Automotive External Airbags Market
By Type;
Front-Mounted External Airbags, Side-Mounted External Airbags and Underbody AirbagsBy Application;
Passenger Car and Commercial VehicleBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031)Automotive External Airbags Market Overview
Automotive External Airbags Market (USD Million)
Automotive External Airbags Market was valued at USD 585.35 million in the year 2024. The size of this market is expected to increase to USD 1557.04 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 15.0%.
Automotive External Airbags Market
*Market size in USD million
CAGR 15.0 %
| Study Period | 2025 - 2031 | 
|---|---|
| Base Year | 2024 | 
| CAGR (%) | 15.0 % | 
| Market Size (2024) | USD 585.35 Million | 
| Market Size (2031) | USD 1557.04 Million | 
| Market Concentration | Low | 
| Report Pages | 384 | 
Major Players
- ZF Friedrichshafen AG
- Autoliv Inc.
- Yanfeng (Huayu Automotive Systems Co. Ltd)
- Toyoda Gosei Co. Ltd
- Continental AG
- Joyson Safety Systems
- Hyundai Mobis Co. Ltd
- Sumitomo Corporation
- Jinzhou Jinheng Automotive Safety System Co. Ltd
- Ashimori Industry Co. Ltd
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Automotive External Airbags Market
Fragmented - Highly competitive market without dominant players
The Automotive External Airbags Market is emerging as a vital segment in modern vehicle safety, with about 30% of vehicles integrating external airbags to enhance passenger and pedestrian protection. These systems are reshaping safety standards and reducing collision impact.
Rising Safety Concerns and Market Drivers
Growing awareness of road safety and compliance with strict safety regulations are accelerating adoption. Nearly 40% of carmakers have deployed or are trialing external airbags, underlining their importance in next-generation crash protection.
Innovation Enhancing Reliability
Advances such as AI-powered detection and ultra-fast deployment systems are improving product efficiency. Approximately 50% of prototypes are designed to integrate with autonomous driving features, ensuring proactive accident prevention and intelligent response.
Strategic Partnerships and R&D Focus
Industry players are investing heavily in collaborations, innovation programs, and research. Around 45% of these initiatives emphasize developing enhanced crash protection technologies, boosting product reliability and consumer trust.
Positive Growth Prospects
The Automotive External Airbags Market shows strong growth potential, with over 55% of manufacturers planning to expand production. Backed by technological advancements and supportive regulations, the sector is poised for rapid expansion and widespread adoption.
Automotive External Airbags Market Key Takeaways
-  Growing emphasis on pedestrian safety is driving demand for external airbags, as global regulations and safety rating programs increasingly prioritize impact protection outside vehicles. 
-  Advancements in sensor and detection technologies such as radar, lidar, and camera-based systems enable faster airbag deployment, minimizing collision impact and injury risks. 
-  Automotive OEMs are integrating external airbags into next-generation vehicle designs, particularly within luxury and premium models emphasizing comprehensive safety coverage. 
-  Rising adoption of autonomous and electric vehicles is creating new opportunities for external airbag systems as automakers seek enhanced safety solutions for futuristic mobility platforms. 
-  High R&D investment from leading airbag manufacturers focuses on improving deployment speed, sensor fusion algorithms, and material durability for better performance. 
-  Europe leads the market driven by stringent Euro NCAP safety standards and strong adoption of pedestrian protection systems among major automotive brands. 
-  Cost and complexity challenges remain significant barriers, prompting industry efforts to standardize designs and reduce integration costs for mass-market vehicles. 
Automotive External Airbags Market Recent Developments
-  In January 2024, Audi announced a recall of 1,001 Q7 and Q8 units due to a driver seat-side airbag issue. Improperly mounted airbags in the seatback frame caused non-compliance with Federal Motor Vehicle Standards, and owners were instructed to return vehicles by February 2024. 
-  In November 2023, Toyoda Gosei Co. Ltd inaugurated a new facility in Guangdong Province to strengthen production of core safety systems, including airbags, supporting increasing demand and stricter safety regulations. 
Automotive External Airbags Segment Analysis
In this report, the Automotive External Airbags Market has been segmented by Type, Application and Geography.
Automotive External Airbags Market, Segmentation by Type
The Type segmentation distinguishes how automakers deploy external restraint systems around the vehicle perimeter to mitigate crash energy and reduce injury severity. Suppliers differentiate offerings through sensor fusion strategies, advanced inflator technologies, and partnerships that enable faster deployment algorithms tuned to complex urban scenarios. As platforms electrify and adopt software-defined architectures, integration pathways and lifecycle cost advantages are becoming core purchase criteria for OEM programs across regions.
Front-Mounted External Airbags
These systems are designed to protect vulnerable road users and reduce damage in low-to-mid speed frontal impacts, especially in urban ADAS use cases. Vendors focus on predictive sensing using radar, camera, and lidar to distinguish objects, while optimizing deployment timing to minimize false positives. OEM strategies emphasize modular bumper integration, serviceability, and compliance with evolving pedestrian safety regulations as city fleets and premium segments pilot early adoption.
Side-Mounted External Airbags
Side-mounted solutions target intersection collisions and lateral impacts, where intrusion risk is high and milliseconds matter. The competitive focus is on wide-field sensing, door-sill packaging, and coordination with side-structure reinforcements to create an external “energy buffer.” Partnerships with chipset providers and Tier-1s accelerate software calibration for cross-traffic scenarios, supporting OEM differentiation in safety ratings and insurance cost reduction narratives.
