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The automotive airbag market size is estimated to grow at a CAGR of 7% between 2022 and 2027. The market size is forecast to increase by USD 5,112.85 million. The growth of the market depends on several factors such as a rise in global vehicle production, a growing focus on vehicle safety, and rising awareness of the benefits of airbags.
This automotive airbag market report extensively covers market segmentation by type (front airbag and side airbag), vehicle Type (passenger cars and commercial vehicles), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the automotive airbag market growth is the rise in global vehicle production. Due to the increase in the production of vehicles across the world, it has fuelled the increase in demand for airbags as well in order to meet the safety requirements of the expanding vehicle fleet. Several countries are making it mandatory for manufacturers to install airbags in order to comply with safety regulations and standards.
Additionally, there is a significant expansion of the automobile industry into developing countries which will further fuel automobile production. Thus, the rise in automobile production in these developing countries will fuel the need for safety features, such as airbags, to cater to safety-conscious consumers and comply with evolving safety regulations. Hence, such factors will positively impact the market. Thus, it is expected to drive market growth during the forecast period.
A key factor shaping the automotive airbag market growth is the increasing advancements in airbag technologies. There is an increasing investment by automotive manufacturers and airbag suppliers to improve the safety performance of airbag systems. The emergence of new technologies has led to the advent of multi-stage airbags. The main feature of these airbags is that they deploy with varying degrees of force depending on the force of the impact, offering more effective protection and minimizing the risk of injuries caused by excessive airbag deployment.
Additionally, another type of airbag is the adaptive airbag system which leverages sensor data to determine the position and size of occupants in the vehicle. The main feature of an adaptive airbag system is that by utilizing the information regarding the position and size of the occupant, it can tailor the deployment strategy to suit the specific requirements of each occupant. Hence such benefits are expected to drive market growth during the forecast period.
The rising raw material cost of airbags is one of the key challenges hindering the automotive airbag market growth. The increase in cost can negatively impact the profit margin of the market players. The manufacturers may find it difficult to sustain in the competition by maintaining competitive pricing and profit due to an increase in cost. Additionally, this high cost can impact the consumers which in turn can influence the vehicle pricing and demand.
Additionally, most of the customers are price-conservative in terms of purchasing cars. Hence, if the cost of the safety airbag features influences the final price, it can lead to demand fluctuations with consumers opting out from purchasing decisions. Hence, such factors can negatively impact market growth. Thus, it is expected to hinder market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Airbag Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Analog Devices Inc: The company offers automotive airbags such as MAX15007 ultra-low quiescent current linear regulator for automotive airbags.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The front airbag segment is estimated to witness significant growth during the forecast period. This segment is mainly used to deploy from the steering wheel and dashboard areas of the vehicle during front collisions, thereby minimizing the risk of head, chest, and upper body injuries. This segment is also known as driver-side airbags and passenger-side airbags. Several governments across the world are making the inclusion of front end bags mandatory. As a result of these safety regulations, several manufacturers in the market are adhering to minimum safety standards and emphasizing occupant protection.
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The front airbag segment was the largest segment and was valued at USD 7,387.60 million in 2017. Additionally, several market players are trying to achieve a positive reputation and gain consumer trust by prioritizing safety features. As a result, vehicles that are equipped with advanced safety features like front airbags are influencing consumers' purchase decisions and often achieve higher safety ratings. Additionally, the increasing awareness among consumers regarding the importance of vehicle safety has fuelled the demand for safety airbags in vehicles. Hence, such factors are expected to fuel the growth of this segment which, in turn, will drive the global automotive airbag market during the forecast period.
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APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Some of the main factors which have significantly contributed to the growth of the global automotive airbag market in APAC include the economic growth and increasing disposable incomes that have led to a rise in vehicle ownership and sales in these countries. Additionally, there is a significant demand for airbags in vehicles among consumers as they are more conscious of safety features.
Furthermore, there are significant technological advancements in APAC regarding the automotive industry. Thus, there is an increasing investment by automotive manufacturers in research and development to enhance airbag technology, making them more effective and efficient in protecting occupants during crashes. The increase in disposable income has led to the increasing purchasing power of consumers, resulting in a rise in demand for automobiles and associated airbags in the region. Hence, such factors are expected to drive market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global automotive airbag market witnessed a significant slowdown due to the temporary shutdown of the automotive industry, resulting in a decline in automobile production and associated airbag systems. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the resumption of operations in the automotive industry. Such factors are expected to drive the market during the forecast period.
The automotive airbag market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Automotive Airbag Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7% |
Market growth 2023-2027 |
USD 5,112.85 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.55 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 38% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Analog Devices Inc., ARC Automotive, Inc, Ashimori Industry Co. Ltd., Autoliv Inc., Continental AG, Daicel Corp., DENSO Corp., Dorman Products Inc., Hyundai Motor Group, Infineon Technologies AG, Kolon Industries Inc., Mitsubishi Electric Corp., Nihon Plast Co. Ltd., NXP Semiconductors NV, Robert Bosch GmbH, Stellantis NV, TaiHangChangQing Automobile Safety System Co. Ltd., ZF Friedrichshafen AG, Joyson Safety Systems Aschaffenburg GmbH, and Toyoda Gosei Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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