Automotive Safety Systems Global Market Opportunities and Strategies to 2033

This report describes and explains the automotive safety systems market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global automotive safety systems market reached a value of nearly $116.6 billion in 2023, having grown at a compound annual growth rate (CAGR) of 4.37% since 2018. The market is expected to grow from $116.6 billion in 2023 to $178.4 billion in 2028 at a rate of 8.88%. The market is then expected to grow at a CAGR of 8.84% from 2028 and reach $272.5 billion in 2033.

Growth in the historic period resulted from increase in disposable income, rising number of road accidents and government regulations related to safety in vehicles. Factor that negatively affected growth in the historic period was high costs of vehicle safety systems.

Going forward, the increasing demand for electric vehicles, strong economic growth and increasing adoption of advanced driver assistance systems will drive the growth. Factor that could hinder the growth of the automotive safety systems market in the future include rise in the use of driverless and connected vehicles.

The automotive safety systems market is segmented by type into active safety systems and passive safety systems. The active safety systems market was the largest segment of the automotive safety systems market segmented by type, accounting for 57.5% or $67 billion of the total in 2023. Going forward, the active safety systems segment is expected to be the fastest growing segment in the automotive safety systems market segmented by type, at a CAGR of 9.50% during 2023-2028.

The automotive safety systems market is segmented by vehicle type into passenger cars and commercial vehicles. The passenger cars market was the largest segment of the automotive safety systems market segmented by vehicle type, accounting for 73.4% or $85.6 billion of the total in 2023. Going forward, the commercial vehicles segment is expected to be the fastest growing segment in the automotive safety systems market segmented by vehicle type, at a CAGR of 10.75% during 2023-2028.

The automotive safety systems market is segmented by end user into OEM (Original Equipment Manufacturer) and aftermarket. The OEM market was the largest segment of the automotive safety systems market segmented by end user, accounting for 70% or $81.7 billion of the total in 2023. Going forward, the OEM segment is expected to be the fastest growing segment in the automotive safety systems market segmented by end user, at a CAGR of 9.54% during 2023-2028.

North America was the largest region in the automotive safety systems market, accounting for 40.3% or $47 billion of the total in 2023. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the automotive safety systems market will be Asia Pacific and South America where growth will be at CAGRs of 10.18% and 9.79% respectively. These will be followed by Africa and Eastern Europe where the markets are expected to grow at CAGRs of 9.01% and 8.80% respectively.

The global automotive safety systems market is fairly concentrated, with large players operating in the market. The top ten competitors in the market made up to 32.6% of the total market in 2022. The market concentration can be attributed to the presence of large number of players in different geographies. Prominent players are acquiring the products and entering into partnerships with the other companies to consolidate their market positions across the globe, while others are distributing products. Autoliv Inc. was the largest competitor with a 8.3% share of the market, followed by Hyundai Motor Group with 6.5%, Hitachi Automotive Systems with 4.3%, Robert Bosch GmbH with 3.3%, ZF Friedrichshafen AG with 3%, DENSO CORPORATION with 2.9%, Ford Motor Company with 1.9%, Continental AG with 1%, Magna International Inc. with 0.9% and Aptiv PLC with 0.6%.

The top opportunities in the automotive safety systems market segmented by type will arise in the active safety system segment, which will gain $38.5 billion of global annual sales by 2028. The top opportunities in the automotive safety systems market segmented by vehicle type will arise in the passenger cars segment, which will gain $41.1 billion of global annual sales by 2028. The top opportunities in the automotive safety systems market segmented by end user will arise in the OEM segment, which will gain $47.1 billion of global annual sales by 2028. The automotive safety systems market size will gain the most in the USA at $17.7 billion.

Market-trend-based strategies for the automotive safety systems market include focus on strategic collaborations, to enhance research and development efforts, focus on developing advanced tire pressure monitoring systems to improve safety, focus on developing innovative safety features to enhance vehicle occupant protection and mitigate collision risks and focus on automated driving platforms (ADPs) that enhance automotive safety systems.

Player-adopted strategies in the automotive safety systems market include focus on improving portfolio through strategic partnerships, mergers and acquisitions, focus on improving portfolio through the opening of a Safety Test and Investigation Laboratory (STIL) and focus on expanding business capabilities through partnerships and collaborations to launch new products.

To take advantage of the opportunities, the analyst recommends automotive safety systems companies to focus on advanced tire pressure monitoring systems, focus on innovative safety features, focus on automated driving platforms (ADPs), focus on passive safety systems, expand in emerging markets, focus on diversifying distribution channels for market expansion, provide competitively priced offerings, focus on strategic pricing strategies for market leadership, participate in trade shows and events, continue to use B2B promotions, focus on digital engagement for enhanced market visibility, prioritize technical webinars for thought leadership, focus on OEM segment and focus on commercial vehicles.