The North America Airbag Systems Market is projected to grow with a CAGR of more than 5 % during the forecast period.
- Owing to the high demand of automobiles in the region, North America is the Second largest market for automobiles in the world. the presence of leading automobile manufacturers as well as the component manufacturers is driving the growth in the region. In the region United States leads the demand of automobiles followed by Canada.
- However, because of the ongoing trade war between United States and China, the economy is expected to be heading towards a recession and the automobile sales are expected to witness a downfall for a couple of years until the end of trade tensions.
- According to NHTSA during the period 1987-2017, frontal air bags saved 50,457 lives, out of which 2790 estimated lives were saved in 2017.
- However, because of faulty airbags there are several vehicles which were called back in past few years, by the manufacturers and this is adding extra cost and loss of trust for the OEMs, which can be a restraint for the market. For instance, in January 2019, Toyota has recalled about 1.7 million vehicles in North America that have been fitted with infamously defective and fatal Takata airbags.
Key Market Trends
Passenger Vehicle Sales Driving Growth
The demand for passenger vehicles in the region is high because of several factors, the income level of the people, high adaption rate of new technologies in automobiles sector by the end-users and also the high adaption of electric vehicles in the region.
There are very strict norms for safety of passenger and the OEMs present in the region are abide the laws for the safety of passengers. Therefore, with a report of a faulty airbag in one car results in call back of all the cars of same make which are using the safety systems or airbags from the same suppliers. NHTSA issues Federal Motor Vehicle Safety Standards (FMVSS) to implement laws from Congress. These regulations are set with an aim to fulfill the mission to prevent and reduce vehicle crashes. The OEMS along with the component suppliers are spending heavily to introduce more safety featured vehicles for the passengers in the region to attract customers. For instance,
In September 2019, Hyundai Motor Group developed Center Side airbag which upgrades the safety of co-passengers and avoids the collision from each other during an accident or vehicle collision.
United States Remains Largest Market
The United States is one of the largest automobiles market in the world. With the presence of many leading players across the globe like Ford, GM, Tesla and Many more which are not just fulfilling the local demand but are exporting their vehicles in large numbers.
Owing to the economic conditions in the country, low unemployment rate, availability of credit for car buyers and healthy consumer sentiments are driving the sales of automobiles in the country. There is a small decline is the sales numbers due to the trade war between China and United States from the 2018 figures. Domestic light-duty vehicle sales totaled almost 17.1 million vehicles last year, that is a 1.6% decline compared with 2018, but still beats the market estimates.
The country has a presence of several car and component makers which are spending heavily on increasing the safety of driver and passengers to avoid any fatalities during road crash. For instance, in April 2020, Hyundai Mobis is working on world’s first sunroof airbag and NHTSA is testing its feasibility. The airbag would deploy “under the surface side of the vehicle” in a rollover and cover a roof in 0.08 seconds.
The North America Airbag SystemsMarket is fragmented, with many players accounting for a small market share. Some of the prominent companies in United Kingdom Airbag Systems Market are Autoliv Inc., Hyundai Mobis, Robert Bosch Gmbh, Denso Corporation, Continental AG and others. The major players in the country are entering into strategic partnership with global leaders to gain considerable market share.
In September 2019, Hyundai Mobis developed new safety technology for protecting passengers through interworking with autonomous driving sensors. The Safety Integrated Control Module integrated the ECUs for both electronic seatbelts and airbags in a single unit. It receives real-time data from advanced radar sensors enabling enhanced protection of passengers upon different driving situations.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support