The South Africa Airbag Systems Market is expected to register a CAGR of more than 7 % during the forecast period, 2020-2025.
- South Africa automotive industry growing slowly, and most economies started gaining momentum. By 2025 South Africa is expected to have a high demand for passenger cars and commercial vehicle sales South Africa is also emerging as an automotive part manufacture hub for the African region and is expected to drive the market for automotive reed switches in the region.
- Passenger safety is of the utmost importance to the South African government as well as the companies. Regulations towards consumer safety and security have made manufacturers install safety devices in the cars. The government of many countries has made usage of seat belts and airbags mandatory.
- In 2019, South Africa continued to capture the largest market for airbag inflators in Africa Middle East region due to various government initiatives toward passenger safety, such as the introduction of crash tests for frontal and side impact protection, sub-system tests for pedestrian protection, and anti-lock braking requirements.
Key Market Trends
Hybrid Inflator Segment is Growing with a High Rate
The hybrid inflator working principle involves a combination of both stored gas and pyrotechnic technologies. It uses compressed gas and a combustion reaction in a single device. Though hybrid inflators have been eco-friendlier compared to that of pyrotechnic inflators, the former exhibited some disadvantages, such as design complexity, additional space and size, high cost, and longer deployment time compared to that of pyrotechnic inflators.
However, hybrid inflators will take a considerable time to replace pyrotechnic inflators completely in the automotive industry. But, with the growing improvement in production and design, hybrid inflators have been increasingly preferred in passenger airbags, knee airbags, and curtain airbags in the automotive industry.
As a result, OEM’s are finding a balance between cost, performance, and safety. OEMs have started offering driver airbags as a basic feature owing to regulatory bodies that previously came with additional cost, while all the premium cars are also equipped with airbags including knee airbags, rear passenger airbags, and more. With the growing a trend of demand for more safety In South Africa, the Airbags Systems Market is expected to witness a positive growth for the forecasted period.
Automotive Sales Driving Growth of The Airbag Systems Market
South Africa has an active automotive sector which contributes to around 6.9% of the country’s overall GDP. The industry employs around 120,000 people in vehicle and component production and witnesses an annual investment of more than R12 billion. Major automobile companies such as BMW, Volkswagen, Toyota, Renault, Nissan and Ford manufacture vehicles in South Africa for local sale and for exports. Many of the air bag manufacturers are making sizeable investments in the country, leading to a further increase in automotive and OEM production.
South Africa has revamped its automotive industry with the introduction of South African Automotive Masterplan (SAAM) in 2019. The government has set a target of raising local content from 39% currently to 60% by 2035. It also plans to achieve 1% of the total global vehicle production by 2035. Doubling the total employment in the sector to 240,000 people, achieving industry transformation across the value chain and deepening value addition across selected commodities are also expected to help the industry grow over the forecast period.
In May 2020, South Africa’s automotive industry has proposed a few liquidity relief measures to President Cyril Ramaphosa to reduce the industry’s cash flow challenges and ensure its survival post-COVID-19. The proposals will also safeguard the lives of more than 500 000 employees across the automotive industry value chain during the lockdown.
With growing developments in the automotive sector in the country, airbags systems is expected to grow for the forecasted period.
The South Africa Airbag Systems Market is dominated with various international and regional players such as Autoliv Inc., ZF Friedrichshafen AG, Joyson Safety Systems (Key Safety Systems), HUAYU Automotive Systems and Toyoda Gosei Co., Ltd.. Although to have the edge over its competitors, the major automotive reed sensors manufacturing companies are making joint-ventures, partnerships to launch newer products.
Key Safety Systems acquired Takata Corporation. Key Safety Systems (KSS) has developed Inflatable Seat Belts, which can protect the shoulder and torso area on inflation. Besides, they are capable of being deployed within as less as 40 milliseconds in the event of a crash.
in August 2019, ZF launched fabric housing knee airbag module. The innovation enhances the safety of passenger vehicle occupants and is the lightest such airbag module in the automotive industry. The new airbag module enables vehicle manufacturers to help optimize interior redesign requirements and increase design freedom while in some cases further reducing weight and costs.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porters Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Airbag Type
5.1.1 Driver airbag
5.1.2 Passenger airbag
5.1.3 Curtain airbag
5.1.4 Knee airbag
5.2 Inflator Type
5.2.2 Stored Gas
5.3 Vehicle Type
5.3.1 Passenger Car
5.3.2 Commercial Vehicle
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Robert Bosch GmbH
6.2.2 Continental AG
6.2.3 Denso Corporation
6.2.4 Toyoda Gosei Co.,Ltd.
6.2.5 Hyundai Mobis Co., Ltd.
6.2.6 Autoliv Inc.
6.2.7 Joyson Safety Systems
6.2.8 ZF TRW
6.2.9 Sumitomo Corporation
6.2.10 Mitsubishi Electric Corporation
7 MARKET OPPORTUNITIES AND FUTURE TRENDS