Automotive Airbags Market Size, Share & COVID-19 Impact Analysis, By Application (Knee, Side, Front, Curtain), By Vehicle Type (Passenger Car, Commercial Vehicle) and Regional Forecast, 2020-2027

The global automotive airbags market size was USD 9.67 billion in 2019 and is projected to reach USD 20.13 billion by 2027, exhibiting a CAGR of 9.6% during the forecast period.

This report covers COVID-19 impact analysis on Automotive Airbags Market

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According to a study conducted by the World Health Organization (WHO) in 2018, 1.4 million people globally die per year in road accidents. Additionally, 20-50 million people suffer from fatal injuries caused by road accidents. This phenomenon is not only causing human suffering but is also affecting about 3% of GDP drop in some countries. The World Health Organization (WHO) has launched an objective to cut fatalities into half by 2030. Therefore, many countries are implementing stringent safety regulations for driver and pedestrian safety and also urging OEMs to install airbags in passenger cars and commercial vehicles. Additionally, the Global New Car Assessment Program (NCAP) is also supporting the adoption of safety restraint systems in vehicles for decreasing road accidents and severe injuries.

Impact of COVID-19 Pandemic on the Market

Numerous regions continue to remain weak owing to their limited capacity to manage additional outbreaks of the COVID-19. Irregular and sudden lockdowns being reintroduced in various countries have negatively impacted the business. This has further impeded automaker's revenue generation. However, in Asian countries, leading automakers Hyundai and Maruti Suzuki are witnessing a steady recovery in automobile production and consignments since the unlocking. For instance, the sale of Hyundai in June was 21000 units and has been doubled in July to 42000 in India.

There is a massive fall in the market. For example, Autoliv, one of the largest makers of airbags announced "unprecedented" challenges in the second quarter after European and North American markets reached the threshold in April owing to the pandemic.

The government of the US is focusing on certain mutual surpluses as well as cumulative surpluses, missing the basic point that current account and combined trade surpluses in an economy is the outcome of core macroeconomic imbalances between investment and collective domestic savings which are improbable to be affected by trade actions alone. Protectionist actions by the US government against Chinese imports have led to imports from alternative sources among various other nations. The very recent drops in the US’ overall trade shortfall reflect changes in global trade, precisely affected by the COVID-19 outbreak.

LATEST TRENDS

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Leading Bodies Across the Globe Have Actively Endorsed the Use of Airbags

The increasing technological advancements in automotive airbags, such as pedestrian airbags, external airbags, rear-seat airbags, and roof airbags are also expected to drive the market growth during the forecast period. The National Highway Traffic Safety Administration anticipated that airbags with a combination of seat belts lower the risk of severe head injury by about 80%, compared with a 60% reduction for seat belts only. However, the implementation of airbags in vehicles is not compulsory in some countries and this may affect the demand for airbags in those regions.

DRIVING FACTORS

Increasing Consumer Awareness Regarding Safety to Drive Market

The severe fatalities to the human body caused by road accidents have led to high awareness among the consumers. The rising awareness among the general population is one of the key market trends that will boost growth during the forecast period. The increasing disposable income has also led the consumers to spend more on safety features. The increasing consumer spending on pre-installed safety systems in v3

ehicles has resulted in higher investment opportunities for prominent players. The inclusion of the active and passive safety systems in automobiles also offers better comfort and driving experience to the end-users, which further accelerates the growth in the market.

Stringent Government Regulations for Passenger Safety to Propel Market

The increasing number of road accidents has led to the imposition of stringent safety regulations by government bodies on vehicles. The European Union safety regulation involves mandatory airbags in all passenger cars, which is expected to drive the growth in the region. The growing demand for high-speed engines and better performance vehicles has further increased the risks of fatalities during road accidents. This has made it very essential for the automakers to provide appropriate safety systems along with robust vehicle structures. The inclusion of automotive airbags in the vehicle intended to protect the occupants from all possible accident scenarios can have a positive impact on the market.

RESTRAINING FACTORS

High Maintenance and Operating Costs to Hinder Market Growth

The key restraint affecting the global market is the cost associated with technologically advanced airbags. Moreover, the high maintenance cost of technologically advanced airbags is hampering the growth of the market.

