Global Automotive Airbag Market Outlook, 2029

Global Automotive Airbag Market Outlook, 2029

In the ever-evolving landscape of automotive safety, one technology has emerged as a crucial component in reducing injuries and fatalities during accidents – the airbag. The automotive airbag industry has witnessed significant advancements over the years, playing a pivotal role in enhancing vehicle safety standards and protecting occupants in the event of a collision. The concept of an airbag dates back to the early 1950s, but it wasn't until the 1970s that the first commercial airbag systems were introduced in production vehicles. Initially designed as a supplementary safety measure, airbags were intended to complement seat belts and provide an additional layer of protection in the event of a crash. Over the years, automotive airbag technology has undergone significant advancements. Early airbag systems primarily consisted of front airbags for the driver and front-seat passenger. Today, modern vehicles are equipped with a comprehensive airbag system that includes side-impact airbags, curtain airbags, knee airbags, and even rear-seat airbags. Sensor technology has also played a critical role in improving the effectiveness of airbags. Advanced sensors can detect the severity of a collision and deploy the airbags with the right amount of force, reducing the risk of injury to the occupants. The automotive industry is subject to stringent safety regulations worldwide. Regulatory bodies, such as the National Highway Traffic Safety Administration (NHTSA) in the United States and the European New Car Assessment Programme (Euro NCAP) in Europe, set standards for vehicle safety, including airbag performance. Global adoption of airbag technology has been widespread, with emerging markets increasingly incorporating these safety features into their vehicles. This trend is not only driven by regulatory requirements but also by consumers' growing awareness and demand for safer vehicles.

According to the research report, “Global Automotive Airbag Market Outlook, 2029” published by Bonafide Research, 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. Growing awareness among consumers about the importance of vehicle safety has led to an increased demand for cars equipped with advanced safety features, including airbags. As safety becomes a more prominent factor in consumers' purchasing decisions, automakers are responding by making airbags a standard feature across various vehicle models. Technological advancements in airbag systems have played a significant role in their increased effectiveness and versatility. Improved sensor technologies, advanced algorithms, and sophisticated deployment mechanisms ensure that airbags deploy with the right force and in the right locations, minimizing the risk of injury during a collision. These technological advancements make airbags more reliable and effective, driving their adoption. As the automotive industry becomes more globalized, there is an increasing trend toward standardization of safety features. Many global automotive safety assessment programs, such as Euro NCAP and the Insurance Institute for Highway Safety (IIHS), include airbag performance as a crucial aspect of their evaluations. To cater to these global standards and ensure market competitiveness, automakers are incorporating airbag systems into their vehicles. The global automotive market continues to grow, with an increasing number of vehicles on the road. As the vehicle population expands, there is a parallel increase in the demand for safety features, including airbags, to mitigate the impact of accidents and reduce the severity of injuries. Some insurance companies offer incentives or discounts for vehicles equipped with advanced safety features, including airbags. This can influence consumers to choose vehicles with comprehensive safety systems, contributing to the growth of the airbag market. Consumer expectations for safety have increased, and automakers strive to meet or exceed these expectations to remain competitive in the market. The inclusion of advanced airbag systems becomes a selling point for manufacturers, driving them to integrate the latest safety technologies into their vehicles.


Market Driverss
• Regulatory Compliance and Safety Standards: The primary driver for the airbag industry is the stringent regulatory landscape and safety standards set by governments and international organizations. Regulatory bodies, such as the National Highway Traffic Safety Administration (NHTSA) in the United States and Euro NCAP in Europe, mandate the inclusion of airbag systems in vehicles to meet specific safety requirements. This regulatory push compels automakers to integrate advanced airbag systems into their vehicles to ensure compliance, thereby driving the growth of the airbag industry.
• Increasing Consumer Awareness and Demand for Safety: Growing awareness among consumers about the importance of vehicle safety has become a significant driver for the airbag industry. Consumers are increasingly prioritizing safety features when purchasing vehicles, leading to a higher demand for cars equipped with advanced airbag systems. Automakers are responding to consumer preferences by making airbags a standard feature across various vehicle models, contributing to the expansion of the airbag market.

Market Challenges
• Cost Implications and Affordability: The integration of advanced airbag systems involves additional costs for automakers. Balancing the inclusion of sophisticated safety features with the overall affordability of vehicles can be a challenge, particularly in markets where price sensitivity is high. Striking the right balance between safety and affordability poses a challenge for the airbag industry, as manufacturers need to address cost concerns without compromising on safety standards.
• Risk of Injuries from Airbag Deployment: Despite the benefits of airbags in reducing injuries during collisions, there is a challenge associated with the risk of injuries caused by the deployment of the airbags themselves. In certain situations, such as low-speed crashes or unusual collision angles, airbag deployment can lead to injuries. Engineers and researchers are continuously working to enhance airbag deployment algorithms and mechanisms to minimize the risk of injuries, addressing this challenge and improving the overall safety of airbag systems.

