Analysis Report: Airbag (U.S. and European Markets)

Read the (Japanese market) report here.

  Airbags were first adopted in the U.S. in the 1970’s as a protective device for occupants who did not wear seatbelts while driving, but they have since expanded to include passenger seats as well as the driver’s seat.

  Airbags, when used in conjunction with seatbelts, provide greater occupant protection, and thus are being adopted not only in the U.S. market, but also in Europe and Japan. Airbags are now standard equipment on most models in the major industrialized countries of Japan, the U.S., and Europe. In India, front seat airbags have been made mandatory in all new passenger cars from July 2019 onwards and are being installed in other major developing countries as well.

  Originally airbags were designed to protect in frontal collisions, but in the 1980’s systems for side collisions were also developed. Subsequently, more advanced systems such as curtain airbags to protect the heads of occupants and to prevent occupants from being thrown out of the vehicle in the event of a rollover, have come to be installed. These days it is common for a vehicle to be equipped with at least 6 airbag units. More and more advanced systems are continuously being developed by automakers and suppliers, such as rear-seat side airbags, far side airbags, pop-up hood systems and pedestrian airbags for pedestrian protection, and “air-belts” where the webbing of the seatbelt itself becomes a kind of airbag. Research is also being conducted on frontal airbags for rear-seat occupants and airbags that are designed to inflate at the front and sides of a vehicle when the system detects an impending collision, and the application of airbag technology is rapidly expanding.

  The top three suppliers of airbags in the global market were formerly Autoliv of Sweden, Takata of Japan (now Joyson Safety Systems of the U.S.), and ZF TRW Automotive of the United States (formerly TRW Automotive of the U.S.). However, following the auto industry’s largest recall ever of Takata-made inflators (using phase-stabilized ammonium nitrate propellant) that started to explode, first in the U.S., the company filed for bankruptcy protection to restructure. In April 2018, Takata (all Takata assets and businesses excluding those related to phase-stabilized ammonium nitrate air bag inflators) was acquired by the fifth largest airbag supplier in the U.S. market, Key Safety Systems (KSS), and renamed as Joyson Safety Systems. In May 2015, with the acquisition of TRW Automotive in the U.S. by ZF Friedrichshafen of Germany, a global leader in driveline and chassis control technology, it acquired TRW automotive of the U.S., incorporating it into ZF as a new division called the Active & Passive Safety Technology division. These are just a couple of examples of M&A activity among the top suppliers that have greatly impacted the global market share distribution in recent years.

  At present, Autoliv, Joyson Safety Systems and ZF Friedrichshafen (ZF TRW Automotive) are the top three players in the global airbag market, followed by Toyoda Gosei Co., Ltd., a Japanese company. This report investigates and analyzes the relationship between airbag systems (e.g. various airbags, electronically controlled components, cushions (bags) and cushion fabrics) and the models in which the systems are installed in the European and U.S. markets, with a focus on the top three companies mentioned above. To read more about other suppliers such as Toyoda Gosei, Nihon Plast, Ashimori, and other companies see the Japanese market report.

1) Global Business and Production

Autoliv, Inc.

  Headquartered in Stockholm, Sweden, Autoliv is the world's largest specialty supplier of safety systems with sales of USD 8,547.6 million (as of December 31, 2019) and 58,900 employees (as of December 31, 2019). The company was founded in 1997 by the merger of Autoliv AB (Sweden) and Morton ASP (USA).

  Autoliv is engaged in the development, manufacturing and sales of products such as airbags, seat belts, steering wheels and safety electronics, and in recent years has rapidly growing its electronics business as the market needs associated with driver-assistance and autonomous driving technologies increases.

  In June 2018, to further strengthen its electronics business including active safety, the company established the safety electronics supplier Veoneer Inc. on a scale consisting of about 8,600 employees with a global presence in 13 countries. Following the spin-off, Veoneer was listed on the Nasdaq Stockholm exchange and now operates as an independent, publicly traded company owned by Autoliv, with a capital investment of approximately USD 1 billion from Autoliv.

  The company’s current main products specifically designed for passive safety systems include products such as airbag systems, seat belts, steering wheels, inflators, pedestrian protection systems, and child seats.

The New Autoliv: Following the separation of Veoneer, the passive safety division, including airbag-related products and seat belt-related products, will continue to be considered as Autoliv proper and play the leading role of the new Autoliv. However, electronic products such as airbag control ECU and airbag sensor will be the responsibility of Veoneer. In the former Autoliv before Veoneer split off, airbag products accounted for 51% of Autoliv’s sales by business (FY 2017), with a global airbag market share of nearly 40%. Currently, the company’s most important product line is airbags, accounting for about 66% of company-wide total sales. The company's market share for passive safety products is approximately 41%. Airbags, seat belts, and steering wheels all have a global market share of about 40%. (All of market shares for these products are as of the year ending December 2019)

Technical Development: Since Autoliv, which originally manufactured seat belts, acquired U.S. airbag manufacturer Morton ASP in 1996, establishing Autoliv Inc., it has been aggressively developing technology. Even prior to the spin-off of Veoneer in 2017, the company employed 1,000 engineers, and had grown its R&D footprint to a scale that is comprised of approximately 9,000 people, at 25 technical centers, with 7 actual vehicle crash test facilities and 14 crash test sleds in 10 countries around the world. Listed below are some of the company’s recent technical achievements.

