Airbag Sensor Market Size, Share & COVID-19 Impact Analysis, By Type (Mechanical and Electrical), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles), By Position (Bumper, Side Door, and Engine), By Propulsion Type (ICE and Electric), and Regional Forecasts, 2023-2030

The global airbag sensor market size was USD 10.52 billion in 2022. The market is projected to grow from USD 10.96 billion in 2023 to USD 15.87 billion by 2030 at a CAGR of  5.44%  during 2023-2030.

Airbag sensors are semiconductor devices that primarily detect sudden acceleration and deceleration when the vehicle has encountered a collision and send a signal to deploy the airbags in the vehicle. The sensors monitor various factors, such as sudden deceleration and change in pressure, to detect if a vehicle has encountered a crash, resulting in the deployment of airbags. Moreover, the accident's intensity is also considered for the deployment of airbags.

The increased number of accidental deaths and road crashes yearly has led to the enforcement of new traffic regulations and increased vehicle safety features to reduce road fatalities yearly. Established nations, such as the U.S., Canada, the U.K., Germany, and China, have recognized the need for robust vehicle safety systems, mandated compulsion of airbags in vehicles, and other safety laws. Thus, increasing road fatalities and auto manufacturers introducing newer safety features in vehicles are influential factors expected to further drive the demand for airbag sensors during the forecast period. 

COVID-19 IMPACT

Reduced Production Capacity of Auto Manufacturers Due to Pandemic Restrictions Created a Decline in Demand for Airbag Sensor Systems

Various industries were functioning on minimal production capacity to continue clearing their backlog while supporting the demand for goods and services. This uneven functioning created a disruption in the procurement of components and raw materials as well as in the supply of finished goods to the right end user. Auto industries were functioning under unstable environments to sustain in the market. The reduced capacity of auto manufacturers also resulted in fewer component contracts with other component suppliers, such as airbag sensor components suppliers.

Post-pandemic, the auto market quickly bounced back and cleared the backlogs in production and delayed deliveries of auto products. Thus, various auto OEMs were functioning at full capacity to bridge the gap in production delays. However, since some regions were still facing the COVID-19 outbreak, the industry suffered from a shortage in the supply of materials, components, and goods to further streamline the demand and supply bridge. Additionally, disrupted supply chain, semiconductor shortages, and inflation further hampered market growth, and the market could not fully recover in 2021. However, with reduced COVID-19 cases globally and public awareness, the market started recovering towards the end of 2022.

LATEST TRENDS

Growing Technological Advancement in Sensor Technology to Drive Market Growth

The automotive industry is a very competitive, where major players are constantly dedicated to developing and introducing new technological advancements in vehicles to lure the end-users and ultimately capture a larger market share. The advancement in airbag systems is influenced by various macro factors, such as sophisticated vehicle electrical architectures, sensitization of vehicles, and a few others. The market has witnessed increased demand for its sensors as more and more automotive players focus on creating reliable and robust safety deployment features in their cars.

Integrating accurate sensing technologies in vehicles helps the vehicle system detect the impact of the collision based on which the airbag safety systems are deployed. For instance, the occupant protection system developed by Bosch integrates a peripheral acceleration sensor designed for accurate impact detection during a crash in one spatial axis. The centerpiece of a sensor is a micromechanical component using a spring/mass system on the surface of the silicon wafer. The sensor can operate at low power levels with an expanded measurement range. Thus, as auto component OEMs continue enhancing vehicle sensor capabilities and reliability, the market is expected to grow significantly.

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DRIVING FACTORS

Stringent Safety Regulations in Various Countries are expected to Drive the Market Growth

Growing road accidents and fatalities have created an alarming situation in several countries globally. Thus, various countries are introducing new road and traffic laws to ensure public safety and reduce the increasing number of road accidents. For instance, in 2018, the Europe Union mandated emergency SOS call systems in all light vehicles.

In September 2022, the Indian government introduced vehicle safety regulation in which all light vehicles are required to be equipped with six airbags for passengers. Various governments are motivated to create safer roads and transportation by implementing safety regulations. Thus, increased awareness of vehicle safety from various governments globally is expected to fuel the product demand.

