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The global automotive airbag inflator market size stood at USD 4.10 billion in 2020. The market is anticipated to rise from USD 4.33 billion in 2021 to USD 6.74 billion in 2028 with a CAGR of 6.2% in the projected period. COVID-19 has had an unprecedented and astounding worldwide impact, with the automobile airbag inflator experiencing a negative demand shock across all areas due to the pandemic. Based on our analysis, the global market exhibited a significant decline of -7.70% in 2020 as compared to the average year-on-year growth during 2017-2019. This market's demand and growth are responsible for the rapid increase in CAGR, which will return to pre-pandemic levels once the pandemic is ended.
Automotive airbag inflators are components of an airbag system that produces gas to inflate airbags. Such inflators play a critical role in driver and passenger safety. These inflators primarily store gas or chemical fuel, or a member chamber composed of both, inflating the airbag when a vehicle crashes. Moreover, an inflator fills the bag with gas in less than 0.02 seconds, faster than the blink of an eye.
COVID-19 will impede market growth due to a drop in new car sales.
The global outbreak of COVID-19 had a severe impact on the overall automotive industry, especially since both value & supply chain stakeholders have been heavily disturbed due to the rapid spread of COVID-19 in the world. Beginning in China, vendors worldwide restricted or shut down production lines completely. Also, legal and trade restrictions, such as closed borders, increased the shortage of required parts and limited supplies, mainly for raw materials from Asia such as steel parts, paints, and machinery. This resulted in a delay in fulfilling existing orders. OEMs have stopped producing due to a lack of parts supply and a just-in-time production strategy that includes quarantine measures and a reduced workforce. This is enhanced by the necessity to secure liquidity and reduce overproduction of dye to decrease sales. EV demand remains high, and sales are rebounding, despite a brief drop in sales at the start of the COVID-19 outbreak. The market is expected to register significant growth shortly, owing to the rise in vehicle sales, advanced features, and advanced technology development by automobile OEMs. Higher disposable income positively impacts the automotive airbag inflator market growth. Companies such as Autoliv Inc and Toyoda Gosei have seen a significant decline of around 10-12% in their revenue due to the coronavirus pandemic. The availability of COVID-19 vaccines in early 2021 benefited the automotive sector, even though the pandemic's duration is difficult to predict.
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Increase in Consumer Awareness Related to Vehicle Safety
Customers' awareness of the applications and use of passive safety systems has increased, making customers ready to pay a premium price for new safety systems and additional safety features in vehicles. The critical factor that drives the purchasing of safety features is demonstrated technology. Consumers' purchasing decisions will be influenced by credibility, safety, and comfort factors. To attract customers, various companies are developing new airbag technologies. For instance, in July 2019, ZF developed an external airbag to enhance vehicle safety. This external airbag is designed to soften the impact of the oncoming vehicle, thereby reducing damage. Whenever this smart airbag system detects an oncoming impact, it deploys.
Increasing Vehicle Production and Sales to Set a Positive Trend For Market Growth
Automotive airbag systems are standard fitting in luxury and mid-class passenger cars. Moreover, with a rise in the number of models and new types of vehicles entering the market, the demand for the automotive airbag inflator is expected to increase significantly. Furthermore, expanding middle-class population, rising disposable incomes, and growing urbanization will lead to a rise in the sale of all types of vehicles, which further helps boost the growth opportunities of the automotive airbag inflator business in the coming years.
Increasing Regulatory Requirements Related to Vehicle Safety and Rising Demand for Safety System Equipped Vehicles to Improve Market Growth
Due to rising safety norms by governments, automotive airbag manufacturers will be forced to produce advanced airbag inflators such as the Hybrid Inflator, Single-stage & Dual Stage Inflators. Moreover, several governments around the world have introduced stringent vehicle safety rules. For Instance, in India, from April 1, 2021, all new passenger cars produced in India should include dual airbags as standard fittings, one for the driver and one for the front passenger. These regulations have forced manufacturers to focus more on comfort and safety technology such as automotive airbags and sensors. Furthermore, the rising demand for safety features from the consumer side will show positive growth for the market. Moreover, the increased penetration of side-impact, curtain airbags, vehicle production, and the introduction of more bags per car are significant factors propelling this market.
Durability of Cheap Airbags, High Cost of Airbag System Vehicles, Product recall, and Low Spending Ability in Underdeveloped Economies May Hamper the Growth of the Market
The key challenge faced by the market is the high cost of airbag system vehicles. Consumers do not prefer a car with an airbag system in underdeveloped economies. Furthermore, few manufacturers provide an airbag system at a low price. The durability of that airbag system is not up to the expectation of consumers; hence, most consumers do not prefer to buy vehicles equipped with an airbag system.
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Pyrotechnic Inflator Type Dominates the Market
The market is bifurcated into three types of inflators: pyrotechnic inflators, stored gas inflators, and hybrid inflators.
