PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1458423
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1458423
Global automotive webbing market is projected to witness a CAGR of 5.1% during the forecast period 2024-2031, growing from USD 1511 million in 2023 to USD 2249.5 million in 2031. The revenue advancement of the global automotive industry is fostering the growth of the automotive webbing market size. For instance, according to the latest statistics published by the Organisation Internationale des Constructeurs d'Automobiles (OICA), a global automotive association, in 2021, the global automobile production was 80,205,102 units, and in 2022, it was 85,016,728 units, with an annual growth rate of 6% as opposed to 2021.
The increasing demand for electric vehicles will create a lucrative opportunity for the growth of the automotive webbing market in the upcoming years. For instance, according to the recent data published by the International Energy Agency (IEA), in 2021, the demand for light commercial vehicle electric vehicles at the global level reached more than 163,157 units, and in 2022, it was 310,000 units, an increase of 90%.
Globally, the automotive industry is experiencing a surge in demand for advanced safety features, which are crucial constituents of safety systems. The demand for safety features like airbags and seat belts is being further fueled by government and regulatory bodies imposing mandatory use of these components. Additionally, because they have lower emissions and fuel consumption, lightweight materials are gaining increased adoption in the automotive sector. Automotive webbing is a popular choice among automakers because they are made of a lightweight material that gives various parts of a vehicle the necessary strength and durability without adding extra weight.
In addition, the use of hybrid and electric cars is expanding, necessitating the need for specific materials that can tolerate high temperatures and the high voltages required by electric cars. For instance, automotive webbing is used to make the charging cables for electric cars and these cables must be flexible and strong enough to endure regular use, while also being able to tolerate high temperatures and voltages. The use of seat belts in cars has increased because of laws requiring them to be installed in several countries. Additionally, the expansion of the automotive industry will raise the usage of seat belts concurrently, thereby increasing the demand for webbing in the automotive industry.
Increase in Safety Standards of Automotives to Drive Demand for Automotive Sector
The automotive webbing market is driven by the rising demand for safety features in the automotive industry, as webbing is a crucial part of safety systems, including airbags, seatbelts, and cargo restraints. Modern safety technology is being incorporated into automobiles, and this necessitates the use of premium webbing materials for parts like airbags and other safety restraint systems. Additionally, the industry is witnessing an increase in the use of smart seat belts, which are equipped with cameras, sensors, and other cutting-edge technology. These seat belts can track passenger behavior, spot irregularities, and sound alerts or send out information in the event of an emergency, further contributing to the growth of the automotive webbing market.
For instance, all new automobiles have been mandatorily equipped with seat belt reminders for the driver and front passenger, passenger-side airbags, and Anti-Lock Braking Systems (ABS) since June 2023 in the Indian market. As several governments are implementing stricter regulations on vehicular safety, consequently the demand for automotive webbing globally increases, thereby accelerating the growth of the market at the global level.
Rising Sales of Automotives Raise the Requirement for Automotive Webbing
The automotive industry's growth, especially in emerging nations, is expected to support the webbing market prediction since more cars on the road means more webbing is needed for a variety of applications. The demand for safety features like seatbelts, airbags, and cargo restraints rises along with the automotive industry, necessitating an increase in the production of automotive webbing. The expansion of the automotive industry has resulted in the creation and utilization of sophisticated materials like Kevlar, which necessitate webbing for both manufacturing and use. Lastly, lightweight materials like webbing, which are frequently used in the construction of electric and hybrid vehicles, are in higher demand due to the growing need for these vehicles.
For instance, the industry's total monthly sales data for October 2023 has been made public by the Society of Indian Automobile Manufacturers (SIAM). The total sales of the auto industry during November 2022 were 23,62,534 units, representing a 20% year-over-year increase from the 19,68,938 units sold in October 2022.
Asia-Pacific to Dominate Automotive Webbing Market
Government support for vehicle manufacturing in the Asia-Pacific region and the promotion of 100% foreign direct investment (FDI) in the automobile sector is expected to result in a high demand for automobiles. It is anticipated that the region's need for automotive webbing will increase due to this support and investment. The automotive industry is growing significantly in the Asia Pacific region, especially in countries like China, Malaysia, and India. Therefore, the demand for automotive webbing is anticipated to increase due to this growth, particularly in the manufacturing of safety harnesses, seat belts, and airbags.
