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Automotive Airbags - Global Market Trajectory & Analytics

  • ID: 338751
  • Report
  • September 2020
  • Region: Global
  • 343 Pages
  • Global Industry Analysts, Inc
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FEATURED COMPANIES

  • Autoliv Inc.
  • Continental AG
  • Denso Corporation
  • Hyundai Mobis Co. Ltd.
  • Infineon Technologies AG
  • Nihon Plast Co. Ltd.
  • MORE
The global market for Automotive Airbags is projected to reach US$71.8 billion by 2025, driven by the indispensability of air bags as a key mandated safety technology for all vehicles. Adding to the positive outlook for the market is the stable automobile production trend; development of new air bag technologies; decline in costs of driver side airbags; development of smart airbags with sensors; focus on road safety as a result of the recent spike in road accidents and the resulting legislation of regulations that mandate installation of airbags in all types of automobiles, especially in developing economies. However, the sentiment in the market is sobered down by the flaring up of Takata`s airbag recall in the year 2020 when the National Highway Traffic Safety Administration (NHTSA) announced immediate recall of another 10 million vehicles carrying the defective airbag. The recent recall is in continuation of recalls which began in the year 2011. Running for over 9 years now, the recall is the largest and most complex in the history of the automotive industry that sent Takata into bankruptcy in the year 2017. Over 15 OEMs worldwide today face billions of dollars in recall losses. Globally, over 30 deaths and 350 injuries have been associated with takata`s faulty air bags. In the United States, virtually every OEM is impacted by the recall including Detroit`s giants Honda, Toyota, Nissan, BMW, Daimler, Subaru and Volkswagen and Audi. Approximately, 45 million vehicles in the United States have been equipped with these defective air bags which are prone to explosion during deployment. General motors (GM) has estimated a bleak and painful US$1.2 billion in losses accruing from the ongoing recalls that involves over 6.5 million GM models with faulty Takata inflators. Honda is faced with the recall of an additional 131 million Honda and Acura vehicles in North America alone. The recalls till date has and continues to involve the recovery of over 100 million inflators, impacting over 19 major OEMs worldwide. During the early phases of the recall, Takata repaired over 50% of the airbags and the current 10 million new recalls include some of these already replaced modules as well, forcing OEMs to initiate expensive campaigns to replace even previously recalled inflators with updated parts. Mazda is recalling over 117 thousand vehicles including those already recalled and repaired. With regulators in the U. S mulling the possibility of expanding the recall to include additional modules which were not part of the original recall, the blow for OEMs is expected to get even sharper. With the total cost of the expanded recalls running into billions of dollars mostly shouldered by auto OEMs, the automotive industry stands disrupted and uncertain as it struggles to negotiate this new and emerging risk landscape.

Product recalls is the emerging new risk for auto OEMs, which is compounded by complexity of global decentralized supply chains, stringent government safety mandates that push up quality related risks, and increasing cost pressure for suppliers and cost based decisions that bring-in inherent vulnerabilities. With product related risks becoming the single most biggest threat for OEMs, the importance of supplier relationship management (SRM) is coming to fore. Globalization has cast a Ripple effect on product recalls making them more larger, wider, deadlier and devastating for stakeholders. Global companies today sell millions of cars worldwide and source components from numerous manufacturers worldwide. Managing this complex global supply chain is the biggest and an increasingly difficult challenge for OEMs today. Takata`s recalls has laid bare major gaps in SRM practices in the automotive industry. Over 70% of OEMs have 0% visibility of their tier 2 &3 suppliers. Most supplier programs are built only for tier 1 suppliers. The need of the hour is the development of robust, responsible relationships with suppliers to reduce the risk of recalls. A strong OEM-supplier governance mechanism will also ensure socially responsible recalls and quicker recovery of both parties from a recall crisis. Strategic supply chain management supported by supply chain analytics and software systems for supplier tracking and management, is therefore growing in importance. Especially against the backdrop of the progress being made in the commercialization of autonomous cars and smart cars loaded with electronic and software features such as autonomous-driving assistance, geolocation services etc., the focus on zero-defect manufacturing should gain more significance. OEMs need to move from reactive fire-fighting to recall prevention by stepping up quality-management strategies from single quality processes to integrated quality systems.

The United States and Europe represent large markets worldwide with a combined share of 50.8% of the market. China ranks as the fastest growing market with a CAGR of 6.5% over the analysis period supported by strong proliferation of frontal driver airbags, increase in global road safety partnerships and transfer of traffic safety knowledge to motorizing Asian countries, high motor vehicle accidents as a result of improper road infrastructure, and encouraging macro market trends such as stable automobile production and sales as a result of economic growth, aspirational lifestyles of the middle class and a parallel increase in per capita vehicle ownership rates.