1. In January 2020, the world's first airbag crash test for electric kickboards (e-scooters) was conducted. The airbag deploys upwards from the bottom of the board to protect the rider's head and chest. In recent years, new micro mobility solutions such as e-scooters have been developed as a means of transportation.
2. In November 2019, Autoliv announced the development of the new front center airbag (far side airbag), with plans to introduce this airbag in 19 models during 2020. The airbag, which is built into the seat back, deploys in the space between the driver and passenger, and protects the occupants from colliding with the inside of the far side door or an adjacent occupant in the event of a side collision from the side opposite to the seating position.
3. In April 2019, Autoliv began production of pedestrian protection airbags in Japan. A test facility was installed in Japan and the product was developed jointly with a Japanese OEM. The system can protect motorcyclists and bicyclists in addition to pedestrians.
4. In January 2019, the company announced Safety Score, a smartphone application aimed at improving the driving behavior of drivers. Safety Score is an app that monitors driver behavior in real time, processes it with a proprietary data algorithm, compares it to known causes of accidents, and provides users with a safety score based on the driver's vehicle operation and distractions; the safer the driving behavior, the higher the score. Autoliv also says that individual "Safety Scores" can be used to reduce insurance costs.
5. In July 2018, Autoliv announced that it has joined the Future Occupant Safety for Crashes in Cars (OSCCAR) project in Europe to improve occupant protection and safety in future vehicles. The company aims to strengthen restraint system development in collaboration with automakers, research institutions, and suppliers that participate in OSCCAR.
6. The two next-generation airbag concept models below were released at the Detroit Motor Show held in January 2018 and the WCX 18 (SAE World Congress Experience) held in April 2018.
   • Dual-lobe airbag: Keeps the position of the head centered at the time of collision, making it possible to reduce the score for brain injury criteria by 50%
   • Life cell airbag: Protects the head and entire body from far-side collision, etc. regardless of how the passenger is sitting in the seat
7. In November 2017, Autoliv announced the development of an elderly dummy. The dummies, as defined by laws, regulations, and standards, and the NCAP, are based on the physiques of men of average build, large men, small women, and children. However, by 2030, more than 20% of all drivers are expected to be over 65 years of age. As people age, bone density decreases and parts of the body harden, so the protection provided by seat belts and airbags may differ from that of younger drivers. To develop restraint system for the aging population and improve safety for the elderly, Autoliv is currently researching a new dummy that represents older women. The dummy, developed with Humanetics Innovative, is a 70-year old female, 161 cm tall and weighs 73 kg.
8. Pedestrian airbag (2013): Autoliv was the first company to commercialize the pedestrian airbag, which was equipped on the Volvo V40/XC40. Later it was also selected by Ford and Renault for their European models. Continued research in this area is being jointly conducted with Honda.
9. Hydrogen gas inflator (2012): A world first eco-friendly inflator that produces only water vapor upon explosion. Adopted by the 2015 VW Passat.

Alliances: April 2020: The advanced driver-assistance systems (ADAS) and self-driving software developer Zenuity, established in April 2017 with a 50:50 stake in Autoliv and Volvo Cars, became a new entity. The new structure, which will be launched in the third quarter of 2020, will split Zenuity into two parts. One is a new stand-alone company focused on the development and commercialization of automated driving software, owned by Volvo Cars. The other will focus on the continued development and commercialization of advanced driver assistance systems and will be incorporated into Veoneer, a vehicle safety systems company (Veoneer, a spin-off of Autoliv's electronics division).

September 2019: Autoliv and Great Wall Motor of China jointly established the North American Road Safety Research Institute. The institute will complement Great Wall Motor's strategy by combining the global technical resources of the two companies to meet the regulations of traffic safety authorities in the North American market.

In September 2017, Adient plc (formerly Johnson Controls’ Automotive Seating division) the world’s leading automotive seating supplier, and Autoliv, Inc., the worldwide leader in automotive safety systems, announced that they are collaborating to address vehicle seating challenges presented by designs for the future car and the incorporation of autonomous driving. The project will initially be focused on optimal integration of Autoliv’s airbag system safety components into the non-traditional seating arrangements of the future car and on enhancing existing seat-mounted airbag systems and new far-side systems for Euro NCAP.

June 2017: Zenuity, a 50:50 self-driving development joint venture between Volvo Cars and Autoliv, announced that it will partner with NVIDIA to develop Level 4 self-driving cars by 2021. Volvo Car, Autoliv and Zenity will use NVIDIA's AI in-vehicle computing platform as the basis for their own advanced software development.

April 2017: Autoliv and Volvo Cars announced that Zenuity, a joint venture for autonomous driving and ADAS technology development, has begun operations. Autoliv will invest approximately SKR 1.1 billion (JPY 13.5 billion) primarily in cash in Zenuity, a 50:50 joint venture, while Volvo Cars will primarily supply the intellectual property and staffing. Zenuity is headquartered in Gothenburg, Sweden, with offices in Munich, Germany and Detroit, USA.

Footprint Development: Autoliv had been actively investing in the establishment of new facilities, particularly in Asia, to expand global presence up until 2014. With the exception of the most recently added new plant in Southfield, Michigan, USA in 2017, the company has not added any new manufacturing sites for airbags. One reason for this could be that the company is diverting resources to its electronics division for driver-assistance systems and to its joint venture with Volvo for the development of autonomous driving technologies. However, in light of the massive Takata inflator recall Autoliv is bolstering production of the components in its existing plants. Other major footprint enhancements are as follows:

April 2019: Autoliv Japan Ltd. established a new research and development site, Japan Technical Center Tsukuba, in Tsukuba City, Ibaraki Prefecture.

July 2018: Autoliv invested $120 million to expand two plants in Tijuana, Mexico. Autoliv also has manufacturing sites in Lerma de Villada, Queretaro and Matamoros, Mexico.

June 2017: The company announced a USD 22.6 million investment to build a new plant in Southfield, Michigan, USA. The new 180,000-square-foot plant will be operated by Autoliv's Michigan subsidiary, which currently operates four other plants.

Main customers: In 2019, Autoliv’s top 5 customers accounted for about 52% of the company’s total sales, and its top 10 customers accounted for 79% of the company’s total sales.

Joyson Safety Systems (JSS was formed by the merger of Key Safety Systems Inc. (KSS) + Takata Corporation)

  Joyson Safety Systems is the world's second largest airbag supplier after Autoliv and is headquartered in Auburn Hills, Michigan. It is a subsidiary of automotive safety systems including products such as airbags, seat belts and steering wheels. JSS is a group affiliate of Ningbo Joyson Electronic Corp. (“Joyson Electronics”) in China and conducts its operations with approximately 50,000 employees in 25 countries around the world.

  Until April 2018, Takata Co., Ltd. of Japan was the world's second largest supplier, but filed for bankruptcy due to lawsuits and large product recalls for unsafe airbags (with faulty airbag inflators), which will be described in more detail below. Key Safety Systems Inc. (KSS) was the fifth largest safety product supplier in the world. The market share position of the major airbag suppliers has changed significantly since Takata was acquired by Key Safety Systems (KSS) following the antitrust clearance and bankruptcy court approvals in various countries. In April 2018, KSS announced the completion of its acquisition of Takata, and changed its name to Joyson Safety Systems (JSS).

  Capital structure: in June 2016, Ningbo Joyson Electronic Corporation acquired all of the outstanding shares of the former Key Safety Systems at that time. The capital structure remained the same after it was replaced by Joyson Safety Systems, a private company. (Financial figures and other information are not publicly available.)

  The former Key Safety Systems Inc.: Breed Corporation, the predecessor of KSS, was founded in 1961 as a U.S. defense explosives manufacturer., and started production of electromechanical airbag sensors, with Breed successfully developing the first automotive crash sensor in 1984. The airbag sensor division of Breed Corporation was spun off as Breed Automotive Corporation (BAC) in 1986. In 1991 BAC changed its name to Breed Technologies, Inc (BTI). In 1999, BTI filed for Chapter 11 bankruptcy protection, and in 2003 was acquired by the Carlyle Management Group (CMG), who subsequently announced that BTI would be renamed to Key Safety Systems (KSS). It was sold to Crestview Partners, LP in 2007, and afterwards expanded its sales channels to Asian markets such as China and India. The company was acquired in June 2016 by its current parent company Ningbo Joyson Electronic Corp. in China but continued to use the name Key Safety Systems (KSS). In April 2018, following its acquisition of Takata, the company changed its name to Joyson Safety Systems (JSS) and its headquarters was moved to Auburn Hills, Michigan where the former regional headquarters of Takata was located.

