Autoliv's (ALV) content per vehicle growth is expected to benefit from developing markets, which are slated to see increasing safety standard regulations being implemented, RBC Capital said in a Wednesday note.

The automotive safety supplier's content and vehicle growth should also benefit from rising standards of living in developing countries and a "continued premiumization" of auto fleets, according to the note.

Autoliv's dominant market share in the airbag and seat-belt markets are unlikely to be outsourced to original equipment manufacturers, or OEMs, due to the sector's safety-critical parts and strict regulation, the analysts said.

RBC highlighted that, according to Autoliv's management, the company holds a 45% share of the airbag and seat-belt market and it's the top player in all of the markets where it's present.

Partly due to the company's "mastery of airbag inflators" the "barriers to entry in [Autoliv's] core competency are high," the note said. Meanwhile, the second-largest company in the space, German conglomerate ZF, only has a 20% market share, the investment firm said.

RBC started coverage of Autoliv with an outperform rating and $133 price target.

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