Competitors identified in this market include, among others:
  • Autoliv
  • Denso Corporation
  • Key Safety Systems Inc.
  • Takata Corporation
  • Toyoda-Gosei Co. Ltd.
  • TRW Automotive Holdings Corp.
Note: Product cover images may vary from those shown
2 of 3

FEATURED COMPANIES

  • Autoliv Inc.
  • Continental AG
  • Denso Corporation
  • Hyundai Mobis Co. Ltd.
  • Infineon Technologies AG
  • Nihon Plast Co. Ltd.
  • MORE
I. INTRODUCTION, METHODOLOGY & REPORT SCOPE

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Automotive Airbags: A Primer
  • A Chronology of Airbag Market Development
  • Classification of Airbags
  • Segmentation Based on Size
  • Airbag Size of US & Europe (In Liters)
  • Components of an Airbag
  • Crash Sensors
  • Electromechanical Sensors
  • Electronic Sensors
  • Airbag Module
  • Bag Pack
  • Inflator
  • Gas Generant
  • Initiator
  • Filters
  • Segmentation Based on Deployment
  • Frontal Impact Airbags
  • Side Impact Airbags
  • Other Airbags
  • Evolution of Auto Parts, Components & Accessories Market
  • Global Market for Auto Parts & Accessories (2019): Percentage Breakdown of Revenue by Segment
  • Automotive Safety Systems Fast Gaining Ground in Automotive Parts & Components Industry
  • Airbags: Safety Systems that Act as 'Life Savers' During High Speed Collisions
  • Key Factors Influencing Market Growth
  • Rising Incidents of Road Accidents: A Major Growth Factor
  • Stringent Regulations Promote Market Growth
  • Increasing Sales and Production of Passenger Cars Augurs Well for the Market
  • Rising Awareness Provides Impetus to Demand for Airbags
  • Emergence of Semi/Fully Autonomous Vehicles: A Strong Business Case
  • Technological Advances Influences Demand
  • Rising Concerns over Occupant Safety Speed Up Adoption of Automotive Airbags
  • Outlook
  • Passenger Vehicle Segment to Maintain Lead
GEOGRAPHIC MARKET ANALYSIS
  • Developed and Developing Markets: A Study in Contrast
  • Market Dynamics Influenced by Economic Scenario
  • Global Economic Outlook (Oct 2019): Real GDP Growth Rates (%) by Country/Region for the Years 2018 through 2020
  • Competitive Landscape
  • Component Integration Drives Companies towards Vertical Integration
  • Automotive Airbags Competitor Market Share Scenario Worldwide (in %): 2019
  • Impact of Covid-19 and a Looming Global Recession
2. FOCUS ON SELECT PLAYERS
  • Ashimori Industry Co., Ltd. (Japan)
  • Autoliv, Inc. (Sweden)
  • Continental AG (Germany)
  • Denso Corporation (Japan)
  • Hyundai Mobis Co., Ltd. (South Korea)
  • Infineon Technologies AG (Germany)
  • Joyson Safety Systems, Inc. (USA)
  • Nihon Plast Co. Ltd. (Japan)
  • Neaton Auto Products Manufacturing Inc. (USA)
  • Robert Bosch GmbH (Germany)
  • Toyoda Gosei Co., Ltd. (Japan)
  • Toshiba Electronic Devices & Storage Corporation (Japan)
  • ZF Friedrichshafen AG (Germany)
3. MARKET TRENDS & DRIVERS
  • Rise in Vehicle Demand Bodes Well for Automotive Airbags Market
  • Global Passenger Car Production (In Million Units) for the Years 2010, 2016, 2020, and 2024
  • Global Passenger Car Sales (In Million Units) for the Years 2010 - 2024
  • Global Passenger Car Sales by Region/Country (% Share): 2018
  • Auto OEMs Battle Their Biggest Nightmare as Takata's Recall Saga Continues Into the Year 2020
  • Among the Lessons Learnt from Takata's Recalls is the Importance of "SRM"
  • As Recalls Intensify & Put Vehicle Quality in the “Spotlight”, It’s Time to Develop Effective Ways to Eliminate Supply Chain Risks in the Automotive Industry: Number of Vehicles Recalled in the United States (In 000s) for the Years 2008, 2010, 2013, 2015, 2018, 2019 and 2020
  • Rapid Urbanization and Passenger Car Density Supports Growth
  • World Urban Population in Thousands: 1950-2050P
  • Degree of Urbanization Worldwide: Urban Population as a % of Total Population by Geographic Region for the Years 2000, 2020 & 2050
  • Affluent Middle Class Opens Up Asia into a Major Market
  • A Key Demographic Driver of Consumerism, the Growing Middle Class Population in Asia Pacific Drives Demand for New Cars: Global Middle Class Population (In Million) by Region for the Years 2020, 2025 and 2030
  • Expanding Base of Middle Class in the Asian Region Provides the Perfect Platform for Automotive Consumerism: Global Middle Class Spending (US$ Trillion) by Region for the Years 2020, 2025, 2030
  • Autonomous Vehicles to Redefine Entire Idea of Automotive Airbags
  • Growing Number of Road Accidents Drives Business Case for Automotive Airbags
  • Number of Deaths Caused by Road Accidents Worldwide by Region for the Years 2017 & 2030
  • Growing Consumer Awareness in Safety Equipment Drives Demand for Airbags
  • Growing Adoption of In-Vehicle Safety Systems by Auto Manufacturers as a Key Differentiating Factor Augurs Well for the Market
  • Airbag Recalls to Stimulate Product Innovation and Market Growth
  • Strong Demand for Electric Vehicles to Spur Growth
  • Global Electric Vehicles Sales in Million Units (2015-2040)
  • Global EV Sales Breakdown by Region for the Years 2019, 2025 & 2030
  • New Product Developments: The Ongoing Saga
  • New Airbag Modules to Lend Traction in the Coming years
  • Growing Demand for Rollover-Safety Systems
  • Australian vs. American Airbags: An Example of Product Diversity
  • Notable Innovations in Automotive Airbags and Inflators Market
  • Single/Dual/Multiple Stage Inflators
  • Compact Airbags & Flexible Vent Technology
  • Panoramic Sunroof Airbag
  • Inflatable Seat Belts
  • Dashboard Mounted & Head Cradle Airbags
  • Seat Cushion & External Hood Airbags
  • Front-/Rear-Center Airbag
  • Dual Contour & Far-Side Airbags
  • Pre-Crash External Side Airbags
  • Light Knee Airbag
  • Tubular Rear Passenger Airbag
  • External Side Airbag
  • Smart Airbags for Smart Cars
  • More Airbag Solutions
  • Market Restraints
  • Issues & Challenges
  • Concerns Over Injuries & Deaths Due to Faulty Airbags
  • Growing Number of Product Recalls: Cause for Concern
  • Takata Recall Casts a Shadow on Reliability of Automotive Airbags
  • Disabling Airbags: An Emerging Market
  • To Deactivate or Not: An Ongoing Controversy
  • Depowered Airbags: Designed to Save Children
  • Saturation for Frontal Airbags in the US and Western Europe
  • Automotive Airbags: Regulatory Regime
  • Safety Regulations Lend Traction to Automotive Airbags Market
  • Supplier Industry Structure: Role Shift Results in New Configuration
  • A Strategic Insight
  • Tier-1 Suppliers
  • Tier-2 and Tier-3 Suppliers
  • Growth Strategy
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

