Airbag market in India to grow to ₹7,000 crore by FY27: Study

The airbag market in India will grow to ₹6,000-7,000 crore by FY2027, up to three times the current levels, claimed a study by ICRA. The current market size is between ₹2,400-2,500 crore. This means the airbag market will grow at a CAGR of 25-30 per cent over the next four years. With the automotive safety norms in the country tightening further and the focus on safety features rising, all the automakers are increasingly adding basic and mandatory safety features like airbags to their vehicles, even in entry-level passenger cars. A voluntary increase in the number of airbags per vehicle for enhancing safety too is contributing to this market growth.

Previously, only one airbag per car for the driver was mandatory from July 2019. The rule was upgraded later and made dual front airbags for the driver and front passenger mandatory for the M1 category vehicles (vehicles that can seat up to eight passengers and weigh less than 3.5 tonnes) manufactured from January 2022. In the latest mandate by the government, the M1 category vehicles must come equipped with dual side airbags and dual side curtain airbags from October 2023. This mandate has been issued to prevent torso injury for front-row outboard occupants and prevent head injury for the outboard occupants.

Speaking about the findings, Vinutaa S, vice president and sector head at ICRA, said that the mandatory content per vehicle for airbag manufacturers is expected to grow from the current ₹3,000-4,000 to ₹8,000-10,000 by October 2023. “The average number of airbags per car sold is about three currently, and this is expected to increase significantly post the mandatory implementation of six airbags per car from October 01, 2023. The cost for OEMs could increase further depending on modifications required in cars’ structural changes and deployment of additional sensors," she further added.