Automotive interior materials includes materials such as leather (artificial or PU leather, PVC leather, synthetic leather and genuine leather), thermoplastic polymers, fabric, vinyl and wood. Thermoplastic polymers and leather are the vital segments, which generates the largest revenues among all automotive interior materials. The automotive interior materials market is expected to grow in the coming years considering the launch of new segment of vehicles (hybrid and electric) and introduction of new technologies in automotive interior materials. Key opportunity areas of automobile interior materials applications are expected to deal with comfort solutions for automobile users, which may include dirt-repellent antimicrobial textiles and surfaces, anti-glare coated mirrors and nano filters. Climate controlled automotive seats based on thermo-electric technology, which converts electricity into heating or cooling is another vital application that is expected to be introduced in the coming years. The most preferred automotive interior materials are fabric (such as body cloth fabrics, velvet, velour and tweed), leather (such as genuine leather, synthetic leather, PU or artificial leather and synthetic leather), thermoplastic polymers and vinyl. The fabrics that are used in automobiles are generally polyester and rayon blends. Velour is the most expensive fabric, which is used in high end cars. Vinyl is the best alternative to fabric, which is available in various texture and colors. Vinyl is affordable and easy to maintain but the material gets heated when exposed to sun. Leather is a very popular material used in automotive interiors. Synthetic leather is the largest used form of leather because it is affordable and durable. However, genuine leather is the most durable form of leather but it is quite expensive.
A small percentage of hybrid and electric vehicles are already available in the market. The percentage is expected to grow in the coming years because of their eco-friendly use and efficiency. Therefore, with the rise in the number of hybrid and electric vehicles in the automobile market, the application and market for automotive interior materials is set to flourish in the coming years. Original equipment manufacturers (OEMs) of automobiles are trying means and ways to make their vehicles lighter and efficient in order to improve the fuel efficiency and performance. Lighter automotive interior materials, which are used in the dashboard and seating structures can serve as a new opportunity and ensure a feasible option to such OEMs. Product innovation and development is one of the key strategies adopted by leading market players. New product innovation is required to survive stiff competition in the market. Companies are involved in research and development to create innovative products. Innovation in products helps companies to have a competitive advantage over its competitors, which ensures long-term sustainability, customer satisfaction and maximization of profits.
In the dynamic business environment where numerous technological advancements are taking place each day, it is necessary for the automotive interior materials manufacturing companies to align its strategies with the technological shifts. Technological advancement in automotive seating in vehicles is set a bring a transition in the automobile sector. Automotive interior materials manufacturers are introducing light-weight seats that are thinner and comfortable and hence, increasing the floor space and reducing the overall weight of the vehicle.
In Europe, Germany and U.K. are the largest regional markets for automotive interior materials. In Asia Pacific, Japan, China and India are the largest contributors to the automotive interior materials market. In North America, the U.S. has been showing steady growth over the years and is one of the dominant automotive interior materials markets in the world. In Rest of the World (RoW), South Africa is showing substantial growth and is expected to be a key market in the coming years.
Key participants in the industry include Faurecia SA (France), Johnson Controls, Inc. (U.S.), Grammer AG (Germany), Lear Corporation (U.S.) and BASF SE (Germany) among others.
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.