Automotive Airbag Market Size & Outlook, 2025-2033

Automotive Airbag Market Overview

The global automotive airbag market size was valued at USD 12.30 billion in 2024 and is projected to grow from USD 13.02 billion in 2025 to reach USD 20.51 billion by 2033, growing at a CAGR of 5.85% during the forecast period (2025–2033). The growth is driven by rising demand for passenger vehicles, stricter government regulations mandating airbags, and increasing consumer awareness about vehicle safety.

Key Market Indicators

• Asia Pacific dominated the automotive airbag industry and accounted for a 59% share in 2024.
• Based on position, the frontal airbag segment held the largest share of 38% of the global market in 2024.
• Based on vehicle type, the passenger car segment is witnessing steady growth.

Market Size & Forecast

• 2024 Market Size: USD 12.30 Billion
• 2033 Projected Market Size: USD 20.51 Billion
• CAGR (2025–2033): 5.85%
• Asia-Pacific: Largest market in 2024
• Europe: Second leading region

Airbags, like seatbelts, are a form of vehicle safety restraining system designed to reduce injuries in the case of an accident. It comes in a variety of sizes and shapes. These gas-inflated cushions found in your car's steering wheel, dashboard, door, roof, or seat, use a crash sensor to activate a quick expansion of nitrogen gas trapped within a cushion that pops out on impact to provide a protective barrier between passengers and hard surfaces.

More than 1.3 million people die every year in traffic accidents worldwide, and the number is steadily rising. Governments worldwide have taken drastic measures to limit the number of people killed in accidents. For example, in North America, Europe, China, Japan, Korea, and India, the automaker must install a minimum number of frontal and side airbags in passenger vehicles. The overall demand for airbags has been boosted, and SUVs, which have more than four airbags on average, are driving increased demand and manufacturing.

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Automotive Airbag Market Growth Factor

Passenger Vehicle Rise to Spur Market Growth

The automotive industry is critical to Europe's economic development. The automotive industry employs 13.8 million Europeans directly and indirectly, accounting for 6.1% of overall employment in the EU. The EU is one of the world's leading makers of automobiles, and the automotive industry is the most significant private investor in R&D.

China has overtaken the United States as the world's top producer of passenger vehicles. Furthermore, people under 30 have begun to convert from bikes to cars, further fueling demand. The trend is most noticeable in developing countries such as India because of rising disposable income, employment rates, high-paying salaried positions, and easy access to automobile loans.

Market Restraint

Sensor Failure, Inflation and Chemical Issues, and the Risk of Airbag Explosion to Hinder the Demand

While these devices can help reduce fatalities in car accidents, they can also 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. Between 2014 and 2017, over 19 different automakers recalled millions of Takata airbag-equipped vehicles. The airbags' inflators exploded due to a chemical propellant that lacked a sufficient drying agent, shooting shrapnel into the victims' faces and bodies.

The airbag only deploys if the vehicle's sensors detect the proper speed, braking, and impact. A faulty sensor might cause the airbag to activate even when there isn't a crash, or it can prevent the airbag from deploying when there is. Some airbags inflate too quickly and burst, while others fail to inflate quickly enough to absorb the shock of a collision. Furthermore, certain chemical compounds used to facilitate deployment may cause breathing difficulties, abrasions, burns, blindness, or hearing loss.

Market Opportunity

Chances to Expand in Latin America as the Governments Prioritize Vehicle Safety

Several countries have now implemented strict vehicle and passenger safety standards worldwide. However, Latin American 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. Airbags would be the first choice and inclusion once the market is regulated. Automobile airbag producers will have a lucrative opportunity to develop their operations in these countries.

Regional Analysis

Asia-Pacific was the world's largest vehicle producer, with a market share of USD 5,138 million. All major automakers are represented in the region, including Volkswagen, Toyota Motor Corp., Honda Motor Co. Ltd., and General Motors Co. The region's demand for passenger and commercial cars is expected to expand at a robust CAGR of 6.4% from 2022 to 2030, thanks to rising consumer purchasing power, increasing disposable income, changing lifestyles, and increasing urbanization.

European Market Trends

Europe is the second leading global automotive airbag market region at USD 2,622 million. This can be attributed to many ongoing research and development activities and the high concentration of leading manufacturers. Moreover, the European market has witnessed considerable growth in the demand for EVs and advanced driver safety systems, which further fueled the adoption of airbags.

Position Insights

Fontal airbags, side airbags, and knee airbags are the three types of airbags available on the global market. The frontal airbag is expected to grow at a CAGR of 6.1% by 2030. These airbags are positioned on the steering wheel for driver safety and the dashboard for passenger protection, preventing a person's head and chest from colliding with complex vehicle structures. 

Type Insights

The passenger car category is predicted to dominate the projection period. All commercial vehicles come with airbags as standard equipment. Around 23 million commercial vehicles were built worldwide, and commercial vehicle manufacturers are not obligated to install airbags in their vehicles in most countries worldwide. Although passenger vehicles had a market share of USD 7,319 million in 2021, commercial vehicle growth is projected to be 6.4% from 2022 to 2030, higher than passenger vehicle growth.

Fabric Insights

The global market is divided into coated and non-coated fabrics based on the fabric. With a market share of USD 7,215 million in 2021, the coated category is expected to grow at a CAGR of 13.67% from 2022 to 2030. Because the choice of material can significantly add value to the final cost, demand for each type of cloth varies depending on the manufacturers and their target consumers. Silicon has been widely utilized as a coating for several decades. However, it is gradually being phased out in favor of other alternatives due to its higher strength and ease of recycling. Non-coated fabrics are lighter, softer, less bulky, and easily recycled. They have been developed to supersede the popular coated airbags with their inherent drawbacks. These include excessive thickness, an inability to be folded and packed into small spaces, and degradation over time.

Sales Channel Insights

The market is segmented into OEM and aftermarket. OEM holds the largest market share. More than 77 million units are produced a year. OEM has a market share of 79.3%, but aftermarket is forecasted to grow at a CAGR of 6.2% from 2022 to 2030. The aftermarket segment holds the smallest market share. It is not easy to install airbags in a non-airbag offering vehicle. Installing airbags requires a new dashboard, steering, loads of new sensors, new wiring, and modifying the very internals of the car.

List of key players in Automotive Airbag Market

1. Continental AG
2. Aptiv Plc
3. Toyoda Gosei
4. Denso Corporation
5. Robert Bosch
6. Key Safety Systems
7. Mitsubishi Electric
8. ZF
9. Infineon Technologies AG
10. Rhodius GmbH
11. Tokia Rika
12. Sumitomo Electric Industries, Ltd
13. Ashimory Industry
14. Telamon

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Recent Developments

• June 2025 – Autoliv announced its first-ever airbag system for powered two-wheelers, with production slated to begin in Q1 2025. This innovative “bag-on-bike” system aims to enhance rider safety in frontal crashes, including a crash sensor integrated into the unit.
• June 2025 – Bosch Launches €50M R&D Program for AI-Driven Crash Algorithms. Robert Bosch initiated a €50 million research program focused on AI-driven crash detection algorithms. Early pilots have succeeded in reducing false airbag deployments by 25%.
• July 2025 – Denso unveiled prototypes of smart inflators equipped with pressure-feedback sensors that demonstrated 98% occupant classification accuracy in field tests.