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The global automotive seatbelt retractor market size stood at USD 7.22 billion in 2020. The market is estimated to grow from USD 7.53 billion in 2021 to USD 11.87 billion by 2028 at a CAGR of 6.72% in the projected period. COVID-19 has had a worldwide impact that is unprecedented and devastating, with the market witnessing a negative demand shock across all regions due to the pandemic. Based on our analysis, the global market exhibited a significant decline of -16.78% in 2020. The sudden rise in CAGR is accountable to this market's demand and growth, returning to pre-pandemic levels once the pandemic is over.
The retractor is part of the seatbelt. It consists of a gearbox, springs, sensors, fireworks equipment, and a mechanism that locks in the event of an accident or collision. If the car suddenly stops, the retractor locks the seat belt. Further, currently, seatbelts are mounted not just in the front seats but also in the back seats. The global scenario wherein the number of road accidents is growing day by day. The requirement for safety features in vehicles has become a mandatory requirement. The innovation in seatbelts is replacing traditional seatbelts, resulting in tremendous growth in the automotive retractor market over the forecast period.
Furthermore, governments are enforcing strict regulations to prevent traffic accidents. Automobile manufacturers are also subject to many laws and regulations mandating them to include safety measures in their vehicles. Moreover, people's rising preference for safety features in vehicles is propelling the automotive seatbelt retractor market growth.
Drop-In New Vehicles Sales Amid COVID-19 To Hamper Market Growth
The global spread of the Coronavirus (COVID-19) disease has significantly impacted the global automotive industry, particularly value and supply chain stakeholders, who have been severely disrupted by COVID-19's rapid spread, starting with China, suppliers all around the world quarantined or shut down production lines entirely. Furthermore, legal and trade constraints, such as closed borders, exacerbated the shortage of required parts and limited supply, particularly for raw materials from Asia, including steel parts, paints, and machinery. Hence, there was a significant delay in delivering previous orders.
OEMs shut down production due to a lack of parts and a just-in-time production strategy that included quarantine measures and a reduced workforce. This is increased by the need to secure liquidity and reduce overproduction due to the low sales. Despite a slight drop in sales at the start of the global COVID-19 pandemic, EV demand remains high, increasing sales. The market is likely to grow due to automobile OEMs' increased vehicle sales, advanced features, and advanced technology development. A rising disposable income has a positive influence on market growth rate.
Companies such as Denso Corporation and Toyoda Gosei have seen a significant decline of around 10-12% in revenue due to the coronavirus pandemic. Hence the decline in sales of luxury vehicles and consumers’ delayed purchase of cars has severely impacted the companies operating in the automotive seatbelt retractors business.
The arrival of COVID-19 vaccinations in early 2021 is predicted to aid the automobile sector, even though the pandemic's duration is difficult to predict.
Increase in Consumer Awareness Related to Vehicle Safety, Increase Use of Lightweight Seatbelt Retractor In-Vehicle to Positively Impact Market
Customers' awareness of the applications of passive safety systems such as seat belts and airbags has increased. Customers are willing to pay a high cost 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 factors such as credibility, safety, and comfort. Moreover, demand for lightweight vehicle parts is increasing significantly in major countries. This trend is seen in retractors; the newly introduced lightweight belt retractor made of plastic pistons instead of the commonly used metal parts. In 2018, ZF launched a lightweight retractor that sets industry standards in terms of weight and packaging. The company was planning to launch a next-generation product at Jeep Wrangler. Hence, wide use of lightweight retractors and customer awareness about safety measures will help the market to propel during the forecast period.
Increase In Vehicle Production And Sales Will Set Positive Trend For Market Growth
Automotive seatbelt retractor systems are standard fitting in luxury and mid-class passenger cars. Moreover, with an increase in the number of models and new types of vehicles entering the market, the demand for automotive retractors is expected to increase significantly. Similarly, the demand for global automotive seats will also increase. Furthermore, expanding middle-class population, rising disposable incomes, and growing urbanization will lead to a rise in the sale of all typed vehicles, which further helps to boost the growth of the automotive retractor business in the coming years.
Increasing Regulatory Requirements Related to Vehicle Safety to Improve Market Growth
Due to rising safety norms by governments, car seatbelt retractor manufacturers will be forced to produce advanced retractors such as the retractor with load limiter, retractor with pyrotechnic pretension, and motorized retractor. 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 like automotive airbags, Sensors, Seatbelts, etc. Furthermore, the rising demand for safety features from the consumer side will show positive growth for the market. Furthermore, the increased penetration of emergency locking retractors and automatic locking retractors and vehicle production and the introduction of more seatbelts per car are significant factors to boost the market.
The increase in road fatalities in road accidents worldwide is a source of concern that will lead to growth in the seatbelt market during the forecast period. In the face of this growth, manufacturers are making considerable investments in the automotive seatbelt market to provide lucrative opportunities for the market.
Increasing Cost of Seatbelt Retractor Replacement May Hamper Growth of Market
The key challenge faced by the market is the high replacement cost of seatbelt retractors. In addition, few manufacturers offer retractors at low prices. The durability of this retractor does not meet consumer expectations. As a result, most consumers are reluctant to buy a vehicle equipped with an advanced retractor.