  The former Takata Co., Ltd.: Having cooperated with Honda's on its airbag development, Takata was a well-established manufacturer of airbags since 1988, and was counted among the world’s three largest manufacturers of both airbags and seat belts. However, from 2013 until today Takata-made airbags have undergone a series of major recalls for airbags that did not inflate properly and caused injury and death; it was the largest automotive recall in U.S. history. Takata claimed that the issue has only been shown to affect vehicles in hot and humid locations. However, NHTSA determined that root cause was that the airbags used an ammonium nitrate-based propellent without a chemical drying agent. In June 2017, Takata filed for Chapter 11 Bankruptcy protection. In April 2018, the surviving global assets (those assets that were not related to Takata’s airbag inflators made with phase-stabilized ammonium nitrate (PSAN) propellent) of the former Takata were sold to its largest competitor, Chinese-owned and U.S. Michigan-based Key Safety Systems, which was renamed to Joyson Safety Systems after the acquisition of Takata’s assets were finalized. When the transfer of assets was finalized, Takata established TKJP Co., Ltd., a settlement company, which is engaged in the business of recalls and the disposal of airbag inflators.

Technical Development: Joyson Safety Systems does not produce electronic control systems including ECUs, so its technological development roadmap seems narrow and slightly outdated compared to the other top suppliers with active technology development programs. However, the company has had some commercial success at Ford supplying seat belts with built-in airbags (similar to Takata's Airbelts), which are called Inflatable Seat Belts, the sales of which are expanding not only in North America but also in the Chinese market. Furthermore, in March 2015, JSS partnered with Mobileye to strengthen its capability with regards to electronic controls technologies, opening dedicated technical centers in both Silicon Valley in the U.S. and Suzhou in Jiangsu Province, China. Finally, JSS is targeting to develop an advanced driver-assistance systems (ADAS) that enhances driving safety by providing warnings to drivers and through active intervention.

Footprint Development:

1. October 2019: The company announced a major investment of EUR 50 million in its Miskolc Plant in Hungary. The 60,000 square meter Miskolc Plant manufactures airbags and safety components.
2. In June 2019, the Anand Group announced the merger of two joint ventures owned by Anand and Joyson Safety Systems to form a new joint venture in India. The new company, "Joyson ANAND Abhishek Safety Systems Private Limited (JAASS)", was established by integrating KSS Abhishek Safety Systems, a joint venture of Joyson and the Abhishek Group, with Takata India (TIPL), a joint venture of Anand and Joyson. The new company is 65% owned by Joyson, 30% by Anand, and 5% by Abhishek. The new company has four manufacturing sites located in Neemrana, Kancheepuram, Manesar and Pune, India, manufacturing safety components such as airbags, seat belts and steering wheels, and is targeting to achieve a sales turnover of INR 10 billion by 2023.
3. Old KSS: In August 2017, Key Safety Systems announced that it started production of steering wheels at its new Pune plant in Maharastra, India. The new plant is manufacturing leather-wrapped steering wheels.
4. Old KSS: In March 2015, the company announced the opening of a new technical center in the Suzhou International Science and Technology Park (SISPARK) in Suzhou, Jiangsu Province, China. The new center supports the development of advanced technologies and the design and testing of application projects in the field of active safety. It plans to mainly focus on advanced driver-assistance systems (ADAS) that use cameras and radar.
5. Old KSS: In February 2015, the company announced the opening of a new Silicon Valley Technical Center in Sunnyvale, California, USA. The new center supports the development of advanced technologies in the fields of active and passive safety. It serves as a focal point for co-development and also serves as a point of contact for West Coast-based customers, while supporting proprietary technology projects and the cultivation of new research and investment partners in the region.

ZF Active Safety and Electronics US LLC (formerly TRW Automotive)

  A wholly owned subsidiary of ZF Friedrichshafen AG, Germany (since May 15, 2015).

  With the acquisition of WABCO Holding in May 2020, ZF Friedrichshafen AG is a mega-supplier with 160,000 employees and approximately 260 locations in 41 countries.

  Founded in 1915, the company was initially a specialist supplier to the aircraft industry. The Zeppelin Foundation, managed by the city of Friedrichshafen, holds 93.8 percent of the shares, while the Jürgen & Irmgard Ulderup Foundation Lemförde holds the remaining 6.2 percent.

  The company is one of the top five global suppliers of automotive components, and one of the top 100 German companies. It is a global supplier of driveline, chassis technology and active and passive safety technology.

  Annual research and development expenditures are approximately EUR 2.7 billion (previous year EUR 2.5 billion). The pillars of the company's business are based on four technology areas and three business fields.

