Light Vehicle Airbag Market Assessment, By Airbag Type [Frontal Airbags, Passenger Airbags, Knee Airbags, Side and Curtain Airbags], By Vehicle Type [Light Commercial Vehicle, Trucks, Passenger Vehicles, Buses], By Component Type [Impact Sensors, Airbag I

Light Vehicle Airbag Market Assessment, By Airbag Type [Frontal Airbags, Passenger Airbags, Knee Airbags, Side and Curtain Airbags], By Vehicle Type [Light Commercial Vehicle, Trucks, Passenger Vehicles, Buses], By Component Type [Impact Sensors, Airbag Inflator, Indicator Lamp, Airbag Control Unit, and Others], By Sales Channels [Original Equipment Manufacturers, Aftermarket], By Region, Opportunities and Forecast, 2017-2031F

Global light vehicle airbag market is anticipated to experience a CAGR of 7.89% in 2024-2031, rising from USD 20.66 billion in 2023 to USD 37.93 billion in 2031. A rise in the number of road accidents, transportation activities, and growing awareness concerning road safety boosted the global light vehicle airbag market growth across the globe in the forecast period.

According to the Ministry of Road Transport and Highways, the Government of India stated that in 2022, there were 4,61,312 road accidents recorded. Different innovations in the safety system of vehicles, a rise in research and development activities concerning safety features, and an increase in consumer awareness towards the safety features of automobiles are projected to drive growth of the global light vehicle airbag market. Additionally, an increase in customized automotive curtain airbags demand and the implementation of stringent safety regulations are probable to foster the demand for light vehicle airbags. Rapid integration of ML and AI in airbag technology for high performance, extension of the automotive market across developing nations, and rise in collaboration between technological firms and automotive manufacturers are expected to foster the growth of the global light vehicle airbag market in the forecastperiod.

Additionally, companies in the global market are constantly functioning to establish innovative and advanced products with new safety features coupled with establishing new manufacturing facilities to produce superior airbags. The government aids companies by providing tax rebates and subsidies for launching new products.

For instance, in April 2022, Toyoda Gosei Co., Ltd. announced the establishment of a new plant in Guangdong Province, China to advance its production network for airbags and steering wheels. In China, the expansion helped the company to increase its sales of airbags as the automobile market is projected to grow continuously across the same province.

Increase in Awareness About Passenger Protection

An increase in accidents, heavy traffic on roads and highways, and growing concerns about automobile safety drive the demand for airbags in the global light vehicle airbag market. Key market players globally are introducing products and stringent safety standards for both passengers and drivers are boosting the light vehicle airbags market size. Additionally, the original equipment manufacturers heavily invest in different research and development activities to launch and advance new products with improved safety features. Thereby, growing technological innovations and rising concern about drivers and passengers safety are resulting in different growth opportunities for different players in the market.

For instance, in June 2023, Autoliv Inc. announced the launch of new airbag technology which is based on the Bernoulli Principle. The latest technology integrates an inflator that receives a collision signal and then releases high-pressure gases rapidly through different inlet tubes. As these gases traverse the tubes, they induce a vacuum effect, pulling in surrounding air and producing aspiration.

Advancements in Airbag Technology

Companies are introducing a variety of airbags with the integration of AI and ML technology including side curtains, roof airbags, knee bolsters, external airbags, flexible fabric airbags, and others to safeguard drivers, passengers, and vehicles. Autonomous driving mode is propelling the demand for airbags globally. The manufacturers have introduced vehicles with extensively advanced side airbags with new protective systems to protect the chest injuries of drivers and passengers regardless of their seating positions during side-impact collisions.

For instance, in March 2023, Hyundai Mobis Co., Ltd. announced different innovations such as curtain airbags, face-to-face protection airbags, slim airbags, and omnidirectional airbags for PBVs. Whereas slim airbags are up to 40% slimmer than their predecessors, precisely customized for electric vehicles, which foster a distinct structure from internal combustion cars. These slim airbags are adaptable for installation in compact places including alongside narrow seats and variable display panels.

