South America Automotive Passive Safety System Market Forecast to 2028 - COVID-19 Impact and Regional Analysis - by Type and Vehicle Type

The automotive passive safety system market in South America is expected to grow from US$ 678.38 million in 2022 to US$ 762.40 million by 2028. It is estimated to grow at a CAGR of 2.0% from 2022 to 2028.

The introduction of electric vehicles has transformed the automotive industry. In addition to this, automotive airbag and seatbelts technology in the market has enhanced safety and reduced the complexity of driving. Growing demands for electric vehicles opens new door for the automotive passive safety system market players. With the goal of Vision Zero that includes road traffic without severe injuries and fatalities, OEMs are continuously investing in passive safety systems for the protection of vehicle occupants, pedestrians, cyclists and motorcyclists. Airbags and seatbelts with modern features are now standard in electric automobiles for a better driving experience. When switching to an electric vehicle, customers expect a higher level of automated experience. Technological innovation and a rise in focus on the safety of passengers and drivers may further increase the demand for airbags and seatbelts in electric vehicles. The company MG Motor India Pvt. Ltd introduced its MG ZS Electric Vehicle with three point seat belt, to ensure safety for all passengers. The vehicle also includes 6 Airbags consisting of dual front airbags, side airbags and curtain airbags that work together with the seatbelts. A network of self-cleaning sensors deliver a 360º view of the environment around the EV. Several advancements are anticipated to provide lucrative opportunities for the growth of the automotive passive safety systems market.

Market Overview

South America has the presence of major automakers, including General Motors, Volkswagen, Hyundai, Ford, Toyota, Peugeot, and Renault. Further, the national regulatory bodies of various countries in the region have realized the importance of the automotive industry and are taking initiatives to develop it. For instance, an initiative by the Brazilian authority regarding Route 2030 (a scheme of tax credits worth billions of dollars to auto and auto-parts manufacturers in Brazil) was announced in 2017, which was eagerly anticipated as the industry struggles to grow sustainably following the country's exit from recession in 2017. Route 2030 offered US$ 535 million in tax incentives from 2019 to eligible manufacturers and US$ 382 million annually, which will continue till 2030. The program applies specifically to profitable auto companies actively investing in research & development, especially those creating technologies that boost energy efficiency within Brazil. Similarly, in 2017, Argentine President Mauricio Macri announced a US$ 1 million plan for the development of the automotive industry, under which the country aimed to produce 750,000 cars annually by 2019 and ~1 million units by 2023. Therefore, the government initiatives to support the growth of the automotive industry will strengthen the automotive manufacturing industry, which is likely to support the growth of the automotive passive safety system market in the region.

South America Automotive Passive Safety System Market Segmentation

The South America automotive passive safety system market is segmented into type, vehicle type and country.

• Based on type, the South America automotive passive safety system market can be categorized into airbags, seatbelts, occupant sensing system, child safety system, and others. The airbags segment registered the largest market share in 2022.
• Based on vehicle type, the South America automotive passive safety system market is bifurcated into passenger car and commercial vehicles. The passenger car segment held a larger market share in 2022.
• Based on country, the South America automotive passive safety system market is segmented into Brazil, Argentina, and rest of MEA. Brazil dominated the market share in 2022. Autoliv Inc; Continental AG; FAURECIA; Hyundai Mobis; Joyson Safety Systems; Knauf Industries; Robert Bosch GmbH; Tokairika Co., Ltd.; Toyoda Gosei Co., Ltd; and ZF Friedrichshafen AG are the leading companies operating in the South America automotive passive safety system market.