Automotive Airbag Market Segmented By Type (Curtain Airbags, Knee Airbags, Front Airbags, and Inflatable Seat Belt), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Demand Category (OEM and Aftermarket), By Regional, By Competition Forecast & Opportunities 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 14.23 Billion
CAGR (2026-2031)	5.99%
Fastest Growing Segment	Front Airbag
Largest Market	North America
Market Size (2031)	USD 20.17 Billion

Market Overview

The Global Automotive Airbag Market will grow from USD 14.23 Billion in 2025 to USD 20.17 Billion by 2031 at a 5.99% CAGR. Automotive airbags are passive safety restraint systems designed to inflate rapidly upon collision, thereby cushioning occupants and minimizing the risk of severe injury. The market’s growth is fundamentally supported by stringent government regulations mandating safety features, alongside a sustained rise in global vehicle production which necessitates higher volumes of original equipment components. According to the European Automobile Manufacturers' Association, in 2024, global car manufacturing totalled 75.5 million units. This substantial manufacturing output acts as a primary catalyst for the continued procurement and installation of safety systems across the automotive sector.

However, a significant challenge impeding market expansion is the volatility within the global supply chain, particularly concerning the availability and cost of raw materials. Disruptions in the procurement of essential components can lead to production delays and increased operational costs for manufacturers, potentially hindering the seamless distribution of airbag systems and constraining overall market growth.

Key Market Drivers

The implementation of stringent government safety regulations and mandates stands as a primary force propelling the global automotive airbag market. Governments worldwide are increasingly institutionalizing rigorous crash test standards to minimize road fatalities, compelling Original Equipment Manufacturers to integrate higher airbag counts, such as curtain and side-impact units, into standard vehicle configurations. A prime example of this regulatory tightening is evident in emerging markets where safety protocols are rapidly aligning with global benchmarks. According to the Hindustan Times, November 2025, under the proposed Bharat NCAP 2.0 draft rules, the threshold for a 5-star safety rating has been raised to 80 points, explicitly mandating the inclusion of curtain airbags and Electronic Stability Control for top-tier certification. This regulatory pressure forces automakers to move beyond basic dual-airbag systems, thereby driving substantial volume growth for passive safety suppliers.

Concurrently, the expansion of global automotive production and vehicle sales acts as a critical engine for market sustainability and revenue generation. As vehicle manufacturing rates recover and stabilize, the direct correlation between unit output and component procurement ensures a steady demand stream for restraint systems. This growth trajectory is further amplified by rising consumer awareness regarding vehicle safety ratings, which incentivizes manufacturers to equip even entry-level models with advanced protection systems. Highlighting this upward trend in manufacturing, according to the European Automobile Manufacturers' Association, in September 2025, global passenger car production grew by 3.5% to reach 37.7 million units in the first half of the year. This production surge directly benefits major safety component suppliers, as reflected in their financial performance. For instance, according to Autoliv, October 2025, in the 'Financial Report July - September 2025', the company achieved net sales of $2,706 million for the third quarter, marking a 5.9% increase driven by higher organic sales and successful product launches.

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Key Market Challenges

Volatility within the global supply chain, particularly regarding the availability and cost of raw materials, stands as a substantial barrier to the progress of the automotive airbag market. Airbag manufacturing relies heavily on a consistent intake of industrial fabrics, inflator chemicals, and semiconductors. When the pricing of these essential inputs fluctuates unpredictably, manufacturers face increased production costs that cannot easily be transferred to automakers. This financial pressure erodes profit margins and forces companies to divert capital toward operational maintenance rather than capacity expansion, thereby limiting their ability to scale operations efficiently.

According to the European Association of Automotive Suppliers, in 2024, approximately 65 percent of automotive suppliers reported that their profitability remained under significant pressure due to sustained high costs of raw materials and energy. Such financial instability directly hampers the market by creating bottlenecks in the manufacturing timeline. When suppliers cannot secure components at viable prices, shipment delays occur, causing a ripple effect that slows vehicle assembly. This disruption restricts the volume of airbag systems delivered to OEMs, ultimately constraining the overall revenue growth of the market.

Key Market Trends

The development of far-side and center airbag systems is rapidly gaining traction as a critical measure to mitigate occupant-to-occupant collisions and injuries from side impacts. These systems are designed to deploy between the driver and front passenger, preventing direct contact during lateral crashes, which is increasingly vital for meeting evolving global safety standards. Manufacturers are leveraging advanced simulation technologies to refine these architectures for diverse seating positions. For instance, according to Nasdaq, December 2024, in the article 'Toyoda Gosei Advances Airbag Safety Technology', Toyoda Gosei showcased its latest front center airbag innovations at the 16th International Symposium on Integral Car Safety Systems, emphasizing the use of computer-aided engineering to predict injury risks.

