The demand within the global market for automotive interior materials has been escalating at a robust rate, majorly due to the quest of the automotive sector to overhaul their quality standards. A number of nascent developments in the automotives sector have ensured a steady growth of all the markets that are directly or indirectly related to this sector. Automotive interior materials immensely enhance comfort, congeniality, and interior aura of automobiles, and customers consider all of these factors while buying vehicles. Hence, the demand within the global market for automotive interior materials has been expanding at the pretext of consumer propensities for better and comfortable driving. Moreover, automotive interior materials also enhance the safety of vehicles as these materials are used in fabricating safety belts/straps, air bags, and other safety aids. Automotive quality tests have become an indispensable part of the automotive manufacturing process, and these tests help in ascertaining the credibility of automotive manufacturers. In order to pass these tests, vehicles should have high-quality interior and exterior materials, and this also becomes a key reason behind the growth of the global market for automotive interior materials. Besides all of this, the trend of non-price competition in the automotive industry has compelled manufacturers to focus on quality and aesthetics as the key selling point in the market. This has also created huge growth spaces in the global market for automotive interior materials.
Transparency Market Research (TMR) predicts that the global automotive interior materials market would expand at a sluggish CAGR of 2.70% over the period between 2015 and 2023. Furthermore, the net worth of the global automotive interior materials market is projected to touch US$137.06 bn by 2023, elevating up from a value of US$111.61 bn in 2014.
Leather to Remain Largest Material Segment
Based on the type of material, the demand for leather has been rising at a decent rate majorly due to its use in upholsteries, seat belts, and floor mats. Some of the key types of leather used in automotives include PVC leather, genuine leather, PVC leather, and PU leather. Furthermore, the emphasis on the use of green materials in the interiors of vehicles has also given an impetus to the growth of the leather segment in recent times. Other materials used in automotive interiors include fabrics, thermoplastic polymers, wood, and vinyl. On the basis of application, the global market for automotive interior materials is segmented into light commercial vehicles, passenger vehicles, and heavy commercial vehicles. Amongst these, the demand for automotive interior materials in the passenger vehicles segment has been the highest amongst all other application-based segments.
Europe Leads other Regional Segments
The growth of a regional market for automotive interior materials depends on the strength and position of the automotive sector in that region. Hence, the robust automotive sector in Germany, England, and France has fortified the growth of the market for automotive interior materials in Europe. Furthermore, the demand for automotive interior materials in Europe is also rising due to the propensity of the masses to buy vehicles with advanced features, increased comfort, and better interior appeals. The demand for automotive interior materials in North America is also expected to keep soaring as safety and comfort take the upper hand in the regional automotive industry.
Some of the key players in the global automotive interior materials market are Johnson Controls, Inc., Faurecia SA, Grammer AG, BASF SE, and Lear Corporation.
This market research study analyzes the automotive interior materials market on global basis and provides estimates in terms of revenue (USD Billion) from 2014 to 2023. It describes the market dynamics affecting the industry and analyzes their impact through the forecast period. Moreover, it highlights the opportunities for market growth in the next eight years.
Automotive interior materials include fabrics, vinyls, thermoplastic polymers and different forms of leather. Manufacturers are concentrating on efforts to produce light in weight and efficient automotive interior materials to reduce weight of vehicles and improve the fuel efficiency. In addition, new and improved, attractive automotive interior materials are redefining the consumers’ preference and helping manufacturers in differentiating their materials from other brands. Increasing private equity investments in automotive interior material manufacturing companies coupled with application of green technology in automotive leather materials and advent of new segment of vehicles such as hybrid and electric vehicles are driving the overall market.
The major factor inhibiting the growth of this market is the declining production rate of vehicles in past few years. Automotive interior materials such as genuine leather and vinyls are expensive that are not easily affordable, thus cannot be incorporated in economy cars. Moreover, such materials involve high cost and frequent maintenance that do not serve as a feasible option for a large number of buyers present in developing nations. Excluding the high-end automobile users, majority of consumers prefer affordable and attractive interior materials in their vehicles such as artificial or polyurethane (PU) leather, synthetic leather and different shades of fabric.
At present market is fragmented in nature with the presence of many small, medium and large companies across the globe. Entry into this market is easy as there is no monopoly of business and the market has huge scope and opportunity. Consumers demand for affordable interior materials that are easy to maintain and attractive, which is another influential factor for supporting the growth of this market. Increasing price of raw materials is affecting the automotive sector, which in turn is reducing the growth of automotive interior materials market. Due to the price rise, there has been a substitution effect and therefore, high-end materials are being replaced by low-end materials. Therefore, such factors are expected to inhibit growth of this market in the long term.
Considerable growth in the automotive sector coupled with economic reforms in major developing countries has been able to bolster the growth of this market. Asia Pacific and Rest of the World (RoW) are key markets for the future and are expected to provide huge opportunities to the global automotive interior materials manufacturers because of the growth in the automotive sector and increasing demand for passenger vehicles in the regions.
The market is segmented on the basis of geography into Europe, North America, Asia Pacific and Rest of the World (RoW). These segments have been estimated in terms of revenue (USD billion). In addition, the report has been segmented based on material types, which includes, leather, thermoplastic polymers, fabric, vinyl and wood. In addition, the report is also segmented by application that includes heavy commercial vehicle, light commercial vehicle and passenger vehicle.
For better understanding of the automotive interior materials market, the study comprises market attractiveness analysis, where the material types are benchmarked based on their market scope, growth rate and market attractiveness.
The report also provides company market share analysis of the various industry participants. Key players have been profiled and their company overview, financial overview, business strategies and recent developments have been covered in the report. Major market participants profiled in this report include: Faurecia SA (France), Johnson Controls, Inc. (U.S.), Grammer AG (Germany), Lear Corporation (U.S.) and BASF SE (Germany) among others.
The automotive interior materials market has been segmented as:
Global Automotive Interior Materials Market: By Material
- Thermoplastic polymers
Global Automotive Interior Materials Market: By Application
- Heavy commercial vehicle
- Light commercial vehicle
- Passenger vehicle
Global Automotive Interior Materials Market: By Geography
- North America
- Rest of Europe
- Asia Pacific
- Oceania (Australia and New Zealand)
- Rest of Asia Pacific
- Rest of the World (RoW)
- Latin America
- South Africa
The report provides a cross-sectional analysis of by material and of by application segment with respect to the above mentioned regions.