SEGMENTATION

By Application Type Analysis

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Front Airbag Segment to Hold the Largest Market Share During the Forecast Period

By application type, the market is segmented into the knee, front, side, and curtain. The front type segment accounts for the largest automotive airbags market share and is anticipated to dominate the market over the forecast period. Frontal airbags reduce the greatest number of fatalities as the majority of accidents tend to be head-on collisions. The curtain-type segment is also expected to propel the growth of the market. These airbags reduce the risk of severe injuries to the head for the passenger sitting on the side, by approximately 50%. Also, the increasing installation of curtain-type airbags in commercial vehicles is likely to surge demand. For example, Scania's next-generation trucks are now equipped with rollover side curtain airbags for the driver's safety during rollover accidents.

By Vehicle Type Analysis

Passenger Car Segment to Dominate the Market

Based on vehicle type, the automotive airbags market has been segmented into passenger cars and commercial vehicles. The passenger car segment holds the largest market share in the market and is also anticipated to dominate the market during the forecast period. The increasing sales and production of passenger cars in developing countries is expected to propel the market's growth. The rising stringency in government regulations with regards to passenger safety is also likely to drive the growth of the market.

The commercial vehicle segment is also expected to show significant growth in the market over the forecast period. According to the information provided by the Federal Motor Carrier Safety Administration (FMCSA) in 2017, 0.45 million crashes of heavy-duty commercial vehicles were reported in the U.S. itself. The rising number of commercial vehicle crashes has led vehicle manufacturers to deploy vehicle safety systems to enhance occupant's safety. This factor is likely to drive the commercial vehicle segment growth.

REGIONAL INSIGHTS

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The market for automotive airbags is segmented into North America, Europe, Asia-Pacific, and the rest of the world. Europe is anticipated to dominate the market during the forecast period owing to stringent government regulations regarding occupant and pedestrian safety for the vehicle. Moreover, major European countries, such as Germany, France, the United Kingdom, and Sweden are promoting Euro NCAP results actively. Sweden is promoting its in-house travel policy to have a 5-star safety rating for vehicles that are used for official business.

North America is also expected to show significant growth in the market during the forecast period. According to the Intermodal Surface Transportation Efficiency Act of 1991, it is mandatory to have airbags in the passenger cars and light-duty commercial vehicles. This factor is driving the automotive airbags market's growth in this region. Asia Pacific is also anticipated to experience healthy growth. The increasing sales and production of vehicles in developing countries such as India and China are expected to propel market growth in this region. Growing awareness among the customers regarding the vehicle safety system is also likely to aid the market in Asia Pacific.

KEY INDUSTRY PLAYERS

Key Players Focus on Investing in R&D to Develop Front-center Airbag for Gaining More Share

The global market is dominated by some of the leading companies owing to their critical strategic decisions, robust product portfolio, and dominance of market share. These include a group of key companies with more extensive geographic presence and persistent R&D, resulting in secure regulatory approvals. ZF Friedrichshafen AG has accelerated transformation to adjust the new market situation by investing in future markets by laying the foundation for the new division of the electric car drives.

LIST OF KEY COMPANIES PROFILED:

• ZF Friedrichshafen AG (Germany)


• Continental AG (Germany)


• Denso Corporation (Japan)


• Hyundai Mobis (South Korea)


• Autoliv (Sweden)


• Joyson Electronic (China)


• Robert Bosch GmbH (Germany)


• Other Players

KEY INDUSTRY DEVELOPMENTS:

• November 2019: - Autoliv developed a new front-center airbag that will protect the front seat passengers in side-impact crash situations and also from sustaining injuries to the chest and head. These automotive airbags also help to avoid driver-to-passenger and driver-to-interior impacts.


• May 2019: - ZF Friedrichshafen AG is planning to expand a network of investments and cooperation by acquiring a 90% market share of the software specialist for the occupant recognition company, a Simi Reality Motion System. In autonomous driving, this system is a fundamental element for integrated safety as it will help the vehicle system to recognize the location, position, and size of the occupant.


• March 2018: - ZF Friedrichshafen AG developed a new knee airbag module, which is light in weight. The new knee airbag module features a vastly flexible design for a variety of vehicle interior configurations and sizes.

REPORT COVERAGE

An Infographic Representation of Automotive Airbags Market

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The Automotive Airbags market research report provides a detailed study analysis, besides focusing on key aspects such as leading companies, product types, and leading types of applications 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.

Report Scope & Segmentation