Market Trends of China Airbag Systems Industry
This section covers the major market trends shaping the China Airbag Systems Market according to our research experts:
Airbag Module Captures the Market Share
The airbag module is responsible for receiving the information from the collision sensor, which is relayed to the airbag sensors and then the airbags are deployed. The airbag module is a computer that stores information. Thus, during a collision, the impact data is stored in the airbag module.
Several manufacturers are expanding their product portfolios in China which is likely to create a lucrative opportunity for the airbag systems market. For instance,
- In June 2022, Wanxiang Qianchao Co., Ltd. (Wanxiang Qianchao) announced that its tech center has been chosen by Company H as a designated developer of airbag control units (ACU).
Many players in China are spending heavily on research and development of airbag modules to decrease the response time of airbag systems and increase the safety of the passengers in the vehicle.
Curtain airbags are the fastest-growing segment of the automotive airbag and seatbelt industry. They are mounted on the side of the seat or the door, usually on the roof above the side window. In the event of a crash, curtain airbags are used to protect the adult's head. It has been proven that curtain airbags reduce the driver fatality risk by 45%. Recently there has been a growing demand for pedestrian airbags. These are automatically deployed when an automobile is about to collide with a pedestrian. Increasing income levels and awareness about safety are expected to drive this market in the coming years.
As per the current car safety standards, the Global New Car Assessment Programme (Global NCAP), China is rated as 7 on a scale of one to ten. This rating is given based on factors like the level of reach of different technologies in the market, the state of legislation, and consumer awareness levels. The Chinese government has also further planned to launch an independent crash test center to enhance safety in automobiles.
Growth Passenger Cars dominating the China Airbags Systems Market
China is an emerging economy where the Airbags System implementation in passenger cars is constantly growing. The sales of passenger cars have been growing continuously for the past few years.
The Chinese economy is growing, and the disposable income of middle-class consumers is also increasing. This, in turn, reflects positively on the growing demand for vehicles. Over the past five years, vehicle production has gone up drastically due to the low production costs in the country. Due to the hike in vehicle production, the airbag systems market is also gaining momentum. Moreover, the Chinese government has also cut down the taxes on cars, to increase car sales.
However, in 2021, China's passenger car production reached 21.41 million, reflecting a 5.2% growth in passenger cars produced in 2020. The prime reason is the trade tensions with the United States and shaky consumer confidence. Additionally, with the impact of COVID-19, the industry is temporarily experiencing a decline in demand for passenger and commercial vehicles. However, It is anticipated that the demand for passenger car production is likely to resume with the country restarting its economical activities, which, in turn, is expected to fuel the country's demand for Airbags System.
Additionally, to increase the sales of cars, the Chinese government, 2021, unveiled numerous measures. The National Development and Reform Commission (NDRC) announced that the restrictions would be loosened on the second-hand auto market, and appropriate subsidies would be provided to boost rural sales of some vehicles and the purchase of new energy vehicles. In 2021, China witnessed around 26.1 Million Passenger cars sales. This rise in sale of passenger cars across the country is likely to increase the penetration of air bags in vehicle.
