Automotive Airbag Market Snapshot
As per the FMI’s study, automotive airbag market growth is poised to expand at 3.60% CAGR during the assessment period of 2021 and 2031. The market valuation will exceed US$ 18.5 Bn, registering the sales of 370,000,000 automotive airbag units in 2021.
Passenger cars will remain the most lucrative segment owing to the rising inclusion of automotive airbags in these vehicles. According to the FMI’s analysis, the passenger cars segment is anticipated to account for around 77% of global automotive airbag market sales.
Key Points Covered in Automotive Airbag Market Study
- Market estimates and forecast 2021-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Automotive Airbag Market and How to Navigate
- Recommendation on Key Winning Strategies
Automotive Airbag Market Historic Sales Compared to 2021-2031 Forecast Outlook
Driven by increasing awareness about vehicle safety among the consumers and the increasing production of passenger vehicles, the automotive airbags market will rise at 3.60% CAGR during the forecast period of 2021 and 2031.
The automotive industry is experiencing rapid growth owing to the increasing adoption of passenger as well as commercial vehicles across the globe. As per the FMI’s study, the automotive airbag market reached the valuation of US$ 18.5 Bn in 2021.
Key factors that are driving the demand of automotive airbags among end-users include growing demand for customized curtain airbags, rising usage of airbags safety system in all type of vehicles, and increasing awareness for the safety of driver as well as passengers.
As per the study of ESOMAR-certified consulting firm, demand for automotive airbags will rise across the globe, reaching the sales of 370 Mn units in 2021.
Also, imposition of stringent regulation regarding the safety of passenger will improve the adoption of automotive airbags across the U.S., India, and other developed regions. The National Highway Traffic Safety Administration in the U.S, introduced new norms for adopting curtain airbags, which was mandatory for all vehicles since 2018.
With these strict regulatory policies, prominent manufacturers are investing in research & development activities for the development of advanced safety airbags system to expand their revenues.
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Elevated Automotive Sales Driving Automotive Airbag Market Expansion Prospects
Recovery of automotive industry with the increasing production of automobiles across the globe is anticipated to increase the adoption of automotive airbags within all type of automotive vehicles.
Rising demand for customized airbags within the SUVs and Sedan cars across countries such as the U.S., Germany and Japan will provide lucrative opportunities for the market players. According to the International Organization of Motor Vehicle Manufacturers, across the globe around 77,971,234 units of all type of automotive vehicles were sold in December 2020.
Among which, 53,598,846 passenger cars were sold across the globe in 2020 and 24,372,388 commercial vehicles were sold in the same year. Due to the stringent regulations for safety of passengers and increasing adoption of vehicles are prompting the automakers to install the customized airbags.
This in turn will create lucrative opportunities for the market players over the forecast period. Also, industry giants and automakers are forming alliances to incorporate advanced technology airbags system in the new launches to expand their product portfolio, necessitating the demand among consumers.
For instance, automotive giants such as Ford, Tesla, and Mercedes are planning vehicle launches, with advanced airbags system, as per the regulatory policies. Vehicle launches such as Audi eTron GT, BMW iX3 and Mustang Mach E are some of the much awaited luxury passenger vehicle launches that will provide lucrative expansion prospects for the automotive airbags OEMs as well as the companies operating in the aftermarket sales.
Will Demand for Curtain Airbags Remain a Key Growth Driver?
Rising safety standards for all vehicle types are improving the demand for automotive airbags, especially for curtain airbags. As per FMI’s projections, curtain airbags are expected to hold major chunk of automotive airbag market.
Curtain airbags are incorporated in the front pillars, rear pillars and rood sides to protect the driver as well as passengers head and torso from the impact of any direction. Increasing adoption of mini-cars, sedan luxury cars, and heavy-duty tracks will fuel the adoption of curtain airbags across the globe.
Stringent regulations on side-impact protection requires a certain level of torso and head protection with soft material to cushion the blow. Curtain airbags are apt for such type of collision in all the vehicles, especially luxury passenger car vehicles. Hence, demand for nylon-based curtain based airbags will rise exponentially over the coming years.
According to a report of World Health Organization, approximately 1.35 million people die every year due to the vehicle collision, especially in low-and middle-income countries. Hence, the adoption of curtain airbags have increased significantly over the past decade.
Which Vehicle Type will Exhibit High Demand across the U.S?
The automotive airbag market is poised to expand at a steady rate over the forecast period. Increasing production of passenger cars and light vehicles will boost the sales in the U.S.
According to the International Organization of Motor Vehicle Manufacturers, production of passenger and commercial vehicles across the U.S. reached around 21,084,417 units in March 2021.
As per the report, U.S. vehicle market recovered effectively and is almost equal to the pre-pandemic levels, registering a hike of 68.3% in March. Industry giants such as Hyundai and Chevrolet registered high sales for luxury passenger cars, with the increased sales by 159.5% and 39.2% respectively.