Underbody Airbags
Underbody airbags primarily address underride and pothole/obstacle events, as well as stability during rollover initiation for taller vehicles. Engineering priorities include robust housings, debris tolerance, and integration with chassis control systems to manage pitch and ride height during deployment. Uptake is influenced by commercial vans and SUVs seeking enhanced protection and by fleets evaluating total cost of ownership gains through reduced downtime and repair intensity.
Automotive External Airbags Market, Segmentation by Application
The Application lens clarifies how differing vehicle missions shape value propositions and technology roadmaps. Passenger car programs tend to prioritize premium safety features, brand positioning, and consumer safety ratings, while commercial vehicle buyers emphasize downtime avoidance, repair cost mitigation, and fleet-level ROI. Across both, collaboration between OEMs, Tier-1s, and sensor/ASIC ecosystems is central to validating algorithms, optimizing packaging, and ensuring dependable performance in mixed-traffic environments.
Passenger Car
In passenger cars, external airbags align with the shift toward advanced driver assistance and emerging automated driving stacks where proactive protection complements perception redundancy. Automakers leverage pilot programs and high-trim rollouts to de-risk adoption, while marketing teams highlight pedestrian and cyclist safety outcomes. Growth is supported by regulatory momentum in urban safety and by over-the-air update pathways that continuously refine deployment logic as real-world data accumulates.
Commercial Vehicle
Commercial fleets prioritize solutions that lower collision-related repairs and improve uptime, particularly in dense delivery routes and yard operations. Integration with fleet telematics enables incident analysis and targeted driver coaching, reinforcing risk management narratives for insurers and operators. Vendors emphasize ruggedization, service-friendly designs, and multi-year total cost of ownership benefits, positioning external airbags as part of a broader active safety suite for vans, buses, and specialty vehicles.
Automotive External Airbags Market, Segmentation by Geography
Geography shapes demand through variations in regulatory frameworks, urbanization patterns, and maturity of ADAS/automated driving adoption. Regions with strong NCAP programs, robust smart-city initiatives, and high vehicle technology content are primed for earlier adoption. Supply chain proximity, local validation partners, and harmonized standards further influence timelines, as OEMs align platform rollouts and software safety cases with market-specific conditions.
Regions and Countries Analyzed in this Report
North America
North America benefits from strong NCAP influence, active urban safety programs, and a large base of technology-forward trims that incubate new safety content. Collaboration among OEMs, Tier-1s, and Silicon Valley sensing firms accelerates algorithm maturity and validation in mixed traffic conditions. Fleet pilots in delivery and ride-hail further support the business case through incident reduction and data-driven risk management.
Europe
Europe’s stringent type-approval standards and expanding pedestrian/cyclist protection requirements make it a natural early market for external airbags. OEMs leverage software-defined vehicle platforms and cross-border regulatory harmonization to scale offerings across trims. Strong partnerships with research institutes and municipal programs enhance real-world testing, while premium brands use the technology to reinforce safety leadership and protect repair economics.
Asia Pacific
Asia Pacific shows diverse adoption patterns, from technology-rich markets with dense urban traffic to rapidly motorizing countries focused on cost-optimized safety. Local supply chains and ecosystem partnerships with sensor and module providers underpin competitive pricing and fast iteration. Government initiatives around smart mobility and growing consumer focus on advanced safety features are shaping OEM roadmaps for external airbag content.
Middle East & Africa
Middle East & Africa adoption is guided by fleet use cases, infrastructure modernization, and imports of vehicles equipped with advanced active safety. Market development often flows through commercial vehicles and government-backed transport safety programs, supported by training and service readiness. As regional distributors align with global OEM platforms, capability building in diagnostics and field maintenance will be key to scaling deployments.
Latin America
Latin America’s growth prospects center on urban safety priorities, evolving regulatory baselines, and partnerships that localize manufacturing and service. OEMs and suppliers emphasize cost-to-value propositions and robust designs for varied road conditions. Pilot deployments with ride-hail, last-mile, and municipal fleets can demonstrate measurable benefits, paving the way for broader adoption as standards mature.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Automotive External Airbags Market. These factors include; Market Drivers, Restraints, and Opportunities.
Drivers:
- Stringent safety regulations driving adoption
- Increased focus on vehicle safety
- Growing consumer awareness
-  Rising demand for vehicles with advanced safety features - The rising demand for vehicles equipped with advanced safety features stands as a significant driver in the automotive industry. Consumers increasingly prioritize safety when purchasing vehicles, leading to a surge in the demand for cars equipped with an advanced safety technologies. Features such as external airbags, collision avoidance systems, and adaptive cruise control have become key selling points for automakers looking to cater to safety-conscious consumers. This demand is driven by various factors, including growing awareness of road safety issues, stricter safety regulations, and advancements in automotive technology. As awareness of the importance of vehicle safety grows among consumers, there is a corresponding increase in the desire for vehicles that offer the latest safety innovations to protect occupants in the event of a collision. Regulatory bodies worldwide are implementing more stringent safety standards, compelling automakers to incorporate advanced safety features into their vehicles. These regulations often mandate the inclusion of specific safety technologies to improve vehicle crashworthiness and reduce the severity of accidents, driving the adoption of external airbags and other safety systems. 
