Automotive Airbag Market Report Scope & Overview:

The Automotive Airbag Market Size was valued at USD 19.84 Billion in 2023 and is expected to reach USD 36.66 Billion by 2032 and grow at a CAGR of 7.09% over the forecast period 2024-2032.

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Automotive Airbag Market in 2023 and 2024 is witnessing considerable development, primarily due to changes in safety regulations and technological innovations. Recently, the Japanese government had passed new laws aimed at enhancing vehicle safety standards for all vehicles categories to include side airbags for all the categories that went into effect in 2024. This better view on safety has enhanced demand for airbag systems. Similarly, in China, rules launched in 2023 require curtain airbags in all passenger vehicles. As such, this country seeks to reduce the number of road traffic deaths by up to 20 percent by 2025. Each year, nearly 1.19 million people die from a road traffic crash, and road traffic injury is the leading cause of death for children and young adults aged 5-29 years. For one, in the United States, the National Highway Traffic Safety Administration recently updated its safety standards in 2023. The administration required improved advanced airbag systems that could release better protection to front and rear passengers. Europe, particularly France and Germany, has also seen much tighter safety standards with greater emphasis placed on airbags in electric vehicles as it endeavors to achieve a 50 percent drop in vehicular fatalities by 2030. In fact, 92 percent of people that die on the world's roads are from low- and middle-income countries while 60 percent of the world's vehicles come from these countries, which means high global stakes for improved safety measures towards reversing such alarming statistics.

Technological innovations have been the base for market expansion. In 2023, a new airbag system with integrated sensors and sophisticated deployment mechanisms was introduced to enhance passenger safety. Some of the major innovations would be the use of integrated radar systems that increase accuracy in collision detection, thus enhancing the efficiency of airbag deployments. A few of the major car manufacturers like Volvo and Mercedes-Benz will be using these systems in their 2024 models, which has fueled growing interest in such technologies within the automobile industry. The development of lightweight, durable materials like Kevlar in airbag production has also increased, which enhances safety without contributing much to the weight of the vehicles.

The future prospects for this market will come from the growth in adoption of electrical and autonomous vehicles. Researchers are now engineering airbags to fit these vehicles, as crash dynamics vary slightly from those that collide with traditional combustion automobiles. Some of these prototypes will be released in 2024. According to government and industry websites, EVs will account for at least 40 percent of new car sales in an economy like Europe or China by 2025; consequently, demand for airbag systems specifically designed for these vehicles will accelerate even more. In addition, the infotainment systems as well as the automated systems that also take care of the passengers in the second row, which are currently under development by companies like Hyundai, will be used in most the vehicles that are made available for commercial use by 2025, which give more safety to the passengers travelling in the self-driving vehicle. Government agencies such as the European Commission as well as the U.S. NHTSA have well-laid plans aimed at improving the safety of the vehicles and making the roads safer, while they still have a contribution towards the market.

Market Dynamics:

Key Drivers

• Compelling automobile manufacturers to adopt airbags due to government-enacted safety regulations.

Government policies have been the most prominent driver for airbag demand in most automotive countries. In Japan, the government introduced a regulation in 2024 that requires the fitting of side airbags in nearly all forms of vehicles. Thus, automotive manufacturers had very little option but to fit the car-bag system in an enormous chunk of their sales. China is working similarly and has enacted laws in 2023 which makes curtain airbag mandatory for passenger cars.

This legislation directly stems from growing road safety concerns, with more than 1.35 million reported deaths each year worldwide due to traffic accidents. Countries like the U.S. and Germany are now regulating even more rear airbags, a point of view that differs from its states in their electric vehicle fleet, which is more prone to varied crash dynamics. There has constantly been pressure from the government to improve passenger safety, forcing mass adoption of airbags that protect drivers as well.

• Vehicle Electrification and the Development of Autonomous Vehicles need especial airbag systems.

With the advent of electric and autonomous vehicles (EVs and AVs), a new portfolio of demand in airbags has been opened. Crash dynamics for these cars differ from one another due to different layouts and battery placements; hence, individualized airbag systems are required for maximum protection. With the mass rush of this aspect of electrification by the automakers to achieve 40% EV sales in France and China by 2025, the demand for having their safety mechanisms configured according to their demands also increases.

For instance, EV airbags must adapt to the shifting frunk design and battery locations. This makes variations in how a car can hit in a collision. Additionally, self-driving cars are predicted to grow 40% by 2030, which would make the scenarios of the crash event more complex. This vehicle may eliminate even the most conventional seating configurations that offer opportunities for novel innovations in protecting passengers. In response, auto manufactures look forward to deploy intelligent airbags like adjustable and deployment-sensitive deployable airbags. It means that safety in such forward-looking vehicles will be more.

Restrain

• High manufacturing cost of complex air bag systems is majorly restraining the growth of the market.

Airbags are in high demand, but development and high production of advanced airbag systems have adversely affected the market by becoming one of the major restraints. Airbags designed using the latest technology inputs with integrated sensors and intelligent deployment mechanisms cost much more than traditional products. An advanced sensor based on RADAR or LIDAR analyzing the dynamics of collision may add up to the total cost of the airbag system. This obviously seems to be a concern for mass-market car manufacturers from emerging economies whose primary strength is the low cost of vehicles. Considering the sheer amount of parts that need to be rebuilt or replaced, the entire cost to have a professional install airbags can range from USD 1,000 to well over USD 5,000. Close to a third of this bill goes to labor. The production costs are also high because airbags require the use of strong materials like Kevlar for them to have the durability and weightlessness it needs.

