|Study Period:||2018 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The automotive safety systems market accounted for USD 88 billion in 2020, and it is expected to reach USD 120 Billion by 2026, projecting a CAGR of over 6% during the forecast period.
Due to the COVID-19 pandemic, the automotive industry as a whole was severely affected. The buyers did not have enough finances to make either new vehicles or used vehicle purchases. With the worldwide shutdown of production facilities and strict social distancing norms in place, the need for manufacturing new safety systems or installing them in the vehicles drastically reduced.
However, after the COVID-19 pandemic, the market expects to improve due to an increased preference for individual mobility. The market is expected to grow significantly in terms of passenger vehicle and commercial vehicle safety systems due to the projected increase in demand. The rise in autonomous vehicles projected in the coming years is a great opportunity for the safety systems market.
North America is expected to account for a major share of the market studied, especially in the United States, as most new-generation passenger cars are likely to be equipped with Adaptive Cruise Control (ACC) and blind-spot detection (BSD), as standard features. Companies, such as Continental AG, Robert Bosch, ZF Group, and Denso Corporation, are the major players in the market studied.
Advanced driver assistant systems (ADAS) are in high demand, owing to the number of accidents occurring on high-speed roads every year. OEMs are continuously engineering and pioneering crucial safety systems on cars, trucks, and other automobiles. Governments of many countries worldwide are making certain important safety regulations to standardize the systems across all vehicles.
Scope of the Report
The automotive safety system market is segmented by system type (lane departure warning system and other onboard safety systems), by end-user type (OEM and aftermarket), by vehicle type (passenger cars and commercial vehicles), and by geography (North America, Europe, Asia-Pacific, South America, and Africa). The report offers market size and forecast for automotive safety systems in value (in USD billion) for the above-mentioned segments.
|Lane Departure Warning System|
|Other on Board Safety Systems|
Key Market Trends
Lane Departure Warning Systems Witnessing High Demand
A lane departure warning system (LDWS) is a group of safety technologies designed to prevent high-speed accidents on highways, expressways, and freeways. They warn the driver and sometimes take corrective measures and prevent collisions and run-off-road accidents.
The consistent rise in vehicle accidents due to abrupt lane change creates concerns among consumers and governments globally. Thus, continuous technological advancements in the automotive industry are constantly adding new features to automobiles to reduce road accidents and enhance the safety of both passengers and drivers in both vehicles, driving the implementation of advanced driver assistant systems (ADAS), which may aid in propelling the market for LDWS.
Apart from passenger cars, the demand for LDWS is also increasing in commercial vehicles, especially in large trucks. According to research, the majority of accidents caused in both passenger and commercial vehicles occur due to human error, and there are safety systems currently available that can mitigate this.
The cost-benefit analysis performed on the LDWS technology states that installing LDWS in large trucks can potentially prevent as many as 6,372 crashes, 1,342 injuries, and 115 death annually.
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Gradually Improving Trust in Autonomous Vehicles
The increasing number of electric vehicles in the automotive industry paves the way for more autonomous vehicles to be introduced in different sectors. The more autonomous vehicles in a market, the better is the chance and potential for the current safety systems market to grow and expand.
Surveys suggest that buyers from several countries are starting to trust autonomous or self-driving vehicles. For instance, out of 1000 people surveyed, 81 people in South Korea expressed their concerns about safety in self-driving vehicles in 2017. In contrast, this number came down to 46 in 2020 due to the smooth testing and runs of autonomous vehicles in South Asia.
The United States, on the other hand, had a comparatively lower number of people trusting autonomous vehicles, owing to certain mishaps caused by Tesla's autopilot and Uber's self-driving vehicles in the country over the period.
As the majority of the automotive sector in North America is already equipped with the majority of safety systems, the market is saturated from what the condition was a few years ago. Countries in Southeast Asia and Pacific regions, like China and India, show much higher potential for growth, and they are expected to be markets with high growth rates in the coming years. Thus, the above-mentioned factors indicate an increase in autonomous vehicles, with market potential for the safety systems industry.
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The automotive safety systems market is highly competitive and fragmented, with both safety systems manufacturers and OEMs competing with each other. Some of the major players dominating the market are Continental AG, Robert Bosch, ZF Friedrichshafen AG, Denso Corp., Magna International, and Hyundai Mobis, Autoliv. The competitive nature of the industry is likely to intensify due to stringent regulations and the rising consumer demand for advanced features and automotive safety.
Autoliv, a leading passive safety systems manufacturer for different vehicles, registered a market value of USD 8.7 billion in FY2020. The company's customers include leading automakers, like Renault, Nissan, Mitsubishi, and Volkswagen, which account for more than 15% of the company's sales.
In May 2020, ZF acquired WABCO with a vision to become a world leader in commercial automotive systems and improve the existing digital platforms in the market. In January 2021, ZF also launched a new electric vehicle braking system for regenerative braking to improve battery efficiency.
Volvo, Mercedes, and Scania trucks are constantly working on their fleet safety systems that can detect pedestrians and obstacles and bring the trucks to a standstill with automatic emergency braking systems.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Driver
4.2 Market Restraint
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 System Type
5.1.1 Lane Departure Warning System
5.1.2 Other on Board Safety Systems
5.2 End User
5.3 Vehicle Type
5.3.1 Passenger Car
5.3.2 Commercial Vehicle
5.4.1 North America
188.8.131.52 United States
184.108.40.206 Rest of North America
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
5.4.4 Rest of the World
188.8.131.52 South America
184.108.40.206 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Robert Bosch GmbH
6.2.2 Aptiv PLC
6.2.3 Infineon Technologies
6.2.4 Magna International
6.2.5 WABCO Vehicle Control System
6.2.6 Continental AG
6.2.7 ZF Friedrichshafen AG
6.2.8 Bendix Commercial Vehicle Systems LLC
6.2.9 Autoliv Inc.
6.2.10 Hella KGaA Hueck & Co.
6.2.11 TOYODA GOSEI Co. Ltd
6.2.12 Denso Corporation
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Automotive Safety Systems Market market is studied from 2018 - 2026.
What is the growth rate of Automotive Safety Systems Market?
The Automotive Safety Systems Market is growing at a CAGR of >6% over the next 5 years.
What is Automotive Safety Systems Market size in 2018?
The Automotive Safety Systems Market is valued at 88 Billion USD in 2018.
What is Automotive Safety Systems Market size in 2026?
The Automotive Safety Systems Market is valued at 120 Billion USD in 2026.
Which region has highest growth rate in Automotive Safety Systems Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Automotive Safety Systems Market?
North America holds highest share in 2020.
Who are the key players in Automotive Safety Systems Market?
Continental AG, ZF Friedrichshafen AG, Magna International, Robert Bosch GmbH, Autoliv Inc. are the major companies operating in Automotive Safety Systems Market.