Automotive Passive Safety System Market is expected to reach US$ 25,932.05 Million by 2028

Growing Uptake of Electric Vehicles Provide Lucrative Opportunities for Automotive Passive Safety System Market Growth

According to our new research study, titled “Automotive Passive Safety System Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type, Vehicle Type, and Geography,” the Automotive Passive Safety System market share is projected to reach US$ 25,932.05 million by 2028 from US$ 19,595.24 million in 2021. The automotive passive safety system market is estimated to grow at a CAGR of 4.5% from 2021 to 2028.

As manufacturing investment rise, the demand for electric vehicles will increase. Airbags and seatbelts with modern features are now standard in electric automobiles for a better driving experience. Manufacturers are now required to offer electric vehicles all over the world due to the rising demand for zero-emission vehicles and expanding policies that promote zero-emission vehicles through subsidies and tax breaks. When switching to an electric vehicle, customers expect a higher level of automated experience and advanced driving features. The push for technological innovation and a rise in focus on the safety of passengers and drivers may further increase the demand for airbags and seatbelts with advanced features. In addition, increased expectations for deploying airbags and seatbelts in electric vehicles are fueling the automotive passive safety system market share.

As per the Global Electric Vehicle Outlook, sales of electric cars, including fully electric and plug-in hybrid vehicles, increased in 2021 to a new record of 6.6 million units. As per the same report, in China, electric car sales increased significantly in 2021 to 3.3 million, accounting for about half of the total global sales. EV sales also grew strongly in Europe by 65% to 2.3 million units, and sales in the US doubled to 630,000 units in 2021. In addition, supportive government regulations for electric vehicle charging stations further propel electric vehicle sales, driving the demand for automotive passive safety system market. For instance, in June 2022, the US government proposed new standards for its program to build a national network of 500,000 electric vehicle charging stations by 2030. Furthermore, the government introduced a plan to allocate US$ 5 billion to states to fund EV chargers by 2028. Thus, the growing production of electric vehicles is anticipated to hold potential demand for installing automotive passive safety system.

Key automotive passive safety system manufacturers or automobile brands in the automotive industry offer production, distribution & sales, and aftermarket services. Passive safety systems, such as airbags, seatbelts, occupancy sensor systems, and child safety systems, are mainly produced by top automobile companies. Some auto companies specializing in producing active & passive safety systems are Hyundai Mobis, Continental AG, and Autoliv Inc. The rising growth in the production of electric vehicles and growing interest among developing and developed economies are resulting in the growing demand for passive safety systems. The operation of top players, such as Continental AG, Autoliv, Hyundai Mobis, Ford, and Tesla, are spread all over the world. Distribution & sales include logistics companies, dealers, and distributors. It also helps them to reduce their manufacturing and shipping expenses. Regulators and organizations are collaborating to strengthen their supply chain while maintaining commerce flow.

The automotive passive safety system market has been analyzed on the basis of the following segments: type, vehicle type, and geography. Based on type, the market can be categorized into airbags, seatbelts, occupant sensing systems, child safety systems, and others. The airbags segment is expected to dominate the market during the forecast period. By vehicle type, the automotive passive safety system market is segmented into passenger cars and commercial vehicles. The passenger cars segment is expected to dominate the automotive passive safety system market during the forecast period.

In terms of geography, the automotive passive safety system market is divided into 5 regions North America, Europe, Asia Pacific, the Middle East & Africa, and South America. Asia Pacific dominated the overall market in 2021, and Europe held the second-largest market share in 2021.

Impact of COVID-19 Pandemic on Automotive Passive Safety System Market

The COVID-19 pandemic negatively impacted the global automotive passive safety system market growth. Passenger vehicles and LCV manufacturers faced immediate consequences of the outbreak, which will continue in the long term. Lockdown restrictions forced to curb the spread of SARS-CoV-2 significantly impacted supply chains, raw materials, such as fabric, cushions availability, electronic components, and production facilities. However, as the lockdown restriction eased down from Q1 in 2021, the market gained momentum due to the rising demand for vehicles. Thus, the automotive passive safety system market size is projected to grow healthy over the forecast period.

The pandemic resulted in cancellations or postponements of passive safety systems, including airbags, seatbelts, whiplash protection, occupant sensing systems, and pedestrian safety systems. The impact can be felt on the automotive industry with lockdowns, restrictions, and suspension of manufacturing operations due to social distancing norms. Many companies, such as Continental AG and Hyundai Mobis, adopted short-term plans to keep their operations running amidst the COVID-19 pandemic. With contactless delivery, companies started selling their safety systems through online platforms, such as Amazon and Flipkart. Further, companies also reduced their staff by 50.0%, with most of their employees working from home during Q1 2020.

Autoliv Inc; Continental AG; Joyson Safety Systems; Robert Bosch GmbH; ZF Friedrichshafen AG; FAURECIA; Hyundai Mobis; Knauf Industries; Toyoda Gosei Co., Ltd.; and Tokairika Co., Ltd. are key players operating in the automotive passive safety system market. In addition, several other market players have been analyzed to understand the dynamics of the automotive passive safety system market size.

Automotive Passive Safety System Market Share – by Region, 2021