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The global automotive seat belt market size was USD 12.04 billion in 2019 and is projected to reach USD 18.18 billion by 2027, exhibiting a CAGR of 5.3% during the forecast period.
The automotive seat belt is an essential element in the vehicle. The seat belt is designed in such a way that it supports to avoid injuries to the drivers in case of an accident. Seat belts ensure that less contact is made between the occupant and the vehicle and further lowers the risk of drivers being thrown out from the car during mishaps. They help the vehicle occupants to maintain their position especially, through sharp turns. According to the World Health Organization, wearing seatbelts minimizes the risk of fatalities, especially among co-drivers and drivers. However, passengers who do not wear seat belts are more exposed to frontal crashes and have high probabilities to suffer from fatal injuries such as death.
Reduced Investment in Development of Advanced Seatbelt Systems and Increase in M&A Activities Owing to COVID-19
The automotive & transportation sector is amongst the most affected verticals by the COVID-19 outbreak and is experiencing unprecedented uncertainty. The pandemic has had a severe and swift impact on the integrated automotive sector globally. The indications include disruption of the large-scale manufacturing operations across Europe, reduced parts exports from China, and the closure of assembly plants and factories in the United States.
The automotive industry is handling a downshift in global demand and likely to experience an increase in acquisition & merger (M&A) activities by the companies. However, industries may be reluctant to relocate production locations. For example, manufacturers operating production facilities in China are reluctant to relocate to other countries such as in South East Asia and Eastern Europe owing to the availability of cheap labor and the high demand for their products in China. Most of the automakers announced declining production and sales.
The removal of a large number of passenger cars from production schedules directly impacts the profitability of key players operating in the market. For instance, the revenue base of Autoliv, one of the largest makers of seatbelts, is dependent on production volumes. Owing to COVID-19, a sizable revenue drop of about 15 percent from USD 8.6 billion in 2019 has been estimated according to a report published by the company in May 2020. Hence, the company will be compelled to reduce funding for initiatives such as the development of advanced yet cost-effective seatbelt systems, among other products.
Hence, reduced funding for R&D initiatives and the consolidation of smaller market players facing liquidity issues is expected over the next two years.
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Leading Regulatory Authorities such as Euro NCAP and NHTSA Endorsing Seat Belt Safety to Stoke Demand
The automotive seat belt market is anticipated to grow considerably during the forecast period due to the increasing awareness amongst the public regarding the stringent and safety guidelines implemented by several regulatory authorities across the globe. Vehicle safety organizations such as the Euro NCAP and NHTSA in the US have actively endorsed the use of seat belts owing to the rising number of injuries and death toll in case of an accident. This has propelled key automotive players to develop technically innovative seat belts such as active seat belts, inflatable seat belts, and active pre-tensioners. The increasing sales of cars and the growing adoption of improved safety methods are further contributing to the market growth during the forecast period.
Increasing Road Fatalities to Promote Growth
Road accidents are one of the leading causes of deaths across the globe and are much higher than HIV-AIDS. According to the World Health Organization (WHO), road accidents account for approximately 1.35 million deaths each year. Additionally, another 49 million people suffer non-fatal injuries, with many of these people incurring a disability owing to such accidents.
Taking into consideration the alarming number of casualties caused by road accidents worldwide, governments have implemented strict guidelines on automobile engineering for the installation of seat belts. Key players are coming up with advanced technology, such as notifying the driver to put on a seat belt while driving. For instance, the intelligent seatbelts developed by Nissan utilize a motorized retractor to help control fit, and the tight functioning of this system ensures occupants or the driver feel secure during abrupt maneuver or skid. These factors are driving the growth of the market.
Growing Demand for Active Pre-Tensioners and Inflated Seat Belts to Drive the Market
The increasing adoption of technologically improved inflated seat belts in developed as well as developing countries due to the growing demand for luxury cars is anticipated to drive the market. These seat belts act as mini airbags and give protection to back passengers to avoid head injuries caused by front seats in case of an accident. They further act as a pillow to tender bones of adults and children, helping to avoid breaking or fracturing of collar bones. The rising demand for the installation of inflated seat belts in passenger cars, especially in luxury cars, is anticipated to increase the automotive seat belts market growth during the forecast period.
High Maintenance and Operating Cost to Hinder the Market Growth
The key restraint affecting the global market is the cost associated with the technologically advanced seat belts. Moreover, the high maintenance cost of technologically advanced seat belts is hampering the growth of the market. These factors are likely to hinder the growth of the market during the forecast period.