  4 technology areas:

• Vehicle operation control
• Integrated safety
• Driving automation
• E-mobility

3 business fields:

• Passenger cars
• Commercial vehicles (incl. heavy-duty trucks)
• Industrial equipment (construction machinery, wind power generation, ships)

  Sales in 2019 were EUR 36.5 billion (previous year EUR 36.9 billion). Adjusted EBIT was EUR 1.5 billion (previous year: EUR 2.1 billion), and the adjusted EBIT margin was 4.1% (previous year: 5.6%)

【ZF TRW】

  TRW was a major supplier in the U.S. with strengths in brakes, airbags, and steering systems. In May 2015, the company was acquired by ZF Friedrichshafen AG and absorbed into that company’s Active & Passive Safety Technology division. The current official name of the company is "ZF Active Safety and Electronics US LLC", but below will be referred to as ZF TRW. The sequence of events is as follows:

• In November 2014, ZF and TRW announced that the acquisition of TRW by ZF was approved by TRW's shareholders at the TRW shareholders' meeting.
• In May 2015, ZF and TRW announced that the acquisition of TRW by ZF was completed. The purchase price was USD 12.4 billion. TRW was integrated into ZF as the newly established Active & Passive Safety Technology (Active & Passive Safety Technology) division, with the combined company operating as a ZF-owned company.
• In January 2016, ZF announced that ZF TRW's headquarters in Livonia, Michigan, USA, would become ZF's North American headquarters, effective April 2016.
• In September 2017, ZF announced that the integration of US TRW into the company, which was acquired in May 2015, was almost complete ahead of the original plan.
• In October 2018, ZF implemented a strategic restructuring of its corporate structure. The Active & Passive Safety Technology division (the TRW business at the time of the ZF acquisition) was divided into three divisions: "Electronics and ADAS", "Passive Safety Systems" and "Active Safety Systems". In addition, the CV Steering Systems business unit, which was formerly part of the Active and Passive Safety Technology division, was transferred to the Commercial Vehicle Technology division. The new business structure is as follows:

  Electronics and ADAS division:

  • Advanced driver-assistance systems (ADAS)
  • Safety electronics

  Passive Safety Systems division:

  • Inflatable restraint systems (airbags)
  • Seatbelt systems
  • Steering wheel systems

  Active Safety Systems division:

  • Foundation brakes
  • Brake control
  • Rack drive
  • Column drive

  With regards to the airbag business, currently the company is globally ranked as the third largest supplier after Joyson Safety Systems (JSS), but it is possible that ZF TRW the company could overtake JSS for second place, due to the recall issues associated with the former Takata, which was acquired by JSS.

Technical Development: ZF TRW is actively investing in R&D to keep up with its rival Autoliv. Most airbag R&D is done in Detroit, while R&D for seatbelts is centered in Germany. Recent developments are highlighted below:

1. In June 2019, ZF TRW unveiled the world's first pre-crash external side airbag system.
   • A safety system that deploys airbags in the external sides of the vehicle just before a collision, expanding the space available for impact absorption.
   • Reduces side-impact damage to occupants by up to 40 percent.
   • Pre-crash technology, including safety system technologies such as seat belts, is becoming increasingly important.

   Below is an overview of the new technology:

