Car Safety Market is forecast to reach $258.3 billion by 2025, at a CAGR of 10.6% during 2020-2025. Increased number of accidents, increasing vehicle safety concerns and stringent government regulations in different regions are some of the reasons which drive the market. In 2018, according to the report given by National Safety Council (NSC) of U.S. an estimated 40,000 people lost their lives to car crashes and about 4.5 million people were severely injured. Similarly around 25,100 road fatalities were reported by the 28 EU States. Rise in the accidents made the government to implement stringent regulations. For instance in 2018 National Highway Traffic Safety Administration (NHTSA) of U.S. Made stringent regulations for car safety. Such regulations are likely to decrease the rise in accidents and create demand for car safety market in the forecast period.
Type – Segment Analysis
The active automotive safety systems is expected to grow at a CAGR of around 9.20% in the forecast period owing to its advantages such as anti-lock braking, electronic stability control or traction control of the vehicle and it also prevent or mitigate road accidents by improving overall driving experience under different road conditions and situations. Government of several countries made strict regulations to deploy car safety features. For instance, according to New Car Assessment Program (NCAP) in India, it is mandatory to deploy car active safety features by 2018. In addition to that, pedestrian safety norms were also made mandatory for all newly launched cars from October 2018. Similarly Europe NCAP made stringent regulations to integrate active safety features to avoid or mitigate the accidents. These kind of regulations will create opportunities for active safety systems thereby creating demand for car safety market.
By Occupant type – Segment Analysis
Occupant type segment is likely to witness highest CAGR of 8.8% in the forecast period owing to the increasing number of road accidents which further lead to severe fatalities in the human body and rise in the number of awareness programs regarding safety amongst the consumers would propel the market growth during the forecast period. On the other hand, consumers are rapidly shifting towards spending more on the various safety features available in their cars due to rising disposable incomes. It is opening the door to investment opportunities for industry giants. In addition, manufacturers provide active and passive safety systems in the automotive sector to provide better driving experience and customer comfort, which will lead to the enhancement of driving experience and comfort to the consumers, thereby creating opportunities for automotive safety market growth.
Geography – Segment Analysis
In 2018, APAC dominated the Car Safety market share with more than 39.5%, followed by North America and Europe. The economy of APAC is majorly influenced by the countries such as China and India. In these countries, the government are aggressively implementing stringent government regulations and several favourable policies.For Instance, In India, the government allowed 100% foreign direct investment without minimum investment standards for the automotive sector in 2018. Similarly, China is continuously creating awareness among public about car safety by several advertisements. These kind of regulations and awareness programs will enforce automobile manufacturers to implement new technology to achieve safety standards in car, thereby creating opportunity for car safety market.
Drivers –Car Safety Market
Intelligent braking system (IBS) in all commercial cars and passenger cars are garnering new attention as the end users are looking for optimizing performance. Cars fitted with the have sensors that constantly monitor the conditions of the vehicle, and respond in an emergency situation. An intelligent mechatronic system includes an ultrasonic wave emitter and ultrasonic receiver producing and emitting ultrasonic waves frontward in a predetermined distance and gives the distance between the obstacle and the vehicle. Then a microcontroller is used to control the speed of the vehicle based on the detection pulse information to push the brake pedal and apply brake to the car stupendously for safety purpose. Several countries have made stringent regulations to integrate intelligent braking system, for instance forty countries led by Japan and Europe have agreed to require new cars and light commercial vehicles to be equipped with automated braking system by 2019. This is likely to create new opportunity for cars with IBS, thereby creating demand for Car safety market.
The demanding requirement from consumers and regulatory bodies are bringing disruption in the automotive industry, with new technological innovations. At present, the government of several countries are focusing on reducing the number of accidents by integrating active and passive safety systems in to cars. In 2019 Government of U.K. committed to mandate technologies such as intelligent speed assistance (ISA), advanced emergency braking (AEB) and lane-keeping technology in the cars by 2022. Similarly, several countries like China, India U.S. made stringent regulations for automobile manufacturers to integrate passive and active safety systems in new cars by 2020. These regulations are aiming at reducing the accidents. So, most of the manufacturers are deploying technology like active and passive safety systems in automobiles to achieve the same, thereby increase the demand for Car safety market.
Challenges – Car safety Market
The production and sales of cars are witnessing sluggish growth since 2016 owing to economy slow down and various government financial reformation activities worldwide. For instance, the rise in the Federal Reserve Interest rate has slowed down the sales of vehicles in the U.S. Since 2016. The production has also been declining during this period. In 2019, Global car sales are expected to fall by about 3.1 million. In 2019, Ford reported new vehicle sales down by approximately 28.75% in China. GM reported a sales down by 0.9%-1.2%. This could create a possibility of contraction of automotive market in the U.S., which will negatively affect the automotive Car safety market growth.
Partnership, acquisitions and technology launches are key strategies adopted by players in the Car safety Market. In 2018, the market of Car safety industry outlook has been consolidated by the top five players accounting for 55% of the market share. Car safety top 10 companies include Continental AG, ZF TRW Automotive Holdings Corporation, Autoliv Inc., Toyoda Gosei Co. Ltd. Denso Corporation, Takata Corporation, Valeo Johnson Electric Holdings Limited Company, Delphi Automotive PLC., and Robert Bosch GmbH.
Ø In May 2016, German auto supplier ZF Friedrichshafen AG completed its $12.4 billion acquisition of safety systems supplier TRW Automotive Holdings Corp.
Ø In June 2018, Auto components maker Key Safety Systems completed a $1.6 billion deal to acquire air-bag maker Takata Corporation for car safety components.
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