Automotive Airbags Market Size, Share & COVID-19 Impact Analysis, By Type (Frontal Airbag, Side Airbag, Knee Airbag, and Others), By Vehicle Type (Hatchback/Sedan, SUV, LCV, and HCV), By Component (Airbag Inflator, Impact Sensors, Indicator Lamp, and Others), and Regional Forecasts, 2023-2030

The global automotive airbags market size was valued at USD 15.01 billion in 2022. The market is projected to grow from USD 15.54 billion in 2023 to USD 23.26 billion by 2030, exhibiting a CAGR of 5.9% during the forecast period.

An automotive airbag refers to a safety device that is designed to rapidly inflate and cushion the occupants in a vehicle during a collision. The purpose of airbags is to reduce the risk of serious injury, providing safety to passengers against hitting the hard surface in a vehicle.

Modern automotive airbags are typically lightweight, built with high-strength materials, and designed to inflate in milliseconds. With the growing awareness of automotive safety, the demand for automotive airbags is increasing. Governments from several nations are mandating the use of airbags in vehicles, which is driving the automotive airbags market growth in the near future. However, limited adoption of airbags in low-end vehicles due to high cost constraints hampers the market growth. The growing demand for passenger cars and technological advancement in the market fuels airbags adoption.

COVID-19 IMPACT

Drop in New Vehicles Sales and Supply Chain Disruption amid COVID-19 Hampered Market Growth

The COVID-19 pandemic impacted the global economy, and the automotive industry has not been immune to its effect. The airbag market was hit significantly due to the pandemic in several ways.

One of the significant impacts was the supply chain disruption that occurred globally. With several countries imposing lockdowns and travel restrictions, the movement of goods and people was severely limited. This made it difficult for manufacturers to obtain raw materials and components, leading to production delays and supply chain disruptions. For instance, automotive component manufacturers, such as Toyoda Gosei and Autoliv, witnessed a decline in revenue by approximately 10%-12% due to the pandemic.

The pandemic also led to a reduction in vehicle sales and production, which ultimately affected the airbag market. However, leading automakers in Asia, such as Maruti Suzuki and Hyundai, are witnessing a steady recovery in vehicle production and consignments. For instance, in June 2021, Hyundai witnessed sales of 354,409, an increase of 14.38% in vehicle sales compared to June 2020, which was 309,827 units globally.

The market faced some short-term challenges during the pandemic, which later started to recover post-pandemic due to rise in vehicle production going back to normal. Also, increasing vehicle safety regulation is alternatively likely to boost market growth.

LATEST TRENDS

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Rapidly Growing Awareness Regarding Vehicle Safety amongst Consumers is Supporting the Demand for Airbags 

Owing to strict regulations imposed by governing bodies, such as the National Highway Transport and Safety Authority (NHTSA) and the European Commission, and safety awareness campaigns carried out by several private organizations, passenger safety awareness is aggregating amongst customers. These factors are eventually leading consumers to tend toward advanced safety systems and features in automobiles.

One of the chief factors fueling the demand for safety features is demonstrated technology. Safety, reliability, and comfort factors act as a promoter and influence the consumers' buying preferences. Various companies are focused on developing new airbag technologies to ensure customer safety. For instance, Hyundai Mobis developed a Brain Injury Prevention Airbag, which received an unadulterated score in the Brain Injury Criteria (BrIC) in the crash test conducted by the U.S. National Highway Traffic Safety Administration (NHTSA).

DRIVING FACTORS

Growing Consumer Demand for Improved Safety Features due to Increasing Vehicle Fatalities is the Key Driver 

The market is principally driven by the rising concerns over vehicle safety as well as regulatory mandates requiring the installation of automotive airbags. Consumers tend to adopt advanced safety features, including airbags in vehicles for increased safety. Increased road fatality is expected to surge the demand for airbags. For instance, in January 2023, the NHTSA estimated 31,785 fatalities in 2022 due to traffic crashes. The number decreased by 0.2% in 2022 compared to 2021, which leads to the importance of automotive airbags for increasing safety and preventing fatalities in accidents.