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Three-Point Seat Belt to Dominate the Market
Based on seat belt type, the market has been segmented into two-point, three-point, and others.
The three-point seat belt segment holds the major automotive seat belt market share and is anticipated to dominate the global market during the forecast period. This type of belt provides support to the passenger's pelvis and upper body and helps to reduce injuries. Along with providing support to the occupant's body, three-point seat belts help to absorb the impact during a crash.
The two-point seat belt segment is expected to showcase slower growth during the forecast period as they do not provide a similar level of occupant protection as compared to three-point seat belts. However, owing to their cost-effectiveness, they are utilized in low-end automobiles.
Passenger Car Segment Dominated the Market in 2019
By vehicle type, the market is segmented into passenger cars and commercial vehicles.
The passenger car segment is anticipated to hold the majority of the market share. This is attributed to the increasing production of passenger cars such as SUVs, luxury, and premium cars, which in turn, is projected to boost the demand for inflated seat belts and active pre-tensioners.
The commercial vehicle segment is expected to showcase considerable growth owing to the stringent government regulations on the use of safety features. For example, on 6th July 2016, FMCSA made changes in its federal motor safety regulations by making it mandatory to use seat belts when commercial vehicles are plying on public roads.
Asia Pacific Automotive Seat Belt Market Size, 2019 (USD Billion)
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In 2019, Asia Pacific market stood at USD 7.26 billion. The region is expected to dominate the market during the forecast period owing to the increasing vehicle production and sales in developing countries such as India and China. Manufacturers in this region are focusing on the introduction of advanced seat belts aiming to strengthen their market position and have a leading edge. The rising disposable income of consumers is expected to increase the sale of passenger cars, which, in turn, would drive the automotive seat belt market growth in the region.
North America is expected to be the second-largest market. The implementation of stringent government policy towards the safety of the passengers is one of the primary market trends in the region. Various safety programs such as 5-Star Safety Ratings Program implemented by the National Highway Traffic Safety Association (NHTSA) in the US to enhance the occupant's safety are expected to attract high market revenue during the forecast period.
Europe is anticipated to showcase significant growth during the forecast period. Stringent government regulations regarding the adoption of seat belts are expected to boost the market in this region. Additionally, massive investment in R&D by major players has led to the manufacturing of technologically advanced systems. The early adoption of advanced active safety features such as inflated seat belts and active pre-tensioners systems is further expected to contribute to market growth.
The market in the rest of the world is characterized by supportive government regulations, increased availability of cost-effective seatbelt systems, and the surging demand for vehicles, which is attributed to the rising disposable income of consumers. These factors are fueling the growth of the market in this region.
ZF Friedrichshafen AG and Hyundai Mobis Co. Ltd, Focus on Enhancing Production Capacity to Maintain Dominance
Key companies in the market include ZF Friedrichshafen AG, Robert Bosch GmbH, Tokai Rika, Co, Ltd., Hyundai Mobis Co. Ltd, and Ashimori Industry Co., Ltd, among others. Owing to the increasing stringency of safety regulations particularly in emerging economies, the demand for safety systems has increased exponentially over the last few years. Hence, key players such as ZF Friedrichshafen AG and Tokia Rika are investing in enhancing production capacity in developing countries.
For instance, Rane TRW Steering Pvt Ltd., a joint venture between ZF Group and Rane TRW Steering, opened a new facility in Tamil Nadu, India, in February 2019 for the manufacturing of occupant safety products, intended to ramp up the production of seat belt assemblies and airbags. Hence, the expansion of manufacturing capabilities by the key market players is expected to fuel the growth of the market.
An Infographic Representation of Automotive Seat Belts Market
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The automotive seat belt market research report provides a detailed study analysis, besides focusing on key aspects such as leading companies, product types, and leading application types of the product. Moreover, the report offers insights into market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over the years.
Value (USD billion) & Volume (Units)
By Vehicle Type
Fortune Business Insights says that the market was at USD 10.37 billion in 2018 and is projected to reach USD 14.37 billion by 2025.
In 2018, the market was at USD 10.37 billion.
Growing at a CAGR of 4.9%, the market will exhibit steady growth in the forecast period (2019-2025)
The seat belts type segment is expected to be the leading segment in this market during the forecast period.
Stringent regulations regarding occupant safety is the key factor that is driving the global market.
ZF FRIEDRICHSHAFEN AG, Hyundai Mobis, are the top players in the market.
Asia-Pacific is expected to hold the highest share in the global market.
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