Concurrently, the introduction of airbag systems for powered two-wheelers represents a transformative shift in rider passive safety, addressing the high vulnerability of motorcyclists. Suppliers are adapting automotive restraint principles to create bag-on-bike and wearable solutions that deploy significantly faster than traditional systems, offering crucial protection for the head and torso. This expansion into the micro-mobility sector is supported by robust financial growth in the safety component industry. According to ChinaBuses.org, March 2025, in the 'ZF LIFETEC Sustains Growth Momentum' report, ZF Lifetec achieved sales of approximately €4.8 billion in 2024, enabling sustained investment in new product pipelines including passive safety solutions for two-wheelers unveiled at Auto Shanghai.

Segmental Insights

Market analysis identifies the Front Airbag segment as the fastest-growing category within the Global Automotive Airbag Market. This rapid expansion is primarily fueled by stringent safety mandates enforced by regulatory bodies in emerging economies, such as India, which now require dual frontal airbags as standard equipment to reduce fatalities from head-on collisions. Furthermore, the rising volume of vehicle production in these high-demand regions, coupled with elevated consumer awareness regarding occupant protection, is driving the universal integration of driver and passenger airbags across mass-market models, thereby accelerating sectoral growth.

Regional Insights

North America leads the global automotive airbag market due to stringent government regulations and established vehicle safety standards. The National Highway Traffic Safety Administration enforces strict mandates, including the requirement for frontal airbags in all new passenger vehicles and light trucks within the United States. These regulatory frameworks compel automotive manufacturers to prioritize occupant protection, resulting in the standard inclusion of multiple airbag units per vehicle. Consequently, the robust automotive manufacturing sector and a consistent focus on reducing road fatalities ensure that North America remains the primary region for market development.

Recent Developments

• In April 2025, Autoliv received recognition for its innovative Bernoulli Airbag Module, a breakthrough in passenger safety technology. The system utilizes fluid dynamics principles to inflate larger airbags more efficiently using a smaller, single-stage inflator, which significantly reduces heat generation and development costs. This technology was designed to meet the safety demands of modern electric and autonomous vehicles, which often feature roomier interiors and new seating configurations. The recognition highlighted the company's success in creating scalable solutions that enhance occupant protection while addressing the packaging challenges of next-generation mobility platforms.
• In December 2024, Toyoda Gosei presented breakthrough research findings at the 16th International Symposium on Integral Car Safety Systems in Germany. The company detailed its advancements in computer-aided engineering (CAE) to simulate human body movements and predict injury risks more accurately during accidents. Specifically, they highlighted the effectiveness of their front center airbag in side collisions and demonstrated new virtual models that assess fracture risks in elderly occupants. These research efforts were part of a broader initiative to align with evolving European safety assessment trends and improve protection for diverse vehicle occupants.
• In July 2024, Hyundai Mobis announced the development of the world's first airbags specifically designed for Purpose Built Vehicles (PBVs). The company introduced a door-mounted curtain airbag that deploys vertically from bottom to top, utilizing a wire mechanism to prevent passenger ejection through large windows. Additionally, they unveiled a self-supporting passenger airbag capable of absorbing impact without relying on the windshield for support, which is often far from the dashboard in such vehicles. These innovations were engineered to address the unique spatial characteristics of PBVs, ensuring compliance with stringent safety standards set by North American regulators.
• In June 2024, ZF Lifetec presented its latest generation of passive safety systems, including a novel driver airbag integrated into the steering wheel. This new design features a top-deploying mechanism that releases the airbag from the upper rim of the steering wheel rather than the center, allowing for a seamless, smartphone-like surface on the hub for other controls. The company also showcased a dual-contour airbag adaptable to different seating positions, capable of inflating to two distinct sizes to protect occupants whether they are in an upright or reclined state, thereby enhancing safety in automated driving scenarios.

Key Market Players

• Autoliv, Inc.
• ZF Friedrichshafen AG
• Joyson Safety Systems
• Toyoda Gosei Co., Ltd.
• Hyundai Mobis Co., Ltd.
• Continental AG
• Daicel Corporation
• Robert Bosch GmbH
• Nihon Plast Co., Ltd.
• Ashimori Industry Co., Ltd.

By Type	By Vehicle Type	By Demand Category	By Region
Curtain Airbags Knee Airbags Front Airbags Inflatable Seat Belt	Passenger Cars and Commercial Vehicles	OEM and Aftermarket	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Airbag Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Airbag Market, By Type:

• Curtain Airbags
• Knee Airbags
• Front Airbags
• Inflatable Seat Belt

• Automotive Airbag Market, By Vehicle Type:

• Passenger Cars and Commercial Vehicles

• Automotive Airbag Market, By Demand Category:

• OEM and Aftermarket

• Automotive Airbag Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE