Download Sample, Technological Developments are Propelling the Market Growth for Automotive Airbag Market
The automotive airbag market is anticipated to experience a significant growth owing to the rising demand and production of auto-vehicles. The United States has one of the largest automotive markets in the world. According to National Automobile Dealers Association’s 2023 report, total sales of 13.7 million units was achieved by 2022 in U.S, and it is anticipated that the sales might increase up-to 14.6 million units in 2023, which accounts for a 6.6% rise in the sales.
The automotive sector is moving quickly towards a new future marked by increased sustainability, changed customer behaviour, electric and linked vehicles, mobility fleet sharing, and enhanced quality of life. Additionally, due to a growth in travel and leisure activities around the world, Special Utility Vehicles (SUVs) are in high demand right now. As a result of variables including innovation and development time, dependability, fuel economy, safety, product quality & features, and pricing, competition has also increased among automotive manufacturers. As a result, the demand for both commercial and passenger automobiles have increased due to urbanisation and industrialization. In consequence to this demand, manufacturers are focusing on creating advanced airbag systems to facilitate the growing demand. For instance, in order to ensure high safety standards for Nuro's new third-generation, production-grade autonomous delivery vehicle, the company collaborated with Autoliv Inc., a pioneer in automotive safety systems in February 2022. As the most sophisticated zero-occupant vehicle Nuro has ever created, the new flagship model includes an external airbag from Autoliv that, when inflated, covers the front of the car to protect other road users. This partnership between Autoliv and Nuro is an excellent example of how manufacturers are blending their core competencies and extensive industry experience with the creation of products for new markets.
The automotive sector is moving quickly towards a new future marked by increased sustainability, changed customer behaviour, electric and linked vehicles, mobility fleet sharing, and enhanced quality of life. Additionally, due to a growth in travel and leisure activities around the world, Special Utility Vehicles (SUVs) are in high demand right now. As a result of variables including innovation and development time, dependability, fuel economy, safety, product quality & features, and pricing, competition has also increased among automotive manufacturers. As a result, the demand for both commercial and passenger automobiles have increased due to urbanisation and industrialization. In consequence to this demand, manufacturers are focusing on creating advanced airbag systems to facilitate the growing demand. For instance, in order to ensure high safety standards for Nuro's new third-generation, production-grade autonomous delivery vehicle, the company collaborated with Autoliv Inc., a pioneer in automotive safety systems in February 2022. As the most sophisticated zero-occupant vehicle Nuro has ever created, the new flagship model includes an external airbag from Autoliv that, when inflated, covers the front of the car to protect other road users. This partnership between Autoliv and Nuro is an excellent example of how manufacturers are blending their core competencies and extensive industry experience with the creation of products for new markets.
Rising Awareness for Safety and Enforcement of Strict Government Regulations is Driving the Market Expansion
The market for automotive airbag industry is driven by the research and development efforts and technological breakthroughs. In addition, the market has experienced the creation of new products and technologies to fulfil the rising demand for more advanced and secure airbags, such as pedestrian airbags, smart airbags, and occupant sensor systems. Large-scale car manufacturers are emphasising their focus on promoting the use of airbags, including occupant sensing systems and anticipatory crash technologies, due to the increased advancement of systems, competitive dynamics, and development of rollover and side impact systems.
Furthermore, the market for airbags is anticipated to develop as a result of factors such as rising customer awareness of car safety features, expansion in the automotive industry, and competition between market players. In addition, the government's execution of stringent safety measures to reduce the number of deadly road accidents is predicted to accelerate the market's growth. For instance, the National Highway Traffic Safety Administration report stated that, Honda issued a "Do Not Drive" warning for certain 2001–2003 Acura and Honda vehicles with Takata Alpha driver-side air bag inflators that have not been repaired, in February 2023. Additionally, the approval of a preliminary GSR Notification to make at least 6 airbags mandatory to improve occupant safety in vehicles carrying up to 8 passengers was announced by Road Transport and Highways Minister of India in 2022. Furthermore, the addition of airbags to two-wheelers and the low production costs in developing countries present profitable expansion prospects for industry participants.
Furthermore, the market for airbags is anticipated to develop as a result of factors such as rising customer awareness of car safety features, expansion in the automotive industry, and competition between market players. In addition, the government's execution of stringent safety measures to reduce the number of deadly road accidents is predicted to accelerate the market's growth. For instance, the National Highway Traffic Safety Administration report stated that, Honda issued a "Do Not Drive" warning for certain 2001–2003 Acura and Honda vehicles with Takata Alpha driver-side air bag inflators that have not been repaired, in February 2023. Additionally, the approval of a preliminary GSR Notification to make at least 6 airbags mandatory to improve occupant safety in vehicles carrying up to 8 passengers was announced by Road Transport and Highways Minister of India in 2022. Furthermore, the addition of airbags to two-wheelers and the low production costs in developing countries present profitable expansion prospects for industry participants.
Recent Trends in the Automotive Airbag Industry:
- Focus on reducing airbag deployment time for quicker response.
- Growth in demand for side airbags and knee airbags.
- Development of multi-stage airbags for improved crash protection.
- Focus on weight reduction to improve overall vehicle performance.
