Airbag Market Expected to Reach $47.0 Billion by 2030

According to a new report published by Allied Market Research, titled, “Airbag Market," by Module, by Type, by Vehicle Type, by Material, by Sales Channel: Global Opportunity Analysis and Industry Forecast, 2020-2030," The airbag market was valued at $27.6 billion in 2020, and is estimated to reach $47.0 billion by 2030, growing at a CAGR of 5.7% from 2021 to 2030.

An airbag is a vehicle safety device consisting of a flexible fabric envelope or cushion designed to punctually inflate during a collision and deflate after the accident. Automotive airbags are deployed with a sensor that activates the airbags according to the type and severity of the collision. Modern vehicles consist of airbag control units that monitor different parts such as wheel speed, side door, and brake pressure. Moreover, the efficiency of these airbags to decrease the impact of crashes is enhanced due to ongoing & innovative advancements in airbag technology. For instance, in 2019, HYUNDAI MOBIS revealed its new safety technology sensors combined with two separate ECUs (electronic control units) for airbags and electronic seatbelts into a single unit for enhanced protection of passengers in different driving situations.

In addition, the airbag market has witnessed significant growth in recent years owing to rise in disposable income level, which influences individuals to invest more in safety features within the vehicle. The companies that operate in the market have adopted partnerships, product launches, and R&D to increase their market share and expand their geographical presence. For instance, in August 2021, Continental AG developed new comprehensive functions & E/E architecture in its airbag control unit that provide even more protection for occupants by reducing the risk of injury in the event of a crash and thus make a substantial contribution to Vision Zero. Moreover, the coalition of crash sound sensors in airbags is one of the crucial trends that are anticipated to gain traction in the commercial vehicle airbag systems market during the forecast period.

The market is segmented on the basis of module, type, and region. By module, the market is classified into inflator or gas generator and airbag. By type, the market is segmented into front airbag, side airbag, knee airbag, and curtain airbag. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Factors such as a rise in consumer awareness toward vehicle safety features, growth in the automotive sector, and competition among OEMs are expected to drive the growth of the airbag market. In addition, the rise in the number of fatal road accidents and the government's implementation of strict safety regulations to prevent them are anticipated to boost the market's growth. However, advanced technological features that increase car prices and high replacement costs restrain the market growth. Furthermore, the introduction of airbags in two-wheelers and low production costs in developing nations provide lucrative growth opportunities for the market players.

KEY FINDINGS OF THE STUDY

• By type, the knee airbag segment is expected to register a significant growth during the forecast period.
• Depending on vehicle type, the commercial vehicle segment is anticipated to exhibit significant growth in the near future.
• On the basis of material, the polyester fiber segment is projected to lead the global airbag market owing to higher CAGR.
• On the basis of sales channel, the aftermarket segment is projected to lead the global airbag market owing to higher CAGR.
• Europe is anticipated to register the highest CAGR.

COVID-19 IMPACT ANALYSIS

• The COVID-19 crisis creates uncertainty in every market, including the automotive sector. The closure of assembly plants and large-scale manufacturing interruptions has led to the decline in global demand for automobiles, indirectly affecting the airbag market.
• Governments across different regions announced total lockdown and the temporary shutdown of industries, leading to the border closures that restricted the movement of transportation & logistics services.
• The COVID-19 health crisis forced the automotive industry to look for alternate sources and prioritize import substitution with their production activities & supply chain.
• However, the overall service activities of market players have registered a steady and favorable recovery in the subsequent months with the increase in the sales of passenger cars, which leads to a rise in the demand of the Airbag market.
• As per the current scenario, the overall world is getting back on track slowly; with new restriction and policies, a significant recovery in product sales across the retail sector may positively influence the Airbag market owing to the latest technological innovations regarding vehicle safety.

The key players operating in the global airbag market are Autoliv Inc., Hyundai Mobis, Joyson Safety Systems, Toray Industries, Inc., Daicel Corporation, Kolon Industries, Inc., Rane Group, Neaton Auto Products Manufacturing, Inc., Toyoda Gosei Co., Ltd., and ZF Friedrichshafen AG.