According to FMI, the APAC Airbag market is estimated to be valued at US$ 8,510.0 Mn in 2022 and is projected to increase at a CAGR of 6.2% in the forecast period from 2022 to 2032.
| Attributes | Details |
|---|---|
| Market Size (2021) | US$ 8,013.8 Million |
| Market Size 2022 | US$ 8,510.0 Million |
| Market Size 2032 | US$ 15,530.1 Million |
| Value CAGR (2022 to 2032) | 6.2% |
The global market for airbags is expected to grow by a double-digit CAGR in the next six years. North America is leads the market followed by Europe and Asia Pacific. Due to advancements in technology, The Asia Pacific region is expected to witness high growth in the near future due to increasing domestic demand for automobiles.
Growing concerns over safety and increasing incorporation of safety systems, particularly airbags, in the compact car segment are driving growth in the market.
Key drivers for the global airbag industry are government regulations, increasing concern for passenger safety, development of roll over and side impact systems, increased sophistication of safety systems, and increasing adoption of safety systems across all the segments of passenger vehicles.
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The analysis of automotive airbag demand from 2017 to 2021 showed a historical growth rate of less than 6% CAGR, with general expansion of the automobile sales driving growth as consumers increased spending amid rising disposable incomes.
Initial recessionary downturns brought on by the COVID-19 pandemic in the form of lower airbag sales, store closures, and manufacturing cycle interruptions momentarily halted growth hopes.
However, since infection curves have flattened from 2022, industrial production activity in important markets have restarted. As a result, FMI’s APAC Airbag demand projection predicts a CAGR of 6.2% by 2032.
In emerging and frontier countries, the majority of car buyers typically pay attention to price, maintenance costs, and fuel economy while forgetting the crucial factor of safety. Some developing countries have enhanced their safety procedures, though, as consumers have become more conscientious and international safety organisations have pushed for greater safety requirements.
Although other emerging countries like Mexico, India, and Brazil are still far behind China in terms of adopting industry-standard auto safety equipment and technology, China has also made significant progress in APAC area. In the upcoming years, developing country governments are anticipated to enact crash test regulations, which will finally open doors for airbag producers.
The automotive airbag market is anticipated to expand significantly in the coming years due to rising demand for airbag types other than the traditional driver and passenger airbags. It comprises side airbags that are installed in the outer backrest frames of the front seats and serve to protect the driver and passengers in the front seat as well as curtain bags that are kept above doorways.
The installation of these airbags in vehicles will provide total protection for the occupants in the event of a collision, which will reduce the number of unintentional fatalities. Along with frontal airbags, these airbags are anticipated to become standard equipment in cars in the upcoming years.
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In underdeveloped nations, automobile manufacturers typically offer airbags in more expensive and upscale sedan and hatchback models, allowing the buyer to select in accordance with their budgetary constraints. However, requiring an airbag for buyers of small cars, which account for a significant portion of the total number of vehicle sales, could alter their purchasing decision.
The government intends to make airbags required in developing nations with little purchasing power, which may be challenged by automakers and have an impact on auto sales. In the event of an accident, the automobile owner is also responsible for paying the replacement cost of an airbag. The cost increase per car for an airbag fitment may cause consumers' affordability levels to decline, which would hurt sales.
After some airbags ruptured, killing people and shooting debris into passenger compartments, the automakers recalled millions of vehicles to replace the airbags. This was most likely due to defective inflators. This might cause automakers to turn away from passive safety features like airbags and toward active safety systems.
Radar and cameras are used by these sophisticated systems to identify potential threats. Because of technological improvement, safety equipment has improved and expanded, which has slowed the market's growth for automobile airbags.
The Asia Pacific region is expected to witness high growth in the near future due to increasing domestic demand for automobiles. Growing concerns over safety and increasing incorporation of safety systems, particularly airbags, in the compact car segment are driving growth in the market.
Additionally, some of the key programs that rate vehicles based on their safety performance, such as the new car assessment program (NCAP) are also fuelling the growth of the airbag market in Asia Pacific. Affordability and technological advancement are other factors boosting the sales of airbags in Asia Pacific.
Technology development, increasing consumer acceptance and lower prices are pushing airbag utilisation to almost 100% in Japan. China is the largest producer of airbags in mass quantities owing to high automotive production.
Regional players often license technology or partner with large airbag suppliers in order to enhance their presence in the market. The major trends identified in the market include use of new fabric technology and decrease in cushion weight.
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Key players operating in the APAC Airbag market include Autoliv, ZF Friedrichshafen, Toyoda Gosei, Robert Bosch GmbH, Hyundai Mobis Co. Ltd., and Takata Corporation.
Leading automotive airbags market players are focusing on expanding their customer base through various strategies such as expansion of their product portfolio through new product launches and innovations. Key players are also adopting advanced technologies to improve their product quality.
Automotive airbag manufacturers are also relying on tie-ups with major original equipment manufacturers and targeted mergers & collaborations to generate lucrative revenues.
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 6.2% from 2022 to 2032 |
| Base Year for Estimation | 2021 |
| Historical Data | 2017 to 2021 |
| Forecast Period | 2022 to 2032 |
| Quantitative Units | Revenue in USD Million, Volume in Units and CAGR from 2022 to 2032 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
| Segments Covered | Vehicle Type, Product Type, Coating Type, Yarn Type, Country |
| Key Countries Covered | China, India, Japan, South Korea, Oceania, Rest of Asia |
| Key Companies Profiled | Denso Corporation; Takata Corporation; Toyoda Gosei Co. Ltd.; Autoliv Inc.; Robert Bosch GmbH; Hyundai Mobis Co. Ltd.; Key Safety Systems Inc.; Daicel Corporation; ZF Friedrichshafen AG; Kolon Industries; Toray Industries Inc.; Hyosung Co. |
| Customization & Pricing | Available upon Request |
In 2021, the value of the APAC Airbag market reached over US$ 8,013.8 Mn.
During the forecast period, the APAC Airbag market is estimated to expand at a CAGR of 6.2% during 2022-2032.
The APAC Airbag market is projected to reach US$ 15,530.1 Mn by the end of 2032.
China is projected to lead the APAC Airbag market in the forecast period.
The key players operating in the APAC Airbag market are Autoliv, ZF Friedrichshafen, and Toyoda Gosei.
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APAC Airbag Market
