Global Automotive Airbag Market Overview, 2024-29

The global automotive airbag sector is a critical component of the larger automotive safety ecosystem, always changing to satisfy demanding safety regulations and consumer demands for improved road safety. Airbags, one of the most important safety elements in modern automobiles, have transformed passenger safety by minimizing the impact of collisions and reducing the degree of injuries experienced in accidents. The industry has seen tremendous developments in airbag technology, ranging from traditional front airbags to sophisticated multi-stage systems that can be deployed based on numerous accident factors, occupant location, and collision severity.

Over the years, the global automotive airbag market has undergone substantial expansion, driven by growing concerns about road safety, severe government rules demanding the integration of safety features, and increased consumer awareness regarding vehicle safety. Automakers and airbag manufacturers alike have made substantial investments in research and development to innovate new airbag designs, materials, and deployment algorithms, aiming to enhance occupant protection across diverse crash scenarios. Additionally, technological innovations such as sensor-based detection systems, advanced inflators, and integrated vehicle-to-vehicle communication systems have further improved the effectiveness and reliability of airbag systems. Looking ahead, the global automotive airbag industry is prepared for more innovation and expansion, fueled by rising trends including vehicle electrification, connectivity, and autonomy. As automotive technology advances, airbag systems will play an increasingly important role in maintaining the safety and well-being of both passengers and drivers, cementing their status as essential components of current car safety systems. Collaboration among industry stakeholders, continuous investment in R&D, and a firm commitment to safety will be critical in establishing the future trajectory of the automotive airbag business and promoting worldwide road safety measures.

According to the report “Global Automotive Airbag Market Outlook, 2029”, the market is anticipated to cross USD 20 Billion by 2029, increasing from USD 15.41 Billion in 2023. The market is expected to grow with 6.91% CAGR by 2024-29. Another intriguing element of the global automotive airbag market is the ongoing innovation and diversification of airbag systems to accommodate a wide range of accident scenarios and occupant positions. Traditional front airbags have evolved into multi-stage systems that can deploy with changing force and timing in response to the intensity and kind of impact.

Side airbags, curtain airbags, knee airbags, and even pedestrian airbags have been included to give complete protection to car occupants and vulnerable road users. This diversification indicates the industry's dedication to improving overall safety performance and responding to new crash dynamics. Furthermore, the introduction of advanced sensor technologies, artificial intelligence, and machine learning algorithms has transformed airbag deployment systems, allowing for real-time assessment of crash data and occupant circumstances to optimize deployment strategies. Sensor-based systems can detect the presence of occupants, their seating positions, and even their physiological characteristics to tailor airbag deployment for maximum effectiveness and minimal injury risk. Such advancements not only enhance occupant protection but also contribute to reducing false deployments and improving overall system reliability. Moreover, the global automotive airbag market is witnessing significant expansion and investment in emerging markets, particularly in Asia-Pacific and Latin America. Rising vehicle production, increasing disposable incomes, and improving safety awareness in these regions are driving the demand for airbag-equipped vehicles. As a result, automotive manufacturers and airbag suppliers are ramping up their production capacities and establishing local manufacturing facilities to cater to the growing demand, further fueling market growth and competitiveness.

Market Drivers

• Regulatory mandates and safety standards: The strict regulatory demands and safety standards enforced by governments around the world are a major market driver for the global automotive airbag industry. In response to growing concerns about road safety and the need to prevent fatalities and injuries caused by car accidents, regulatory organizations have imposed stringent criteria mandating the installation of airbag systems in new vehicles. These regulations require car manufacturers to include airbag systems in their vehicles in order to meet compliance requirements. Furthermore, as safety standards grow and become more stringent, manufacturers must invest in innovative airbag systems that not only meet current regulations but also anticipate future requirements. This legislative push serves as a primary driver of growth and innovation in the global automotive airbag market, fostering the development of advanced safety technologies aimed at enhancing occupant protection and reducing the severity of injuries in the event of a crash.
• Technological advancements and innovation: Technological improvements and continued innovation in airbag systems are another major driver of the global automotive airbag industry. Airbag technology has grown greatly over the years, from traditional front airbags to modern multi-stage systems that can deploy with changing force and timing depending on accident characteristics and occupant situations. Furthermore, the integration of sensor technologies, artificial intelligence, and machine learning algorithms has transformed airbag deployment systems, allowing for real-time assessment of crash dynamics and occupant positions in order to optimize deployment strategies for maximum effectiveness while minimizing injury risk. Furthermore, advances in material science and inflator technology have resulted in the creation of lighter, more compact airbag modules with higher performance and dependability.

