Automotive Safety Technology Market

Automotive Safety Technology Market Size (2022- 2027):

The Global Automotive Safety Technology Market was worth US$ 94 billion in 2022 and is anticipated to reach a valuation of US$ 128 billion by 2028 and is predicted to register a CAGR of 6% during 2023-2028.

Market Overview:

Vehicle safety systems are technology that helps prevent and minimize collision injuries. Safety systems include seat belts and a headrest that help keep the occupant in place during a crash and minimize the risk of injury. The need for an automotive security system in cars arises from the huge and positive technological development in the automotive industry. With extensive research and development in the automotive field, premium and high-performance cars are on the rise. However, the risk of accidents increases dramatically with such powerful cars, emphasizing the need to implement proper rescue measures.

The global automotive safety technology market is expected to post a CAGR of over 6% during the forecast period of 2022 - 2027. Due to the increase in accidents, the enactment of stringent safety regulations and growing consumer concern for vehicle safety are expected to boost the studied market. To meet the growing standards of vehicle safety features, the leading ADAS manufacturers on the market have begun to invest in R&D activities. For example, Continental AG invested $ 59 million for the construction of a new centre of R&D in Querétaro, Mexico. The centre's research staff must develop hardware and software for various ADAS functionalities. Therefore, the automotive safety technology market is expected to witness improved and advanced safety features during the outlook period.

Market Drivers:

The miniaturization of electronic technologies, such as sensors and smart devices, encourages advances in the automotive safety sector and in the particularly advanced driver assistance system. In the future, there will be more modular systems and platform sharing, further increasing the complexity and challenges for OEMs. It will be very difficult to choose the most suitable sensor suite for car safety. Additionally, automotive safety regulations will be tightened in the future, further reducing OEMs and suppliers' profit margins.

Market Restraints:

The high cost of the safety system is a limiting factor for the growth of the market, as many low-end cars only opt for mandatory features like airbags and seat belts.

AUTOMOTIVE SAFETY TECHNOLOGY MARKET REPORT COVERAGE:

Market Segmentation:

Automotive Safety Technology Market - By Technology Type:

• LIDAR
• Radar
• Vision System/3D Vision
• Electronic Stability Control
• Seatbelt
• ADAS
• Others

These technologies work in real-time with the vehicle, the engine and the central electronic processing unit (CEPU) to continuously create and update the database of critical vehicle parameters. While technologies, such as Driver Monitoring Systems (DMS) and Adaptive Cruise Control (ACC), provide a deep and comforting driving experience, as they are quite expensive. Therefore, these systems suit expensive and high-end luxury cars. The Lane Departure Warning System (LDWS) is a group of safety technologies designed primarily to prevent high-speed collisions on roads, highways, and others. They alert the driver and sometimes take corrective action and prevent collisions and off-road accidents.

Market Regional Analysis: 

The Global Automotive Safety Technology Market Report includes the segmentation of regions:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

North America has the largest share of the automotive safety technology market, followed by Europe and Asia-Pacific. The United States and Japan are the world's largest market for automotive security systems. The increasing number of accidents, resulting in the loss of life and property around the world, is considered one of the main factors driving the demand for and development of advanced automotive safety systems. As consumers become more aware of advanced safety features and technologies, they are showing interest in improving their vehicle safety systems. The Asia-Pacific region is estimated to experience the strongest growth during the conjecture period due to rising domestic demand for vehicles with additional in-vehicle safety equipment. The emerging markets of China and India are likely to drive the Asian market for automotive safety technology.

Impact of Covid-19 on Automotive Safety Technology Market:

The coronavirus pandemic has resulted in a global crisis with a deep impact on almost all industries of the world. In their efforts to stop this pandemic, the governments have imposed a blockade in their respective nations. While the lockdown may have helped limit the spread of the virus, it has severely affected the economy, disrupting the entire value chain of most major industries in the world including the automotive industry. The automotive sector has already experienced a considerable slowdown in the last 12-18 months due to structural changes. The COVID-19 lockdown has had a multiplier effect: the industry has been almost completely paralyzed since March 24. A prolonged cut-off in consumer demand due to foreclosure has drastically affected revenue and cash flow for automakers. In response, most companies are starved of R&D funding to support basic operations, which could delay progress on alternative fuels and mobility technologies by two to four quarters. Over time, some companies may even accept a strategic call to exit unprofitable vehicle markets and segments. Auto dealers were unable to deliver vehicles during the lockdown phase and reported 30 to 45 days of finished goods inventory, which could be drastically reduced after the lockdown. OEMs will need to financially support dealer groups, with more emphasis on their own balance sheets. Auto suppliers are heavily reliant on migrant labour, whose absenteeism will further delay post-foreclosure recovery, causing a ripple effect throughout the value chain. Suppliers facing liquidity problems can succumb to deteriorating market conditions, causing widespread disruption throughout the manufacturing ecosystem. Captive finance companies are also likely to be hit the hardest, as defaults are likely to rise and new loans to decline, given difficulties in determining customer creditworthiness, further hurting business profitability

Market Key Players:

1. Delphi Automotive plc
2. TRW Automotive Holdings Corp.
3. Key Safety Systems Inc.
4. Tokai Rika Co. Ltd.
5. Toyoda
6. Denso Corp.
7. Takata Corp. and Autoliv Inc.

Market Key Developments:

• Key Safety Systems Inc. of Sterling Heights will be acquired by Chinese state-owned automobile conglomerate Ningbo Joyson Electronic Corp. in a transaction for $ 920 million.
• ZF Friedrichshafen AG, a world chief in suspension and transmission innovation, and TRW Automotive Holdings Corp. (NYSE: TRW) reported that the organizations have finished the exchange whereby ZF effectively gained TRW. TRW will be incorporated into ZF as another division called Active and Passive Safety Technology. The combined organization works under the name ZF Friedrichshafen AG.
• A global provider of powertrain technologies, Delphi Technologies said it combines advancements in vehicle electrification with existing and emerging automated and connected vehicle systems to drive fuel economy, reduce emissions and expand range.