According to our new research study, titled "Automotive Passive Safety System Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type, Vehicle Type, and Geography," the automotive passive safety system market is projected to reach US$ 25,932.05 million by 2028 from US$ 19,595.24 million in 2021. It is estimated to grow at a CAGR of 4.5% from 2021 to 2028.
Increasing Enforcement of Regulatory Standards Concerning vehicle safety to Drive Automotive Passive Safety System Market
Over the years, there has been rapid improvement in automobile technology, including the integration of safety features into various aspects of automobiles. Governments worldwide are imposing regulations to ensure vehicle and driver safety to prevent accidents. A report from the National Highway Traffic Safety Administration (NHTSA) revealed that road deaths in 2021 had increased by approximately 10.5% when compared to the reported deaths in 2020. This increase in estimated death toll marks the largest annual increase in the US mortality analysis and reporting system's history. As a result, government agencies are now strongly emphasizing the need to improve safety policies and standards and investing heavily in passive safety systems for automobiles such as airbags and seatbelts, to reduce traffic accidents. For example, the National Highway Traffic Safety Administration in the US has implemented new vehicle performance standards and formed partnerships with state and local governments to reduce the number of deaths, injuries, and economic losses resulting from motor vehicle crashes in the region.
A preliminary political agreement has been reached by European Union (EU) institutions on the revised General Safety Regulation. This requires new safety technologies to be mandatory in European vehicles to protect passengers, pedestrians, and cyclists. The aim is to reduce the number of road casualties, with 90% of them attributed to human error. Passive safety systems are expected to contribute to this reduction. To aid consumers in comparing vehicles and identifying safety features that meet their needs, the European New Car Assessment Programme (NCAP) has introduced a five-star safety rating system. The introduction of safety mandates in the European Union is expected to drive the growth of the automotive passive safety system market, which is anticipated to pave the way for increasingly connected and automated mobility and enhance the global innovation and competitiveness of the automotive industry over the next few years. These factors are thus contributing to the growth of the automotive passive safety system market.
North America is segmented into the US, Canada, and Mexico. Across the region, technological advancements have led to a highly competitive automotive passive safety system market. The region attracts several technological developments, which consist of economically robust countries. As per OICA statistics, the US, Canada, and Mexico are leading in the commercial vehicle production segment worldwide. Thus, with the continuous production of commercial vehicles across the region, the need for automotive passive safety systems will increase significantly, supporting the growth of the automotive passive safety system market size in North America.
Initiatives are being taken by North American governments to produce or develop the electric vehicle industry. According to a September 2021 article published on Skadden, the United States Department of Energy (DoE) has been continuously funding the US electric vehicle (EV) and energy infrastructure. The DoE has financed several projects related to EV infrastructure and innovative energy technologies, including the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program (with US$ 17.7 billion in direct loan authority), Title 17 Innovative Energy (Section 1703) Loan Guarantee Program (with ~US$ 24 billion in loan guarantee authority), and US$ 2 billion under the Tribal Energy (Partial) Loan. As a result, the continuous focus on the production or development of the electric vehicle industry presents opportunities for manufacturers to increase their share in the automotive passive safety system market due to the growing emphasis on safety in electric vehicles. Furthermore, government regulations in North America concerning vehicle safety are further driving the growth of the automotive passive safety system market.
Key Findings of Study:
The automotive passive safety system market worldwide has been categorized into five key regions, namely North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). APAC holds the potential to dominate the robot welding market share due to technological advancements in manufacturing and increased automation in industries. Furthermore, the escalating demand for vehicles attributed to rapid urbanization and population growth is anticipated to significantly boost market growth during the projected period. The growth of the automotive passive safety system market in Asia Pacific is being fueled by surging consumer incomes, expanding automobile production in emerging nations like India and China, and a rise in demand for luxury cars in countries like Japan.
North America and Europe will hold significant shares in the global automotive passive safety system market. The significant presence of automakers and high net worth individuals in Europe and North America drives the sale of luxury vehicles with multiple passive safety systems. The increasing number of vehicles on the roads in Europe is propelling the market's growth.
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