The global automotive airbag silicone market size is projected to grow from USD 239 million in 2020 to USD 534 million by 2025 at a 17.5% CAGR. The increasing number of airbags per vehicle and advantages offered by silicone-coated airbags are expected to boost the automotive airbag silicone market. The growing demand for electric vehicles and the increasing installation of airbags in commercial vehicles is anticipated to offer promising growth opportunities for automotive airbag silicone during the forecast period.
Advantages offered by silicone-coated airbags
Airbags create heat during deployment that can increase the risk of occupants getting burnt. Adding a silicone coating to the airbag can dissipate/contain this heat without the airbag ripping or tearing during deployment. Airbags treated with a silicone coating also allow quick deflation once the peak inflation pressure is reached, along with added benefits such as thermal resistance and airbag protection compared to alternatives like neoprene coating. Additionally, silicone’s excellent compatibility with widely used airbag fabrics like nylon allows it to form a protective layer against moisture and remain chemically inert. These advantages are expected to fuel the demand for automotive airbags made from silicone-coated fabric.
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Growing demand for electric vehicles
The demand for electric vehicles is driving automakers to invest in electric vehicle technology. Several OEMs have announced various investment plans to develop and launch new electric models. For example, Ford announced investments worth USD 11 billion in electric vehicles by 2022. The company plans to lineup 40 EVs by 2022, 16 would be fully electric, and 24 would be PHEVs. In 2019, German car giant Volkswagen AG announced investments totaling USD 66.3 billion over the next five years to produce more electric and hybrid vehicles, with a plan to roll out 75 completely electric models and 60 hybrid models. MG Motor has also planned to invest USD 500 million in 2020 to develop, manufacture, and sell EVs in India. The increasing demand for electric vehicles among consumers is expected to create a growth opportunity for the automotive airbag silicone market during the forecast period.
Asia Pacific is estimated to be the largest market throughout 2025
The regional growth can be attributed to higher production in countries including China, Japan, South Korea, and Thailand due to cost-effectiveness and regional airbag companies maximizing their presence to minimize supply chain costs. On the other hand, countries like India are majorly dependent on outsourcing to meet the demand for fabric and automotive airbag silicone due to the lack of suppliers’ presence.
The high number of road accidents and related fatalities and increasing consumer concerns over safety are the major factors driving the demand for automotive airbags in Asia Pacific. Additionally, countries in Asia Pacific are coming up with stringent rules and regulations to reduce road fatalities. For instance, in 2019, the Indian Ministry of Road Transport and Highways mandated installing airbags in all four-wheelers that come off the production line after July 1, 2019. The expected increase in demand for airbags in India and the ASEAN countries is likely to fuel the expansion of airbag fabric manufacturers and silicone providers and further drive the automotive airbag silicone market.
Key Market Players
Dow (US), Elkem Silicones (France), Shin-Etsu Chemical Co., Ltd. (Japan), Wacker Chemie AG (Germany), and Momentive (US). These companies adopted expansion strategies and used mergers & acquisitions to gain traction in the automotive airbag silicone market.
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