In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
Global automotive safety systems market is estimated to grow with a moderate CAGR during the forecast period, i.e., 2020-2029. Extensive research associated with automotive safety systems in western countries, along with the government’s stringent safety regulations and organic growth in the automobile production across the globe are driving the market of automotive safety system. Moreover, the rising accidents and the increasing vehicle safety concerns among the consumers is projected to drive the market growth. To meet the increasing standards for safety features in the vehicles major advanced driver assistant system (ADAS) manufacturers in the market have started investing in R&D activities. For instance, Continental AG invested USD 59 million for building a new R&D centre in Queretaro, Mexico. As consumers are gaining awareness about the advanced safety features and technologies, they are indicating an interest in improving their vehicles' safety systems. According to the data by the US National Highway Traffic Safety Administration (NHTSA), about 88% of rear-end collisions occur due to the negligence of the driver, or following the other vehicle closely.
The market has been segmented by technology into active and passive safety systems. Active safety systems are projected to be the fastest growing segment of this market, by technology. Continuously increasing demand for luxury vehicles will drive the growth of this segment. The growing trend toward autonomous vehicles is expected to contribute to the growth of the active safety systems. Based on end-user the market is segmented into OEMs and aftermarket. OEM’s market is likely to remain the largest end-user type during the forecast period and is expected to witness a higher growth rate in the same period, driven by increasing penetration in the newly-build vehicles across regions. All major automakers have started using active safety systems into some of their vehicles. They all have been in touch with suppliers to develop low-cost advanced active safety systems for their mass volume models. CLICK TO DOWNLOAD SAMPLE
Geographically, the market is segmented into North America, Latin America, Europe, Asia Pacific and the Middle East & Africa region. North America is projected to remain the largest active safety systems market during the forecast period whereas Asia-Pacific the largest passive safety systems market in the same period. The Asia pacific region is estimated to dominate the global automotive safety system market. The rising consumer income levels, increased vehicle production in developing countries such as India and China, and increase in the number of luxury vehicles in countries such as Japan fuel the growth of this market in Asia pacific region. Furthermore, the complexity and the high cost of features are the key restraint for the growth of this market. These systems comprise micro-controller units, electronic control units, and various sensors such as ultrasonic, image, radio or laser sensors, and infrared sensors. These components increase the complexity of the safety features, thereby raising the cost. Currently, a limited class of buyers can afford driver assistance features.
The automotive safety systems market is further classified on the basis of region as follows:
Our in-depth analysis of the automotive safety systems market includes the following segments:
Ans: Government regulations pertaining to vehicle safety and increasing demand for luxury cars are the key factors driving market growth.
Ans: The market is anticipated to attain a moderate CAGR over the forecast period, i.e., 2020-2029.
Ans: Maintaining a balance between cost and quality and the intense rivalry between the manufactures in the automotive industry are estimated to hamper market growth.
Ans: The market in Asia Pacific region will provide ample growth opportunities owing to the rising consumer income levels, increased vehicle production in developing countries.
Ans: The major players dominating the automotive safety systems market are ZF Friedrichshafen AG, Continental AG, Autoliv Inc., Ford Motor Company, Hyundai Motor Group, Magna International Inc., Denso Corporation among others.
Ans: The company profiles are selected on the basis of revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by vehicle type, end-user, offering, technology and region.
Ans: With respect to end-user, OEM’s market is likely to remain the largest end-user type during the forecast period and is expected to witness a higher growth rate in the same period, driven by increasing penetration in the newly-build vehicles across regions.