Restraints:
- Compatibility and integration challenges
- Concerns about reliability and durability
- Maintenance complexity
-  Limited consumer awareness - Limited consumer awareness represents a significant restraint in the automotive industry's adoption of external airbags. Despite the advancements in automotive safety technology, many consumers remain unaware of the existence and benefits of external airbags. This lack of awareness can hinder the market growth of external airbags as consumers may not prioritize this feature when purchasing vehicles. The complexity of automotive safety systems and the technical nature of external airbags can contribute to consumer confusion and lack of understanding. Without clear and effective communication about the purpose and functionality of external airbags, consumers may overlook this safety feature or perceive it as unnecessary. Limited consumer awareness may also lead to misconceptions or concerns about the reliability and effectiveness of external airbags. Without access to accurate information, consumers may question the safety benefits of external airbags and opt for vehicles with more familiar safety features. 
Opportunities:
- AI and machine learning integration
- Lightweight materials adoption
- Customization for specific conditions
-  Aftermarket sales channel expansion - Expansion into the aftermarket sales channel represents a significant opportunity for the automotive external airbags market. Aftermarket sales channels provide an avenue for selling external airbags as standalone products or as part of safety upgrade kits to vehicle owners who want to enhance the safety features of their existing vehicles. By tapping into the aftermarket segment, manufacturers and suppliers can reach a broader customer base beyond new vehicle sales. This includes owners of older vehicles or vehicles without factory-installed external airbags who may be interested in retrofitting their vehicles for improved safety. Additionally, aftermarket sales channels offer opportunities for customization and personalization, allowing consumers to choose from a variety of external airbag options based on their vehicle type, budget, and specific safety requirements. This flexibility can cater to diverse consumer preferences and increase the adoption of external airbags across different vehicle segments. Aftermarket sales channels enable manufacturers to capitalize on the growing demand for automotive safety upgrades driven by increasing awareness of road safety issues and regulations mandating the use of advanced safety technologies. By strategically expanding into the aftermarket segment, companies can leverage this trend to drive sales growth and establish themselves as leaders in the automotive safety market. 
Automotive External Airbags Market Competitive Landscape Analysis
Automotive External Airbags Market is gaining competitive momentum as automakers and suppliers focus on enhancing pedestrian safety through advanced impact protection systems. Leading players are emphasizing innovation, strategic partnerships, and product differentiation. With over 44% of manufacturers expanding safety portfolios, the market is evolving toward intelligent and predictive protection technologies.
Market Structure and Concentration
The market reflects moderate concentration, with major companies holding close to 59% of total share. Emerging entrants are leveraging agile strategies and specialized expertise to compete. Increased collaboration and merger activities are helping firms scale production, streamline technology integration, and reinforce their competitive advantage.
Brand and Channel Strategies
Approximately 51% of product distribution flows through OEM agreements and Tier-1 supplier partnerships. Manufacturers are adopting multi-layered channel strategies to align with vehicle platforms and improve market reach. These strategies are enhancing visibility, reducing lead times, and strengthening relationships across automotive supply chains.
Innovation Drivers and Technological Advancements
Over 42% of R&D budgets are allocated to sensor integration, deployment speed, and system reliability. Innovation is focused on real-time impact analysis and external airbag deployment algorithms. These technological advancements are enabling smarter safety systems and redefining how passive protection mechanisms operate in modern vehicles.
Regional Momentum and Expansion
Regional expansion is accelerating, particularly in areas where pedestrian safety regulations have intensified. Demand has risen by more than 50% in urban-focused vehicle markets. Companies are forming localized partnerships to tailor products to regulatory needs, supporting sustained growth and broader adoption across varied geographies.
Future Outlook
The future outlook for the automotive external airbags market remains positive, with projected growth exceeding 31%. Success will depend on continued technological advancements, cross-industry collaboration, and adaptability to evolving safety standards. Firms that invest in predictive protection and system integration will shape the next phase of competition.
Key players in Global Automotive External Airbags Market include,
- Autoliv Inc.
- ZF Friedrichshafen AG
- Joyson Safety Systems
- Continental AG
- Robert Bosch GmbH
- Aptiv PLC
- DENSO Corporation
- Hyundai Mobis Co., Ltd.
- Toyoda Gosei Co., Ltd.
- Daicel Corporation
- ITW Automotive
- GWR Safety Systems, Inc.
- ARC Automotive Inc.
- TRW Automotive (now part of ZF Group)
- Key Safety Systems (now Joyson Safety Systems)
In this report, the profile of each market player provides following information:
- Market Share Analysis
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Follow this format in all the markets
- Introduction - Research Objectives and Assumptions
- Research Methodology
- Abbreviations
 
