Impact of COVID-19 on the Automotive Occupant Sensing System Market
COVID-19 has spread across the globe rapidly. In March 2020, the announcement of COVID-19 as a pandemic has resulted in lockdowns being implemented in the majority of the countries. The limitations imposed by governments of several countries have compelled the industry players to permit their employees to work remotely. Moreover, the integration of automated technologies to reduce human interaction within manufacturing facilities is expected to support the growth of the automotive occupant sensing systems market. The use of advanced technologies, including computerized machinery during the pandemic, has not only ensured business continuity but has also allowed for enhanced work productivity in the manufacturing of automotive occupant sensing systems.
Several developed and emerging economies have enforced countrywide partial or complete lockdowns to maintain social distancing. Most of the retail outlets and e-commerce services were shut down to curb the spread of COVID-19. The production of automotive parts and the provision of related services were restricted to permissible limits under the lockdown. The manufacture of automotive occupant sensing systems was also influenced, resulting in a substantial demand and supply gap. The pandemic has affected the supply chains, limiting the growth of the global automotive occupant sensing systems market. These factors have severely impacted the global economy and the revenue generation of the automotive industry.
The manufacturing of vehicles plays a vital role in generating demand for automotive components such as automotive occupant sensing systems, owing to their increasing installation in new vehicles. The figure below shows the total vehicle sales in the US from January 2020 to May 2020, which is expected to affect the automotive occupant sensing systems market over the projected timeframe.
Vehicle Sales in the US, 2020 (Units IN Million)
According to the MRF analysis, the market is expected to witness a considerable decline in the coming year, which will hamper the demand for automotive occupant sensing systems across the globe. The market is expected to recover in the Q4 of 2020. Industry participants are likely to increase their production capacities with the stabilizing market scenario over the forecast timeframe. Additionally, the European Automobile Manufacturers Association (ACEA), the Canadian Automobile Association (CAA), and other international associations, including the Japan Automobile Manufacturers Association (JAMA), have suggested multiple measures for controlling the spread of COVID-19. These factors are likely to influence the automotive occupant sensing systems market share positively.
Source: Trade Economics