Automotive Passive Safety System Market Size, Growth by 2028

The automotive passive safety system market share is expected to grow from US$ 19,595.24 million in 2021 to US$ 25,932.05 million by 2028. The automotive passive safety system market is estimated to grow at a CAGR of 4.5% from 2021 to 2028.

With the rapid expansion of the global automotive landscape, manufacturers primarily focus on enhancing engineering fuel and cost efficiency, improving the driving experience, and working toward the overall safety of passengers and drivers. Airbags and seatbelts remain key passive safety systems in the automotive sector. The growing advancement in airbag and seatbelt technologies is increasing their adoption across passenger vehicles, propelling the automotive passive safety system market growth. The airbag is best used in combination with wearing a safety belt. It can prevent injuries and fatalities in front-end collisions. Airbag manufacturers have developed an array of airbags, side curtains, and knee bolsters to protect front-seat occupants, and they are further planning to design a new generation of airbags for rear-seat passengers.

Strategic Insights

Some technological advancements in automotive passive safety system market are mentioned below:

Life-Cell Airbags: Autoliv has introduced Life-Cell airbags. This provides protection regardless of the occupant's position. When activated in conjunction with the deployment of the steering wheel airbag, the Life-Cell airbag acts like a protective cocoon.

Mixed Active and Passive Systems: Joyson Safety Systems is currently working on developing an intelligent airbag with an integrated restraint system that is a mix of active and passive safety based on HMI. New advances in electrically powered safety belts and multi-chamber airbags are expected soon. These seat belts are custom designed to improve crash rating requirements. OEMs aiming for good star ratings will install such systems shortly.

External Pre-Crash Airbags: ZF has introduced external pre-crash airbags that deploy outward from the sides of the vehicle. These airbags act as additional crumple zones in the event of an accident. Tests have shown it can help reduce the severity of occupant injuries by up to 40%. Self-driving cars will continue to improve the travel experience. ZF develops restraint systems, such as seat belts and airbags, to protect occupants in flexible seating positions. ZF has designed the airbags to adapt to the position of the occupants and new degrees of freedom in the passenger compartment.

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

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

Exports of airbags, seatbelts, pedestrian safety systems, and other automotive components in Europe dramatically decreased during the COVID-19 pandemic in April and May 2020. Negative impacts on the automotive sector were more severe, due to which OEMs announced further delays in re-opening closed assembly plants, and vehicle sales plummeted in the region. Europe is home to many top automakers, such as Mercedes, Volkswagen, Skoda, BMW, and Audi. The pandemic indirectly impacted over 1.1 million jobs due to the shutdowns of auto factories between March and May 2020. Subsequent lockdowns had a more limited impact on production, but in 2021 the auto sector was challenged by the rising global demand for semiconductors due to a boom in the production of electronics parts and disruptions in the supply chains.

The auto sector also constitutes one of the main supply chains in Europe. Foreign demand is important for the European auto sector, including demand in major economies outside the region, such as the US and China. In the automotive industry, the immediate drop in demand for vehicles, coupled with the disruptions in the supply of raw materials caused by the limitations in cross-border movements over Q1 2020, caused supply delays of automotive components, such as airbags, seatbelts, and others. In 2020, vehicle production in Europe dropped by more than one-fifth: 4.5 million fewer cars were produced relative to 2019, according to an IMF report.

Lucrative Regions for Automotive Passive Safety System Market

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Market Insights– Automotive Passive Safety System Market

Rising Automobile Production

Urbanization trends are accelerating, increasing the average disposable income of urban dwellers and enabling people to improve their lifestyles. The demand for passenger cars continues to increase due to changing lifestyles. Automakers are ramping up production to meet customer demand. Vehicle production, including passenger cars and commercial vehicles, has increased steadily in both developed and developing countries during the recession since 2010. Declining loan interest rates are also fueling growth in the auto industry, which is further bolstering the global automotive passive safety system market growth.

In recent years, consumer behavior toward inter- and intra-city transportation has increased. Automobile production is increasing exponentially due to the increase in personal disposable income and the stable economic structure of each country. In 2021, China, India, Germany, Japan, the US, and South Korea produced many automotive vehicles, including passenger and commercial vehicles. The rise in global demand for automobiles and increased automobile production has created a need for automotive brake discs. The increase in the demand for disc brake systems that improve the safety and driving experience is fueling the automotive passive safety system market.

Type-based Insights

Based on type, the automotive passive safety system market can be categorized into airbags, seatbelts, occupant sensing systems, child safety systems, and others. The airbags segment is expected to dominate the automotive passive safety system market during the forecast period. People are becoming aware of how important seatbelts are for protecting the spine in crashes. Studies show that not wearing a seat belt increases the likelihood of becoming a projectile, making its installation crucial.

Vehicle Type-based Insights

The automotive passive safety system market, by vehicle type, is segmented into passenger cars and commercial vehicles. The passenger cars segment is expected to dominate the automotive passive safety system market size during the forecast period. Additionally, several regions of the world have seen a recovery in the manufacture of commercial vehicles, according to the automotive industry. The growth of the vehicle type segment can be attributed to the rise in regulations requiring installing and using seatbelts in both commercial and passenger vehicles.

Players operating in the automotive passive safety system market mainly focus on developing advanced and efficient products.

• In January 2022, Autoliv announced its collaboration with Nuro, an autonomous vehicle company, to provide higher safety features with exterior airbags to Nuro's latest third-generation vehicle.
• In February 2021, Autoliv was collaborating with SSAB, a global steel company, to replace coking coal with fossil-free steel from SSAB for airbags and seatbelts production.

List of Companies operating in the automotive passive safety system market include 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.