The Africa and Middle-East Airbag Systems Market is projected to grow with a CAGR of more than 6 % during the forecast period.
- The passenger cars demand in 2019, witnessed a positive growth rate in the region after 4 years of decline. In the Middle-East and north African region the number of registrations of passenger cars were up by more than 3% with around 2 million new registrations done in the whole year. In the African continent around 869,000 vehicles were sold.
- Lack of regulations regarding safety of passengers in vehicles in many counties in the region is restraining growth in the market.
- With the initiatives from the world organizations like United Nations and other non-profit organizations regarding road safety to curb the increasing road accidents and spread awareness among people in different parts of the world. People living in MENA region are also now opting for vehicles which are equipped with at least basic safety features like airbags, ABS for safety concerns. For instance, in April 2018, United Nations launched an initiative to improve road safety worldwide, where it urged the adoption policies and measures to implement vehicle safety regulations to ensure that all new motor vehicles meet applicable minimum regulations for the protection of occupants and other road users, with seat belts, airbags and active safety systems fitted as standard equipment.
Key Market Trends
Lack of Regulations and Rising Road Accident Deaths
In terms of road safety Africa is one of the worst hit regions in the world. According to WHO report, in 2018, the continent registered a road-traffic mortality rate of 26.6 deaths per 100,000 inhabitants. South Africa continues to experience around 14,000 road deaths every year, making it among the countries that have the highest traffic death rate in the world.
There is a lack of regulations especially in African countries which makes airbag systems mandatory for vehicles in the region.
In 2017 Global NCAP and AA South Africa launched #SaferCarsforAfrica in Cape Town, with the first independent crash test assessment of some of South Africa’s most popular compact and small cars. In the third round of the initiative in 2019, the results are better from the first edition of the initiative from 2017 but there is still some scope of improvements for the car makers in the country. The results showed reasonable safety performance for adult occupants, the vehicles’ child occupant protection was revealed to be poor.
The Saudi Standards, Metrology and Quality Organization (SASO) in 2017, made it compulsory for the car manufacturers to install frontal airbags in the vehicles, with an aim to improve vehicle safety, particularly in the light of increased horrific accidents.
South Africa is the Largest Market
Despite a decrease in sales figures in the year 2019, South Africa maintains its position as the largest car market in the region. During the year 2019, the factors that are affecting the market are subdued macro-economic environment, pressure on consumers’ disposable income and fragile business and consumer confidence.
The country has many big OEMs present in its territory and the automobiles sector plays an important role in the GDP of the country. Many big players like BMW, Volkswagen, Toyota, Renault, Nissan and Ford manufacture vehicles in South Africa for fulfilling the local demand and for exports. Many of these players are making sizeable investments in the country, leading to a further increase in production and are launching new products which are equipped with more safety equipment like airbags and ABS, which can save lives during travel.
For instance, in June 2020, Ford Launched new Ford Figo Freestyle in the south African market, in two variants. The trend model has the basic safety features like ABS braking, Driver and passenger airbag while the Titanium version is equipped with basic safety features along with side and curtain airbags.
The Africa and Middle-East Airbag SystemsMarket is fragmented, with many players accounting for a small market share. Some of the prominent companies in Africa and Middle-East Airbag Systems Market are Autolive Inc., Continental AG, Hyundai Mobis, Denso, Bosch and others. The major players in the region are introducing new vehicles equipped with more safety features to gain more market share.
In September 2019, Ford launched its new Ford Escort model in Middle-East region, which is smarter, safer and more fun to drive than its rivals, the Ford Escort is also more fuel efficient. The vehicle is equipped with comprehensive range of safety features including an advanced six-airbag restraint system, the Escort has garnered a full five-star safety rating in its crash test assessment program.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support