Increasing sales of Passenger Vehicles Due to High Demand for Private Vehicle Ownerships to Fuel Market Growth

Passenger vehicles are the most dominant vehicles in the auto industry. The demand for passenger cars is increasing owing to the larger consumer market it serves. Moreover, the demand for vehicle ownership from various consumers for their daily commuting, traveling, or recreational/luxury purposes has been a driving factor for the sales of passenger cars over the decades.

The passenger cars are a vehicle segment loaded with the most technological advancements and safety features. Increasing initiatives and government regulations to equip airbags on passenger vehicles to reduce loss of life and road fatalities are some of the prime factors contributing to the sale of these sensors in passenger vehicles.

RESTRAINING FACTORS

High Replacement Costs Due to Faulty Electrical Systems Might Slower Product Adoption

Airbag sensors are one of the critical components of airbag systems, which feed the input to the control module to deploy the airbags in the event of a major collision. However, malfunction of wiring inputs feeding the data from sensors to the airbag module can lead to a faulty airbag system. Reports of faulty airbag sensors have been frequent in the past, due to which the product adoption was impacted slightly. Moreover, replacing airbags is highly expensive and may cost vehicle users a fortune. These few factors are estimated to hamper the airbag sensor market growth.

SEGMENTATION

By Type Analysis

High Demand for Mechanical Sensors to Accurately Detect Sudden Deceleration in Vehicles Fuels Mechanical Segment Growth

Based on the type, the market is segmented into mechanical and electrical.

The mechanical airbag sensor segment held the leading market share in 2022 and is estimated to maintain this position in the market throughout the forecast period. Mechanical airbag sensors are widely used to detect collisions in various vehicles, especially in the front. The sensors work on detecting a decrease in acceleration of a moving vehicle and generating an electrical impulse. The high precision of electromechanical instruments within the sensors is a major aspect of its adoption in vehicles.

Electrical sensors are expected to rise at the fastest growth rate due to the growing adoption of airbag sensors in vehicles to create a robust airbag deployment system in vehicles. Increasing adoption of pressure sensors and impact sensors on side doors and other vehicle regions is expected to drive the market growth during the forecast period.

By Vehicle Type Analysis

Increased Number of Impact Sensors Integrated in Passenger Cars Led the Passenger Cars Segment Growth

Based on vehicle type, the market is segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles.

The passenger cars segment dominated the airbag sensor market share in 2022 and accounted for high demand for passenger vehicles in 2022, owing to stronger production and sales of passenger cars. The passenger cars are equipped with the most advanced safety features and a higher number of airbags compared to other vehicles. Moreover, increased vehicle fatalities on the road have led to passenger vehicles being equipped with higher airbag systems.

The light commercial vehicle and heavy commercial vehicle segments are also expected to develop at a decent growth rate owing to the increasing awareness of driver safety in cargo transportation and light utility vehicles. Moreover, increased awareness from governments to enforce mandatory airbag systems in light commercial vehicles is a first step towards including commercial vehicles under the Vehicle Safety and Road Provision Acts. Thus, these dynamics are expected to drive the market growth.

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By Position Analysis

Wider Coverage of Airbags Sensors Placed on Vehicle Bumpers to Augment Bumper Segment growth

Based on position, the market is segmented into bumper, side door, and engine.

The bumper segment led the market in 2022 and is expected to continue its dominance during the forecast period. The need for accurate sensor technologies in vehicle bumpers, which is likely the first place to come in contact during a collision, drives the market demand for airbag sensors positioned on bumpers. Moreover, sensors equipped on bumpers can cover wider areas, making it suitable for their placement.

The side door segment is expected to grow at the highest rate due to increasing vehicle safety regulations. Side doors are fitted with impact sensors to detect the change in pressure in the door areas to detect a collision and further result in the deployment of airbags. The engine segment is also expected to grow at a decent rate as it is fitted with impact sensors to detect collisions.

By Propulsion Type Analysis

Higher Demand for ICE Vehicles Due to the Availability of Widespread Fueling Infrastructure to Drive ICE Segment Growth

Based on the propulsion type segment, the market is segmented into ICE and Electric.

