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Growth Drivers

Autoliv's market is expected to grow at an annual rate of approximately 5%, and we have been increasing our global market share.
Our market - the global occupant restraint market - is primarily driven by two factors:
 
  1. Light vehicle production (LVP); 
  2. Safety content per vehicle (CPV). 
In 2014 our core global addressable market of passive and active safety, including steering wheels, grew by around 6% to a new record of $25 billion in 2014.

From 2014 to 2017, LVP is expected to increase with an average growth rate of slightly more than 3% according to IHS. The growth is predominantly expected to come in the Growth Markets where it takes two vehicles to equal the same resulting sales as from one vehicle in the Developed Markets.
Despite this negative CPV mix effect, our core addressable market is expected to grow at a CAGR of approximately 5% over the next three years to about $29 billion, based on the current macro-economic outlook and business awarded. 
 
 
 
Growth by Region
 
Most of the expected market  growth during  the period 2015 to 2017 will be in the Growth Markets (see graph), which are expected to increase at a 9% CAGR to $12 billion. This strong growth will be mitigated by an expected decline of the Japanese market of almost 1% per year. The Western European market is expected to see
strong growth of around 7% per year mainly due the rapid development of the active safety market.
 
Growth by Product
 
Unlike LVP which Autoliv cannot influence, we can affect the other growth driver of our market by continuously developing new higher-value-added products. This increases the long-term average safety content per vehicle and historically has caused the automotive safety market to grow faster than the underlying LVP. A steady flow of new technologies to the market has enabled Autoliv to outpace its market and increase its market share.