Despite the crippling effect of pandemic, rising production of passenger cars across the region will bolster the demand of automotive airbags market during the forecast period.
How will Rising Auto Sales in the U.K. Bolster the Automotive Airbag Market Growth?
Growing demand for curtain airbags across the U.K. is expected to bolster the market growth throughout the forecast period. Rising sales of electric vehicles and technological advancement in the Europe’s automotive industry is providing stimulus to the automotive airbags demand.
Along with the rising sales of electric vehicles, government initiatives adopted to ensure the safety of passengers will fuel the market growth. European Commission, in 2017, announced the funding for airbag valve technology that included customized safety airbags project to develop superior safety technologies for passenger cars.
With the rising production of electric vehicles across the U.K., demand for customized airbags and replacement of faulty airbags will boost the growth of aftermarket segment.
As per the FMI’s analysis, U.K. is anticipated to hold prominent market share, with Europe registering the growth at 3.50% CAGR during the forecast period.
How is Surging Auto Production Affecting Sales of Automotive Airbags in India?
India is one of the largest manufacturing hub for passenger cars in Asia, which makes India one of the most lucrative region for automotive airbags market. According to the Society of Indian Automobile Manufacturers (SIAM), passenger cars sales across India increased by 11.4% in 2020, reaching around 22,652,108 unit production.
Along with the rising sales of passenger vehicles, increasing initiatives by government to ensure the safety of driver as well as passenger, automakers are increasing the adoption of automotive airbags in the country.
According to the report of Ministry of Road Transport and Highways (MoRTH), the government in the gazette notification announced the new rule that will require all new vehicles to have dual front airbags as standard fitment as of April 1st, 2021.
With this new imposition of government, automakers are introducing new techniques and adopting advanced technology to improve the product design and quality. These efforts are widening lucrative growth opportunities for the automotive airbags manufacturers.
Growing disposable income and increasing population of the country have positively impacted the sales of luxury passenger cars across the country. Hence, industry giants such as Toyoda Gosei India Private Limited and Autoliv India Pvt. Ltd. are investing heavily in the development unique and economic design of automotive airbags catering the consumers demand.
As per the analysis of Future Market Insights, India is anticipated to spearhead the sales of automotive airbags across South Asia.
Rising Passenger Cars Production Driving Uptake across Germany
Germany is expected to be yet another lucrative region owing to the aggrandizing volumes of passenger cars production across the region. As per the report of Federal Motor Transport Authority (KBA), in 2020 around 2,917,678 unit passenger cars production was recorded as compared to the 3,607,258 unit in 20219.
Following the unprecedented outbreak of COVID-19, the sales of passenger cars dropped due to the halt in production and global shutdown during the FQ-20. However, thanks to the commencement in vaccination drive, resurgence of automotive industry across Germany boosted the production of passenger cars necessitating the consumers demand.
Also, with rising sales of passenger cars and adhering to the stringent regulations imposed by government, automakers are increasing the adoption of airbags in the passenger cars to improve the safety of drivers as well as passenger.
In addition to this, preference for luxury passenger cars and rising environmental concerns are augmenting the sales of electric vehicles across the country. The KBA motor vehicle authority reported a three-fold rise in the sales of electric passenger car sales, recording nearly 200,000 units as of 2020.
Hence, rise in the production of passenger cars will drive the growth of automotive airbags market through 2031.
How is Market Gaining Traction from Passenger Vehicle Sales?
By vehicle type, passenger vehicles are expected to be the primary end-users over the coming years. Growing safety concerns for drivers and rising passenger vehicles production will drive the automotive airbag market.
As per the projections of International Organization of Motor Vehicle Manufacturers (OICA), production of automotive reached around 97 million, among which the sales of passenger cars reached 53 million units in the year 2020.
Increasing awareness for the safety of passengers as well as drivers with the increasing sales of passenger car will further the adoption of automotive airbag. In addition to this, government across countries such as India, China, and the U.S. are imposing stringent regulations for the safety of passengers.
Hence, these factors along with the rising sales of passenger cars will spur the adoption of automotive airbags in the upcoming decade. As per FMI’s analysis, the passenger cars segment is poised to expand at over 5.8% CAGR, accounting for nearly 77% of global market share.
As a result, the demand for automotive airbag across the passenger cars segment is poised to increase manifold by 2031-end.
Why are Nylon-Based Automotive Airbags the Most Preferred?
In terms of yarn type, the market is bifurcated into nylon-based automotive airbags and polyester-based automotive airbag. As per the FMI’s projections, Nylon is preferred over polyester as a material for airbags among the automakers.
Better physical properties such as better impact resistance, lower density, and high specific heat capacity are some of the factors market players prefer nylon over polyester. Also, nylon has the most superior capability in energy absorption.
Nylon has the perfect balance between the strength and elongation, which gives nylon desirable properties for airbags. Hence, the mentioned properties make nylon a preferred choice for automotive airbags.
