Automotive Safety Systems Market Size

Automotive Safety System Market Analysis

The automotive safety systems market was valued at USD 93.28 billion in 2021, and it is expected to reach USD 127.2 billion by 2027, registering a CAGR of about 6% during the forecast period (2022 - 2027).

Due to the COVID-19 pandemic, the automotive industry as a whole was severely affected. The buyers did not have enough money to make either new 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 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.

Over medium-term, advanced driver assistant systems (ADAS) are in high demand, owing to the number of accidents occurring on high-speed roads every year. Players in ADAS technology bring out innovation to tackle vehicle safety solutions. For instance, In December 2021, Suzuki revealed the new S-Cross for the European market. The Euro-spec S-Cross also gets ADAS features, like auto emergency braking and adaptive cruise control. In October 2021, General Motors unveiled its next-generation 'hands-free' driver-assist technology. The news was announced as part of GM's two-day annual investor event, in which GM also revealed its plan to double revenues by 2030 as it seeks to become a software company in addition to making cars.

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. For instance, As of mid-2022, all new cars put on the EU market may have to be equipped with advanced safety systems. Following an agreement with the European Parliament in March 2021, the council adopted a regulation on the general safety of motor vehicles and the protection of vehicle occupants and vulnerable road users to significantly reduce road casualties. Additionally, Euro NCAP, a government-backed group that rates cars for safety, may require a driver-monitoring system to earn a five-star safety rating starting in 2023 or 2024.

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.