The pyrotechnic inflator holds the largest share globally, and the same segment is expected to lead throughout the forecast period. The pyrotechnic inflator segment will be dominating during the forecast period due to technological advancement in the segment. For instance, airbag inflator manufacturers, such as Autoliv Inc and Daicel Corporation, are working on advanced airbag inflators such as hybrid inflators and stored gas inflators.
Hybrid inflator has high growth and low penetration in 2020. The hybrid inflator segment accounted for 30.10% market share in 2020. The segment is anticipated to grow during the projection period owing to improved performance/tuning capability and lower exhaust gas temperature.
The stored gas inflator segment had low penetration and high growth in 2020. This segment accounted for an 18.50% market share in 2020. The segment will show high growth during the projected period due to less inflation time than other inflator types and compressed cold gas to inflate the airbag.
Airbag Inflator Filters To Grow At Highest Growth Rate Over The Forecast Period
The global market has been segmented based on component type into Airbag Inflator Filter, Airbag Tubes, Others. The other component segment accounted for the highest automotive airbag inflator market share in 2020, the segment is anticipated to grow at a CAGR of 5.6% over the forecast period. The airbag tubes and filters segment is witnessing high demand across the industry owing to growing usage of airbags and government mandate to install airbags in passenger vehicles in various countries. However, increasing steel prices post COVID-19 is likely to hamper the manufacturing of such components as steel is the main material used for manufacturing.
Passenger vehicle segment dominates the market
The market is segregated into passenger vehicles and light commercial vehicles based on vehicle type. The passenger vehicle segment holds the largest share globally in this market and is expected to dominate the forecast period. Due to rising individual disposable income, rising sales and production of passenger cars in developing countries will push this segment's growth. The passenger vehicle segment accounted for 86.80% market share in 2020. The light commercial vehicle segment is also expected to show lucrative growth in the market over the forecast period. It is due to several government initiatives worldwide to improve commercial vehicle safety standards.
Asia Pacific Automotive Airbag Inflator Market Size, 2020 (USD Billion)
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The APAC market was valued at USD 2.18 billion in 2020. As an automotive hub, the region is projected to dominate the worldwide automotive airbag inflator market, with countries in the region boosting vehicle production per year. This growth is accountable due to increasing preference for personal mobility in the post-COVID-19 period that will boost automobiles and safety components such as airbag inflators. During the forecast timeframe, the region's market is predicted to rise due to the increasing adoption of critical government programmes, the use of electric vehicles, and autonomous vehicles.
Europe accounted for the second-largest position in the market due to the presence of key players in this area. Consumer adoption of electric vehicles, autonomous vehicles, and shared mobility is likely to fuel market expansion in this region.
North America market is anticipated to grow at a CAGR of 5.6% over the projected period. Over the projected period, the market in North America is expected to increase significantly. North America market is predicted to grow as government regulations for car safety and standards become more stringent, as well as the fast adoption rate of new technologies and the high investment in product innovation. Moreover, in America, frontal airbags have been standard equipment for all passenger cars since 1998.
The rest of the world contributes very little compared to other regions in the global market, and this is due to lesser automotive OEMs & airbag inflator suppliers, low adoption of technology, and less presence of all types of vehicles.
Product diversification is expected to boost the sales growth of Autoliv Inc.
The market is consolidated because of its robust product portfolio and notable distribution network of big corporations in established and developing nations.
The market is consolidated. The major market players are putting their efforts into producing technologically superior airbag inflators for automobiles. For instance, Autoliv Inc has developed an initiator and micro gas generator. Similarly, other airbag manufacturers are developing advanced airbag systems such as roof airbags, knee airbags, and side airbags.
An Infographic Representation of Automotive Airbag Inflator Market
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The global automotive airbag inflator market report offers a comprehensive study of the industry, focusing on critical factors such as key companies, product types, and application areas. Besides that, the research provides insights into market trends and key industry advancements. In addition to various factors, the study covers several others that have contributed to the market's recent growth.
Value (USD Billion) and Volume (Thousand Units)
By Product Type
By Component Type
By Vehicle Type
Fortune Business Insights says that the global market size was at USD 4.10 billion in 2020, and it is projected to reach USD 6.74 billion by 2028.
In 2020, Asia Pacific stood at USD 2.18 billion.
The market is expected to grow at a CAGR of 6.2% and exhibit steady growth during the forecast period (2021-2028).
The pyrotechnic inflator segment is the leading segment in this market.
Increased vehicle production, focus on advanced technologies, and demand for safety-equipped vehicles to drive market growth.
Autoliv Inc and JSS hold the maximum share in the market.
APAC dominated the market share in 2020.
The increasing adoption of electric mobility and favorable government initiatives to use lightweight materials are expected to drive market growth. Also, increased government initiative related to safety rules is expected to drive market growth.
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