Increasing safety features driven by governments in many countries mandates OEMs to incorporate airbags in commercial and passenger vehicles. This detonates the global automotive airbags market to reach $ 15.98 billion by 2027, Valuates Reports stated.
The research company noted that the market will grow at a CAGR of 2.8% from $ 13.35 billion in 2020 till 2027.
Other significant factors that drive the growth of the automotive airbags market include the rise in traffic congestion and increased vehicle density in larger cities coupled with human error during driving. In addition, the rising incidence of traffic accidents is resulting in more serious human fatalities.
Influencing trends
According to Valuates Reports, the rise in demand for safety in vehicles from consumers is expected to drive the automotive airbags market. Increased traffic congestion and vehicle density in larger cities and human mistakes when driving are expected to increase the likelihood of car collisions. To be prepared for such unforeseeable events, consumers are demanding vehicles with improved safety measures. This increasing demand is compelling automakers to incorporate safety features such as airbags in their vehicles, the research firm observed.
Increasing awareness around raider safety is expected to propel the automotive airbags market growth further. With rising awareness, consumers are opting to buy vehicles that have multiple airbags. This, in turn, has made various OEMs offer multiple airbags in several new models.
In addition, as disposable income rises, people are increasingly opting to spend more on a variety of accessible safety measures in their vehicles. It gives the players access to new investment options and incorporate active and passive safety technologies into automobiles to provide consumers with a better driving experience and comfort, eventually helping the market grow.
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Government regulation across regions is mandating installing airbags in both commercial and passenger vehicles. As a result, it will drive the automotive airbags market growth. Furthermore, with sensors' development to gather the information that ensures various control units interact better, the automotive airbag industry is expected to experience substantial change during the forecast period. This includes airbags, belt tensioners, and other vehicle features that can quickly detect an oncoming collision, the research agency said.
Increasing investments along with R&D activities by automotive manufacturers are expected to provide lucrative growth opportunities. With the development of sensors in vehicles to gather the information that ensures various control units interact better, the automotive airbag industry is expected to experience lucrative growth opportunities.
By airbag type, side & curtain airbags are projected to be the most lucrative segment. These airbags are effective in protecting occupants in the event of a rollover collision.
Based on application, the passenger car segment is projected to be the most lucrative segment. The number of passenger cars is rapidly increasing worldwide, especially in the emerging economy. This is due to improved lifestyles, higher consumer purchasing power, and infrastructure development.
Based on region, Asia Pacific is expected to be one of the largest markets during the forecast period. Furthermore, the research firm observed that the Asia Pacific is expected to witness high growth in the near future as it holds a tremendous potential market for vehicle production.
Courtesy: Valuates Reports. NB: Photo is representational; courtesy: ZF.