Additionally, a rising number of road accidents and fatalities globally led to supportive government initiatives to promote vehicle safety, which is expected to boost the market growth of automotive airbags and fuel the demand for the product in new and high-end vehicles with new types of airbags. For instance, in September 2022, the Union Road Transport and Highways Ministry of India announced that the mandatory installation of 6 airbags in all new vehicles would be put into force from October 2023.

Prominent players in the market are focused on the development of smart airbags that can detect the size and weight of passengers. Thus, advancement in airbag technology will also drive the growth of the market in future.

RESTRAINING FACTORS

High Product and Installation Cost of Airbag Systems Hampers the Market Development

The high cost of airbags can be a significant barrier to the market growth. Airbag systems add up the additional cost to the price of vehicles. The high cost of automotive airbags makes them less affordable to budget-conscious consumers, particularly in emerging markets where cost is a major consideration for vehicle purchases.

This leads to lower airbag demand in emerging nations, impacting the market. Therefore, the high airbag cost is a significant challenge for the market. However, vehicle manufacturers are alternatively focused on reducing the cost of airbags, and government initiatives for mandating the installation of airbags in vehicles are likely to boost the market over the period.

SEGMENTATION

By Type Analysis

Frontal Airbag Segment Dominated owing to Standard Add-ons of Frontal Airbags in All Types of Vehicles

Based on type, the market is divided into frontal airbag, side airbag, knee airbag, and others.

The frontal airbag segment held a significant share in 2022 and is anticipated to lead during the projected period. Driver airbags are standard fitted in every model of vehicle, which boosts the growth of the segment. Moreover, increasing safety concerns in the automotive industry have led to the installation of frontal passenger airbags, which will propel the market in the forecast period.  

The side airbag segment held a significant market share in 2022. With increasing focus on safety and tightening of safety regulations around the world, many automakers are incorporating side airbags into their vehicles to meet these requirements. This drives the segmental growth in the global market.

The others segment includes airbag types such as knee airbags, pedestrian airbags, and others. The growth of these types of airbags is associated with increasing safety concerns and technological development in the automotive industry.

By Vehicle Type Analysis

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SUV Segment Dominates the Market Owing to Increased Sales of Vehicle

Based on vehicle type, the market is characterized as hatchback/sedan, SUV, LCV, and HCV.

The SUV segment dominated the market in 2022 due to the growing demand for SUVs in recent years, as consumers have increasingly gravitated toward vehicles that offer more space, utility, and versatility. This led to an increased number of SUVs on the road, which augments the airbag demand.

The hatchback/sedan segment holds a substantial share of the market. The segment's growth is associated with the popularity of these types of vehicles in urban areas. As the number of sales of these vehicles increases, the demand for airbags for automobiles also augments, which fuels the segment's market growth.

Light Commercial Vehicles (LCVs) and Heavy Commercial Vehicles (HCV) are less likely to adopt the airbag system as the area of application is significantly less in these types of vehicles. However, due to safety regulations, manufacturers may be installing driver airbags in these vehicles which leads it to holding a certain market share.

By Component Analysis

Technological Development in the Market Advances the Others Segment

Based on component, the market is characterized by airbag inflator, impact sensors, indicator lamp, and others.

The others segment is expected to dominate market share throughout the forecast period. The others segment includes the remaining components of airbags, including clock springs, wiring harnesses, and others. The growth of these components is associated with the advancement in technology, such as using lightweight and durable materials, and increasing demand for automotive safety features, thus propelling the market growth.

The airbag inflator segment growth is attributed to technological advancements in recent years. For instance, there has been a shift toward the use of pyrotechnic inflators, which use a small explosion to rapidly inflate the airbags. This drives the growth of the segment.

