Automotive Airbag Market Report 2024 (Global Edition)

MARKET DYNAMICS: KEY DRIVERS

Increasing awareness regarding strict laws and safety eventually boosts market growth

The main growth drivers for the automotive airbag market due to strict government rules as there are rising number of accidents around the world. The airbag system is essential to ensure the safety of the people. Consumers have increasingly become aware that when an airbag has the potential to prevent injuries, it should always deploy in a collision. Its main purpose is to prevent injuries to the head, neck, and chest that you could otherwise sustain in its absence. This implies that in the unlikely event of a collision when there is a risk of a head injury from striking the steering wheel, a frontal air bag should theoretically activate. Reliability, security, and convenience are examples of factors that operate as stimulants and influence what people decide to buy. Many companies are creating cutting-edge airbag technologies to safeguard their customers' security. To adhere to safety and reports of increasing accidents all over the world the automotive airbag market is the fastest-growing industry as there is also a rise in the number of airbags in the vehicles.  A growing focus on passenger safety has led to the development of modern airbag systems that provide enhanced protection. For instance, in November 2021, for improved safety conditions, Autoliv Inc. launched a strategic partnership with a major player in manufacturers and scooters Piaggio Group for the development of airbags for two-wheelers which will ensure safety. Therefore, Increasing awareness regarding strict laws and safety is a key growth driver.

The rising disposable income impact further boosts the Automotive airbags market growth

The demand for automotive airbags has somewhat grown as a result of customers' higher investments in security equipment. This is partly due to growing levels of disposable income. Future market dynamics might also be influenced by growing consumer awareness of technological developments related to automotive security features. Two-wheeler airbag technologies might lead to new developments in the car airbag industry. Market growth for airbag systems is predicted as a result of customers' increased awareness of safety features. A growing focus on passenger safety has led to the development of modern airbag systems that provide enhanced protection. Technological advancements like complex algorithms, cameras, and sensors have improved the effectiveness of airbag systems and are driving the rise of the market revenue. The growing need for automotive airbag systems is also predicted to occur in the next years due to the growing popularity of electrified and connected automobiles. Further technological advancements in the airbag industry would boost demand and increase the market share of the industry. For instance, in 2021 the world’s largest automobile producer in Europe announced Individuals under 30 have been switching from bikes to cars, which had the highest demand. The tendency is particularly apparent in emerging nations like India due to increased discretionary income, high employment rates, well-paying jobs, and simple access to vehicle loans. In India, there is a significant rise in the level of disposable income which has resulted in growing and expanding consumer preferences for automobiles. Indian market is price-sensitive which is why affordability and value for money have always been important concerns for the consumers. However, because of rising disposable income there are other factors that today are equally important for consumers like safety, comfort, and ease of driving. For instance, in 2023, there was a significant rise in the number of SUVs. The share of the SUV segment in India's passenger vehicle market climbed to 43 percent in FY 2022-23 from just 16 percent in FY 2015-16. SUV sale volume stood at 1.7 lakh units in FY 2022-23. Therefore, rising disposable income is a growth driver for the automotive airbag market. 

Restraints

Quality Issues and higher costs may hamper the growth of Airbags 

Manufacturers often compromise quality and safety as there are a lot of automobile manufacturers that supply low-cost airbags just to adhere to the safety rules. This is generally seen in developing nations where airbag systems are not that prevalent. Therefore, the quality of the airbags is not up to the consumer’s expectation causing lower demand for the product and hindrance in the overall growth of the global automotive airbag market. The automotive airbag industry includes higher installation costs and replacement costs as well as barriers to exit. The high installation costs are not affordable to all consumers, especially in developing nations where consumers are quite price-sensitive to the market. making it a barrier to the market. Nevertheless, passenger safety is compromised to reduce costs, and the airbag system's longevity falls short of what customers would have expected. If there is a malfunctioning sensor, it might trigger the airbag even in the absence of a collision or stop it from going off in the case of one. While some airbags fail to inflate rapidly enough to withstand the stress of a collision, others inflate too quickly and explode. Moreover, some chemical chemicals used to aid in deployment may result in blindness, hearing loss, burns, abrasions, or trouble breathing. This discourages consumers from buying cars equipped with airbags, which impedes the expansion of the global automotive airbags industry. Airbags reduce car accidents but there are also reports of airbag injuries depending on whether the airbags are defective or not. For instance, in 2023 Honda had called to recall 750000 vehicles for a defect that could have deployed airbags. Thus, Quality Issues and higher costs are restraints on the market. 

Opportunities

Increasing emerging economies in the transportation industry will further create lucrative opportunities for the market 

Growing urbanization, rising per capita income, and worries about family safety are all factors contributing to the market's growth throughout the projection period in developing market countries and the rate of automotive ownership. As a result, more people are using passenger cars in emerging countries, which will aid in the industry's expansion. The demand for automotive airbags has skyrocketed due to the increased requirement for safer vehicles that can provide passengers with superior protection in the case of an accident. This is because customers in emerging countries are becoming more conscious. Nowadays, airbags are a must-have safety feature in modern cars. 
With new developments and technology that would improve airbag efficacy and overall safety, the airbag market is anticipated to expand even more as the automotive industry continues to change. With the increase in demand for Electric Vehicles (EVs), the automotive airbag market would see greater opportunities for players in the industry leading to exponential growth. For instance, in December 2021, Continental AG a factory in Bengaluru, India started to launch one million airbag units and would increase extra units in the upcoming years. For instance, in 2021, ZF Friedrichshafen AG announced a joint venture in India acquiring a large stake with the Rane Group. It is going to produce airbags and seatbelts to capture the market in India driving growth of the industry. Therefore, Increasing emerging economies in the transportation industry are seen as an opportunity for the automotive airbag market.

Impact of COVID-19

COVID-19 had a negative impact on the automobile industry. The demand for airbags declined due to the impact on the automobile industry. his was caused by many factors, including complete and partial shutdowns of manufacturing facilities, restricted commodities movement, a prohibition on import and export activity, and the closure of showrooms, among others. For the first six months of 2020, India's car industry came to a total halt. As a result, automakers were forced to shut down most of their operations and restrict operational manufacturing capacities. As a result, only a small number of automobiles were produced. Covid-19 has disrupted the automotive airbag supply chain globally resulting in a decline of airbag fabric production. This also resulted in the decline of R&D Investments in the automotive airbag fabric sector and automotive airbag silicone. For instance, Hyundai witnessed an increase in vehicle sales in June 2021 in comparison to June 2020 after the pandemic. 
 

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Automotive Airbag Market is witnessing significant growth in the near future.

In 2023, the Driver Front Airbag segment accounted for noticeable share of global Automotive Airbag Market and is projected to experience significant growth in the near future.

The Passenger Vehicles segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Autoliv, Key Safety Systems and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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