Market Trends
• Advancements in Sensor Technology: Continued advancements in sensor technology play a crucial role in the airbag industry. Advanced sensors can accurately assess the severity and type of impact, enabling more precise and adaptive deployment of airbags. Improved sensor technology enhances the overall effectiveness of airbag systems, reducing the likelihood of unnecessary deployments and optimizing protection for occupants.
• Integration with Autonomous and Connected Vehicles: As the automotive industry progresses towards autonomous and connected vehicles, the trend is to integrate airbag systems with these technologies. Connected vehicles can leverage real-time data to enhance the effectiveness of airbag deployment based on the vehicle's position, speed, and environmental conditions. The integration of airbag systems with autonomous and connected technologies reflects the ongoing trend of creating a comprehensive and intelligent safety ecosystem within vehicles.

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.

The front type automotive airbag segment is expected to grow at rapid pace due to the majority of incidents such as head-on collisions are increasing. Thus, the front automotive airbags help to lower the number of casualties during such accidents.

Frontal airbags are specifically designed to provide protection in frontal collisions, which are among the most common types of car accidents. They deploy rapidly upon impact, helping to reduce the risk of injury to the driver and front-seat passengers by cushioning the impact and preventing occupants from striking hard surfaces within the vehicle. Many countries and regions have implemented strict safety regulations that mandate the inclusion of airbags in vehicles. Frontal airbags, in particular, are often required by safety standards to enhance protection in frontal crashes. Manufacturers comply with these regulations to ensure their vehicles meet safety standards and can be sold in various markets. Safety is a significant factor in consumers' purchasing decisions. Frontal airbags have gained widespread acceptance and are often viewed as a crucial safety feature. As consumer awareness of vehicle safety increases, manufacturers are motivated to prioritize and enhance frontal airbag systems to meet market demands. Continuous advancements in airbag technology, such as dual-stage or multi-stage deployment systems, occupant sensing, and adaptive airbags, have improved their effectiveness. These technological innovations contribute to increased safety levels, further promoting the adoption of frontal airbags. Insurance agencies and safety organizations often consider the presence and performance of airbags in their evaluations. Vehicles with well-designed and effective frontal airbag systems are likely to receive higher safety ratings, which can influence insurance premiums and consumer choices. Frontal airbags are often integrated into a broader safety system that includes technologies like seat belts, side airbags, and electronic stability control. The integration of these systems enhances overall vehicle safety and crashworthiness.

Over the years, Nylon 6.6 has gained acceptance and has been widely used in airbag applications. The automotive industry often values proven and established materials with a track record of successful performance.

Nylon 6.6 is known for its high tensile strength and durability. These properties make it well-suited for applications where the material needs to withstand the forces generated during a rapid deployment, such as in the case of airbags during a collision. Airbags are exposed to various temperatures, and Nylon 6.6 exhibits good resistance to temperature extremes. This characteristic is essential for ensuring the reliability and performance of airbags in different environmental conditions. Nylon 6.6 is resistant to various chemicals, which is advantageous in automotive applications where exposure to different substances can occur. This resistance contributes to the longevity and effectiveness of the material in airbag systems. Nylon 6.6 has relatively low water absorption properties, reducing the risk of moisture affecting the material's performance. This is important for maintaining the structural integrity and reliability of airbags over time. Nylon 6.6 is known for its ease of processing during manufacturing. This characteristic makes it a practical choice for producing airbags efficiently and cost-effectively. Nylon 6.6 offers a favorable weight-to-strength ratio, providing the required strength without adding excessive weight to the airbag system. This is crucial for maintaining vehicle weight limits and overall fuel efficiency. Materials must comply with various safety regulations and standards. Nylon 6.6 has been demonstrated to meet the necessary requirements, contributing to its widespread use in the industry.

The automotive airbag market growth is predicted to be fueled by rising passenger vehicle sales and production in developing nations. The government laws governing passenger safety are becoming increasingly stringent, which is anticipated to fuel the market expansion.