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Compromised Passenger Safety Owing to the Technical Limitations of Airbags is Likely to Hamper the Market Growth
Airbag systems are less of a concern to car buyers in developing countries. To follow safety rules, many automakers therefore offer inexpensive airbags. However, in order to save money, passenger safety is sacrificed, and the airbag system's durability falls short of what customers would anticipate. The purchase of vehicles with airbag systems is deterred as a result. Therefore, this market must first attempt to eliminate the production of inexpensive airbags, and then it must address the high cost of airbag systems for all types of automobiles. Moreover, the airbag deploys only when the right speed, amount of braking, and collision are detected by the car's sensors. If a sensor is malfunctioning, the airbag may activate even when there isn't a collision or it may stop the airbag from deploying altogether when there is. While some airbags fail to inflate rapidly enough to withstand the impact of a collision, others explode when they inflate too quickly. Additionally, some of the chemicals used in deployment may impair respiration or result in burns, blindness, or hearing loss. All these factors are anticipated to impede the market expansion.
New Product Launches, Collaborations and Acquisitions Fuel the Market Development
Major manufacturers of welding equipment are actively pursuing competitive marketing strategies such collaborations, technological developments, investments, acquisitions, and R&D activities to expand their market share globally. In addition, many start-up businesses are creating cutting-edge welding equipment to gain a foothold in the international market. In January 2022, Aptiv announced that it acquired Wind River, prominent supplier of intelligent edge software solutions from TPG. With the assistance of Wind River's expert team and innovative intelligent systems software platform, the acquisition enables Aptiv to seize the significant software-defined mobility potential and to diversify into a number of high-value industries. Earlier in November 2021, Autoliv and the Piaggio Group collaborated to create a scooter and motorbike airbag. This collaboration enabled to enhance the riding experience of the rider and offer more protection. Again, in August 2021, in order to meet the growing domestic demand for nylon 6,6 products, INVISTA doubled the capacity of its nylon 6,6 polymer at the Shanghai Chemical Industry Park. The demand for nylon polymers in China is rising as a result of an increase in the demand for engineering polymers used in the automotive, electrical, and engineering markets for applications such light weighting, powertrain part optimisation, electrification, and automation.
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Rapid Urbanisation and Rising Preference for New Technologies is Stimulating Market Growth
The Asia Pacific region is anticipated to hold a significant part of the automotive airbag market owing to the growing automotive industry. The growing automotive industry can be attributed to the rapid urbanisation in the region. The production of insulating products in the area is being boosted by low labour costs and easy access to raw materials. During the forecast period, it is predicted that increased vehicle manufacturing in the region will drive the automotive airbag market. The region's automotive airbag market is being further stimulated by the expansion of automobile manufacturers in China, India, and South Korea as well as the rise in luxury car demand. Over the projection period, North America is also anticipated to experience significant market expansion.
The market in the North American area is anticipated to be driven by stricter government regulations on car safety and standards, rapid adoption of new technologies, and significant investment in product innovation. Furthermore, due to the presence of major automotive and automotive solutions providers in the region, Europe represents the significant share of the global market. It is projected that rising customer preference for electric vehicles (EVs), connected and autonomous vehicles, and shared mobility will drive market expansion in this area.
The market in the North American area is anticipated to be driven by stricter government regulations on car safety and standards, rapid adoption of new technologies, and significant investment in product innovation. Furthermore, due to the presence of major automotive and automotive solutions providers in the region, Europe represents the significant share of the global market. It is projected that rising customer preference for electric vehicles (EVs), connected and autonomous vehicles, and shared mobility will drive market expansion in this area.
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The report provides a detailed overview of the automotive airbag market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for automotive airbag market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the automotive airbag market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the automotive airbag market. Some key country and region included in the automotive airbag market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Belgium, Sweden, Austria, Slovakia, Hungary, Romania, Czech Republic, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Vietnam, Thailand, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Egypt, Turkey, Morocco, Nigeria, Iran, Rest of MEA |
Automotive Airbag Market Research Report Covers In-depth Analysis on:
- Automotive airbag market detailed segments and segment-wise market breakdown
- Automotive airbag market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in automotive airbag industry)
- Current, historical and forthcoming 10 years market valuation in terms of automotive airbag market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Automotive airbag market demand analysis
- Automotive airbag market pricing analysis over forecast period (by key segment and by region)
- Automotive airbag market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in automotive airbag market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in automotive airbag market
- Automotive airbag market sales and distribution strategies
- A comprehensive overview of parent market
- A detailed viewpoint on automotive airbag market forecast by countries
- Mergers and acquisitions in automotive airbag market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the key drivers for the growth of the automotive airbag market?
The key drivers include increasing vehicle production, rising safety concerns among consumers, stringent government regulations on vehicle safety and advancements in airbag technology such as side and curtain airbags.
Which regions are expected to see the most growth in the automotive airbag market?
The Asia-Pacific region is expected to see the most growth, driven by the rapid expansion of the automotive industry in countries like China and India, along with rising safety awareness.
What are the major challenges faced by the automotive airbag market?
Major challenges include high costs associated with airbag technologies, the risk of technical malfunctions and stringent regulatory standards, which can lead to recalls and additional costs for manufacturers.
What technological advancements are influencing the automotive airbag market?
Technological advancements like the development of smart airbags, which adjust deployment based on the passenger’s size and position and integration of sensors for better impact detection are influencing the market significantly.