The ICE segment held the major market share in 2022 and is anticipated to remain dominant throughout the forecast period. Established consumer preference for ICE engines due to long years of reliability works in favor of vehicle sales hosting ICE engines to augment segment growth. Moreover, many countries are still struggling to build and support EV infrastructure. These aspects contribute towards the higher sales of ICE vehicles over electric.

The electric segment is expected to grow at the fastest CAGR due to the trend of electrification technology in vehicles. Post-pandemic, the electric vehicle market witnessed exponential growth in its unit sales. Additionally, government initiatives from various countries, such as tax wavering and other subsidiaries offered by the government, have led to a strong start toward electric vehicle adoption.

REGIONAL INSIGHTS

Higher Penetration of Airbag Safety Systems in North American Countries to Augment Market Growth in North America

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North America dominated the global market with a market size of USD 3.70 billion in 2022. The greater focus from the government to imply stringent road and vehicle safety regulations and auto manufacturers' compliance with those new regulations contributes to the region’s market share. Additionally, consumer awareness of vehicle safety and airbag systems further contributes to market growth in the region.

Asia Pacific held a decent share in 2022. The Asian market is expected to grow at the highest rate owing to major automotive markets, such as India, China, and Japan, focusing on strengthening their transportation and road regulations to reduce the number of accidents occurring in the region.

Europe held the second-largest market share in 2022 and is expected to grow at a significant CAGR during the forecast period. The demand for airbag sensors in Europe is attributed to the strong focus from European governments on enhancing vehicle safety, contributing to the region’s market share.

The rest of the world is also expected to grow steadily. Countries in the Middle East & Africa have strict airbag regulations for passenger cars and commercial vehicles. It is expected that similar neighboring countries are likely to adopt new airbags and safety regulations for existing as well as new vehicles, further propelling the market growth during the forecast period.

KEY INDUSTRY PLAYERS

The Market is consolidated with Dominance of Few Top Players in Terms of Market Share

The competitive landscape for the market consists of a few established key players. The market is consolidated, as all the major companies have established a strong distribution network to various leading auto manufacturers, resulting in the majority of the market share.  

The key players in the market consists of Robert Bosch GmbH, Continental AG, Denso Corporation, and others. The market is comparatively stable, with fewer variations occurring as the technology has already witnessed widespread adoption across various regions. The top players have a strong presence in various automotive markets and supply similar auto components to major OEMs, creating long-standing customer brand relationships. Thus, penetrating the market share of these top major players is highly complex.

LIST OF KEY COMPANIES PROFILED:

• Infineon Technologies AG (Germany)


• Mitsubishi Electric Co. Ltd. (Japan)


• Continental AG (Germany)


• NXP Semiconductors (Netherlands)


• ZF Friedrichshafen AG (Germany)


• Robert Bosch GmBH (Germany)


• Yanfeng Automotive Safety Systems Co. Ltd (China)


• Hella GmbH & Co. KGaA (Germany)


• Denso Corporation (Japan)


• Analog Devices Inc. (U.S.)

KEY POSITION DEVELOPMENTS:

• June 2023:  Autoliv Inc. showcased its new airbag module, which is based on fluid dynamic principles that allow its airbag systems to increase their inflated area and cover wider areas in vehicles, resulting in minimal passenger injury.


• November 2022: Melexis unveils its new highly accurate automotive pressure sensor for ICE vehicles. The company introduced a new series of integrated pressure sensors. These pressure sensors determine the absolute pressure and deliver a digital output signal to its interconnected products.


• September 2022: Honda Motors patented its unique airbag system for scooters in India. According to the patented technology, the feature of a single frontal airbag is mounted near the handlebar.


• May 2022:  Continental AG released its new battery impact detection system, detecting the impact and notifying the driver to stop if the impact damages the battery.


• January 2021: Daicel announced the setup of an airbag inflator manufacturing plan in India. Daicel is a Japan-based manufacturer of automotive components. The company aims to establish an airbag inflator plant to target local manufacturers and expand its presence in the Indian Automotive market.

REPORT COVERAGE

The market report provides a detailed Airbag sensor market analysis and focuses on key aspects, such as leading companies, product types, and leading product Positions. Besides this, the market report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth over recent years.

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