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The automotive airbag market size is forecast to increase by USD 5.89 billion at a CAGR of 7.49% between 2023 and 2028. The market is witnessing significant growth due to the rise in global vehicle production and increasing advancements in airbag technologies. Seatbelts and pretensioners continue to be the primary safety providers, but the market is expanding to include side airbags, knee airbags, and multi-modal approaches for enhanced safety. The development of self-driving cars and the need for advanced safety features for vulnerable road users, including pedestrians, cyclists, and motorcyclists, are driving industrial requirements. However, the increasing raw material cost of airbags poses a challenge to market growth. Additionally, the ignition and deployment mechanisms of airbags must be tested rigorously to ensure safety and compliance with regulations. Overall, the market is poised for growth as automobile manufacturers prioritize safety and innovation.
The market is a significant safety device segment in the global automotive industry. Airbags, which deploy during collisions to protect passengers from injury, are essential components in ensuring road safety. Airbags are typically made of high-strength materials such as nylon or polyester, which can withstand the force of a collision and provide effective protection. The market for airbags includes various types, such as side and curtain airbags, which offer head and neck protection during side impacts and rollover crashes. These airbags are increasingly becoming popular in passenger cars, light commercial vehicles, and buses to enhance mobility safety solutions. The supply chain for airbags involves the procurement of raw materials and the manufacturing of components.
However, disruptions in the supply chain can impact the availability of airbags, leading to potential safety concerns. Safety regulations play a crucial role in the market. Stringent laws mandate the installation of airbags in passenger cars and other vehicles. Consumer awareness regarding road safety and the importance of airbags has also led to an increase in demand for these safety devices. Airbag technology continues to evolve, with customized curtain airbags and advanced head and neck protection systems being developed to enhance the driving experience. Seatbelts and steering wheels are also integrated with airbag technology to provide comprehensive mobility safety solutions. Automotive manufacturers are at the forefront of this innovation, constantly striving to improve the safety features of their vehicles.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The front airbag segment is estimated to witness significant growth during the forecast period. The market encompasses the production and supply of smart airbags and airbag systems for various vehicle segments, including SUVs, hatchbacks/sedans, light commercial vehicles, and heavy commercial vehicles. Airbags, a critical safety component, are designed to deploy during collisions, providing head, neck, and upper body protection. Front airbags, also known as driver-side and passenger-side airbags, are standard features in modern vehicles, with regulations mandating their inclusion. These safety devices reduce the risk of injuries in frontal collisions and contribute to enhancing the overall driving experience. Advanced airbag types, such as side and curtain airbags, offer additional protection during rollover crashes.
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The front airbag segment accounted for USD 7.78 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 37% 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.
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The Asia-P Pacific region is a significant market for automotive airbags due to the presence of large and growing automotive industries in countries like China and India. Economic growth and increasing disposable incomes have resulted in a rise in vehicle sales and ownership in these markets. With a heightened focus on safety, the demand for vehicles equipped with advanced airbag systems, including smart airbags, is on the rise. These systems include side and curtain airbags, head and neck protection, and rollover crash sensors. Airbag inflators and impact sensors are essential components of these systems, and indicator lamps alert drivers of any issues.
Furthermore, the automotive industry in the APAC region is undergoing rapid technological advancements, with a focus on enhancing driving experience and safety. Airbag types continue to evolve, offering better protection for passengers in various crash scenarios.
Our researchers analyzed the data with 2023 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.
Rise in global vehicle production is the key driver of the market. The market is witnessing significant growth due to the increasing production and sales of vehicles. According to the International Organization of Motor Vehicle Manufacturers (OICA), the total number of vehicles produced in 2023 was 93.54 million units, representing a 9.11% increase from the previous year. This figure includes 67.13 million cars and 26.41 million commercial vehicles. With the expansion of the vehicle fleet, the demand for airbags is escalating to ensure passenger safety in the event of collisions. Many countries and regions have enacted regulations mandating the installation of airbags in new vehicles to adhere to safety standards.
Furthermore, as vehicle production continues to rise, manufacturers are compelled to integrate airbags into their vehicles to meet these requirements, thereby fueling the market's growth. The use of high-strength materials in airbag manufacturing and advancements in technology further contribute to the market's expansion. Despite potential supply chain disruptions due to raw material availability and component shortages, the market is expected to remain strong, driven by the increasing awareness of road safety and the commitment of key players like Autoliv to invest in research and development.