The impact sensors segment holds a substantial market share in 2022. Impact sensors are critical components of airbag systems. They detect the severity and location of an impact and then trigger the deployment of the airbag. Due to this, impact sensors play a vital role in the automotive airbags system, which fuels its demand in the market.

The indicator lamp segment growth is attributed to the regulations in several countries that require vehicles to have warning lamps to indicate the status of the airbag system. The indicator lamp ensures the drivers with any issue with the airbags system, which creates a demand for the segment in the market.

REGIONAL INSIGHTS

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Asia Pacific Dominated the Market Share in 2022 with Increased Vehicle Production

Asia Pacific held the largest automotive airbags market share in 2022. Asia Pacific is the home to some of the world’s largest automotive manufacturers such as Toyota, Honda, and Hyundai. These companies produce millions of vehicles each year, which leads the region to the demand for the Asia Pacific market.

Europe held a substantial market share in 2022. Europe is home to many luxury and high-end car brands such as BMW, Mercedes-Benz, and Audi. These brands often incorporate advanced safety features, including airbags, in their vehicles, driving the product demand.

North America held a certain market share in 2022. The growth is attributed to the strict safety regulations for automobiles, including mandatory airbag installations in new cars. In North America, due to the strict enactment of regulations, frontal airbags have been mandatory standard equipment for all passenger and commercial vehicles-LCVs (light commercial vehicles) since 1998. Thus fuels the market.

The Rest of the World includes Latin America and the Middle East & Africa. Both regions are witnessing a rise in demand for passenger vehicles due to increasing urbanization and rising disposable incomes. This ultimately is fueling the demand for safety features, which can include automotive airbags.

KEY INDUSTRY PLAYERS

Autoliv Inc. Leads the Market with Dominant Share

The key players are focused on the development of advanced technology automotive airbags. For instance, Autoliv is a noticeable player, which develops life cell airbags that help provide protection regardless of the way the driver and passenger are seated. Other airbag manufacturers are focused on developing advanced airbag systems similarly such as knee airbags, side airbags, and roof airbags.

LIST OF KEY COMPANIES PROFILED:

• Joyson Safety System (U.S.)


• Autoliv Inc (Sweden)


• Toyoda Gosei Co. Ltd (Japan)


• Robert Bosch GmbH (Germany)


• Hyundai Mobis Co. Ltd (South Korea)


• Denso Corporation (Japan)


• Magna International (Canada)


• Hyundai Mobis Co. Ltd (South Korea)


• Aptiv PLC (Ireland)


• Magna International (Canada)


• Valeo SA (France)


• ZF Friedrichshafen AG (Germany)

KEY INDUSTRY DEVELOPMENTS:

• April 2023− Autolive announced to build a new airbag cushion with a fabric plant in Vietnam. The company established a facility in Amata City Ha Long Industrial Park, Vietnam, to increase the airbag system production for catering to the growing Asia Pacific regional market.


• May 2022− ARC Automotive Inc., a leading manufacturer of inflation systems, signed a partnership with Yanfeng, a leading global automotive supplier. Under the partnership, both companies formed a joint venture to develop, produce, and commercialize automotive airbag inflators.


• November 2021 – Autoliv, Inc., a supplier of automotive safety systems, and SSAB, a global steel manufacturer, have begun working together to research and create fossil-free steel components for car safety goods such as airbags and seatbelts.


• November 2021 - Autoliv Inc. announced a strategic partnership with Piaggio Group, one of the leading manufacturers of motorcycles and scooters. The collaboration is focused on the development of airbags for powered two-wheelers for enhanced safety.


• March 2020 - Hyundai Mobis announced the certification of its new innovative roof airbag system by the National Highway Traffic Safety Association (NHTSA) for its use in passenger cars.

REPORT COVERAGE

An Infographic Representation of Automotive Airbags Market

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The report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition, the report encompasses several factors contributing to the market's growth in recent years.

Report Scope & Segmentation