Market Challenges

• Cost pressures and market competition: Cost pressures and fierce market competition provide significant hurdles for participants in the global automotive airbag industry. As safety laws tighten and consumer demand for advanced safety features rises, automakers must balance the delivery of high-quality airbag systems with cost control in order to remain competitive in the market. The cost of creating and producing airbag systems, which include components like sensors, inflators, and textiles, can be high, especially for complex systems with many airbags and sensors. In addition, fluctuations in raw material prices, currency exchange rates, and supply chain interruptions can all have an impact on production costs and profitability. In this highly competitive market environment, businesses must constantly develop and optimize their manufacturing processes to create efficiency and cost reductions while maintaining excellent product quality and safety standards.
• Environmental and sustainability concerns: Environmental and sustainability concerns are posing rising challenges to the global automotive airbag industry as stakeholders emphasize eco-friendly and sustainable production techniques. Airbag systems are manufactured and disposed of using materials and procedures that may have environmental consequences, such as the use of toxic chemicals in inflators or non-recyclable materials in airbag fabrics. Furthermore, the disposal of airbag systems at the end of their useful lives, particularly older types containing hazardous components, creates environmental and waste management difficulties. As environmental rules tighten and consumer demand for sustainable products grows, car manufacturers and airbag suppliers face pressure to implement greener manufacturing techniques, reduce waste output, and investigate alternative materials with a reduced environmental impact. This includes initiatives such as utilizing recyclable or biodegradable materials in airbag components, optimizing production processes to reduce energy consumption and emissions, and implementing recycling programs for end-of-life airbag systems.

Market Trends

• Shift towards multi-stage airbag systems: Historically, airbags were deployed with uniform force and time, regardless of the severity of the incident. However, multi-stage systems provide more flexibility by altering deployment settings according to crash dynamics, occupant characteristics, and seatbelt usage. This allows for better personalized protection for occupants in a variety of collision circumstances, lowering the risk of damage from excessive force or improper deployment timing. Furthermore, multi-stage airbag systems can help reduce the effects of secondary crashes or rollovers, thereby improving overall vehicle safety. As consumer demand for enhanced safety features grows, multi-stage airbag systems are likely to become more common across vehicle categories, accelerating market growth and innovation in this field.
• Integration of airbag systems in electric and autonomous vehicles: As electric and autonomous vehicles gain pace in the automotive industry, there is a greater emphasis on incorporating modern safety features, such as airbag systems, into these future vehicle platforms. Given the differences in vehicle architectures and powertrain combinations, electric vehicles (EVs) bring distinct problems and opportunities for airbag design and integration. Furthermore, autonomous vehicles (AVs) provide new challenges for airbag deployment and occupant protection because occupants may no longer be in traditional driving postures or may be engaged in non-driving activities while traveling. As a result, automotive manufacturers and airbag suppliers are investing in developing specialist airbag systems that are suited to the specific safety requirements of EVs and AVs, ensuring seamless integration and compatibility with these new vehicle technologies. As the popularity of electric and driverless vehicles increases, the demand for innovative airbag solutions tailored to these vehicle platforms is expected to grow, driving market expansion and technological innovation in the global automotive airbag market.

