Increasing demand for high performance luxury vehicles that come pre-installed with airbags is a major factor boosting global automotive airbag market growth
An increasing purchasing power among people leads to increase in the demand for high performance luxury vehicles. The recent trend is to opt for automotive airbags that are already installed in vehicles prior to the purchase. Airbags protect people from injuries and death. High quality airbags are installed in high end luxury cars such as Porsche, Audi, Bugatti, Bentley, Lamborghini, Mercedes, Ferrari, GM Corvette, and other famous car brands across the world. In countries like the U.S and Canada, consumers are getting more aware and knowledgeable about vehicles and driver/passenger safety at the time of driving. Consumers prefer vehicles that have all the necessary safety equipment such as airbags, which help them reduce the impact of accidents, collisions or crashes. This increasing awareness among people regarding vehicle safety is directly responsible for revenue growth of the vehicle type segment of the global automotive airbag market.
Owing to a rise in the number of accidents, the demand for automotive airbags is growing rapidly. To avoid accidents, governments across the globe are implementing safety norms for the automobile industry and making it mandatory to install airbags in vehicles for consumer safety. Luxury cars are more preferred by a certain class of society as they come pre-fitted with airbags. Now-a-days, consumers are more aware of the safety features in vehicles and seem to prefer vehicles that come with all the necessary safety equipment. Due to these factors, the vehicle type segment (which includes luxury cars) is growing at a rapid pace in the global automotive airbag market.
Many cars these days have various types of airbags that are installed in the front centre, on a seat cushion and the external hood airbag. A growth in the automotive industry particularly in Western European countries has led to an increase in demand of automotive safety equipment such as airbags. Due to advancements in technology, automobile manufacturers are finding new ways for installing airbags in cars. This is further fuelling revenue growth of the vehicle type segment in the global automotive airbag market.
Passenger Cars is expected to be the most attractive segment over the forecast period
Among all the vehicle types, the Passenger Cars segment is estimated to account for about 79% value share in the global automotive airbag market by 2027 end followed by the CV/LCV segment with about 16% value share. The Passenger Cars segment is anticipated to show a higher incremental value during the forecast period. Among all the vehicle type segments, the Passenger Cars segment is projected to expand at a CAGR of 8.3% over the forecast period. This segment is anticipated to gain significant BPS during the 10 year period from 2017 to 2027. Nowadays, self-driving vehicles is the latest trend in the market. A steady rise in the demand for autonomous vehicles is leading to growth in demand for external airbags to protect pedestrians. With the continuous increase in fatality rates, there has been some serious research on driverless vehicles, owing to which there is a rise in demand for airbags. Advancements in automotive technology, increasing awareness among consumers, and rise in disposable income leads to rising demand for safety equipment such as airbags in vehicles. As a result, automobile manufacturers have started installing airbags in all types of vehicles. While initially only premium and luxury class vehicles came pre-installed with airbags, this growing consumer awareness pertaining to vehicle safety has resulted in all types of vehicles – premium, mid-range and low range – coming factory fitted with airbags.
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