Installation of Airbags in Two-wheelers to Increase Global Light Vehicle Airbag Market Size

A rise in per capita income, increase in the middle-class population, and heavy traffic are propelling the demand for two-wheelers. Presently, different motorcycles and scooters feature improved safety technologies, including antilock braking system (ABS), anti-slip regulation (ASR) and the incorporation of airbags, demonstrating significant development in a positive direction. However, riders of powered two-wheelers have not enjoyed the same level of safety advancements as occupants of cars, despite the multitude of advancements in vehicle safety. Market players in the global market are doing extensive research on vehicle safety solutions and others. The objective of market players is to offer cost-effective bag-on-bike airbags to facilitate the widespread adoption of the technology across a diverse range of motorcycles or two-wheelers.

For instance, in March 2023, American Honda Motor Co., Inc. unveiled groundbreaking detachable airbags for two-wheelers to surround the rider and separate him from the vehicle.

Increase in Government Rules and Regulations to Drive the Market

Government officials, traffic officials, motor insurers, and others are making different efforts to minimize the number of road deaths and to ensure comprehensive safety. Government officials are actively introducing more airbags with different functionalities in automobiles to make passengers and drivers safer. In addition, different governments globally have mandated automotive manufacturers to improve safety measures to protect drivers and passengers and decrease accident incidences. Thereby, leading manufacturers have been promoted to develop a variety of safety features in their vehicles, such as collision warnings, cruise control, airbags, and lane departure assistance, among others.

For instance, in January 2024, every new car sold within the European Union must be outfitted with Event Data Recorders. These concealed black boxes, integrated into a vehicle’s electronics, capture important data including brake pressure, speed, and airbag deployment. They play an important role in accident investigations, fault determination, and the improvement of road safety initiatives.

Passenger Vehicle is Projected to Register the Largest Market Share

The passenger vehicle segment is expected to lead market growth due to an increase in sales of passenger vehicles. Acceleration in the production of passenger vehicles, implementation of government rules and regulations concerning driver and passenger safety, and innovations in automotive bags are projected to increase the demand for passenger vehicles. In addition, governments worldwide have enforced mandates requiring vehicle manufacturers to incorporate airbags into their vehicles to minimize fatalities resulting from accidents. For instance, the Indian government has directed passenger vehicle manufacturers to equip their vehicles with airbags for the safety of front drivers and passengers.

For instance, in September 2023, Autoliv Inc., and Great Wall Motor announced a collaboration to bring innovations that will develop the driving experience, such as introducing an overhead passenger airbag that removes from the car’s ceiling, introducing more room inside the vehicle.

Asia-Pacific Registers the Largest Market Size

APAC is expected to register the largest market size due to growing awareness concerning road safety across emerging countries including China and India. In addition, China dominates the largest market revenue share due to rapid urbanization and the existence of popular market players. Also, the presence of cheap labor, competition among OEMs, low production costs, and easy availability of raw materials are fostering the production of different light vehicle airbags across China which further propels the China light vehicle airbag market growth. Furthermore, the market players are actively investing in new product development, coupled with technological advances in airbag design.

For instance, in February 2024, Toyoda Gosei Co., Ltd. announced an expansion of the airbag development center in India to address the increasing demands for safety systems and raise its business in the rapidly rising Indian automotive market.

Future Market Scenario (2024 – 2031F)

Active safety systems in light vehicles are driving the demand for airbags and several other sensors.

Increase in sales and production of electric vehicles, helping to shape the future of the driving experience.

Self-driving mode and autonomous driving are pushing the demand for airbags in vehicles across the globe.

Collaboration and partnership between key players are increasing the production of airbags in the market.

Key Players Landscape and Outlook

Key market players in the global light vehicle airbag market are continuously focused on enhancing the quality and performance of airbags. Key participants are investing heavily in different research and development activities to be competitive in the market and offer cost-effective products with high performance. In addition, manufacturers in the global light vehicle airbag market are adopting different growth strategies such as partnership, collaboration, new product development, merger and acquisition, and others to improve their presence and address the rising demand for airbags across the globe.

In March 2023, Hyundai Mobis Co., Ltd. announced a development and advancement in airbags that prevent brain injuries. The Brain Injury Prevention Airbag demonstrated its effectiveness in the Obilque Crash test, encouraging the NHTSA to consider its implementation in response to real-world accident scenarios.