The global Automotive Airbag market size was valued at USD 10.37 billion in 2021. It is estimated to reach USD 17.30 billion by 2030, growing at a CAGR of 5.85% during the forecast period (2022–2030). 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.
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.
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.
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.
By position, frontal 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 dash for passenger protection, preventing a person's head and chest from colliding with complex vehicle structures.
The passenger car category is predicted to dominate the projection period. All commercial vehicles do not 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 UDS 7,319 million in 2021, commercial vehicle growth is projected to be 6.4% from 2022 to 2030, higher than passenger vehicle growth.
The global market is divided into coated and non-coated fabrics based on 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.
Based on the sales channel, 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 most negligible market share. It is not easy to install airbags in the 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.
In 2020, Europe manufactured 10.8 million passenger vehicles and 2.1 million commercial vehicles. The European car sector would experience a fall of more than 20% by 2020. The demand for automobile airbags is proportional to the total number of vehicles produced. As a result, the airbag market experienced the same impact on demand. This was caused by many factors, including complete and partial shutdowns of manufacturing facilities, restricted commodities movement, a prohibition on import and export activity, and the closure of showrooms, among others.
From January to August 2020, the total number of automobiles was just 45.58 million, a substantial decrease of roughly 13 million vehicles year over year (y/y). Western Europe and Southeast Asia experienced y/y declines of more than 30%, whereas South Korea and China, which halted the spread of the infectious disease early, suffered minor damage.
For the first six months of 2020, India's car industry came to a total halt. As a result, automakers were forced to shut down most of their operations and restrict operational manufacturing capacities. As a result, only a small number of automobiles were produced.
During the COVID-19 pandemic, the automobile and transportation industries were unquestionably among the hardest afflicted. However, the situation is improving. Automobile dealerships are becoming increasingly busy, and many are anxiously seeking additional inventory to sell.
Overall, mobility is steadily improving as most nations have exited the lockdown or reduced the lockdown-related regulations. It has been discovered that most car manufacturers and dealers have resumed entire operations in specific regions and intend to restore manufacturing facilities as soon as possible.
The market is divided into five regions: North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
In 2021, 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.
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.
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