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Global Automotive Airbags Market to Reach $85.4 Billion by 2026

Airbags are perhaps, the most important safety device in an automobile. Growing consumer demand for safety, stringent government safety legislations, and reduction in costs, have started encouraging auto manufacturers to increasingly incorporate airbags in their vehicle models. Several countries have also formulated laws to make the installation of airbags mandatory. Amid the COVID-19 crisis, the global market for Automotive Airbags is projected to reach US$85.4 Billion by 2026, registering a compounded annual growth rate (CAGR) of 7% over the analysis period. The United States represents the largest regional market for Automotive Airbags, and is estimated at US$16.9 Billion in 2022, a figure which is forecast to reach US$21 Billion by 2026. China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 11.2% over the analysis period.

New vehicles and increasing adoption of safety features are primary drivers for the adoption of automotive airbags. The health of automotive industry and level of auto production has a direct bearing on the demand for airbags in the OEM segment. Higher the number of vehicles produced translates into higher number of airbags installed at OEM level, while any disruption in vehicle production tends to distort opportunities in the automotive airbags market. North America remains the primary market for automotive airbags globally, led by technological advances, rising consumer awareness regarding safety issues and continuous progress related to safety restraint systems. The regional market is receiving a notable boost from enactment of stringent regulations pertaining to road safety in the US and Canada. Growth in European automotive airbags market is backed by mandatory airbags guidelines and consumer awareness regarding vehicle safety aspects. The increasing adoption of safety certification in the region is encouraging automakers to launch vehicles that conform to existing safety standards. In Asia-Pacific region, increasing vehicle production across developing countries including China and India, rising incomes and growing sales of luxury vehicles is expected to boost growth. The region is the largest manufacturer of automobiles globally and witnessing increasing sales of vehicles, which is partly attributed to easy availability of finance and continuous introduction of new vehicle models.

Passenger vehicles represent the primary end-user of automotive airbags that is estimated to post a considerable growth and continue dominating the global market through the analysis period. The strong position of the segment is attributed to legislations across various countries that mandate the use of airbags in passenger vehicles such as economy cars, minivans, compact cars, SUVs and luxury and premium cars. The segment is likely to also gain from rising consumer awareness and spending on automotive safety systems and product innovations. In the recent years, various companies have started offering airbags that are quick to deploy and come with advanced safety features. The commercial vehicle segment is also estimated to witness notable growth on account of increasing sale of commercial vehicles globally. The commercial vehicle segment is bound to benefit from the proliferation of the logistics industry.