The worldwide automotive airbag market can be divided into passenger cars, light commercial vehicles, and heavy commercial vehicles. Due to the large production and sales of passenger automobiles around the world in 2023, the passenger car segment contributed a sizeable portion of the revenue. The demand for passenger automobiles is being driven by rising disposable income, urbanization, and the necessity for personal transportation, which is fueling the expansion of the automotive airbag industry. Passenger vehicles significantly outnumber other vehicle types (commercial vehicles, buses, trucks) on the road globally. This sheer volume naturally drives higher demand for safety features like airbags in these vehicles. Increased purchasing power, particularly in developing economies, leads to more people buying passenger vehicles. This increased demand often coincides with a willingness to spend on safety features like airbags. Public awareness campaigns and media coverage of accidents highlight the importance of safety features, leading to increased customer demand for airbags. Continuous advancements in airbag technology, such as side airbags, knee airbags, and curtain airbags, offer enhanced protection and attract consumer interest. Airbags have become more affordable, making them a viable option for manufacturers and appealing to cost-conscious consumers. Growing urban populations with increased traffic density contribute to the demand for safety features like airbags. Consumers prioritize the safety of their families, making them more likely to choose vehicles with advanced safety features.

Original Equipment Manufacturers (OEMs) and suppliers have been working to develop cutting-edge products over the past few years. Many of them have had moderate success differentiating their products from those of their rivals.

OEMs are responsible for integrating airbag systems directly into new vehicles during the manufacturing process. As airbags are a critical safety component, OEMs play a central role in ensuring that these systems are seamlessly integrated into the overall design and structure of the vehicle. Compliance with safety standards and regulations is crucial for OEMs. Governments and regulatory bodies often mandate the inclusion of airbags in new vehicles to meet minimum safety requirements. OEMs, as vehicle manufacturers, must adhere to these standards, making the integration and distribution of airbags through the OEM channel a key aspect of the market. Major automotive OEMs operate on a global scale, producing a significant portion of the world's vehicles. Their global reach means that airbags are distributed widely across various markets, contributing to the leading position of the OEM distribution channel in the airbag market. OEMs establish partnerships with airbag suppliers and manufacturers to ensure a reliable and consistent supply of airbag systems. These partnerships often involve long-term agreements, with OEMs specifying the requirements for airbags and collaborating closely with suppliers to meet safety standards and quality assurance. OEMs often work towards standardizing airbag technologies across their vehicle models. This standardization ensures consistency in safety features and facilitates efficient integration during the manufacturing process. The reputation of OEMs is closely tied to the safety and reliability of their vehicles. The inclusion of advanced airbag systems enhances the safety credentials of their vehicles, building consumer trust and brand reputation. OEMs have a significant influence on automotive safety trends. As they invest in research and development to improve vehicle safety, including airbag technology, their decisions and innovations set the direction for the broader automotive industry. In many regions, safety features, including airbags, are mandatory in new vehicles. OEMs are at the forefront of meeting these regulatory requirements, reinforcing the dominance of the OEM distribution channel in the airbag market.

Based on the region, the Asia-Pacific segment dominated the global automotive airbag market in 2022, in terms of revenue and is estimated to sustain its dominance during the forecast period.

As a huge prospective market for automobile production, Asia-Pacific is projected to see rapid expansion in the near future. The concerns about safety are growing, and the use of compact vehicle category is seeing an increase in the use of safety devices, particularly automotive airbags. All major automakers are represented in the region, including Volkswagen, Toyota Motor Corp., Honda Motor Co. Ltd., and General Motors Co. The region's demand for passenger and commercial cars is expected to expand at a robust CAGR by the forecast period, thanks to rising consumer purchasing power, increasing disposable income, changing lifestyles, and increasing urbanization. The market for automotive airbags in the area is being driven by expanding occupant protection awareness, strict occupant protection legislation, and rising disposable income in nations like China, India, and Japan. The expanding passenger car market in China and the expanding automotive manufacturing sector are anticipated to drive up airbag demand. The need for enhanced safety measures, such as airbags, in cars is also being driven by the growing emphasis on decreasing traffic fatalities and injuries in emerging nations. Additionally, India being an emerging economy, it has significant demand for airbags due to the rising awareness among people and the government. For instance, after maindating dual front airbags in 2019, in Martch 2022, the government has made 6 airbags compulsory in cars in India. Now all the cars manufactured after 1st October 2022, will come with 6 airbags as standard. Because of this, many car makers have started incorporating 6 airbags as standard in across all variants. For instance, in February 2022, Kia launched their new MPV in India that cames equipped with 6 airbags as standard across all variants. In February 2022, Maruti Suzuki launched the new Baleno that comes with 2 airbags as standard and 6 airbags for the top two variants. Hence with new vehicles launch with at least two airbgas, in aisa-pacific region, the increase in demand and sales of new passenger cars is expected to drive the automotive market in the Asia-Pacific region.

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.***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.