   • The vehicle is equipped with external side airbags that deploy milliseconds before a collision. This expands the side impact absorption space, protects the occupants in the event of an accident, and reduces damage levels by up to 40 percent.
   • The airbags and the vehicle's sensor system are networked to determine whether to deploy the airbags when the system determines that a collision is imminent.
   • It takes about 150 milliseconds to complete the filling and deployment after the system decides to deploy the airbag.
   • On-board sensors consist of networked cameras, radars and LIDARs.
   • The system's algorithms determine whether a collision is unavoidable and whether the airbag deployment is possible and can be effectively deployed.
   • If it is determined that a collision is unavoidable and that the airbag is deployable and effective, the system ignites the inflators and inflates the airbag.
   • Airbags (with capacities ranging from 280L to 400L, depending on the size of the vehicle, 5 to 8 times the capacity of the driver's airbag) then deploy upward from the side skirts to create a shock-absorbing space in the door area between the A and C pillars.
   • In the event of a side collision, there is a risk of serious chest injury to the occupants on the side of the collision. The pre-crash safety system reduces the impact by up to 30% and significantly reduces the risk of injury to the occupants.
   • The crash prediction information also enhances the effectiveness of existing safety technologies. For example, the ACR8 active control seat belt retractor can warn occupants and secure them in a safe position just before a collision.
2. In June 2019, ZF TRW announced the development of far-side airbags.
   • NHTSA accident data shows that in side impact crashes, injuries from the occupant's seated and opposite side (far side) positions of the vehicle are more serious.
   • In these crashes, 43% of injuries were to the chest and abdomen and 23% to the head; 53% of chest injuries were caused by contact with the center console or the seat back of the adjacent seat, and 21% were caused by collisions with the opposite side door or other objects.
   • These statistics indicate that occupant movement toward the center of the vehicle should be controlled to minimize injuries. The movement of occupants to the sides of the vehicle occurs not only during side collisions, but also in frontal collisions.
   • The ZF TRW far-side airbag consists of two chambers: an upper chamber that restrains the head and a lower chamber that restrains the chest, with the occupant's shoulder positioned between these two chambers.
   • As with side airbags, far-side airbags are built into the driver's seatback, but the pressure in the chamber is higher than most other airbags and its capacity considerably, creating a structure that helps to "wrap" the occupant and reduce the amount of body movement. To stabilize the deployed cushions, the airbags are either secured to the seat frame with straps or supported by the center console.
   • In the event of a collision, the airbag control unit triggers the far side airbag immediately after the standard side airbag. It is also triggered in the event of a side collision on the "near-side". This is to prevent two occupants from colliding with each other due to lateral acceleration when there are occupants in the left and right front seats.
   • In 2020, the first series production of far-side airbags is scheduled to begin for compact-class vehicles.
3. In June 2019, ZF TRW announced development of occupant protection during autonomous driving
   • Conventional steering wheel airbags are less effective when the driver rotates the seat by 90 degrees. The same is also true when the steering wheel is folded in automatic mode or when a steering wheel is not present. In addition, since the seat belt is fixed to the vehicle body, it is not designed to restrain an occupant seated in an unusual position.
   • A solution for the above is to develop a system that incorporates seat belts and airbags into the seat itself, thereby creating a kind of safety cell in the car that moves with the occupants. Other areas can be provided protection by airbags that deploy from the dashboard, headliner and from between the seats.
   • In the event a collision risk is detected, an interior 3D camera can provide additional information, such as the occupant's height, seating position and viewing direction to determine the operating conditions of the restraint system.
   • In the past, crash tests have been performed with a single seating position, but since it is impractical to evaluate hundreds of different seating positions, simulation will become increasingly important in the future.
4. In October 2018, ZF TRW developed a 3D in-vehicle monitoring system for advanced occupant and vehic vehicle interior detection.
   • ZF TRW is developing a 3D in-vehicle observation system (IOS) that can detect and identify occupants. The system recognizes the occupant's size, position and posture and can determine whether the driver is controlling the vehicle with the steering wheel or monitoring the automated driving system, providing important data for advanced safety and automated driving functions.
   • The most important example is occupant position detection. While seat-mounted sensors are already used to determine if and how much force should be applied to the airbag and seatbelt pretensioner, the 3D IOS camera can provide information about the occupant's body size and position and posture (including the seating position, e.g. when reclining). It detects in real time and complements the information obtained from the seat sensors. This information supports the adjustment the occupant restraint force before or during a collision.
   • Knowing whether an occupant or object is present in the seat can help determine whether an occupant protection feature should be activated or which feature is appropriate. The camera also complements existing seatbelt buckle sensors by visually confirming whether an occupant is properly buckled up, and reminders can prompt them to fasten their seatbelts.
   • The occupant detection function is also extremely effective in preventing young children from being left unattended in a vehicle, which could lead to an emergency situation. The IOS system can be adjusted to identify the presence of children and activate various emergency response functions. For example, the IOS system can automatically contact the vehicle owner's cell phone, lower the temperature inside the vehicle by opening the power windows or sunroof, activate the horn or emergency lights so that people in the vicinity can help, and call emergency service providers or local police who can assist in the rescue of the children.
   • The IOS system is scheduled to go into production by the end of 2021.
5. On September 25, 2018 ZF TRW released a new Active Control Retractor seat belt system
   • ZF TRW will start series production of the next generation of active control retractors, the ACR8, which combines both active and passive safety features and warns the driver with vibrations in dangerous situations and tightens the seatbelts before a collision. The system is activated by information from the in-vehicle active safety systems and driver-assistance systems and can be linked to automatic emergency braking (AEB) and collision avoidance steering assistance (ESA). In the event of a collision, the system works in conjunction with airbags and other occupant restraint devices to keep the occupants in an appropriate position. The system was first equipped in the new Mercedes-Benz CLS class.
   • The ACR8 uses a reversible electromechanical pretensioner and a non-reversible explosive pretensioner. The former, which is activated prior to collision, provides tactile feedback such as vibration when it senses danger, and has functions such as reversible pretensioning during the collision avoidance and pre-crash phase. The latter is activated when an accident cannot be avoided.
   • When the system detects a dangerous situation during automatic operation, it helps to hold the occupants in an appropriate position, and works in conjunction with other safety systems, such as airbags, to contribute to the control of impact on the human body.
   • Tactile warnings may also be an essential element of autonomous driving systems, such as vibrating belts to urge the driver when it is necessary to take back manual control of operating the vehicle during autonomous driving. Thus, an effective way to alert the driver could be to integrate the seat belt system as part of the user interface of an autonomous vehicle.
6. In June 2018, ZF TRW developed a fabric (cloth) housing knee airbag
   • In 2019, ZF TRW started delivering the industry's first fabric (cloth) housing knee airbag to a European OEM (VW). The airbags are 30% lighter than previous models with metal housings, with the entire module weighing less than 700g and 300g lighter than the metal housing models. It took 3 to 4 years to develop. The company is considering using the same structure for the passenger seat airbag. The company is also receiving interest for the airbag from non-European automakers.
   • The knee airbag deploys from the dashboard and the area between the shin and the knee to not only protect the lower limbs but also enable the lower limbs to be supported by the knee airbag. Although it protects the knees, it also influences the overall behavior of the occupant's entire body to provide maximum protection. The company’s marketing catchphrase is "small change, big impact".
7. In December 2016, ZF TRW announced the development of roof airbags
   • ZF TRW announced the development of an airbag that meets the new crash test requirements of the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA). The new airbag system is designed to protect front seat occupants in frontal and side impacts at 90 km/h.
   • When activated, the roof airbag, housed in the roof liner, opens in a V- or U-shape depending on the shape of the interior near the driver's head. The company also announced that it had developed a special shaped "parallel cell front seat airbag" that expands toward the center of the vehicle to respond to the left and right movements of front seat occupants in the event of frontal or side collisions.
8. In January 2016, ZF TRW announced the adoption of its retractable steering wheel.
   • ZF TRW has announced that Rinspeed's new Etos self-driving concept car has been fitted with the company's retractable steering wheel.
   • The steering wheel is equipped with multiple functions to assist the driver during autonomous driving, such as the ability to detect whether the driver is gripping the steering wheel. Other features on the Etos include the ZF TRW roof airbag and seat belts.

