Market Trends of Asia Pacific Airbag Systems Industry
Passenger Car Segment to Witness Momentum
China, which is the largest vehicle market in the world, has been backed up by generous support from the government. China has a major presence of automotive manufacturers, which is likely to create an opportunity for automotive component manufacturers to enhance their manufacturing facilities across the country which in turn is likely to witness major growth for the market during the forecast period.
India is one of the major automobile exporters, and strong export growth is expected in the near future seeing its present mobility expansion projects. Furthermore, multiple initiatives by the Government of India and major automakers in the Indian market are expected to portray India. During FY 2021-2022, In total, 3,069,499 passenger vehicles were sold overall, an increase from 2,711,457. Comparing April 2021 to March 2022, Passenger Car sales fell from 1,541,866 to 1,467,056 units, while Utility Vehicle sales rose from 1,060,750 to 1,489,178 units.
Over the long-term strategic stance, companies in the operation are looking ahead with strategic partnership in order to improve cars overall safety and thus witness improved demand. For instance:
- In July 2023, ZF Group signed an agreement with the administrative committee of the Wuhan Economic & Technological Development Zone (WEDZ), announcing an additional investment of 150 million euros ($166.5 million) to establish an automobile airbag production base and a research and development center. This project aims to create ZF Group's most extensive airbag production base in the Asia-Pacific region and a center for the trial production of new airbag prototypes.
Thus, market for automotive airbags are anticipated to witness high growth rate owing to increased passenger car sales across the Asia-Pacific.
India Dominating the Market
The Indian economy is expanding, as there is a rise in the disposable income of middle-class consumers. This, in turn, has a favorable impact on the increasing demand for automobiles. Vehicle manufacturing has increased rapidly over the last five years as a result of the country's cheap production costs. The automotive airbag system market is gaining traction as vehicle manufacturing increases.
Car manufacturers nowadays provide several helpful amenities for the driver and passengers, which in turn is likely to enhance the demand for airbag systems in vehicles.
Automobile manufacturers and auto-component makers choose India as one of their favored economies for setting up production plants. Several companies collaborated with the local automotive manufacturer to export the vehicles per government regulations. The Indian automotive and auto-ancillary industry is supported by several factors, including the availability of low-cost skilled labor, robust R&D centers, and low-cost steel production.
The Indian automotive airbag industry's fastest-growing segment is curtain airbags. They're generally installed on the roof above the side window, side of the seat, or door panel. Curtain airbags protect the adult's head in the event of a collision. Curtain airbags have been shown to minimize the probability of a driving fatality by 45 percent. Pedestrian airbags have been increasingly popular in recent years. When a car is poised to collide with a pedestrian, these are immediately deployed.
