DUBLIN, February 22, 2016 /PRNewswire/ --
The car safety market is expected to reach $152.59 billion by 2020, according to a report available on Research and Markets, with growing concerns among consumers about automobile safety resulting in increased demand for passive safety systems. However, this estimation could be severely affected by news that U.S. auto regulators are examining whether an additional 70-90 million Takata Corp airbag inflators should be recalled.
The Japanese supplier has previously admitted that some of its inflators can rupture and explode with excessive force, spraying metal shards at vehicle occupants. Takata supplied those inflators to more than a dozen automakers, according to Reuters , with as many as 120 million containing the volatile chemical ammonium nitrate.
The Global Automotive Passive Safety Systems market had been forecast to grow at a rate of 6.90% over the period 2015-2019. Growing safety concerns and increasing fatalities in road accidents have led government agencies and agencies such Euro NCAP, US NCAP, and India NCAP to mandate the inclusion of airbags in all new automobiles. Takata's airbags have already been linked to nine deaths in the US, with 29 million inflators recalled.
Takata reached an agreement with regulators before Christmas to pay a $70 million penalty to the National Highway Traffic Safety Administration (NHTSA). This included a commitment to stop making inflators with ammonium nitrate by 2018 and declare all remaining ammonium nitrate inflators defective by 2019.
This is a major blow for the global automotive safety systems market, which had been projected to grow at a CAGR of 9.43%. Takata have declined to comment on these latest reports, while the NHTSA continues its investigation into inflators using ammonium nitrate.
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