The global airbag control unit market size is predicted to increase at a CAGR of 5.7 percent from USD 6,927 million in 2020 to USD 11,050 million in 2026, from USD 6,927 million in 2020 to USD 11,050 million in 2026. By 2030, with an expected valuation of USD 1433.45 million LAMEA will be some of the least developed markets for Airbag Control Units. For the period 2022 to 2030, the expected CAGR of Airbag Control Units for the regions of the Middle East, Latin America and Africa is 5.80%.
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.
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In road traffic crashes involving cars and buses, there are 12.3 fatalities per million inhabitants in Latin America each year. Passenger safety is of paramount concern to both the government and the private sector. Manufacturers have been required to install safety devices in cars as a result of consumer safety and security regulations. The government mandated the use of seat belts and airbags, resulting in a decrease in traffic-related deaths from 2,921 in 2017 to less than 2,500 in 2019. As a result, risk factors such as not wearing a seatbelt and driving while intoxicated are among the leading causes of these fatalities.
The global automotive sector is slowly expanding, and most economies are gaining traction. Many emerging countries are predicted to have a high demand for vehicles by 2025, and rising economies will result in greater commercial vehicle sales. Brazil is one of Latin America's most important exporters. In 2019, 2.7 million vehicles were sold in Brazil; by 2025, that number is predicted to rise to 3.6 million. Brazil's airbag system market is predicted to develop as a result of government regulations and customer demand for vehicle safety.
The automobile airbag and seatbelt industry's fastest-growing sector is curtain airbags. They're commonly positioned on the roof above the side window, on the side of the seat or on the door. Curtain airbags protect the adult's head in the case of a collision. Curtain airbags have been shown to minimise the probability of a driving fatality by 45 per cent. Pedestrian airbags have been increasingly popular in recent years. When a car is poised to collide with a pedestrian, these are immediately deployed. In the approaching years, this industry is projected to be driven by rising income levels and more safety awareness. Brazil receives a five-star rating from the Global New Automotive Assessment Programme (Global NCAP) on a scale of one to 10, based on current car safety requirements. This grade is based on variables such as the market's reach for various technologies, the current condition of regulation, and consumer awareness levels. In 2017, the Brazilian government plans to open a USD 50 million independent crash test centre to improve automotive safety.
Major businesses like Takata, Autoliv, and ZF TRW have three manufacturing units dedicated to airbag production in the country. The majority of these plants are found in the country's southern regions. These facilities collectively produce more than 80% of all airbags produced in the country. Knee airbags are expected to grow rapidly over the anticipated time frame. It's owing to a rise in consumer demand for active leg protection and bolster seat replacement.
The Airbag system necessitates cutting-edge technology and a substantial initial expenditure. OEMs choose well-known manufacturers who can provide advanced airbag systems at a moderate cost. This makes it difficult for new players to break into the industry. Due to low labour and production costs, several firms from the North American region have established manufacturing facilities in Mexico, which is aided by a free trade agreement between the United States, Canada, and Mexico. In 2019, Mexico shipped more than 3.3 million automobiles. Despite a drop in production in recent years and the ongoing COVID-19 economic crisis, production is predicted to increase at a steady rate throughout the forecasted period, assisting the Airbag system market in Mexico to grow.
Several countries have now enacted severe car and passenger safety regulations all over the world. The largest countries in Latin America, including Argentina, Brazil, Colombia, Ecuador, Mexico, and Uruguay, have chosen to ignore such restrictions. Governments in these nations are now studying UN Regulations and consumer information systems in order to improve safety and reduce the number of fatalities caused by accidents.
The demand for passenger vehicles in the region is likely to be high due to a number of variables, including people's income levels, a high rate of end-user adoption of new technologies in the automobile industry, and a high rate of adoption of electric vehicles in the region (especially in the middle eastern countries).
Key players in the market are: