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The automotive airbag sensor market is estimated to grow at a CAGR of 6.36% between 2022 and 2027. The size of the market is forecast to increase by USD 220.4 million. The growth of the market depends on several factors, including production shifts to low-cost countries, enhanced vehicle safety with more airbags, and the growing importance of crash tests and NCAP ratings.
This report extensively covers market segmentation by application (passenger cars, lCVs, MCVs and HCVs), end-user (OEMs and aftermarket), and geography (APAC, Europe, North America, 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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Technavio categorizes the global automotive airbag sensor market as a part of the global automotive components and accessories market within the global auto components market. The global automotive components and accessories market covers companies engaged in the production of parts and accessories for automobiles like passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Enhanced vehicle safety with more airbags is notably driving the market growth, although factors such as the lack of regulation for airbags in medium and heavy-duty vehicles may impede the market growth. 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.
Key Automotive Airbag Sensor Market Driver
Enhanced vehicle safety with more airbags is notably driving market growth. Road crashes lead to more than a million deaths each year. These deaths can be minimized by taking safety precautions and implementing safety features in vehicles. Airbags are one of the safety mechanisms in vehicles, which can reduce the number of injuries and fatalities in accidents. These airbags are present in steering panels, the front instrument panel, and the sides of car doors.
Ideally, every vehicle has two airbags. The number may increase to an average of six, and manufacturers are planning to increase them further. The increase in the number of airbags per vehicle is expected to spur the growth of the market. Growing awareness about safety among consumers is also one of the reasons for the increase in the number of airbags per vehicle. Hence, such factors are expected to drive the global market in focus during the forecast period.
Significant Automotive Airbag Sensor Market Trend
The MEMS sensors for airbags are an emerging trend in the market. Present-day vehicles are equipped with numerous applications that can improve engine operation and reduce emissions. They alert the driver and prevent accidents. Currently, vehicles have a high number of electronic components, most of which are intended to alert drivers to certain risks that they may face.
Micro-Electro-Mechanical Systems (MEMS) are small mechanical and electro-mechanical elements manufactured using microfabrication techniques. MEMS detects the smallest changes in the driving environment and gathers information, both inside and outside the vehicle. The control units (ECUs) receive the information gathered from MEMS. With the help of this data, the connected control units protect the car from skidding, indicate the exact amount of fuel, and deploy airbags within seconds. The airbag system has become more advanced with the latest MEMS sensors being offered by vendors such as Robert Bosch. Thus, such factors are expected to boost the market in focus growth during the forecast period.
Major Automotive Airbag Sensor Market Challenge
The lack of regulation for airbags in medium and heavy-duty vehicles is a major challenge impeding the market. Although airbags save thousands of lives annually, traffic safety regulators worldwide have not made the presence of airbags mandatory in medium- and heavy-duty vehicles (HCVs). In the US, the Department of Transportation conducted a study on commercial truck crashworthiness standards, which considered roof strength, airbags, occupant protection standards, and other issues. The NHTSA, however, did not take any action on airbags, and experts suggest that the agency is not looking to introduce any regulations to expand the airbag requirements beyond light vehicles.
Several arguments have been put forward for not having regulations mandating airbags in HCVs. One is that the number of deaths of occupants in accidents involving large trucks is relatively lower than that of occupants in passenger vehicles. Moreover, large trucks have a built-in advantage of protecting their occupants because of their considerable size and weight. Thus, these factors will likely pose a challenge for the market in focus during the forecast period.
Key Automotive Airbag Sensor Market Customer Landscape
The report includes the market's adoption lifecycle, covering 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 Sensor Market Customer Landscape
Vendors 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.
Autoliv Inc. - The company operates under one segment. The company under this segment offers airbags, seatbelt products, and components. The key offerings of the company include airbags which include a crash sensor.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the passenger cars segment will be significant during the forecast period. The penetration of frontal airbags in the passenger cars segment is high. Moreover, the adoption of side/curtain airbags, knee airbags, and exterior airbags is increasing in the passenger cars segment. This is expected to remain a major driving factor for the growth of the passenger cars segment in the global market during the forecast period.
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The passenger cars segment was valued at USD 402.43 million in 2017 and continued to grow until 2021. As the penetration of airbags is high in this segment, the growth of the market is highly dependent on the production and sales of passenger cars. Amid the outbreak of COVID-19, the sales and production of passenger cars were temporarily stalled in several countries. By the end of April 2020, production restarted in major automotive countries such as China, the US, Germany, and India but with a lesser workforce than earlier. This reduced the production of automobiles, which decreased the demand for automotive components and accessories, such as automotive airbags. Furthermore, on the downstream side of the automobile industry, reducing disposable income has resulted in a decline in the demand for automobiles across several countries. Such factors are expected to result in conservative production, which will impact the demand for airbags negatively. However, this pandemic situation across the world has increased the preference for personal transportation among travelers. This is expected to increase the demand for passenger cars across regions, which will raise the demand for automotive components and accessories, such as airbag sensors, during the forecast period.
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APAC is estimated to contribute 56% 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.
APAC is expected to witness maximum growth, owing to its high potential market and rapidly growing sales of commercial vehicles in the region. Additionally, the governments of several countries have started implementing strict safety standards to reduce road crash fatalities. For instance, from October 2018, India has mandated the incorporation of safety equipment in all new passenger cars. The safety equipment included ABS, airbags, and a high-speed alert system. Such factors result in the faster adoption of safety equipment such as side/curtain airbags, knee airbags, and electronic brakeforce distribution systems, among others. This is expected to support the growth of the market in APAC during the forecast period.
APAC has several developing countries and sub-continents, such as China, India, and the Association of Southeast Asian Nations (ASEAN). There is a high penetration of entry and mid-segment vehicles in the region. In addition, the sales and production volume of automobiles are high in the region. In terms of value, China and India account for the highest share of the market in APAC, owing to the large automotive production base. There is also a strong presence of automotive manufacturers from Europe and North America in APAC. For instance, vehicle manufacturers such as Ford Motor Co. (Ford Motor) and Volkswagen AG (Volkswagen) have a strong presence in the region. Thus, owing to such factors the regional market is expected to grow during the forecast period
The automotive industry in APAC was adversely impacted in 2020 due to the COVID-19 pandemic. Therefore, the demand for and use of airbag sensors reduced in 2020. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown restrictions, which led to the resumption of business activities. This led to the resumption of automobile manufacturing. Additionally, companies have been increasing their sales and investing in electric vehicle production with supportive government initiatives. For instance, in 2021, India announced fresh incentives for EV manufacturers as a part of a broader auto sector scheme. The plan is to attract USD 14 billion in investments over the next five years. All these factors will consequently boost the growth of the automotive industry and, in turn, positively impact the market in focus in APAC during the forecast period.
The 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 Sensor Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.36% |
Market growth 2023-2027 |
USD 220.4 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.56 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 56% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Analog Devices Inc., Aptiv Plc, Ashimori Industry Co. Ltd., Autoliv Inc., Continental AG, Daicel Corp., DENSO Corp., Dorman Products Inc., HELLA GmbH and Co. KGaA, Hyundai Motor Group, Infineon Technologies AG, Magna International Inc., Mitsubishi Electric Corp., Nihon Plast Co. Ltd., Ningbo Joyson Electronic Corp., NXP Semiconductors NV, Robert Bosch GmbH, TaiHangChangQing Automobile Safety System Co. Ltd., Toyoda Gosei Co. Ltd., and ZF Friedrichshafen AG |
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, and 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. |
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