Furthermore, in some cases, the retractor malfunction after a year of usage, that seatbelt is not getting appropriately retracted. For instance, Jaguar Land Rover North America, LLC recalls specific models such as F-Type, 2020-2021 F-pace, and 2021 XF vehicles due to automatic seatbelt retractor deactivating early. Hence, product recall due to malfunctioning and the high replacement cost of retractors will restraint the market growth during the forecast period.
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Emergency Locking Retractor Dominates Market Owing to High Retraction Force on Seatbelts
Based on technology, the market is segmented into emergency locking retractors, automatic locking retractors, and switchable retractors.
The emergency locking retractor holds the largest share globally, and the same segment is expected to lead throughout the forecast period. The emergency locking retractor segment will be dominating in the forecast period due to technological advancement in the segment. Furthermore, most OEMs prefer emergency locking retractors because a load emitter and pre-tensioner can be installed along with an emergency locking retractor, which possesses high retraction force on seatbelts.
Automatic locking retractor has high growth and low penetration in 2020. The automatic locking retractor segment accounted for 31.86% market share in 2020. The segment will grow during the forecast period due to more excellent performance, and most prefer child safety.
The switchable retractor segment has low penetration and low growth in 2020. The switchable retractor segment accounted for a 21.75% market share in 2020. The segment will show less growth during the forecast period due to less retraction force on seat belts and more OEMs' preference for automatic locking retractors and emergency locking retractors.
Passenger Vehicle Segment Dominates Market Owing to Huge Production of Passenger Cars Worldwide
Based on the vehicle type, the market is bifurcated into passenger vehicles, commercial vehicles.
The passenger car segment accounted for the largest share globally and is expected to dominate the forecast period. Due to rising individual disposable income, the rising sales and production of passenger cars in developing countries will push this segment's market growth. The passenger car segment accounted for 80.06% market share in 2020.
The commercial vehicle segment is also expected to show lucrative growth in the market over the forecast period. It is due to several governments across the world initiatives aimed at improving commercial vehicle safety standards. Increasing production of light commercial vehicles will be a crucial growth factor for the growth of this segment. The commercial vehicle segment is expected to grow at a CAGR of 8.4%.
Asia Pacific Automotive Seatbelt Retractor Market Size, 2020 (USD Billion)
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Asia Pacific contributed to the largest share in the global automotive seatbelt retractor market. Asia Pacific stood at USD 4.05 billion in 2020 and is projected to reach USD 6.13 billion by 2028, at a CAGR of 5.7 % during the forecast period. The region is expected to dominate the global automotive retractor market owing to increasing vehicle production per year in the region's countries. The growing adoption of vital governmental initiatives, use of electric vehicles, autonomous vehicles is likely to accelerate the development of the market in the region during the forecast period.
Europe holds a considerable market share owing to the early adopter of the latest technology & safety measures facilitated by the government, higher adoption rate of electric vehicles, autonomous vehicles, and the second-largest automotive hub, followed by Asia Pacific. The presence of automotive players is likely to fuel market expansion in this region. Europe region is accounted for 1.12 billion in 2020.
North America stood at USD 1.60 billion in 2020 is projected to reach USD 2.77 billion in 2028, at a CAGR of 7.3% over the projected period. North America is expected to show significant growth in the market during the projected period. Due to the rising stringent government regulation for vehicle safety and standard, the high expenditure on product innovation and the fast adoption rate of advanced technology are expected to propel the market in the North American region.
In the seatbelt retractor market, the rest of the world contributes very little compared to the other regions, and this s due to fewer automotive OEMs & retractor suppliers, less presence of all typed vehicles, and low adoption of technology. However, it is anticipated to rise in the coming years at a CAGR of 8.9%. Moreover, Latin America will also show a lucrative opportunity in the coming years.
Strong Product Differentiation and Advanced Technological Development Have Helped Key Companies Establish Dominant Position
Competition among manufacturers in the retractor market is extremely fierce. Notable players in the market are Joyson Safety Systems, Autoliv Inc., Beam`s Seatbelts, GWR Co., Seatbelt Solutions LLC, Far Europe Inc., and ZF Friedrichshafen AG.
Product differentiation and brand identity remain the preferred growth strategy for key players in the market. In addition, market participants rely on mergers and acquisitions, expansion of production units, and penetration into regional markets to gain an edge in this market area. For instance, In January 2021, Toyoda Gosei has proposed merging its two subsidiaries Toyoda Gosei Minda India Pvt Ltd and Minda TG Rubber Pvt Ltd., to improve management efficiency in an Indian market.
An Infographic Representation of Automotive Seatbelt Retractor Market
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The automotive seatbelt retractor market report provides a detailed analysis. The research methodology will focus on crucial aspects such as leading companies, product types, Swot analysis, competitive landscape, and leading product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors contributing to the market's growth over recent years.
Value (USD Billion)
By Technology Type
By Vehicle Type
Fortune Business Insights says that the global automotive seatbelt retractor market size was at USD 7.22 billion in 2020, and it is expected to reach USD 11.87 billion by 2028.
In 2020, Asia Pacific automotive seatbelt retractor market stood at USD 4.05 billion.
The market is projected to grow at a CAGR of 6.72% and exhibit steady growth during the forecast period (2021-2028).
The emergency locking retractor 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.
Joyson Safety Systems, Toyoda Gosei, and Seatbelt Solution holds the maximum share in the market
Asia Pacific dominated the market share in 2020.
The increasing adoption of electric mobility coupled with favorable government initiatives to use lightweight materials is expected to drive market growth. Increased government initiative related to safety rules is expected to drive market growth.
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