COVID-19 Impacts

The pandemic disrupted global supply chains, affecting the production and supply of automotive components, including those related to airbag systems. Shutdowns, restrictions, and delays in manufacturing plants and transportation logistics led to shortages and production slowdowns. The airbag industry had to adapt to the challenges by implementing contingency plans, diversifying supply chains, and exploring local sourcing to mitigate the impact of disruptions. Lockdowns, decreased consumer demand, and workforce restrictions resulted in reduced vehicle production. Automakers faced challenges in maintaining regular manufacturing schedules, impacting the installation of airbag systems in new vehicles.

The airbag industry had to align production schedules with the fluctuating demand for vehicles, leading to adjustments in manufacturing volumes and timelines. Many automakers faced financial challenges due to decreased sales and production disruptions. This financial strain affected their capacity to invest in research and development, potentially impacting advancements in airbag technology. To navigate the financial challenges, some automakers may have re-prioritized their investments, potentially delaying certain technological innovations in the airbag sector. Despite challenges, the pandemic underscored the importance of vehicle safety, leading to an increased emphasis on safety features, including airbags. Automakers may prioritize safety technologies in response to heightened awareness and changing consumer preferences. The airbag industry may see a trend towards the accelerated adoption of advanced safety features as a result of the pandemic, with a focus on making vehicles safer in anticipation of increased demand for safety-conscious consumers.

Based on type segment market is segmented into frontal airbag, side airbag, knee airbag and others. Among them frontal airbag type is expected to dominate the global automotive airbag market. Based on material type segment of the market includes nylon 6.6, polyester, others. Nylon 6.6 material type is predicted to dominate the global automotive airbag market.

Frontal collisions are one of the most common types of accidents worldwide. Frontal airbags are specifically engineered to deploy in these types of collisions, protecting occupants by minimizing impact forces on the head and chest. Governments and regulatory agencies around the world have set severe safety standards that require frontal airbags in automobiles. These restrictions promote automakers' widespread use of frontal airbags to assure compliance and meet safety criteria. Frontal airbags are typically regarded as critical safety measures by customers.

The availability of frontal airbags in vehicles frequently influences purchasing decisions, as consumers choose vehicles with modern safety technologies to protect themselves and their passengers. With increasing globalization and harmonization of safety standards, the requirement for frontal airbags is becoming universal across different regions and markets. As a result, automakers are standardizing the inclusion of frontal airbags in their vehicles worldwide to meet global safety standards and ensure consistency in product offerings. Nylon 6.6 is known for its high strength and durability, making it ideal for use in car airbags. It can withstand the tremendous forces created during airbag deployment while also providing occupants with reliable protection in the case of a collision. Nylon 6.6 has excellent energy absorption capabilities, which are critical for adequately cushioning occupants during a collision. This capability reduces the risk of harm by distributing impact force across a broader surface and increasing the deceleration time. Nylon 6.6 meets the legal and safety standards established by authorities worldwide for automotive airbag materials. Its established track record in compliance with these requirements makes it a popular choice for automakers wishing to ensure vehicle safety and comply with regulations.

Based on vehicle type segment market includes passenger vehicle, and commercial vehicle. Passenger vehicle segment is expected to lead the global automotive airbag market. Based on distribution channel segment market includes OEM and aftermarket. OEM is major distribution channel for automotive airbag globally.

Consumers prioritize safety when purchasing vehicles and airbags are considered a fundamental safety feature. As awareness of vehicle safety increases worldwide, the demand for passenger vehicles equipped with airbags also grows. Governments and regulatory bodies worldwide have implemented stringent safety regulations mandating the inclusion of airbags in passenger vehicles. These regulations drive the widespread adoption of airbags by automakers to ensure compliance and meet safety standards. The luxury and premium vehicle segments prioritize advanced safety features to differentiate their offerings and attract consumers.