Footprint Development: TRW had a number of development and production facilities centered in Asia even before its acquisition by ZF.

1. ZF TRW has been employing more engineers in Japan to develop and produce new airbags, driver support cameras, and ECU software for Japanese automakers.
2. The company signed a memorandum for additional investment into the Wuhan Economic and Technological Development Zone in China in September 2016. ZF TRW has committed to an additional USD 30 million to improve its existing factory to expand production capacity and manufacture additional products such as airbags, seatbelts, and electric parking brake systems.
3. In April 2016, the company established a new crash test sled department within its Anting Technology Center in Shanghai, China. This is the fourth research facility for ZF TRW and is equipped with the latest servo type sleds and test dummy calibration devices.
4. In January 2016, ZF announced that ZF TRW's headquarters in Livonia, Michigan, USA, will become ZF's North American headquarters starting in April 2016. In addition, ZF's Northville location, located about a 20-minute drive from Livonia, has become its core sales and engineering center.
5. In November 2015, the company started operations at a new airbag, brake, and passenger safety systems plant in Zhangjiagang, Jiangsu. This plant will manufacture driver side, passenger side, side, and curtain airbags.
6. In August 2015, a new 50:50 joint venture between ZF TRW and Rane Group called Rane TRW Steering Systems was established to manufacture airbags. The new JV primarily manufactures driver side and passenger airbag modules.

Companies for Airbag-related components

Airbag Control ECU:

For information on suppliers of airbag control ECUs, see the analysis report Airbags (Japanese Market).

  The three leading inflator suppliers worldwide are Autoliv, Joyson Safety Systems, and ZF TRW, all of which are also airbag module suppliers as covered in this report. In addition, specialty suppliers of inflators include ARC Automotive (U.S.A.), Daicel (Japan), and Nippon Kayaku, for a total of 6 companies that supply inflators. (For an overview of the two Japanese companies, please refer to the analysis report: Airbags (Japanese Market).

  Autoliv's inflator business began in 1997 with the acquisition and integration of the ASP (Automotive Safety Parts) division of Morton Corporation of the U.S. Autoliv has expanded its inflator business through activities such as: In 2000, Autoliv acquired OEA Inc. of the U.S., a major supplier of initiators (ignition materials); in 2003, the company took a stake in Livbag SAS of France, a major supplier of inflators and initiators; and in 2010, Autoliv acquired the remaining outstanding shares of Autoliv Nichiyu Co., Ltd., its joint venture with Nippon Oil and Fats Co., Ltd. (Aichi Prefecture, Japan), making it a wholly-owned subsidiary. Today, the company has inflator and propellant (gas generators) manufacturing plants in the state of Utah in the U.S., where Morton was headquartered, as well as in China, France, Brazil and Japan.

The former Key Safety Systems and the former Takata, the parent company of Joyson Safety Systems, both had inflator technology, but the inflator technology that used ammonium nitrate as a propellant, which caused the collapse of Takata, was not inherited by Joyson Safety Systems. And, the current inflator business is based on the technology of the former Key Safety Systems. The former Key Safety Systems began with the acquisition of the U.S. company Breed Technologies Inc., a manufacturer of defense equipment, and the current technology also originated in the production of pyrotechnic products during the Breed era. Today, the company has manufacturing plants facilities in Florida, China, Mexico and Europe.
ZF TRW's inflator business originated from the technology of the aerospace division of its predecessor TRW Automotive and its predecessor, TRW Inc. However, in 2008, the company has been expanding its inflator business by activities such as the acquisition of initiator technology and intellectual property of Davey Bickfor SNC of France. The company currently has manufacturing plants in Germany, China and Mexico.

  ARC Automotive has its roots in Atlantic Research Corporation, which was founded in 1949 as a manufacturer of explosives for defense equipment. In 1989, ARC established BAICO, a joint venture with AlliedSignal Inc., which manufactured modules (ARC supplied propellants), and in 1998 acquired 100% of BAICO's shares and changed its name to ARC, thereby expanding its business as a manufacturer specializing in explosive devices for automobiles. In 2016, China's Yinyi Group (Yinyi Group) acquired 100% of ARC Automotive' shares. The company has strengths in hybrid (explosives and compressed inert gas) inflator technology and currently has manufacturing plants in the U.S. (Tennessee and Kentucky), China, Mexico and Macedonia.

  In terms of the commercial framework for inflators, Autoliv, Joyson Safety Systems, and ZF TRW basically adopt their own inflators for their airbag modules, while at the same time selling them to other module suppliers that do not have an inflator. Three Japanese suppliers of modules (Toyoda Gosei, Nihon Plast, and Ashimori Kogyo) procure inflators from the Japanese firms Daicel and Nippon

Airbag cushion (bag):

  All three companies - Autoliv, Joyson Safety Systems, and ZF TRW - cut and sew the base fabric for cushion production in house, but some of them procure the material from Japanese suppliers such as Sumisho Airbag Systems Co., Ltd. and Seiren Co., Ltd. (See "Analysis Report: Airbags (Japanese Market)" for an overview of Japanese suppliers.)

Cushion fabric:

  While there are many suppliers of airbag cushion fabrics, primarily flat fabrics made from woven nylon 66 yarn, Autoliv and Joyson Safety Systems have the capability to weave the fabrics in-house.

  Autoliv's base fabric technology is based on the weaving technology, equipment and intellectual property acquired from US textile giant Milliken in 2011. Joyson Safety Systems acquired the basecloth production capacity of U.S. textile giant Highland Industries Inc., a former Takata subsidiary, when it acquired Takata. The two companies have in-house capabilities, but they also source some of their base fabrics from outside the company.

  The three major independent suppliers of base cloth are the three Japanese groups – Toyobo Co., Ltd., Toray Industries Inc., and the Asahi Kasei Corporation/Teijin Limited alliance (see "Analysis Report: Airbags (Japan Market)" for an overview), as well as Elevate Textiles Inc. of the U.S., UTT Technische Textilien GmbH of Germany and Global Safety Textiles of Germany, a wholly-owned subsidiary of the Hyosung Group in Korea.

  A range of airbags, all designed with the goal of passenger safety, are available: driver side, passenger side, side, curtain, knee, and others. It is rare for all the airbags on a single vehicle model to be supplied by a single company; rather each airbag is often sourced from a different supplier. In recent years, in addition to the above airbags, various airbags such as center airbags, pedestrian protection airbags, rear window airbags, and seat cushion airbags have been commercialized.

Autoliv

  Autoliv’s presence in Europe and its acquisition of Morton in the U.S. have given it the ability to supply nearly every major automaker worldwide with a range of airbag systems. Furthermore, its electronic control products, such as ECUs and sensors, are also used on some models in competition with ECU mega suppliers such as Bosch and Continental. In addition, the company’s product development capability to be the world’s first to manufacture pedestrian airbags is worth noting.

ZF Friedrichshafen (ZF TRW Automotive)

  This company’s product is widely used in the vehicles of European automakers as well as the Big Three in the U.S. However, the company supplies product to fewer automakers than industry leader Autoliv, and fewer of its products are adopted per model. Similar to Autoliv, its electronic control products, such as ECUs and sensors, are also used on some models in competition with ECU mega suppliers such as Bosch and Continental.

Joyson Safety Systems (Key Safety Systems + Takata)

Business of former Key Safety Systems: KSS is a wholly owned subsidiary of Ningbo Joyson Electronics, and supplies product to Ford, GM, Audi, and VW. Although the company manufacturers a range of airbags, it has fewer customers than the above three suppliers and the number of its products adopted per model is very low. equipped products per model is very low. As a result, the company is struggling, but since the acquisition of Takata, KSS has been expanding its customer base.

Business of former Takata: Takata not only supplies product to Japanese OEMs, but also the Big Three by leveraging its early local manufacturing footprint in the U.S. The company expanded its reach with European makers such as BMW, Daimler, and Audi through its 2001 acquisition of Petri AG. For the North American market, it has developed a number of unique products and was first to supply airbelts and front seat center airbags, but it have had little success entering the market with its electronic control products, such as ECUs and sensors, even within Japan. It will be interesting to see how this will change now that the company is under the umbrella of Key Safety after the latest recall.

Tables below are updated separately.

U.S./E.U. airbag sales

Total Sales revenue

Note: Joyson Safety Systems is a privately held company, so financial results are not available.

Note: only airbag and airbag related facilities listed.

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