According to the new research report on "Automotive Airbags and Seatbelts Market Forecast to 2028 - COVID-19 Impact and Global Analysis," published by The Insight Partners, the Automotive Airbags and Seatbelts Market is expected to reach US$ 111,917.12 million by 2028, registering a CAGR of 11.8 % from 2022 to 2028.
The growth of the automotive airbags and seatbelts market is mainly dominated by India and China, two major economies in the Asia Pacific region. With the increasing demand for electric vehicles (EVs), there is a significant rise in the demand for automotive airbags and seatbelts. Over the past few years, the interest in EVs has grown substantially. According to the Association of Southeast Asian Nations (ASEAN) Automotive Federation Report, there were 2.45 million vehicle sales in ASEAN member states in 2020, and this number is expected to increase due to population growth and economic development. The adoption of EVs is driven by growing pollution concerns and the need for environmentally friendly modes of transportation. ASEAN has implemented favorable policies for the environment to promote EV adoption, and several countries in the region have taken steps to increase their adoption. For example, in July 2020, the Brunei Darussalam National Council on Climate Change launched the Brunei Darussalam National Climate Change Policy (BNCCP), which aims to increase the share of EVs in total vehicle sales to 60% in the coming years. The growing trend of EV adoption in the Asia Pacific region is, therefore, driving the growth of the automotive airbags and seatbelts market.
Companies in India are utilizing the mandate by the Road Transport and Highway Ministry for six airbags in passenger cars with up to eight passenger capacity to gain a foothold in the automotive airbags and seatbelts market. Toyota, in partnership with Maruti Suzuki, recently launched the Urban Cruiser Hyryder, a mid-sized SUV with essential safety features such as six airbags, tire pressure monitoring system, 3-point seatbelts for all passengers, and more. This new SUV is expected to be available in India starting in August 2022, thereby presenting opportunities for the growth of the automotive airbags and seatbelts market in the country.
The COVID-19 pandemic had a significant impact on the major Asia Pacific markets, namely India and China, disrupting the supply chain of various raw materials and goods due to the lockdown and slowdown of industrial activities. However, before the outbreak, the demand for advanced airbags and seatbelts for electric vehicles and premium cars was rapidly increasing, fueling the growth of the automotive airbags and seatbelts market. In 2021, as the lockdown measures were relaxed, manufacturing operations resumed, resulting in a restart of production facilities. Leading automotive component manufacturers took the initiative to produce automotive components to cater to the demand for automotive vehicles, providing the industry with opportunities for growth during the pandemic recovery period. For example, Toyoda Gosei Co., Ltd. planned to establish a new plant in Guangdong Province, China, by May 2023, aimed at increasing airbag sales due to the rising demand for safety systems and automobile production in South China. Similarly, Daicel Corporation planned to invest ~US$ 29.13 million to set up an airbag inflator manufacturing plant in Chennai in January 2021. These initiatives helped the automotive airbags and seatbelts market recover and grow post-pandemic.
According to the China Association of Automobile Manufacturers (CAAM), automotive vehicle sales in China grew by 3.8% in 2021, reaching 26.28 million units. Similarly, the Society of Indian Automobile Manufacturers (SIAM) reported that the sale of passenger vehicles in India increased from 2.71 million units in 2020-21 to 3.06 million units in 2021-22. This growth in vehicle sales is expected to drive up demand for airbags and seatbelts in automotive vehicles, thereby boosting the growth of the automotive airbags and seatbelts market during the pandemic recovery period.
The automotive airbags and seatbelts market in Asia Pacific is predominantly led by China, owing to its growing auto sales. According to the China International Capital Corporation, the country's auto sales are expected to reach 27.2 million units by the end of 2022, a 6.2% increase year-on-year (YoY). Additionally, the wholesales of passenger cars are expected to grow by 8.1% YoY, reaching 22.8 million units. The China Association of Automobile Manufacturers (CAAM) reported that Chinese vehicle production and sales increased by 20.6% and 18.7%, respectively, in February 2022 compared to February 2021. As a result, the surge in automotive vehicle production and sales in China is expected to drive the growth of the automotive airbags and seatbelts market in the region.
The automotive airbags and seatbelts market analysis has been carried out on the basis of airbags type, seatbelts type, and vehicle class. Based on airbags type, the automotive airbags and seatbelts market is segmented into front, knee, side, and curtain. On the basis of seatbelts type, the automotive airbags and seatbelts market is segmented into 2-point and 3-point. Based on vehicle class, the automotive airbags and seatbelts market is segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles.
Key Findings of Study:
The automotive airbags and seatbelts market in Asia Pacific is witnessing growth due to the rise in the trend of pedestrian protection airbags. In October 2021, Toyoda Gosei Co. developed a pedestrian protection airbag to protect pedestrians' head in case of accidents. Such an initiative holds the potential to expedite the growth of automotive airbags and seatbelts market, especially in Japan, where the highest mortality rate is seen in accidents involving pedestrians. The pedestrian protection airbag covers the rigid parts of the vehicle, such as the front pillars, where the likelihood of fatal injury is the highest. Moreover, in December 2021, according to the article published by the New Car Assessment Programme for Latin America and the Caribbean (Latin NCAP), an SUV achieved high scores in adult occupant protection, child occupant protection, pedestrian and vulnerable road user protection, and safety assist. These factors are driving the growth of the automotive airbags and seatbelts market in Asia Pacific.
In Europe, the thriving automotive industry is supporting the growth of the automotive airbags and seatbelts market. The number of motor vehicles produced in Europe was 16,330,509, 16,942,248, and 21,575,118 in 2021, 2020, and 2019, respectively, as per the OICA 2021 statistics report. Germany, France, Spain, the UK, and the Czech Republic are the leading countries in Europe that produced the maximum number of motor vehicles and passenger cars. The rise in the number of passenger cars across regions is likely to play a substantial role in the growth of the automotive airbags and seatbelts market. Furthermore, national regulatory bodies are taking numerous initiatives to support the development of the automotive industry in the region, such as CARS 2020 Action Plan, GEAR 2030, and Horizon 2020. The presence of a robust automotive industry in Europe helps boost the demand for automotive airbags and seatbelts market due to large-scale motor vehicle production and several European governmental schemes.
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