Global Automotive Airbag Market Overview, 2024-29

Market Dynamic

Market Drivers • Regulatory mandates and safety standards: The strict regulatory demands and safety standards enforced by governments around the world are a major market driver for the global automotive airbag industry. In response to growing concerns about road safety and the need to prevent fatalities and injuries caused by car accidents, regulatory organizations have imposed stringent criteria mandating the installation of airbag systems in new vehicles. These regulations require car manufacturers to include airbag systems in their vehicles in order to meet compliance requirements. Furthermore, as safety standards grow and become more stringent, manufacturers must invest in innovative airbag systems that not only meet current regulations but also anticipate future requirements. This legislative push serves as a primary driver of growth and innovation in the global automotive airbag market, fostering the development of advanced safety technologies aimed at enhancing occupant protection and reducing the severity of injuries in the event of a crash. • Technological advancements and innovation: Technological improvements and continued innovation in airbag systems are another major driver of the global automotive airbag industry. Airbag technology has grown greatly over the years, from traditional front airbags to modern multi-stage systems that can deploy with changing force and timing depending on accident characteristics and occupant situations. Furthermore, the integration of sensor technologies, artificial intelligence, and machine learning algorithms has transformed airbag deployment systems, allowing for real-time assessment of crash dynamics and occupant positions in order to optimize deployment strategies for maximum effectiveness while minimizing injury risk. Furthermore, advances in material science and inflator technology have resulted in the creation of lighter, more compact airbag modules with higher performance and dependability. Market Challenges • Cost pressures and market competition: Cost pressures and fierce market competition provide significant hurdles for participants in the global automotive airbag industry. As safety laws tighten and consumer demand for advanced safety features rises, automakers must balance the delivery of high-quality airbag systems with cost control in order to remain competitive in the market. The cost of creating and producing airbag systems, which include components like sensors, inflators, and textiles, can be high, especially for complex systems with many airbags and sensors. In addition, fluctuations in raw material prices, currency exchange rates, and supply chain interruptions can all have an impact on production costs and profitability. In this highly competitive market environment, businesses must constantly develop and optimize their manufacturing processes to create efficiency and cost reductions while maintaining excellent product quality and safety standards. • Environmental and sustainability concerns: Environmental and sustainability concerns are posing rising challenges to the global automotive airbag industry as stakeholders emphasize eco-friendly and sustainable production techniques. Airbag systems are manufactured and disposed of using materials and procedures that may have environmental consequences, such as the use of toxic chemicals in inflators or non-recyclable materials in airbag fabrics. Furthermore, the disposal of airbag systems at the end of their useful lives, particularly older types containing hazardous components, creates environmental and waste management difficulties. As environmental rules tighten and consumer demand for sustainable products grows, car manufacturers and airbag suppliers face pressure to implement greener manufacturing techniques, reduce waste output, and investigate alternative materials with a reduced environmental impact. This includes initiatives such as utilizing recyclable or biodegradable materials in airbag components, optimizing production processes to reduce energy consumption and emissions, and implementing recycling programs for end-of-life airbag systems. Market Trends • Shift towards multi-stage airbag systems: Historically, airbags were deployed with uniform force and time, regardless of the severity of the incident. However, multi-stage systems provide more flexibility by altering deployment settings according to crash dynamics, occupant characteristics, and seatbelt usage. This allows for better personalized protection for occupants in a variety of collision circumstances, lowering the risk of damage from excessive force or improper deployment timing. Furthermore, multi-stage airbag systems can help reduce the effects of secondary crashes or rollovers, thereby improving overall vehicle safety. As consumer demand for enhanced safety features grows, multi-stage airbag systems are likely to become more common across vehicle categories, accelerating market growth and innovation in this field. • Integration of airbag systems in electric and autonomous vehicles: As electric and autonomous vehicles gain pace in the automotive industry, there is a greater emphasis on incorporating modern safety features, such as airbag systems, into these future vehicle platforms. Given the differences in vehicle architectures and powertrain combinations, electric vehicles (EVs) bring distinct problems and opportunities for airbag design and integration. Furthermore, autonomous vehicles (AVs) provide new challenges for airbag deployment and occupant protection because occupants may no longer be in traditional driving postures or may be engaged in non-driving activities while traveling. As a result, automotive manufacturers and airbag suppliers are investing in developing specialist airbag systems that are suited to the specific safety requirements of EVs and AVs, ensuring seamless integration and compatibility with these new vehicle technologies. As the popularity of electric and driverless vehicles increases, the demand for innovative airbag solutions tailored to these vehicle platforms is expected to grow, driving market expansion and technological innovation in the global automotive airbag market. Covid-19 Impacts The pandemic disrupted global supply chains, affecting the production and supply of automotive components, including those related to airbag systems. Shutdowns, restrictions, and delays in manufacturing plants and transportation logistics led to shortages and production slowdowns. The airbag industry had to adapt to the challenges by implementing contingency plans, diversifying supply chains, and exploring local sourcing to mitigate the impact of disruptions. Lockdowns, decreased consumer demand, and workforce restrictions resulted in reduced vehicle production. Automakers faced challenges in maintaining regular manufacturing schedules, impacting the installation of airbag systems in new vehicles. The airbag industry had to align production schedules with the fluctuating demand for vehicles, leading to adjustments in manufacturing volumes and timelines. Many automakers faced financial challenges due to decreased sales and production disruptions. This financial strain affected their capacity to invest in research and development, potentially impacting advancements in airbag technology. To navigate the financial challenges, some automakers may have re-prioritized their investments, potentially delaying certain technological innovations in the airbag sector. Despite challenges, the pandemic underscored the importance of vehicle safety, leading to an increased emphasis on safety features, including airbags. Automakers may prioritize safety technologies in response to heightened awareness and changing consumer preferences. The airbag industry may see a trend towards the accelerated adoption of advanced safety features as a result of the pandemic, with a focus on making vehicles safer in anticipation of increased demand for safety-conscious consumers.

Key Development

• February 2022- DENSO Corporation ("DENSO") and Sony Semiconductor Solutions Corporation ("SSS") announced that DENSO would invest USD 0.35 billion in Japan Advanced Semiconductor Manufacturing, Inc. ("JASM"), TSMC's majority-owned manufacturing affiliate in Kumamoto Prefecture, Japan. Due to this equity transaction, DENSO will hold a more than 10% equity position in JASM. • January 2022- Continental AG and Volterio are collaborating to develop fully automated charging robots for electric vehicles in January 2022. • January 2022- Toyoda Gosei Co., Ltd. (TOKYO:7282) has created a lighter-weight oil pump, one of the component elements in automotive transmissions, using plastic instead of metal in some areas of the pump. • February 2022- The Mitsubishi Electric Corporation has been granted a contract to provide communications-based train control (CBTC) wayside technology to handle train traffic on the Queens Boulevard Line's east end (QBL).