Automotive Passive Safety System Market Research Report and Outlook by 2028

The market for automotive passive safety systems is anticipated to increase from US$ 19,967.55 million in 2022 to US$ 25,932.05 million by 2028, reflecting a compound annual growth rate (CAGR) of 4.5% during this period.

Ensuring the safety of vehicle occupants is a fundamental aspect of automotive safety systems, which include essential features like seat belts and head restraints. These systems are engineered to keep occupants securely in their seats and to mitigate the risk of injury during collisions. As high-speed vehicles gain popularity, the incidence of accidents has risen, leading to a heightened demand for vehicles equipped with advanced safety features. Such features may encompass technologies like blind spot detection, lane departure warnings, and anti-roll braking systems. As a result, the integration of these safety technologies is propelling the demand for automobiles and fostering the growth of the global automotive passive safety system market.

The automotive passive safety system market is primarily dedicated to safeguarding passengers during rare but critical events such as accidents. The aim of these passive safety systems is to lessen the impact of such incidents on the vehicle's occupants. Key components of these systems include airbags, seat belts, crumple zones, and passenger compartments. Over the years, passive safety systems have significantly contributed to improving road safety and personal protection by reducing the severity of injuries in accidents. Consequently, European vehicles have consistently excelled in crash tests, and advancements in passive safety technology continue to evolve.

Several factors are driving the growth of the automotive passive safety system market, including the overall expansion of the automotive industry and the increasing consumer demand for safer vehicles. With the rising global incidence of vehicular accidents, both consumers and governments are becoming more vigilant about road safety, creating a conducive environment for the passive safety systems sector. Furthermore, the automotive market's growth, fueled by rising disposable incomes, is opening up new avenues for the expansion of automotive passive safety systems.

The increasing consumer preference for sophisticated safety features, the implementation of stricter safety regulations by governments in various nations, the growing adoption of curtain and knee airbags?especially in emerging markets?and technological innovations are all contributing to the growth of the automotive passive safety system market. However, challenges such as rising raw material costs, fluctuations in exchange rates, and intense price competition are posing obstacles to market growth.

In the Asia-Pacific (APAC) region, key economies contributing to the automotive passive safety system market include China, India, South Korea, Japan, and Australia. These nations are experiencing significant technological and infrastructural advancements. The automotive industry in this region is thriving, supported by the growth of the automotive manufacturing sector in countries like China, India, and South Korea, which are among the top vehicle producers globally. For instance, in 2021, India manufactured 22,933,230 vehicles, comprising 3,650,698 passenger vehicles and 805,527 commercial vehicles, as reported by the Society of Indian Automobile Manufacturers (SIAM).

In 2021, China emerged as the world's largest vehicle producer, with the China Association of Automobile Manufacturers (CAAM) reporting that passenger vehicle production and sales reached 21.408 million and 21.482 million units, respectively. The Japanese automotive sector continues to thrive, with manufacturers producing and selling a vast number of vehicles globally. The growth of Japan's automotive manufacturing has also bolstered its component manufacturing industry, ranking it among the top three most lucrative globally, alongside the US and Germany. The automotive component sector in Japan has expanded in line with the increasing number of automobile manufacturers, driven by the rising volume of passenger and commercial vehicles on the roads.

A robust automotive industry and a growing number of car manufacturers are the main drivers of the automotive passive safety system market in the region. Numerous major automotive manufacturers operate in this area, including Suzuki, Mitsubishi, Hyundai-Kia, Tata Motors Limited, Lexus, and Toyota. Additionally, the region hosts a wide array of automotive passive safety system manufacturers and suppliers, such as MITSUBA Corporation, Zhejiang Zhenqi Auto Parts Corp., Ltd., and DENSO Corporation. Governments in various APAC countries are implementing initiatives to promote the growth of their automotive sectors. For example, the Indian government has announced plans to establish research and development centers with an investment of US$ 388.5 million under the Union Budget 2019-2020 to help the automotive sector meet international standards.

The various government initiatives across different countries are expected to create substantial opportunities for the advancement of innovative automotive passive safety systems in the APAC region, thereby propelling market growth in the coming years. However, the global automotive production landscape is heavily dependent on China, and the COVID-19 pandemic has caused supply shortages that have impacted OEM assembly worldwide. The shutdowns directly affected approximately two-thirds of China's automotive production and its suppliers, thereby restricting the operations of the automotive and component manufacturing sectors in APAC. This situation is likely to influence the automotive passive safety system market share in the region in the near future.

The automotive passive safety system market in APAC is further enhanced by the rising trend of pedestrian protection airbags. For instance, in October 2021, Toyoda Gosei Co. in Japan introduced a pedestrian protection airbag designed to shield a pedestrian's head during a vehicle collision. This new airbag represents Toyoda Gosei's first product aimed at protecting pedestrians and other vulnerable road users, showcasing the ongoing innovations that are driving the growth of the automotive passive safety system market in the region.

Key players in the automotive passive safety system market include Autoliv Inc, Continental AG, Joyson Safety Systems, Robert Bosch GmbH, ZF Friedrichshafen AG, FAURECIA, Hyundai Mobis, Knauf Industries, Toyoda Gosei Co., Ltd, and Tokairika Co., Ltd. The report also includes secondary research on other companies that hold a significant share of the market.

The overall size of the automotive passive safety system market has been determined through a combination of primary and secondary research. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data regarding the automotive passive safety system market. This approach aimed to provide a comprehensive overview and forecast of the market across all segments relevant to the region. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the data and gain analytical insights into the automotive passive safety system market. These primary interviews included discussions with industry professionals such as VPs, business development managers, market intelligence managers, national sales managers, external consultants, valuation experts, research analysts, and key opinion leaders specializing in the automotive passive safety system sector.