Safety measures that are more expensive may be too costly for the smaller auto manufacturers to implement without increasing price on their vehicles, which can make them less competitive in price-sensitive markets. At the same time, with electric and autonomous vehicles becoming increasingly evident, airbags designed for these platforms pose their own new cost issues as well, on account of new designs and crash simulation and testing protocols demanding significant amounts of expenditure. Therefore, these monetary constraints could halt the broader market growth, especially in budget-sensitive consumers and manufacturers.

Segment Analysis:

By Type

Passenger vehicles have captured the highest market share in the 2023 automotive airbag market. They capture about 64.56% of the total market. This is mainly due to an increase in the production and sales of passenger cars globally, driven by increasing demand for personal mobility and better automobile safety features. The governments across the world, especially those in Japan and the U.S., have legally ensured stringent safety standards that demand the installation of airbags in all the passenger cars of the respective nation, which has further fuelled their adoption.

In terms of market size, the commercial vehicle segment is smaller in 2023 but will have the highest CAGR in the forecast period between 2024 and 2032. In recent times, the increasing demand for airbags in commercial vehicles is huge because of growing concerns regarding road safety among drivers and passengers, as well as the booming e-commerce and transportation industry. Fleet operators and logistics companies increasingly incorporate advanced airbag systems to meet the safety standards of the market and to avoid liability altogether, hence continuously expanding this niche.

By Distribution Channels

OEM's contribution to the market was nearly 76.43% in 2023. This dominance is because airbags are typically installed at the point of production of the vehicle and the OEMs enjoy long-term relationships with the automobile firms, so there is always an uninterrupted supply chain and integration of sophisticated airbag technologies. In fact, several OEMs like Bosch and Autoliv collaborate with automobile firms to design customized airbag systems which adhere strictly to all regulatory safety standards and improve the safety of a vehicle.

The aftermarket segment is likely to expand drastically. The CAGR for this segment is expected to be about 7.88% during the forecast period from 2024 through 2032. The growth witnessed in this sector can be attributed to the ever-growing number of vehicles in use, an aging vehicle fleet, and increased consumer awareness about the necessity for an upgrade or replacement of airbag systems following accidents or wear. The aftermarket too is witnessing innovation as better airbag systems are now possible for installation on older vehicle models, thereby enhancing the prospects of the sector.

Regional Analysis:

Asia Pacific dominated the global market for automotive airbags in 2023 and had 50.48% market share. High-volume vehicle production and rising vehicular safety awareness in countries such as China, Japan, and India would be a major driver in the region. The region has also focused on employing stricter safety standards that have further accelerated market growth.

Although North America is not the largest market, it's expected to grow at the highest CAGR during the forecast period from 2024 to 2032. This can be attributed to the enhanced government safety mechanisms for improving vehicle safety and greater demand for higher quality airbags in electric vehicles. Apart from this, consumers in North America have increased awareness about vehicle safety, which has led to rising demand for advanced airbag systems.

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Key Players:

Some of the major players in the Automotive Airbag Market are 

• Autoliv (Frontal Airbags, Side Airbags)

• ZF Friedrichshafen AG (Curtain Airbags, Knee Airbags)

• Takata Corporation (Passenger Airbags, Inflator Systems)

• Hyundai Mobis (Driver Airbags, Side Curtain Airbags)

• Denso Corporation (Airbag Control Units, Passenger Airbags)

• Continental AG (Side Airbags, Inflator Systems)

• Robert Bosch GmbH (Airbag Sensors, Passenger Airbags)

• Toyoda Gosei Co. (Steering Wheel Airbags, Inflators)

• Joyson Safety Systems (Frontal Airbags, Side Curtain Airbags)

• Key Safety Systems (Driver Airbags, Passenger Airbags)

• Nihon Plast (Steering Wheel Airbags, Knee Airbags)

• TRW Automotive (Side Curtain Airbags, Airbag Control Units)

• Ashimori Industry Co. (Seatbelt Systems, Side Airbags)

• Delphi Technologies (Airbag Sensors, Passenger Airbags)

• Faurecia (Side Airbags, Knee Airbags)

• Flex-N-Gate Corporation (Frontal Airbags, Inflator Systems)

• Magneti Marelli (Passenger Airbags, Airbag Sensors)

• Neaton Auto Products (Steering Wheel Airbags, Knee Airbags)

• Toyota Boshoku (Passenger Airbags, Side Curtain Airbags)

• Aptiv PLC (Frontal Airbags, Airbag Control Units)

Major Suppliers (Components, Raw Materials)

• BASF (Airbag Coatings, Nylon Fabrics)

• Honeywell International (Inflator Chemicals, Sensors)

• DuPont (High-Strength Fibers, Kevlar)

• 3M (Adhesives, Sealants)

• Invista (Nylon Yarns, High-Performance Fabrics)

• LyondellBasell (Polypropylene Resins, Plastics)

• Teijin (Aramid Fibers, Nylon)

• Dow Inc. (Polyurethane, Elastomers)

• DSM (High-Performance Plastics, Nylon)

• Solvay (Advanced Polymers, Specialty Chemicals)

Major Clients

• General Motors

• Ford Motor Company

• Volkswagen AG

• Toyota Motor Corporation

• BMW Group

• Hyundai Motor Company

• Mercedes-Benz

• Honda Motor Co., Ltd.

• Nissan Motor Co., Ltd.

• Stellantis (Fiat Chrysler, PSA Group)

Recent Trends:

• September 2024: Toyoda Gosei Co., Ltd. said it increased capacity at the Neemrana Plant of its subsidiary Toyoda Gosei Uno Minda India Pvt. Ltd.* in response to growing demand for airbags resulting from increased safety standards in India. Production in the new building began in September 2024.