Automotive Airbag Market

Automotive Airbag Market: Passenger Cars Vehicle Type Segment Anticipated to Gain Significantly High BPS During the Forecast Period: Global Industry Analysis (2012-2016) and Opportunity Assessment (2017-2027)

Increasing demand for high performance luxury vehicles that come pre-installed with airbags is a major factor boosting global automotive airbag market growth   

An increasing purchasing power among people leads to increase in the demand for high performance luxury vehicles. The recent trend is to opt for automotive airbags that are already installed in vehicles prior to the purchase. Airbags protect people from injuries and death. High quality airbags are installed in high end luxury cars such as Porsche, Audi, Bugatti, Bentley, Lamborghini, Mercedes, Ferrari, GM Corvette, and other famous car brands across the world. In countries like the U.S and Canada, consumers are getting more aware and knowledgeable about vehicles and driver/passenger safety at the time of driving. Consumers prefer vehicles that have all the necessary safety equipment such as airbags, which help them reduce the impact of accidents, collisions or crashes. This increasing awareness among people regarding vehicle safety is directly responsible for revenue growth of the vehicle type segment of the global automotive airbag market.

Owing to a rise in the number of accidents, the demand for automotive airbags is growing rapidly. To avoid accidents, governments across the globe are implementing safety norms for the automobile industry and making it mandatory to install airbags in vehicles for consumer safety. Luxury cars are more preferred by a certain class of society as they come pre-fitted with airbags. Now-a-days, consumers are more aware of the safety features in vehicles and seem to prefer vehicles that come with all the necessary safety equipment. Due to these factors, the vehicle type segment (which includes luxury cars) is growing at a rapid pace in the global automotive airbag market.

Many cars these days have various types of airbags that are installed in the front centre, on a seat cushion and the external hood airbag. A growth in the automotive industry particularly in Western European countries has led to an increase in demand of automotive safety equipment such as airbags. Due to advancements in technology, automobile manufacturers are finding new ways for installing airbags in cars. This is further fuelling revenue growth of the vehicle type segment in the global automotive airbag market.

Passenger Cars is expected to be the most attractive segment over the forecast period

Among all the vehicle types, the Passenger Cars segment is estimated to account for about 79% value share in the global automotive airbag market by 2027 end followed by the CV/LCV segment with about 16% value share. The Passenger Cars segment is anticipated to show a higher incremental value during the forecast period. Among all the vehicle type segments, the Passenger Cars segment is projected to expand at a CAGR of 8.3% over the forecast period. This segment is anticipated to gain significant BPS during the 10 year period from 2017 to 2027.

Automotive Airbag Market:

Installation of airbags in all vehicle types including autonomous vehicles is leading to a growing demand for and usage of airbags

Nowadays, self-driving vehicles is the latest trend in the market. A steady rise in the demand for autonomous vehicles is leading to growth in demand for external airbags to protect pedestrians. With the continuous increase in fatality rates, there has been some serious research on driverless vehicles, owing to which there is a rise in demand for airbags. Advancements in automotive technology, increasing awareness among consumers, and rise in disposable income leads to rising demand for safety equipment such as airbags in vehicles. As a result, automobile manufacturers have started installing airbags in all types of vehicles. While initially only premium and luxury class vehicles came pre-installed with airbags, this growing consumer awareness pertaining to vehicle safety has resulted in all types of vehicles – premium, mid-range and low range – coming factory fitted with airbags.

Report Description

Manufacturers in the global automotive airbag market are focussed on developing high quality airbags. In developing regions, airbag manufacturers are trying to focus on technological advancements, whereas in developing regions the focus is more on creating and maintaining an effective supply chain. North America, Japan and APEJ are key focus areas for players in this market. Suppliers also cater to the specific requirements of airbag manufacturers while adhering to high quality standards of production. According to our research, the global automotive airbag market is estimated to experience a significant growth; however, it is still at a nascent stage in developing countries such as India, Mexico and China as compared to other developed markets such as U.S., Canada and Western Europe. In a new publication titled “Automotive Airbag Market: Global Industry Analysis 2012-2016 and Opportunity Assessment 2017-2027,” we have highlighted that manufacturers directly supply the raw material to the suppliers and the suppliers are the main point of contact for the aftermarket and distributors. Moreover, distributors further distribute products to various OEMs and the aftermarket, where direct contact between suppliers and the aftermarket doesn’t exist.

According to our study, Latin American countries are focussing on introducing airbags in every car. Hence they are at an evolving stage and are focussing on airbags only. On the other hand, in India and China, airbags have been made mandatory for safety purposes in line with car safety programs. But they are at the initial stages, so there is a low threat of other products or services. In Japan, the threat of substitute products is low because Japan is focussing on adding airbags in every vehicle. However, technological advancements like pedestrian airbags can be used which requires the basic airbag technology.

Airbag Industry Product Lifecycle

Many new products and technologies such as pedestrian air bag, smart airbag, fizzy logic software for airbag and occupant sensor system are in the developing stage to meet the growing demand for smarter and safer airbags. These products will eventually be introduced into the market. The Asian market is still in the introductory phase of the product life cycle. Passenger vehicle sales in Asia is showing double digit growth as compared to its counterparts such as U.S and Europe. The demand for safer vehicles is also increasing in Asia. On the other hand, the North America, Japan and Europe markets fall into the growth phase of the airbag product life cycle. The market for frontal airbags is now saturated; and given the low sales of passenger vehicles, growth of these new markets will be fuelled by the installation of new airbag systems like side impact airbag.

Market Segmentation

Product Type

Coating Type

Vehicle Type

Sales Channel

Region

Yarn Type

  • Driver Airbags

  • Passenger Airbags

  • Side Airbags

  • Curtain Airbags

  • Knee Airbags

  • Other Airbags

  • Neoprene Coating

  • Silicone Coating

  • Non-Coated

  • Passenger Cars

    • Compact

    • Mid-Sized

    • Premium

    • Luxury

  • CV/LCV

  • HCV

  • OEM

  • Aftermarket

  • North America

  • Latin America

  • Western Europe

  • Eastern Europe

  • APEJ

  • Japan

  • MEA

  • Nylon

  • Polyester

Research Methodology

We have adopted a systematic research approach while studying the global automotive airbag market. In-depth secondary research is used to arrive at the overall market size, top industry players, top products and industry associations. Our analysts have formulated a detailed discussion guide and comprehensive questionnaires in order to conduct expert interviews with industry experts, industry players, distributors and retailers. Data is validated using the triangulation method, wherein primary and secondary research data along with Future Market Insights’ analysis contribute to the final data. We have also analysed the various companies’ annual reports, investor presentations, SEC filings and press releases to fetch substantial information pertaining to the market size, trends, opportunities, drivers and restraints.