These vehicles often come equipped with comprehensive airbag systems as standard or optional equipment, further driving the adoption of airbags in the passenger vehicle segment. OEMs are responsible for car production and assembly, as well as the installation of safety systems like airbags. As a result, they have direct control over the design and integration of airbag systems into automobiles during the production process. This direct integration guarantees that airbags operate seamlessly and optimally within the vehicle's overall safety system. OEMs prioritize quality assurance and warranty support for their vehicles, which includes safety-critical components such as airbags. By buying airbags directly from trustworthy suppliers, OEMs can ensure stringent quality control throughout the manufacturing process. Furthermore, OEMs often provide warranty coverage for airbag systems, giving buyers peace of mind and after-sales service.

Based on report market includes five major regions North America, Europe, Asia-Pacific, South America and Middle East & Africa. Europe is expected to grow at rapid pace in global automotive airbag market.

Airbags are one of the most important automotive safety innovations, significantly reducing the risk of injury and saving countless lives in the event of an accident. Within Europe, the automobile airbag industry is significant, demonstrating the continent's commitment to strengthening automotive safety standards. As one of the leading regions for automotive research and manufacturing, Europe's approach to airbag technology reflects its entire commitment to road safety. In recent years, Europe has been at the forefront of airbag technical improvements, with the goal of not only boosting occupant safety but also tackling increasing road challenges.

Advanced features such as side curtain airbags, knee airbags, and inflatable seat belts have become increasingly prevalent in European automobiles, providing comprehensive protection in a variety of accident scenarios. Moreover, the integration of sensors and AI-driven algorithms has enabled airbag systems to deploy more intelligently, customizing deployment based on factors such as crash severity and occupant position. The European automotive airbag market is governed by a strict regulatory system designed to provide the greatest levels of safety for vehicle occupants. The European New Automotive Assessment Programme (Euro NCAP) assesses and rates automotive safety performance, including the efficiency of airbags. These assessments drive manufacturers to continuously innovate and improve their safety systems, resulting in advancements in airbag design and deployment strategies. Looking ahead, Europe's automotive airbag business is set to undergo a major transformation, propelled by ongoing technological developments and regulatory restrictions. Emerging trends, such as self-driving and connected car technologies, are likely to change the automotive safety landscape, altering airbag system design and functionality.

The market is moderately fragmented, with a number of local players. These market competitors are attempting to increase their market share by implementing various marketing methods such as new product launches, investments, collaborations, and mergers and acquisitions. Companies are also investing in the creation of improved products. Furthermore, they are emphasizing on competitive pricing. In November 2020, INVISTA expanded its manufacturing facilities in China to meet worldwide demand. Various developmental tactics, including as business expansion, investments, new product launches, acquisition, partnerships, joint ventures, and mergers, promote market growth and provide attractive growth prospects for market participants.

• February 2022- DENSO Corporation ("DENSO") and Sony Semiconductor Solutions Corporation ("SSS") announced that DENSO would invest USD 0.35 billion in Japan Advanced Semiconductor Manufacturing, Inc. ("JASM"), TSMC's majority-owned manufacturing affiliate in Kumamoto Prefecture, Japan. Due to this equity transaction, DENSO will hold a more than 10% equity position in JASM.
• January 2022- Continental AG and Volterio are collaborating to develop fully automated charging robots for electric vehicles in January 2022.
• January 2022- Toyoda Gosei Co., Ltd. (TOKYO:7282) has created a lighter-weight oil pump, one of the component elements in automotive transmissions, using plastic instead of metal in some areas of the pump.
• February 2022- The Mitsubishi Electric Corporation has been granted a contract to provide communications-based train control (CBTC) wayside technology to handle train traffic on the Queens Boulevard Line's east end (QBL).

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Automotive Airbag market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Frontal Airbag
• Side Airbag
• Knee Airbag
• Others (Rear Airbags, Centre Console Airbags, Inflatable Seat Belts)

By Materials

• Nylon 6.6
• Polyester Fiber
• Other (Aramid (Nomex))

By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

By Distribution Channel

• OEM
• Aftermarket

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Automotive Airbag industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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