Which Type of Automotive Airbag will be the Most Lucrative?
Among the product type, the demand for side airbags is anticipated to gain substantial gains over the forecast period, surpassing the valuation of US$ 6 Bn through 2021. The side airbags gives protection to the torso of the driver and passenger in the event of a violent side impact or collision.
However, driver airbags are projected to remain prominent over the forecast period, exhibiting the growth at over 5.9% CAGR over the forecast period. These airbags are effective and provide protection to the driver and passenger in the case of rollover crash.
Subsequently, growing demand for curtain airbags will improve the adoption among the automakers, propelling the market growth in the upcoming decade.
High Growth Potential Visible in the Original Equipment Manufacturers (OEMs) Domain
With respect to the sales channel, the OEM segment is expected to register significant gains over the forecast period. Simultaneously, sales across aftermarket segment is expected to remain equally high, as automakers look for long time investment and cost-effective operational costs.
Rising adoption of passenger vehicles across the globe is increasing the vehicle production, which is providing lucrative opportunities for the automakers to deploy various and new advance technology airbags system to enhance the safety of the vehicle. Hence, the OEM segment is anticipated to witness higher growth during the forecast period.
With the automotive airbag market being consolidated, top 5 OEMs such as Autoliv, ZF, Joyson Safety Systems, Toyoda Gosei, and Nihon Plast, are dominating the market, accounting for 70% of global market share. These players are coming up with new product launches combined with advanced technology incorporated in the airbag system to maintain their lead in the industry.
According to the FMI’s analysis, the global automotive airbag market is consolidated with top five market players dominating the market, accounting for 70% of the market share. Top five market players being, Autoliv, ZF, Toyoda Gosei, Joyson Safety System, and Nihon Plast.
Leading automotive airbags market players are focusing on expanding their customer base through various strategies such as expansion of their product portfolio through new product launches and innovations.
Key players are also adopting advanced technologies to improve their product quality. Automotive airbag manufacturers are also relying on tie-ups with major original equipment manufacturers and targeted mergers & collaborations to generate lucrative revenues.
- In January 2021, Daicel Corporation announced the launch of its new production site in the Republic of India to cater the growing demand for automobile airbags in the country
- In April 2021, Chevrolet Aftersales team announced they replaced over 12,000 vehicles that were impacted by faulty Takata airbags in the years 2019
- In July 2019, ZF announced the launch of an external smart system airbag to improve the vehicle safety, which gets deployed once its senses an oncoming impact.
- In June 2019, Joyson Safety Systems, announced the launch of its Tri-Party joint venture to joint its two ventures in India; KSS Abhishek Safety Systems Private Limited announced the merger with Takata India Pvt. Ltd.
Scope of Report
Historical Data Available for
USD Million for Value
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa
Key Segments Covered
Vehicle Type, Product Type, Yarn Type, Coating Type, Sales Channel, and Region
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Key Questions Answered in the Report
What is the current automotive airbag market value?
The automotive airbag market is expected to exceed US$ 18.5 Bn in 2021
At what rate did the automotive airbag market grow between 2016 and 2020?
The automotive airbag market recorded a sluggish growth, registering a CAGR at 0.50% between 2016 and 2020.
What are the key trends driving automotive airbag sales?
Growing usage of curtain airbags, rising inclusion of airbags in light weight vehicles as well as commercial vehicl3es, and increasing awareness about vehicle safety are the key drivers pushing sales.
Who are the leading players of automotive airbag?
Top 5 prominent players of automotive airbag market are Autoliv, ZF, Toyoda Gosei, Joyson Safety Systems, and Nihon Plast.
What is the market share of leading players in automotive airbag market?
The top 5 players in the automotive airbag market will collectively account for 70% of global market share in the year 2021.
What will be the demand outlook for North America automotive airbag market?
North America automotive airbag market demand is set to rise at 2.60% CAGR over the forecast period of 2021 and 2031.
At what rate will automotive airbag demand rise in Europe?
The sales for automotive airbag will rise at 3.50% CAGR in Europe between 2021 and 2031.
Which are the top countries driving the automotive airbag market sales?
Top countries in terms of automotive airbag sales are Japan, the U.K., the U.S., India and Germany.
What is the current market share of Japan and South Korea in the global automotive airbag market?
Japan and South Korea, collectively, will account for 16% of global market share in 2021.
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Automotive airbag Market by Category
By Vehicle Type:
- Passenger Car
- Light Commercial Vehicle
- Heavy Commercial Vehicle
By Product Type:
- Driver Airbag
- Passenger Airbag
- Side Airbag
- Curtain Airbag
- Knee Airbag
- Other Airbags
By Coating Type:
By Yarn Type:
By Sales Channel:
- Original Equipment Manufacturers (OEMs)
- North America
- Latin America
- Eastern Europe
- Western Europe
- Asia Pacific excluding Japan
- Middle East and Africa (MEA)