Market Trends of North America Airbag Systems Industry
Passenger Car is Anticipated to Register Highest Growth
Passenger Cars sales in North America have been a significant contributor to the region's automotive industry. Passenger vehicles include sedans, sports utility vehicles (SUVs), pickup trucks, and minivans, which are designed primarily for the transportation of people. These vehicles are a significant part of the North American transportation system and are widely used by individuals and families.
In recent years, the passenger vehicle market in North America has witnessed steady growth due to several factors. One of the primary reasons for this growth is the increasing demand for personal transportation. With the rise in urbanization and the growing middle class, more people are looking to own a car for convenience and mobility. For instance, in 2022, the auto industry in the United States sold approximately 13.75 million light vehicle units.
Another contributing factor to the growth of passenger vehicle sales in North America is the availability of financing options. Banks and other financial institutions are offering attractive loan options, making it easier for individuals to purchase a new or used car. This has led to an increase in the number of first-time car buyers, driving the growth of the market.
Moreover, the trend towards larger vehicles, such as SUVs and pickup trucks, has also contributed to the growth of the passenger vehicle market in North America. These vehicles are popular among families and individuals who need more space and utility for their daily activities, such as hauling cargo or towing trailers.
The shift towards electric and hybrid vehicles has also contributed to the growth of the passenger vehicle market in North America. The increasing concern about the environment and the need for sustainable transportation has led to a surge in demand for electric and hybrid vehicles, providing further growth opportunities for the market.
In conclusion, passenger vehicle sales in North America have witnessed steady growth due to the increasing demand for personal transportation, the availability of financing options, the trend toward larger vehicles, and the shift toward electric and hybrid vehicles. The passenger vehicle market in North America is expected to continue growing in the future, providing opportunities for manufacturers, suppliers, and other stakeholders in the automotive industry.
United States Remains Largest Market
The United States airbag systems market is one of the largest markets in the world, driven by several factors, such as government regulations, consumer awareness, and the presence of major players in the market.
Passenger car sales in the United States are also increasing year on year. For instance, in the United States, new vehicle sales of 1,161,393 units for the month of February represented an increase of 9.0% from January 2023 and an increase of 9.1% from one year ago in February 2022 when supply chains restricted production. There were 24 selling days in February 2023, the same as the 24 selling days in February 2022.
February's passenger car sales increased 6.9% to 239,370 units, resulting in a 20.6% market share, while sports utility vehicle (SUV) and truck sales increased 9.7% to 922,023 units resulting in a 79.4% market share. Light vehicle seasonally adjusted annualized sales (SAAR) for February 2023 was 15.19 million units versus 13.96 million units one year ago.
With its vehicle inventories improved since last year, General Motors' monthly sales rose 14.7%, and Ford's sales increased 22.0%, though Stellantis sales fell 12.3%.
Tesla sales increased 43.6% from last February to 60,325 units, giving it a US market share of 5.2%. EV startup Rivian sales were up 580.4% to 2,667 vehicles in February, Karma sales were down 90.5% to 2 units, Polestar sales were up 141.6% from the same month last year to 1,034 vehicles, and Lucid Motors sales were up 237.0% to 455 units.
The US government has mandated the installation of airbag systems in all new passenger cars and light-duty trucks since the early 1990s. This has been a significant driver for the growth of the market in the region. The National Highway Traffic Safety Administration (NHTSA) has set standards for airbag systems, such as the number of airbags to be installed, their location, and their performance criteria, to ensure the safety of passengers.
Another factor driving the growth of the US airbag systems market is consumer awareness about safety features in vehicles. Consumers are becoming increasingly conscious of the safety ratings of vehicles and are willing to pay extra for advanced safety features such as airbag systems. This has led to an increase in demand for airbag systems in vehicles, especially in the passenger vehicle segment.
Furthermore, the presence of major players in the market has contributed significantly to the growth of the US airbag systems market. The market is dominated by companies such as Autoliv, Takata, TRW Automotive, and Continental AG, which have a significant market share in the region. These companies are investing heavily in research and development to improve the performance and safety features of airbag systems.
The US airbag systems market is expected to grow in the future due to the increasing demand for advanced safety features in vehicles. Manufacturers are incorporating advanced safety features in their vehicles to cater to this demand, driving the growth of the market. The increasing popularity of electric and hybrid vehicles is also expected to contribute to the growth of the market, as these vehicles require specialized airbag systems to ensure the safety of passengers.
In conclusion, the US airbag systems market is driven by government regulations, consumer awareness, and the presence of major players in the market. The market is expected to grow in the future due to the increasing demand for advanced safety features in vehicles and the shift towards electric and hybrid vehicles. The major players in the market are investing in research and development to maintain their market position and expand their product portfolio to cater to the growing demand for airbag systems.
