Global Statistics Representing Automotive Airbag Market Scenario
The global automotive airbag market was valued at USD 57.21 billion in 2018 and is projected to reach a value of USD 139.64 billion by 2026, registering a CAGR of 11.80 % during the forecast period, 2019–2026.
An airbag is a safety device equipped in a vehicle to protect a driver and/or passenger as well as pedestrian from severe injuries or death during the accident. The airbag is designed to inflate rapidly during the collision which is made up of polyester or nylon. It is available in various sizes and shapes. The airbag is a gas inflated cushions, which is built into staring wheel, door, roof, or seat that use a crash sensor to trigger a rapid expansion to protect from the impact of an accident. An airbag system is formerly known as Supplementary Restraint System (SRS) or an air cushion restraint system (ACRS).
The tremendous growth in the production of passenger vehicles due to expanding middle-class, transmuting lifestyle predilections as well as growing inclination towards utilization of electric vehicles are the major drivers that fueled the growth of automotive airbag market. According to the International Organization of Motor Vehicle Manufacturers, 72 million passengers and commercial vehicles were produced in 2016 with an increment of over 4.5% from 2015. Cars hold around 74% of the total motor vehicle annual production in the world. Moreover, increasing disposable income of consumers with the need for travelling from one place to another will propel the demand of automobiles material in the automotive airbag market over the forecast period, 2019-2026. Additionally, increasing safety regulations regarding driver/passenger safety in case of an accident, growing awareness about road traffic safety, developing smart sensors technologies, and new airbag designs are important key factors that are augment the automotive airbag market in forecast period.
The global automotive airbag market has been segmented by types and vehicle type.
On the basis of the type, the automotive airbag market has been segmented into driver front airbag, passenger front airbag, side airbag, knee airbag, curtain airbag, pedestrian airbag and others. On the basis of the types, passenger front airbag are expected to gain significant traction in global airbag market during forecast period 2016 - 2026. This is majorly attributed to advantages associated with passenger front airbags, such as lower the risk of serius injury or death for passengers and also lowers the insurance rates.
On the basis of the vehicle type, the automotive airbag market has been a passenger vehicle and commercial vehicle. In terms of the vehicle type, the market is segmented into passenger vehicle, and commercial vehicle. Commercial vehicles are likley hold siginificant share in global market for automotive airbag. tremendous growth in the demand for commercial vehicles owing to the development of roadways and greater market access. This growth has been impacting positively on the automotive airbag market.
Geographically, the automotive airbag market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
North America is likely to lead in the automotive airbag market, owing to technological advancement, progressive improvement in safety restraint systems, and increasing consumer awareness of safety issues. Since September 1, 1998, Federal legislation makes airbags mandatory for all the cars and light trucks sold in the United States. Based on this trend, vehicle manufacturers of North America are continually working on applying new technologies and refining their restraint systems. According to the US National Highway Transportation Safety Authority (NHTSA), frontal air bags saved 44,869 lives from 1987 to 2015, and 2,756 estimated lives saved by frontal airbags in 2016.
The Asia Pacific is expected to witness high growth for automotive airbag market during the forecast period, due to growing concerns over safety and increasing demand for safety systems, especially in the compact vehicle segment. Moreover, rapid advancement in technology and intense competition in the industry have led automobile manufacturers in the Asia Pacific market to adopt new technologies that enhance car performance and safety. In addition, increasing vehicle production in developing countries such as China and India, and increasing luxurious vehicle consumption in China and Japan is likely to spur the market growth during the forecast period.
Europe is expected to witness the high growth in the automotive airbag market during the forecast period, owing to an increase in consumer awareness towards vehicle safety features. Furthermore, growing acceptance of safety certification, European automotive manufacturers are manufacturing vehicles that comply with safety standards. Automotive manufacturers such as Audi, BMW, Daimler, Porsche and Volkswagen, as well as the world’s largest automotive suppliers such as Bosch, Continental and ZF, are headquartered in Germany among the leading automotive companies worldwide.
LAMEA is one of the prominent regions for the automotive airbag market due to increasing demand for a safer, efficient & convenient driving experience. Brazil improving vehicle safety in fits and starts, and set new rules in January 2014, for the mandatory requirement of front airbags and antilock braking systems on all new cars sold in the country. Furthermore, U.A.E. is one of the most robust automotive markets, due to factors such as low fuel costs, low import tariffs, high per capita disposable income, and a favourable tax regime, which is positive factors for the automotive airbag market. However, an increase in the number of death rates owing to the road accidents has raised the need for an efficient safety system, in the LAMEA region, resulting in driving the growth of the automotive airbag market.
Some of the prominent players operating in the automotive airbag market are Autoliv Inc. (Sweden), Daicel Corporation (Japan), ZF Friedrichshafen AG (TRW Automotive) (Germany), Aptiv PLC (Delphi Automotive) (Ireland), Key Safety Systems Inc. (Takata) (U.S.), Tokai Rika (Japan), TOYODA GOSEI, Denso Corp., Hyundai Mobis (South Korea), Neaton Auto Products Manufacturing Inc. (U.S.), and Bradford Industries, Inc. (U.S.). These players are trying to recognize the needs of the market in developing countries and expanding their strategies to improve business needs.
Automotive airbag is a competitive market, and several companies are using different strategies to increase their market share. In 2008, Toyota IQ became a first light-weight vehicle that provides curtain airbag protection for rear seat passengers from noise-to-tail impact during a destructive crash from the front as well as the rear end.
Automotive Airbags Market Segmentation