Automotive Airbag ECU Market Size and Competitive Analysis by 2028

The Automotive Airbag ECU Market is projected to reach US$ 7,868.11 million by 2028 from US$ 6,224.95 million in 2021; it is expected to grow at a CAGR of 3.78% from 2022 to 2028.

The increasing government initiatives to strengthen vehicle safety evaluation systems are providing significant growth opportunities for the automotive airbag ECU market players. The growing awareness among consumers about vehicle safety features, along with a rise in willingness to pay extra costs for airbags with better features, signifies a vast potential for the automotive airbag ECU market. The New Car Assessment Program for Southeast Asian Countries (ASEAN NCAP) has brought multiple changes and adaptations regarding the region's socioeconomic development, focusing more on road safety. In countries such as Malaysia, Indonesia, Thailand, and Singapore, these safety programs are fueling the market growth. In APAC, China and India are among the countries that continuously focus on enhancing road safety. In India, the Bharat New Vehicle Safety Assessment Program (BNVSAP) initiative is a voluntary star rating system based on crash safety performance features. The program focuses on systems such as front airbags, anti-lock braking systems (ABS), and seat belt reminder generators while evaluating cars. The UN initiative Decade of Action for Road Safety, introduced in October 2021, has helped to bring down the number of fatalities associated with road accidents.

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 market in 2021.

The key players operating in the Automotive Airbag ECU Market include Continental AG, Robert Bosch GmbH, Denso Corporation, Autoliv, and Aptiv Plc. In addition to these, several market players have been analyzed to understand the automotive airbag ECU market.

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Automotive Airbag ECU Market: Strategic Insights

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Impact of COVID-19 Pandemic on Automotive Airbag ECU Market

In North America, the COVID-19 pandemic significantly impacted automotive and electronics industries, and supply chain businesses. The reduction in consumers' willingness to make high-value purchases amid the economic uncertainties associated with the global health crisis resulted in a decrease in demand for new cars in the region in 2020, which hampered the market for passenger vehicle components, such as airbags and airbag ECUs. In March 2020, the US witnessed a 30% decline in car sales compared with the sales reported in the previous year. However, there has been a brief rise in interest in electric and hybrid electric vehicles, which propelled the demand for airbag ECUs during this period. Many companies, including GE and Ford, divested their technical programs, and diverted funds and resources into EVs. Volvo pushed the presentation of its fully autonomous Level-4 vehicle autonomy system to 2027, which was earlier planned for 2024. Such divestments and delays reflected negatively on the growth of the airbags ECU market in North America in 2020.

Market Insights – Automotive Airbag ECU Market

Adoption of Airbag ECUs in Electric Vehicles to Emerge as Major Trend in Future

The growing popularity of electric vehicles is primarily attributed to the need for low-emission vehicles, and subsidies and tax rebates offered by different country governments to the user of zero-emission vehicles. Per the estimates from the Global Electric Vehicle Outlook, the sales of electric cars, including fully electric and plug-in hybrid vehicles, increased in 2021 to a new record of 6.6 million units. Moreover, in China, electric car sales increased significantly in 2021 to 3.3 million, accounting for ~50% of the global sales. EV sales also surged strongly by 65% in Europe to reach 2.3 million units, and in the US that sales doubled to 630,000 units in 2021. The growing scale of EV manufacturing is expected to strengthen the demand for automotive airbag ECUs during the forecast period. Electric cars are equipped with airbags and seatbelts with advanced features to ensure an enhanced travel experience.

In December 2021, Continental AG localized its value chain in India including stages ranging from R&D to design—to cater to the rising demand for ACUs in the country. The company’s manufacturing plant located in Bengaluru produces 1 million ACUs a year.

Product Type-Based Insights

The automotive airbag ECU market has been divided into two categories based on product type: basic and premium. In 2021, the premium market share was the highest. This is because of more safety measures being introduced, which satisfy the expectations of the market for high-end vehicles.The premium segment held a larger market share in 2021. This is because of more safety features which meets the demands from the premium vehicles market.

Automotive Airbag ECU Market Regional Insights

The regional trends and factors influencing the Automotive Airbag ECU Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Automotive Airbag ECU Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Automotive Airbag ECU Market Report Scope

Automotive Airbag ECU Market Players Density: Understanding Its Impact on Business Dynamics

The Automotive Airbag ECU Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Airbag Type-Based Insights

Based on airbag type, the Automotive Airbag ECU Market is categorized into frontal airbag ECU and Curtain airbag ECU. The frontal airbag ECU segment held a larger share of the market in 2021. The growing awareness for passenger’s safety during driving is expediting the segment growth.

Players operating in the Automotive Airbag ECU Market are mainly focused on the development of advanced and efficient products. For instance, in August 2019, Hyundai Mobis announced the Safety Integrated Control Module to ensures greater safety with the efficient operation of automotive safety devices. This new module combines two separate ECU of airbags and electronic seatbelts into a single unit.