Increasing advancements in airbag technologies is the upcoming trend in the market. Airbags, as essential safety devices in automobiles, have evolved significantly over the years, with a focus on enhancing passenger protection during collisions. Traditional airbags were designed to deploy with full force upon impact, but advancements in technology have led to the development of multi-stage airbags. These innovative airbags deploy with varying degrees of force, depending on the severity of the collision, thereby providing more effective protection and minimizing the risk of injuries caused by excessive deployment. Furthermore, adaptive airbag systems employ sensor data to determine the position and size of vehicle occupants. By customizing deployment strategies based on this information, airbag systems can optimize protection for individuals of varying sizes and seating positions.
Furthermore, automotive manufacturers and airbag suppliers continue to invest in research and development to meet stringent safety regulations and heightened safety awareness. The supply chain for airbags faces potential disruptions due to the reliance on high-strength materials and complex components. Raw materials, such as nylon and polyurethane, and components, such as sensors and inflators, are critical to the production of airbags. Market research firms, including Autoliv, Vehicle sales data, and safety regulations, indicate a growing demand for advanced safety technologies. As a result, the airbag market is expected to witness strong growth in the coming years.
Rising raw material cost of airbags is a key challenge affecting the market growth. The market is driven by the increasing prioritization of passenger safety in collisions. Airbags, as essential safety devices, have become a standard feature in vehicles. However, the production of airbags involves the use of high-strength materials, which have seen rising raw material costs. This trend poses a challenge for airbag manufacturers, as increased production costs may impact their profitability and ability to maintain competitive pricing. In turn, these increased costs could potentially influence consumer purchasing decisions, particularly for price-sensitive buyers of low-end vehicles. Furthermore, supply chain disruptions and regulatory compliance add to the complexity of the market. Companies such as Autoliv, Vehicle sales, and safety regulations play a significant role in shaping the market dynamics.
Furthermore, safety awareness campaigns and technological advancements continue to drive innovation in the automotive airbag industry.
The market forecasting 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 market growth analysis strategies.
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 airbag such as MAX15007 ultra low quiescent current linear regulator for automotive air bags.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 market is a significant safety device in the automotive industry, designed to protect passengers during collision events. Airbags, made from high-strength materials such as nylon, absorb energy during impact and provide head and neck protection for passengers. The market caters to various vehicle segments, including passenger cars, SUVs, hatchbacks/sedans, light commercial vehicles, buses, trucks, and even two-wheelers like e-scooters. Supply chain disruptions and raw material availability are key challenges in the airbag market. The supply of raw materials, such as nylon, and components, including airbag inflators, impact sensors, indicator lamps, and airbag cushions, are crucial for the production of airbag systems.
Furthermore, technological advancements, including smart airbags, side & curtain airbags, and self-driving cars, are driving the growth of the market. Innovative airbag technology, such as multi-modal approach and customized curtain airbags, offer improved functionality and head/neck restraint in various crash scenarios, including rollover crashes, side-impact crashes, and far-side impact. Consumer awareness and stringent safety regulations are also catalysts for the market. Factors like improved lifestyles, increased vehicle sales, and safety regulations are expected to boost the demand for automotive airbags. Additionally, safety awareness campaigns, seatbelts, pretensioners, side airbags, knee airbags, and connected safety services are essential components of the market.
In addition, the market is not limited to automobile safety providers but also extends to mobility safety solutions for vulnerable road users, including pedestrians, cyclists, and motorcyclists. The market's growth is further influenced by factors like weight reductions, dependability, comfort, and purchasing decisions based on technical advancements and customer knowledge.
Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.49% |
Market growth 2024-2028 |
USD 5.89 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.83 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, China, Japan, Germany, and South Korea |
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, Joyson Safety Systems Aschaffenburg GmbH, Kolon Industries Inc., Mitsubishi Electric Corp., Nihon Plast Co. Ltd., NXP Semiconductors NV, Robert Bosch GmbH, Stellantis NV, TaiHangChangQing Automobile Safety System Co. Ltd., Toyoda Gosei Co. Ltd., Yanfeng International Automotive Technology Co. Ltd., and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, 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 |
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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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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