The global automotive safety airbag market is projected to grow at a CAGR of 5.03% during the forecast period, reaching a total market size of US$14.873 billion in 2027 from US$10.548 billion in 2020. The rising number of road accidents worldwide is the major driver of the global automotive safety airbag market. According to the WHO (World Health Organization) latest data, around 1.3 million road accidents take place every year across the globe. In order to combat this growing number of deaths due to road accidents, governments across various countries are implementing stringent regulations and standards in order to minimize fatalities and reduce injuries due to accidents. For example, in 2017, the Indian government made it mandatory to fit at least one airbag in all passenger vehicles. Thus, improved and stricter road safety standards, especially in developing countries, will continue to fuel the demand for different airbags, thus positively impacting the growth of the global automotive safety airbag market during the next five years. However, the high cost and low reliability of airbags offered by aftermarket airbag installations are currently hindering the overall growth of the global automotive safety airbag market.

By Product Type

On the basis of product type, the global automotive safety airbag market is segmented into front airbags, side airbags, and others. The front airbag holds a major share in the market as most models of automobiles that come with airbags have front airbags.

By Vehicle Type

By vehicle type, the global automotive safety airbag market can be segmented into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. The passenger car segment holds a significant share of the market due to increased demand and production of passenger vehicles. Commercial vehicles also hold a good amount of share in the market which is projected to increase over the coming years.

By End-User

By end-user, the global automotive safety airbag market can be segmented as OEMs and aftermarkets. OEMs hold a significant share of the market owing to the fact that most car companies sell cars with pre-installed airbags.

By Geography

Geographically, the global automotive safety airbag market is segmented into North America, Europe, Middle East & Africa, Asia-Pacific, and South America. Asia Pacific is expected to grow at an impressive rate owing to high production as well as the sale of both passenger and commercial vehicles in the region.

Competitive Landscape

The global automotive safety airbag market is competitive owing to the presence of well-diversified international, regional, and local players. The competitive landscape details strategies, products, and investments being made by key players in different technologies and companies to boost their market presence. For instance, key automotive market players such as Tesla, Mercedes, and Ford have been constantly planning vehicle launches, with innovative and advanced airbags systems, as per the regulatory policies. Vehicle launches by automotive giants of models such as the BMW iX3, Mustang Mach E, and Audi E-Tron GT  are some examples of luxury passenger vehicle launches that have provided lucrative expansion opportunities to the automotive airbags market and also, the companies that operate in the aftermarket sales.

Key Developments

• January 2021: Daicel Corporation successfully fulfilled its plans of expansion and announced the launch of a new production facility in the Indian subcontinent in order to cater to the rising demand for automobile airbags in the region.
• April 2021: The Chevrolet Aftersales team made an announcement to replace more than 12,000 vehicles due to being impacted by the faulty Takata airbags in 2019.
• April 2021: As reported by the MoRTH( Ministry of Road Transport and Highway ), the government of India mandated all new vehicles to have a front dual airbags system as a standard fitment, in order to promote road safety among people.
• July 2019: ZF made an announcement regarding the launch of an external smart airbag system that would aid in improving vehicle safety and was aimed at getting deployed once they sensed an oncoming impact.
• June 2019: Joyson Safety Systems, made an announcement regarding the formation of their Tri-Party joint venture in India. This was achieved by the merger of KSS Abhishek Safety Systems Private Limited with Takata India Pvt. Ltd. This venture was named JAASS (Joyson ANAND Abhishek Safety Systems Private Limited).

COVID-19 Insights

The COVID-19 pandemic caused a disruption in the automotive supply chain worldwide. The outbreak did not only disrupt production facilities around the world for these LED lights but also negatively affected vehicle sales globally. For instance, in China, sales fell down by 71% in February and by April, the US and Europe experienced a plunge of 47% and 80% respectively. This automatically decreased the demand for these tail lights, leading to declining in the market. Furthermore, the budget allocated for R&D was also significantly affected during this period, which deeply affected the development of fresh and innovative automotive LED tail lights.  The demand for this lighting equipment is directly proportional to vehicle production and with the outbreak of COVID-19, this demand for significantly disrupted.

Global Automotive Safety Airbag Market Scope:

Segmentation

• By Product Type
  • Front Airbag
  • Side Airbag
  • Others
• By Vehicle Type
  • Passenger Vehicle
  • Light Commercial Vehicle
  • Heavy Commercial Vehicle
• By End-User
  • OEMs
  • Aftermarket
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Thailand
    • Taiwan
    • Others