automotive airbags and seatbelts Market

The Automotive Airbags and Seatbelts Market is expected to grow from US$ 53744.00 million in 2021 to US$ 111,917.12 million by 2028. It is estimated to grow at a CAGR of 11.8% from 2022 to 2028.

The expansion of technology in the automotive industry, particularly in the development of airbags, is driving the growth of the market for automotive airbags and seatbelts. One example of this advancement is the dual deploy or dual-stage airbags, which are computer-operated and can deploy at two speeds. These airbags deploy at a lower first stage in less severe accidents, accounting for around 70% of full force, and both stages are deployed in more severe accidents. Additionally, side airbags are highly effective in preventing head injuries to the driver and passengers from the rigid areas of the vehicle during side-impact collisions.

The automotive airbags and seatbelts market can be driven by Acura's introduction of its three-chambered airbags, which are specifically designed to deploy during a collision to protect the occupant's head and minimize head injuries. The potential for growth in frontal airbags has led Acura to launch this new airbag in its latest 2021 TLX model.

The growth of the automotive airbags and seatbelts market is being fueled by the increasing focus of airbag manufacturers on developing nylon-based fabrics coated with organic silicon instead of neoprene. These coated fabrics are lightweight and have a longer service life, stable performance, and high wear resistance. Furthermore, new developments and innovations are being introduced to improve efficiency and widen the production capabilities of airbags. For instance, in 2020, Asahi Kasei, a Japanese technology group, launched a cloth sewing program for airbags at Asahi Kasei Advance Vietnam, its Vietnamese subsidiary. Leading manufacturers are continuously working towards the development of better-quality airbags to reduce fatalities in road accidents. They are also placing a strong focus on expanding production capacities, establishing new entities, and introducing an enhanced product portfolio. For example, in July 2019, ZF Friedrichshafen, a German car parts manufacturer, developed external smart airbags for vehicles that reduce the crash's impact and decrease damage to the occupants. Similarly, in June 2021, Toyoda Gosei Co., Ltd. developed a driver-side airbag with a new structure that safely protects the driver. This airbag is currently being used in the new Honda Civic in North America. The automotive airbags and seatbelts market is expected to witness further growth due to such innovative approaches by various manufacturers.

The growth of the automotive airbags and seatbelts market is being propelled by technological advancements in seatbelts. For example, Hyundai Mobis announced in September 2019 that it had developed a "Safety Integrated Control Module" that improves the efficiency and safety of operating automotive safety devices. This innovation combines two separate electronic control units (ECUs) for airbags and electronic seatbelts into a single unit. Therefore, these technological advancements in airbags and seatbelts are expected to boost the growth of the automotive airbags and seatbelts market.

The increasing awareness among consumers regarding vehicle safety features and their willingness to pay additional costs for airbags and seatbelts with advanced features present potential opportunities for the growth of the automotive airbags and seatbelts market. The demand for airbags from major automotive manufacturers and strict regulations mandating airbag deployment are driving the growth of this market. For instance, in January 2022, the Indian government released a draft proposal that mandates six airbags in all passenger cars manufactured from October 2022. In January 2018, South Korea announced the requirement for new cars fitted with front and rear seat belt reminder systems. Therefore, such initiatives aimed at achieving certification to improve safety are expected to increase the demand for automotive airbags and seatbelts.

Impact of COVID-19 Pandemic on Automotive Airbags and Seatbelts Market

The automotive industry has demonstrated remarkable resilience with the easing of restrictions and reopening of business units in 2021. The COVID-19 pandemic has influenced consumers' perception of their vehicle needs, leading to a surge in demand for electric vehicles (EVs) and automotive vehicles, establishing a new normal. According to the Statista report, the interest in EVs has increased by 56% in North America, 46% in Asia, and 29% in Europe. In addition, since 2021, mandatory regulations have required a specific number of airbags to be deployed, incurring costs for market players. This has compelled car manufacturers to provide cars with additional features of airbags and seatbelts at the same cost during the pandemic recovery period, creating attractive opportunities for the automotive airbags and seatbelts market.

Due to the adverse impact of the COVID-19 pandemic and related regulations, the global automotive airbags and seatbelts market initially experienced a significant decline in 2020. However, businesses restructured their models and strengthened their strategies to achieve economies of scale. As a result, the market has shown a strong recovery from the pandemic. There is an increasing demand for airbags and seatbelts globally, and this is expected to drive the growth of the automotive airbags and seatbelts market.

Based on airbags type, the automotive airbags and seatbelts market is segmented into front, knee, side, and curtain. In terms of seatbelts type, the market is segmented into 2-point and 3-point. Based on vehicle class, the market is segmented into passenger, light commercial vehicles, and heavy commercial vehicles. Based on geography, the global automotive airbags and seatbelts market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America.

The key players involved in the global automotive airbags and seatbelts market ecosystem are the raw material suppliers, automotive airbags and seatbelts manufacturers, OEMs, and end-users. The raw material supplier plays a crucial role in this ecosystem. The primary raw materials used to manufacture airbags and seatbelts include nylon filament yarns or high tensile polyester filament yarn, nylon66 polymer, and woven fabric. Some of the major raw material suppliers in the automotive airbags and seatbelts market are Bally Ribbon Mills, Jelliff Corp., Consolidated Cordage Corporation, Jason Mills, LLC, BALAVIGNA WEAVING MILLS PVT. LTD., and The Carnegie Textile Co., among others. In December 2021, Asahi Kasei and Asahi Kasei Advance announced the establishment of Asahi Kasei Airbag Fabric Vietnam Co., Ltd. (AFV) in Thai Binh Province, Vietnam, along with Teijin Frontier Co., Ltd. (Teijin Frontier), to produce fabric for airbags. Such initiatives for setting up a company to supply raw materials are boosting the production of automotive airbags and seatbelts, thereby driving the growth of the automotive airbags and seatbelts market.

The market size of the automotive airbags and seatbelts industry has been determined through primary and secondary research. The research process began with a comprehensive secondary research using internal and external sources to collect qualitative and quantitative information about the market. This process helped in obtaining an overview and forecast of all market segments. Additionally, primary interviews were conducted with industry experts including VPs, business development managers, market intelligence managers, national sales managers, as well as external consultants such as research analysts, valuation experts, and key opinion leaders specializing in the automotive airbags and seatbelts market. The purpose of these interviews was to validate data and gather more analytical insights into the market.

The key companies operating in the automotive airbags and seatbelts market include includes Autoliv Inc., Continental AG, TOYODA GOSEI Co., Takata India Private Limited, Daicel Corporation, ZF TRW Group, and Joyson Safety Systems.