- Market Definition & Study Scope
- Executive Summary - Market Snapshot, By Type
- Market Snapshot, By Application
- Market Snapshot, By Region
 
- Automotive External Airbags Market Dynamics - Drivers, Restraints and Opportunities - Drivers - Stringent safety regulations driving adoption
- Increased focus on vehicle safety
- Growing consumer awareness
- Rising demand for vehicles with advanced safety features
 
- Restraints - Compatibility and integration challenges
- Concerns about reliability and durability
- Maintenance complexity
- Limited consumer awareness
 
- Opportunities - AI and machine learning integration
- Lightweight materials adoption
- Customization for specific conditions
- Aftermarket sales channel expansion
 
 
- Drivers 
- PEST Analysis - Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
 
- Porter's Analysis - Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
 
 
- Drivers, Restraints and Opportunities 
- Market Segmentation - Automotive External Airbags Market, By Type, 2021 - 2031 (USD Million) - Front-Mounted External Airbags
- Side-Mounted External Airbags
- Underbody Airbags
 
- Automotive External Airbags Market, By Application, 2021 - 2031 (USD Million) - Passenger Car
- Commercial Vehicle
 
- Automotive External Airbags Market, By Geography, 2021 - 2031 (USD Million) - North America - United States
- Canada
 
- Europe - Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
 
- Asia Pacific - Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
 
- Middle East & Africa - GCC
- Israel
- South Africa
- Rest of Middle East & Africa
 
- Latin America - Brazil
- Mexico
- Argentina
- Rest of Latin America
 
 
- North America 
 
- Automotive External Airbags Market, By Type, 2021 - 2031 (USD Million) 
- Competitive Landscape - Company Profiles - Autoliv Inc.
- ZF Friedrichshafen AG
- Joyson Safety Systems
- Continental AG
- Robert Bosch GmbH
- Aptiv PLC
- DENSO Corporation
- Hyundai Mobis Co., Ltd.
- Toyoda Gosei Co., Ltd.
- Daicel Corporation
- ITW Automotive
- GWR Safety Systems, Inc.
- ARC Automotive Inc.
- TRW Automotive (now part of ZF Group)
- Key Safety Systems (now Joyson Safety Systems)
 
 
- Company Profiles 
- Analyst Views
- Future Outlook of the Market


 Download Sample
Download Sample Add to Cart
Add to Cart