Automotive Airbags and Seatbelts Market is expected to reach US$ 1,11,917.12 Million by 2028

Growing Awareness About Vehicle Safety Features Provide Growth Opportunities for Automotive Airbags and Seatbelts Market During 2022–2028

According to our latest market study on " Automotive Airbags and Seatbelts Market Forecast to 2028 –Global Analysis – by Airbags Type, Seatbelts Type, Material, and Vehicle Class," the market is expected to grow from US$ 53,744.00 million in 2021 to reach US$ 1,11,917.12 million by 2028; it is anticipated to grow at a CAGR of 11.8% from 2022 to 2028.

The automotive industry plays a crucial role in a country's economy and helps build macroeconomic growth and stability in developed and developing countries, spanning many adjacent sectors. The growing demand for customized curtain airbags, rising usage of airbags safety systems in all types of vehicles, and increasing awareness for the safety of the driver and passengers are the prominent factors driving the automotive airbags and seatbelts market. As per the International Organization of Motor Vehicle Manufacturers, an increase of 2.74 million units of all types of automotive vehicles was witnessed from 2020 to 2021. Moreover, industry leaders and automotive manufacturers are forming alliances and adopting strategic initiatives to incorporate advanced technologies in airbag systems and seatbelts in the new product launches to expand their portfolio, necessitating consumer demand. The rise in demand for electric vehicles is primarily attributed to an increase in investment in the EV industry, supportive government regulations, incentives and tax rebates, and upcoming energy storage technology advancements. These factors are strengthening the demand for electric vehicles. Thus, the rise in the need for electric vehicles is a key factor that is augmenting the demand for airbags and seatbelts, helping the automotive airbags and seatbelts market size to grow faster in the coming years.

The growing awareness among consumers about vehicle safety features and the rising willingness to pay an extra cost for featured airbags and seatbelts is a potential opportunity for market growth in the coming years. The rise in demand for airbags from leading automotive makers and stringent mandatory regulations for deploying airbags propel the growth of automotive airbags and seatbelts. For instance, in January 2022, the Indian government released a draft proposal mandating six airbags in all passenger cars manufactured from October 2022. The New Car Assessment Program for Southeast Asian Countries (ASEAN NCAP)  brought multiple changes and adaptations to the region's socio-economic development, focusing more on road safety aspects. Thus, the growing awareness about safety features in automotive vehicles will pose a potential opportunity for the growth of the automotive airbags and seatbelts market.

The Asia Pacific region holds larger market share globally. The automotive airbags and seatbelts market in Asia Pacific is segmented into Australia, China, India, Japan, South Korea, and Rest of Asia Pacific. Geographic diversification across different Asia Pacific countries and the presence of major airbags and seatbelts manufacturers, are prominent factors driving the sales of airbags and seatbelts in Asia Pacific. In addition, the growing trend for adopting the electric vehicles is fueling the usage of airbags and seatbelts, which is significantly increasing the demand for automotive airbags and seatbelts. As per the Association of Southeast Asian Nations (ASEAN) Automotive Federation Report, the total number of vehicle sales in ASEAN member states accounted for 2.45 million in 2020. This number is expected to increase with population growth and economic development. EV uptake is also likely fueled by growing pollution concerns and the need to switch to cleaner and environment-friendly modes of transport. Thus, such factors drive the demand for automotive airbags and seatbelts market. In addition, APAC has a robust automotive industry supported by a well-established automotive manufacturing industry in China and India. India produced 3,394,446 cars in 2020, as per the countryeconomy.com statistics report. In 2020, China was the largest vehicle-producing country globally; it produced 25,225,242 passenger cars and commercial vehicles, as per the same statistics report. The strong automotive industry and the rise in passenger car and commercial vehicle manufacturers are among the significant factors driving the demand for automotive steering systems in the region. Hence, the robust automotive industry will fuel the need for the automotive airbags and seatbelts market.

The thriving automotive industry in Europe supports the growth of the automotive airbags and seatbelts market. Countries such as Germany, France, Spain, the UK, and the Czech Republic are the leading countries in Europe that produce the maximum number of motor vehicles and passenger cars. Further, the national regulatory bodies are taking numerous initiatives to support the development of the automotive industry in the region, further aiding the demand for automotive airbags and seatbelts market growth. The Horizon 2020 Plan focuses on providing funds for research & development (R&D) activities in the automotive industry by launching programs such as the European Green Vehicles Initiative and programs on factories of the future and information and communications technology (ICT) for smart mobility, road transport, and logistics. Therefore, the presence of a robust automotive industry helps boost the demand for automotive airbags and seatbelts due to large-scale motor vehicle production and several European governmental schemes.

The automotive airbags and seatbelts market analysis is segmented into airbags type, seatbelts type, and vehicle class. Based on airbags type, the automotive airbags and seatbelts market is segmented into front, knee, and side and curtain. On the basis of seatbelts type, the airbags and seatbelts market is segmented into 2-point and 3-point. Based on vehicle class, the market is segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles.

Automotive Airbags and Seatbelts Market — by Geography, 2021

The COVID-19 outbreak dramatically impacted the global economy during its peak in 2020 in its initial days, and the crisis hampered the business activities in manufacturing industries. Before the COVID-19 outbreak, the automotive airbags and seatbelts market was experiencing substantial growth owing to the growing population, increasing disposable income, and ease of availability of credit and financing. Since 2019, the Indian government started taking significant measures to prioritize car safety for car owners and manufacturers. In 2019, driver-side airbags and an anti-lock braking system became mandatory on all cars, a much-needed step toward road safety. However, the onset of the COVID-19 pandemic slowed down the investment and production units that hampered the business dynamics of the automotive airbags and seatbelts market. With ease in restrictions and the reopening of business units from 2021, the auto industry witnessed tremendous resilience. The COVID-19 pandemic influenced consumers’ perception of their vehicle needs. The demand for the adoption of EVs and the sale of automotive vehicles are increasing faster, achieving the new normal. Therefore, although the global automotive airbags and seatbelts market plummeted initially in 2020 due to the adverse impact of the COVID-19 pandemic and the related regulations, it  achieved a strong recovery from the pandemic. The automotive airbags and seatbelts market analysis help to understand the upcoming trends, new technologies, and macro and micro factors influencing market growth in coming years. The automotive airbags and seatbelts market report provides detailed market insights which helps the key players to strategize the growth in coming years.

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