifting. One such industry is automobiles. The demand for appropriate mobility increases as the population expands.
Asia pacific airbag control unit market restraints
Due to the pandemic, India's automobile industry came to a complete halt for the first six months of 2020. It also wreaked havoc on India's whole value chain, hurting the manufacture of car replacement components in micro, small, and medium-sized firms.
Airbags are intended to protect both the driver and the passengers in the event of a collision. They may, however, fail to do so on occasion. Airbags might deploy unexpectedly or not deploy at all when they are needed. When the airbag deploys, it may inflict severe injuries because the passengers' heads or bodies are too close to it.
Airbags are intended to save lives, yet they can occasionally cause injuries. Depending on the severity of the collision and whether or not the airbag was malfunctioning, airbag injuries can range from facial lacerations to broken noses.
Millions of vehicles have Takata airbags that have been recalled. When these airbags are subjected to excessive heat and humidity for an extended period of time, they are more likely to detonate when deployed, resulting in injuries and deaths.
Moreover, Customers seek speed and elegance in the automotive business. However, there is a growing trend for greater security. OEMs are juggling cost, performance, and safety. Due to legal requirements, OEMs have begun to include driver airbags as a piece of standard equipment, which were previously an extra cost. Knee airbags, rear passenger airbags, and other airbags are standard on all premium vehicles. Due to malfunctioning airbags and seatbelts, several vehicles have been recalled.
Asia pacific airbag control unit market opportunities
All passenger vehicle manufacturers in India were mandated to install airbags in the front driver and passenger seats by the Indian government. Beginning April 1, 2021, the Ministry of Road Transport and Highways (MoRTH) mandated all new automobiles to include dual front airbags as standard equipment, according to a gazette notice. This will further boost the market in the near future.
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