India Automotive Safety Market is estimated to register a CAGR of 14.5% during the forecast period, 2018 to 2026.
In India, the proportion of deaths due to road accidents is around three to four times that of European countries including France, Germany and Spain. In a report from the transport ministry released in September last year, the stats showed as many as 17 people died in 55 road accidents per hour on an average in 2017, with more than 50 per cent of the victims from the 18-35 age group. The report also stated one major fact – the overall number of accidents declined by 4.1 per cent from last year, but fatalities went up by 3.2 per cent. To give a clear perspective, a total of 1,40,652 road accidents took place in India last year, resulting in 1,50,785 deaths, and leaving 4,94,624 number of persons with serious injuries. Indian automotive safety standards are rightfully condemned for being insufficient and ineffective. The World Health
Organization data reveals that more than 1.25 million people are killed in road accidents every year and about 50 million people get injured worldwide and India has a lion’s share in it. Though India can boast about having world’s sixth-largest car market, but it is still the only country among the global top ten car markets without a testing program that measures the safety of vehicles. It is estimated that the impact on the vehicle cost will account around 8–15% more if compliance with the safety norms is taken into consideration. However, if these standards are incorporated, it will definitely be beneficial for local automakers to market their products globally.
The growing demand for safety and security in the automobiles is the main factor playing a vital role for the growth of this market. Growing proportion of India middle class, rising disposable income, stringent government regulations, increasing vehicle electrification, migration to BS IV emission standards, boost to the medium and heavy commercial vehicles due to restrictions on truck overloading are some of the key driving forces for the future growth of India automotive safety Market. The complexity and the high cost of features are the key restraints for the growth of this market. These systems consists of electronic control units, micro-controller units, and various sensors. These components in turn increase the complexity of the safety features, thereby making it more costly making it one of the key restraint.
The India automotive safety market is segmented by technology, offering, vehicle and application. In terms of technology market is further sub-segmented into active and passive safety systems. Continuously increasing demand for luxury vehicles and the growing awareness regarding severity of prevalent road accidents along with growing trend toward autonomous vehicles will boost the growth of active safety systems. The automotive safety market has been segmented by vehicle into passenger, commercial, electric, industrial and agriculture vehicles. Passenger vehicle segment is estimated to be the fastest growing of this market. This can be attributed to the rise in GDP and the population of India, resulting in improved lifestyle, increased purchasing power of consumers, and development of infrastructure.
Bosch is one of the biggest key player having a strong global footprint in relevance with automotive safety market with an extensive channel of multiple manufacturing facilities and suppliers of various automobile parts and services. The company has its strong presence in India. The recent surge in the stock prices of Bosch India Ltd can definitely be attributed to stricter safety and emission standards along with the electrical-vehicle push.