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The automotive safety system market is estimated to be $82.80 Billion in 2017 and is projected to grow to 169.46 Billion by 2025, at a CAGR of 9.36% during the forecast period.
The increasing demand for a safe, efficient, and convenient driving experience and stringent safety regulations across the globe are driving the market for automotive safety system.
The automotive safety system market has been segmented by technology, on-highway vehicle, off-highway vehicle, electric vehicle, offering, and region. 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 the automotive safety system market, by technology. Continuously increasing demand for luxury vehicles will drive the growth of this segment. Also, the growing trend toward autonomous vehicles is expected to contribute to the growth of the active safety systems.
The automotive safety system market has been segmented by on-highway vehicle into passenger cars, light commercial vehicles, buses, and trucks. Passenger car segment is estimated to be the fastest growing segment of the automotive safety system market, by on-highway vehicle.
The number of passenger cars is growing at a significant rate in the emerging economies of the Asia Pacific region. This can be attributed to the rise in GDP and the population of these countries, resulting in improved lifestyle, increased purchasing power of consumers, and development of infrastructure. Various active and passive safety systems such as airbags, seatbelts, tire pressure monitor (TPM), and electronic stability control (ESC) are provided in passenger cars for preventing accidents.
The Asia Pacific region is estimated to dominate the automotive safety system market, in terms of value, in 2017. 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 the automotive safety system market in the Asia Pacific region.