GEOGRAPHIC MARKET ANALYSIS

UNITED STATES
  • The Automobile Market
  • Airbags: An Overview
  • Active Safety Taking Precedence over Passive Safety
  • New Airbag Modules to Drive Growth
  • Role of Government and Regulatory Authorities
  • NHTSA Rules: A Boon for Airbag Manufacturers
  • Crash Test Requirements to Enhance the Protection for Children, Infants and Others Against Fatalities due to Airbag
  • Market Analytics
CANADA
  • Market Overview
  • Market Analytics
JAPAN
  • An Overview of the Market
  • Market Analytics
CHINA
  • An Overview
  • Market Analytics
EUROPE
  • Automotive Market: An Insight
  • Airbag Market in Europe: An Overview
  • Market Analytics
FRANCE

GERMANY
  • The German Automobile Market
  • Automotive Airbags Market: An Overview
  • Market Analytics
ITALY

UNITED KINGDOM
  • Auto Parts and Components Industry
SPAIN

RUSSIA

REST OF EUROPE

ASIA-PACIFIC
  • Asia-Pacific Continues to be the Growth Engine
  • Automotive Airbags: A Market Primer
  • Passenger Car Production in Asia by Select Countries (in 000 Units): 2018
  • Market Analytics
AUSTRALIA

INDIA
  • India: A Unique Market
  • Unique Characteristics Call for Unique Solutions
  • Global Manufacturers Line Up to Invest in India
  • Market Analytics
SOUTH KOREA

REST OF ASIA-PACIFIC
  • Singapore: Market Prospects
  • Market Analytics
LATIN AMERICA

ARGENTINA

BRAZIL

MEXICO

REST OF LATIN AMERICA

MIDDLE EAST

IRAN

ISRAEL

SAUDI ARABIA

UNITED ARAB EMIRATES

REST OF MIDDLE EAST

AFRICA

IV. COMPETITION
  • Total Companies Profiled: 16
Note: Product cover images may vary from those shown
3 of 3
  • Ashimori Industry Co. Ltd.
  • Autoliv Inc.
  • Continental AG
  • Denso Corporation
  • Hyundai Mobis Co. Ltd.
  • Infineon Technologies AG
  • Joyson Safety Systems Inc.
  • Nihon Plast Co. Ltd.
  • Neaton Auto Products Manufacturing Inc.
  • Robert Bosch GmbH
  • Toyoda Gosei Co. Ltd.
  • Toshiba Electronic Devices & Storage Corporation
  • ZF Friedrichshafen AG.
Note: Product cover images may vary from those shown
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