For instance, Thailand has offered additional funds to automakers and consumer incentives to encourage the local production of EVs, which has increased a wave of Chinese automakers, such as Great Wall Motor and BYD, to invest in local manufacturing. Additionally, EV sales as a percentage of all passenger vehicle sales increased to 3.8% in the first quarter of 2022 from 0.3% in the same period last year in southeast Asia. In addition, according to the latest 2022 report published by the Organisation Internationale des Constructeurs d'Automobiles (OICA), the Asia Pacific region held the leading production share of 58.8% in the global automotive sector in 2022. Likewise, in 2022, the Asia-Pacific production of automobiles was 50,020,793, a year-on-year growth rate of 7%. Also, in June 2023, Renault, a global manufacturer of automobiles, announced its plan to expand in the Asian market, with the development of a new electric vehicle manufacturing facility in South Korea by 2026. Likewise, according to the recent trends published by the International Energy Agency (IEA), in 2021, the demand for electric cars in China was 3.3 million units, and in 2022, it was 8.0 million units. In 2022, the year-on-year growth rate of electric car demand in China was 142%.
Government Initiative
On November 17, 2023, the UK government unveiled a USD 4.8 billion funding initiative for British manufacturing, aimed at bolstering investment in eight key sectors nationwide, with a particular focus on the automotive sector. This funding, available from 2025 for five years, offers the industry extended certainty regarding their investments. Notably, over USD2.1 billion is allocated to the British automotive industry, while USD 1,043.1 million is designated for aerospace. These funds will support manufacturing, enhance the supply chain, foster the development of zero-emission vehicles, and facilitate investments in energy-efficient and zero-carbon aircraft equipment. The government is additionally committing USD 1027 million to a Green Industries Growth Accelerator for clean energy manufacturing and USD 556.3 million for life sciences manufacturing, enhancing resilience for future health emergencies and leveraging the UK's leading-edge research and development. With manufacturing constituting over 43% of all UK exports and employing approximately 2.6 million individuals, this funding is strategically directed towards fortifying the nation's strongest sectors, particularly those undergoing transformative shifts to lead the global transition to net zero, such as the transition to zero-emission vehicles in the automotive industry.
Future Market Scenario (2024 - 2031F)
The growing popularity of electric vehicles is driving the growth of the automotive webbing market. As the demand for advanced safety features in vehicles, such as safety harnesses and airbags, increases, so does the need for high-quality webbing materials.
The automotive webbing market is expanding in response to the changing automotive industry landscape, with two major factors driving this growth: the shift towards lithium-ion vehicles and the need for lightweight materials to improve vehicle efficiency.
The need for advanced safety features and lightweight materials in contemporary vehicles is expected to drive the adoption of new automotive sustainability technologies, which will accelerate the demand for automotive webbing.
Key Players Landscape and Outlook
The major players operating in the global automotive webbing industry include Murdock Webbing Company, Inc, American Cord & Webbing Co., Inc (ACW Co., Inc), Sturges Manufacturing Co., Inc, E. Oppermann GmbH, Narrowtex Australia Pty Ltd, Leedon Webbing, Adrians Inc, National Webbing Products Co. (NWP), Ashimori Industry Co., Ltd, and Bowmer-Bond Narrow Fabrics Limited. Key automotive webbing manufacturers are expanding their presence in Asia-Pacific, as there is a rise in automotive production in the region, coupled with increasingly stringent safety regulations and rising EV adoption.
For instance, Tokai Rika Minda India Private Limited (TRMN) is an alliance between Tokai Rika, a top producer of control systems, safety, and security devices in North America, Asia, and Europe, and Uno Minda Limited, a well-known worldwide manufacturer of exclusive automotive solutions and systems. Currently, the joint venture is to step up a plant in Rajasthan, India which manufactures circuit boards, sensors, electric steering wheel locks, and automated manual transmission levels. The new facility, which will occupy 20 acres and cost USD 24 million in capital expenditure, will increase production of seat belts and smart systems and is expected to be completed by 2025.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work