Analysis of the Airbag Market: Assessment of Market Size, Trends, Statistics, and Competitors

Airbag Market Growth Factors

Increasing Vehicle Sales Combined with Changing Consumer Approach Towards Vehicular Safety to Attract Growth

Passenger safety awareness is rising thanks to strict regulations imposed by international governing bodies like the European Commission and the NHTSA (National Highway Transport and Safety Authority) and safety awareness campaigns by various private organizations, NGOs, and governments. As a result, buyers are spending more on advanced automotive safety equipment. Proven technology is a key driver of the desire for safety measures. Airbags are now standard on all high-end and mid-range passenger cars being released this year. In addition, the demand for safety systems in all vehicle categories is expected to grow substantially shortly. Europe's economic growth depends heavily on the auto industry. Direct and indirect employment in the auto industry totals 13.8 million people across Europe or 6.1% of the labor force. The European Union (EU) is a global leader in the vehicle industry, and the automotive sector is the largest private investment in research and development. The most important parts of the value chain for the airbag business are the research and development efforts and technological advances. To keep up with the rising need for better and safer airbags, the industry has also seen the introduction of new goods and technology like pedestrian airbags, smart airbags, and occupant sensor systems. So, large-scale car manufacturers place a premium on encouraging airbags, including occupant sensing systems and anticipatory crash technologies, due to the rising sophistication of systems and competitive dynamics and the development of rollover and side impact systems.

Regulatory Restrictions and Untapped Market Expansion to Accommodate Growth

Airbags in the front seats of all cars and light commercial vehicles produced in the United States are required by law, thanks to the Intermodal Surface Transportation Efficiency Act of 1998. Since then, there has been a rising need for airbags on American vehicles. The draft GSR Notification mandating a minimum of 6 airbags in cars with up to 8 persons was also approved, as was revealed by Road Transport and Highways Minister Nitin Gadkari. Stringent international rules are already in place to protect drivers and passengers from harm. Yet, many Latin American countries have chosen not to follow these norms. This includes Argentina, Brazil, Colombia, Ecuador, Mexico, and Uruguay. The governments of these nations are now assessing UN Rules and consumer information systems to reduce unintentional deaths and increase safety. Once the market is regulated, airbags will be the first option and standard feature. Manufacturers of car airbags stand to gain greatly from expanding their business into these nations. The necessity for automotive airbags has grown partly because rising consumer discretionary income has encouraged people to spend more on car safety features. Future market growth factors could include consumers' growing awareness of innovations in automotive safety technology. Two-wheeler airbag technology may stimulate new developments in the car airbag industry.