United States Automotive Airbags Market

Market Overview

The United States automotive airbags market has witnessed significant growth in the past and is expected to grow at a CAGR of 5.8% during the forecast period (2022–2030). According to the World Health Organization, approximately 1.25 million individuals die annually in traffic accidents. Airbags are widely used in vehicles to reduce the severity of collisions, for example, to enhance overall vehicle safety and reduce the number of collisions.

An airbag is a component of a vehicle's safety restraint system that is swiftly inflated in the event of an accident. They are soft, pillow-like balloons with a sensor and inflation system wrapped into the vehicle's steering wheel, dashboard, seat, door, or roof. The primary function of the airbag is to shelter the driver or passenger during vehicle collisions and prevent the body from colliding with interior vehicle objects such as the steering wheel or window. In the event of a collision, the sensors within the vehicle provide the airbag electronic controller unit (ECU) with factual information, including collision type, angle, and severity of impact.

Market Dynamics

The United States automotive airbag market drivers

Demanding Criteria for Vehicle Safety

Governments have directed automotive manufacturers to enhance their products and prioritize safety measures for drivers and passengers to mitigate the increasing number of accidents. Prominent manufacturers incorporate various safety features, such as cruise control, collision warning systems, lane assistance, and airbags. Road traffic accidents lead to approximately 1.3 million annual fatalities, causing significant economic burdens for countries equivalent to around 3% of their gross domestic product. Vulnerable road users account for more than half of these fatalities. Governments worldwide have mandated the inclusion of airbags in vehicles to minimize the fatality rate.

The United States Automotive Airbags Market Restraint

Concerns over Chemical Components and Airbag Performance

Frontal airbags have demonstrated significant effectiveness in saving over 60,000 lives every year. While their primary purpose is to prevent fatal outcomes in accidents, they can also contribute to injuries. Car collisions can lead to various injuries, such as facial lacerations and nasal fractures, especially when the airbag is defective. The proper functioning of an airbag relies on the accurate detection of speed, braking, and impact by the vehicle's sensors. Sensor malfunctions can result in unnecessary deployment or failure to deploy in crash situations. Some airbags may inflate too rapidly and rupture, while others may not quickly enough to provide adequate protection upon impact. Furthermore, chemical agents in airbag deployment can cause breathing difficulties, abrasions, burns, visual impairments, or hearing loss.

The United States Automotive Airbags Market Opportunities

Increased Consumer Consciousness of Vehicle Safety Features

Road accidents are a global concern, particularly when driving in heavy traffic and poor weather conditions. In addition, increased consumer awareness and disposable income have led consumers to spend more on a vehicle's safety features. Leading automakers now equip their vehicles with side airbags (SABs) to prevent severe thoracic injuries in side-impact collisions. In 2019, Autoliv Inc. introduced a new front-center airbag, mounted between the driver and front-seat passenger, that reduces the risk of head, shoulder, and torso injuries and saves lives in side-impact collisions. Thus, adopting advanced safety systems (airbags) and growing consumer awareness of safety features are anticipated to propel the airbag market.

Regional Analysis

The United States holds a significant share of the global automotive airbag market. The country has stringent safety regulations, making airbags mandatory in vehicles. The market is driven by a large automotive industry and increasing emphasis on passenger safety. Additionally, advancements in technology and the presence of major automobile manufacturers further contribute to the growth of the automotive airbags market in the United States.

Segmental Analysis

The United States automotive airbags market is segmented into position, application, vehicle type, and distribution channel.

By position, it is further segmented into frontal, side, and knee airbags.

Frontal Airbags dominated the market and are expected to register a CAGR of 6.2% over the forecast period. Front airbags are designed to deploy in moderate to severe frontal collisions to prevent a person's head and torso from colliding with hard vehicle structures. The governments of various nations mandated that all automobiles, light trucks, and vans be equipped with driver and passenger airbags for frontal impact protection. They provide the most protection when occupants wear safety belts and sit appropriately, but they are designed to protect all occupants.

Based on fabric, it is further segmented into coated and non-coated.

Coated dominated the market and is expected to register a CAGR of 6.1% over the forecast period. Automobile airbags are manufactured using various varieties of fabric, such as nylon and polyester. As the choice of material can considerably increase the final cost of a vehicle, the demand for each type of fabric fluctuates according to manufacturers and their intended consumers. Silicon has been widely used as a coating for the past few decades, but other materials are gradually displacing it due to their superior strength and recyclability.

It is further segmented into passenger and commercial vehicles based on vehicle type.

Passenger vehicles dominated the market and are expected to register a CAGR of 5.3% over the forecast period. In 2019, over 54 million passenger vehicles were manufactured worldwide. The quantity decreased by 23.3% compared to 2019. The covid-19 pandemic and quarantine caused the production decline.

Based on the distribution channel, it is further segmented into OEM and aftermarket.

OEM dominated the market and is expected to register a CAGR of 5.6% over the forecast period. More than 77 million units are produced annually on a global scale. Most automobiles manufactured and sold in Europe and North America are equipped with airbags.

OEM has a significant presence in Asia-Pacific.

Recent Developments

• January 2022: Continental AG and Volterio are collaborating to develop fully automated charging robots for electric vehicles.
• February 2022: DENSO Corporation (DENSO) and Sony Semiconductor Solutions Corporation (SSS) announced that DENSO would invest USD 0.35 billion in Japan Advanced Semiconductor Manufacturing, Inc. (JASM), TSMC’s majority-owned manufacturing affiliate in Kumamoto Prefecture, Japan. Due to this equity transaction, DENSO will hold a more than 10% equity position in JASM.