Market Trends of Automotive Airbags Industry
This section covers the major market trends shaping the Automotive Airbags Market according to our research experts:
Stringent Automotive Safety Norms are Expected to Drive the Market
Due to the rise in awareness of vehicle safety among all types of vehicles, the automotive airbags market is expected to witness significant growth. As per the statistics, front airbags reduce the fatality in frontal collisions by 29% and side airbags protecting the occupant's head, can reduce the risk of fatal injuries by 37% for a hatchback or a sedan, and by more than 50% for an SUV. Many governments of countries across the globe have mandated the use of certain passive safety devices to mitigate the damage of the collision, airbags are among them.
For instance, the use of Airbags has been maintained in the United States since 1998 and in New Zealand in 2001. So, as of 2014 model year cars, all the new passenger vehicles become have to comply with side airbags federal regulations. As a result, side airbags are a standard feature in the majority of passenger automobiles.
Similarly, in India, the use of dual front airbags maintained was mandated in Q4 of 2019. Since then, all the cars produced in the above-mentioned countries have at least dual front airbags as standard.
Moreover, in countries like Canada, Germany, the United Kingdom, and other European countries, their ist's a specific rule for maintaining airbags. However, the carmakers know the need of such passive safety devices, hence all the cars come equipped with them.
Owing to the awareness and governments pushing or increased vehicle safety almost all the carmaker are offering front airbags as standard. Hence with the increase in the sales of new vehicles, across the globe, the automotive airbag market is expected to grow.
For instance, in March 2022, Ford launched its compact Hatchback Focus in United Kingdom. The car features dual frond airbags, side airbags and curtain airbags as standard across all variants.
Although the number of vehicles sold in various countries witness a slight decline in sales because of the halting of manufacturing due to the global pandamic. With time, demand for new vehicles has seen an increase over the past year.
For example, in 2019 in Australia about 800,000 units of new passenger vehicles were sold, which decreased to nearly 670,000 units. But in 2021, the sales saw a derastic increase in of about 11% to a little over 750,000 units. And among the 750,000 units of new passenger vehicles sold, more than 95% of them were equipped with at least front airbags.
Additionally, as most of the countries have maindaited at least frond airbags, the front airbag segment is expected to lead the market in the forecast period.
Asia-Pacific is Expected to Witness Significant Growth In the Forecast Period
The increased consumer preference for safety and comfort features, the increased penetration of Side and Curtain airbags in mid-level cars, and the rising demand for safety features in vehicles are primarily responsible for the growth of advanced safety in passenger cars and commercial vehicles in the Asia-Pacific region. The demand for airbags is also anticipated to increase over the forecast period as a result of government initiatives to improve passenger safety as well as falling system and component costs.
In the Aisa-Pacific region, countries like China, Japan and India are driving the automotive airbag market owing to the immense demand for cars in both the countries coupled with government regulations. China is leading the vehicles sales with more than 21 million passenger cars sold in the country, followed by Japan with 4 million units of passenger cars in 2021. Despite the pandemic, China's car sales have bounced back in 2021, which is marginally more than in 2019 figures.
Additionally, India being an emerging economy, it has significant demand for airbags due to the rising awareness among people and the government. For instance, after maindating dual front airbags in 2019, in Martch 2022, the government has made 6 airbags compulsory in cars in India. Now all the cars manufactured after 1st October 2022, will come with 6 airbags as standard. Because of this, many car makers have started incorporating 6 airbags as standard in across all variants.
- For instance, in February 2022, Kia launched their new MPV in India that cames equipped with 6 airbags as standard across all variants.
- In February 2022, Maruti Suzuki launched the new Baleno that comes with 2 airbags as standard and 6 airbags for the top two variants.
Hence with new vehicles launch with at least two airbgas, in aisa-pacific region, the increase in demand and sales of new passenger cars is expected to drive the automotive market in the Asia-Pacific region.
