The Asia-Pacific airbag system market is expected to register a CAGR over 10% during the forecasted period (2020 - 2025)
- Every day around 3,700 people are killed globally in road traffic crashes involving cars and busses. Road traffic injuries are the leading cost of deaths for children and young adults aged 5-29 years. Passenger safety is of the utmost importance to the government as well as the companies. Regulations towards consumer safety and security have made manufacturers install safety devices in the cars. The government of many countries has made usage of seat belts and airbags mandatory. In 2019, The EU and Indian Government made it mandatory to have airbags and seat belt remainders.
- CoVid-19 has a huge impact on the automotive airbag and seatbelt market as the automobile sales are very low. However after easing the lockdown, in the forecasted period the sales will increase substantially which will help the market grow.
- The U.S Federal Trade Commision estimates that automotive parts industry loses 12 billion USD every year due to counterfeit products which are mainly manufactured in China this might also hinder the market growth in the Asia-Pacific region.
Key Market Trends
Raising demand for safety will fuel market growth
The global automotive industry is on rising, and most economies started gaining momentum. By 2025 many developing countries are expected to have a high demand for cars, and improving the economy means more commercial vehicle sales. In 2025, the emerging markets are expected to account for 78 million vehicles, which developed economies will account for 34 million vehicle sales. With government regulations in place and customer demand for vehicle safety, this market is expected to grow.
Curtain airbags are the fastest-growing segment of the automotive airbag and seatbelt industry. They are mounted on side of seat or the door, usually on the roof above the side window. In the event of a crash, curtain airbags are used to protect the adult’s head. It has been proven that curtain airbags reduce the driver fatality risk by 45%. Recently there has been a growing demand for pedestrian airbags. These are automatically deployed when an automobile is about to collide with a pedestrian. Increasing income levels and awareness about safety is expected to drive this market in the coming years. The Transport Ministry of India announced that from 1st July 2019 onwards car manufacturers must install essential safety features. This must include driver airbags, seat belt reminders, speed alerts, and parking systems. Knee airbags would experience fast growth over the forecasted period. It is due to increase in demand of consumers for active leg protection and replacement of bolster seat.
Making profits in Price Sensitive Market
The automotive industry in most of the world is the price-sensitive market, and customers look for speed and aesthetics. But there is a trend of demand for more safety. OEM’s are struggling to find a balance between cost, performance, and safety. OEMs have started offering driver airbags as a basic feature owing to regulatory bodies which previously came with additional cost. All the premium cars are equipped with airbags including knee airbags, rear passenger airbags and more. There have been many instances where vehicles were recalled back due to faulty airbags and seatbelts. From 2000 to 2016, At least 22 people died from the defective Takata airbags, and hundreds have been injured due to exploding inflators. Takata Corporation filed for bankruptcy after recalling the malfunctioning airbags. Key Safety Systems has acquired this company. Key Safety Systems (KSS) has developed Inflatable Seat Belts, which can protect the shoulder and torso area on inflation. Besides, they are capable of being deployed within as less as 40 milliseconds in the event of a crash
This market is consolidated with major companies that are merging and acquiring other companies to maintain their position in the market. Key players in the market are Hyundai Mobis, ZF Friedrichshafen, Autoliv, DENSO Corporation, Toshiba Corporation, Key Safety Systems, Continental AG. In 2016 TRW was acquired by ZF Friedrichshafen AG. There is a recent development in roof type airbags. The new bad in roof airbags has replaced passenger airbags which is located in instrument panel to protect passenger. It is used in Citroen Cactus C4. There has been tremendous development in dual stage airbags which are located at location of seat belt and front seat, these airbags are used to prevent children and adults for getting injured during collision. Since active safety systems are improving owing to the new technology, there might be a reduction in demand for passive safety systems like airbags and seatbelts in the future.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support