Automotive Airbag ECU Market is expected to reach US$ 7,868.11 Million by 2028

Stringent Safety and Regulatory Standards for Vehicles to Improve Passenger Safety and Comfort Boosts Automotive Airbag ECU Market

According to our latest market study on “Automotive Airbag ECU Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by product type, airbag type, and vehicle type,” the market is expected to grow from US$ 6,224.95 million in 2021 to US$ 7,868.11 million by 2028; it is estimated to grow at a CAGR of 3.78% from 2022 to 2028.

Automotive technologies, especially the ones related to vehicle safety, have undergone improvements with rapid developments in the automotive and transportation sectors. Per the report published by the US National Highway Traffic Safety Administration (NHTSA), the traffic fatalities in 2021 surged by ~10.5% compared to the fatalities reported in 2020, which is the largest annual percentage rise in the Fatality Analysis Reporting System’s history in the US. The estimated fatalities in 2021 are the highest numbers reported in the country since 2005. Thus, government agencies emphasize on improving safety policies and standards, along with making significant investments in curbing the number of road accidents, which expedites the automotive airbag ECU market. In May 2022, the administration approved US$ 740 million in funding for the Section 402 State and Community Grant Program, and Section 405 National Priority Safety Program. The governments of different states in the US are focused on using these funds to implement programs for expanding partnerships, and addressing challenges associated with people's risky driving habits and road safety concerns. This will lead to higher adoption of airbags, thereby boosting the growth of the automotive airbag ECU market.

In March 2022, the Government of India made six airbags compulsory in cars sold in the country. Hence, all the cars manufactured after October 01, 2022 had a mandate of having six airbags. European Commission (EC) is working on framing regulatory standards for motor vehicles with the safety of vehicle occupants and vulnerable road users. In the European Union (EU), updated UNECE regulations on seatbelts have mandated the installation of seatbelt reminder systems in front and rear seats on new cars from September 2019. Thus, government regulations for mitigating the number of fatalities are propelling the automotive airbag ECU market growth.

The automotive airbag ECU market has been segmented on the basis of product type, airbag type, vehicle type, and geography. Based on product type, the market is bifurcated into standard and premium. Based on airbag type, the automotive airbag ECU market is bifurcated into frontal airbag ECU and curtain airbag ECU. Based on vehicle type, the market is segmented into passenger vehicles and commercial vehicles. Based on geography, the automotive airbag ECU market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). APAC accounted for a significant share of the overall automotive airbag ECU market in 2021.

Major stakeholders in the automotive airbag ECU market ecosystem include raw material suppliers/component suppliers, airbag ECU manufacturers, and end users. Sensors, control circuits, cases, and microcomputers are among the major raw materials/components required for the production of airbag ECUs. These materials are supplied by Denso Corporation, Renesas, Bosch Mobility, Infineon Technologies, and BHP, among other players. In April 2022, Renesas developed a new ECU virtualization platform with smart functions to meet the improved safety requirements of advanced vehicles.

The imposition of stringent emission regulations by government authorities across the world to curb air pollution hindered global vehicle production in 2019. In addition, the COVID-19 pandemic hampered the production of airbag ECUs in 2020. However, a rise in the demand for electric vehicles (EVs) is anticipated to offer lucrative opportunities for players operating in the automotive airbag ECU market during the forecast period. The growing awareness regarding safety measures in cars and passenger vehicles is also contributing to the market growth. Since September 2020, the automotive sector in Asia Pacific countries has largely recovered with the relaxation of lockdown measures in several countries.

Impact of COVID-19 Pandemic on Asia Pacific Automotive Airbag ECU Market

Governments of Asia Pacific countries took all possible steps to reduce the effect of COVID-19 on industries by taking measures for ensuring workers’ safety and temporary suspension of operations, which hindered the progress of the manufacturing sector. Consumer electronics and automotive manufacturers in India slashed their production in April 2020 as supplies of semiconductor components from China and Hong Kong dropped due to the surge in COVID-19 cases. In addition, they were compelled to cut down production volumes due to the declined imports from China, which led to inventory shortages. A decline in machinery exports from China, Japan, and ASEAN countries limited the automotive airbag ECU manufacturing across the world.

A resurgence of the electronics industry contributed notably to the recovery in the exports of electronic goods such as airbags, airbag ECUs, and seatbelts. Japan exhibited a positive electronics export performance, registering a 27.8% rise in semiconductors exports during the pandemic recovery period. Additionally, Germany and the UK were among the other countries that showed strong signs of post-COVID recovery.

A few of the key players operating in the automotive airbag ECU market are Continental AG, Robert Bosch GmbH, Denso Corporation, Autoliv, and Aptiv Plc.

Automotive Airbag ECU Market – by Region, 2021 and 2028 (%)