AUTOMOTIVE INTERIOR BOVINE LEATHER MARKET ANALYSIS

Bovine leather is the most common source of leather. The surface skin of a bull or cow is utilized in processing bovine leather. Bovine leather is excellent for its appearance, texture, durability, and comfort. Leather from cows is relatively easy to maintain. It is resistant to dirt and water. Bovine leather is very popular in automotive interior applications, due to its affordability.

The demand for luxury cars with premium leather such as bovine leather is expected to increase significantly in countries such as the U.S. and Canada, owing to their high per capita income. For instance, according to the World Bank data, the U.S. and Canada accounted for US$ 63,690 and US$ 47, 590 per capita income in 2018. Due to high per capita income, the consumers in North America region have potential to purchase cars with premium leather such as bovine leather.

Market Players such as Eagle Ottawa LLC and Carroll Leather are focusing on strategic expansions and product launches to cater to the increasing demand for premium leather. For instance, in April 2015, Carroll Leather launched a new leather lineup known as 'PERSPECTIVE'. A high-end product lineup provides a smooth, soft, and translucent finish.

However, slow production and sales rate of automobiles globally could have a negative impact on regional players in the global automotive interior bovine leathers market.

Global Automotive Interior Bovine Leather Market - Impact of Coronavirus (Covid-19) Pandemic

COVID-19 has significantly disrupted almost all the industries including infrastructure, retail, manufacturing, logistics, and others. To combat COVID-19 pandemic, several governments across the globe such as U.S., France, India and Italy have imposed nationwide lockdown to restrict the spread of COVID-19 disease.

Moreover, the spending pattern of people across the globe have also changed owing to the COVID-19 pandemic. According to CMI’s study, consumers have increased their spending on healthcare products, groceries, and home entertainment systems and reduced their spending on other luxury products. Furthermore, demand from end-use industry i.e. automotive industry has also decreased sharply.

Europe is expected to hold dominant position in the Global Automotive Interior Bovine Leather market during the forecast period.

Statistics:

Europe held dominant position in the global Automotive Interior Bovine Leather market in 2019, accounting for 31.8% share in terms of value, followed by Asia Pacific, and North America.

Figure 1: Global Automotive Interior Bovine Leather Market Share (%), By Region, 2019

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On the basis of region, Europe was the dominant in the global Automotive Interior Bovine Leather market in terms of value, followed by Asia Pacific and North America, respectively. The growth of the region is mainly attributed to the increasing demand for sports cars with premium leather is expected to propel the interior bovine leather market.

The automotive industry in Asia Pacific region is expected to show significant growth during the forecast period 2021-2028, owing to the increasing population and need for mobility. According to CMI’s study 2020, Asia Pacific region accounted for 60% of the total population across the globe in 2019. In addition to this, consumers in Asia Pacific region are shifting their preference from economic cars to mid-priced and luxury cars with premium seating arrangements such as seat covers of premium bovine leathers, according CMI study.

Among the vehicle type, the passenger segment is expected to dominate the market during the forecast.

The passenger segment holds the highest market share, and is expected to retain its market share over the forecast period. The segment is driven by rising consumer preference for luxury cars and the increasing per capita income of consumers.

Figure 2: Global Automotive Interior Bovine Leather Market Value (US$ Mn), 2017 - 2028

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The global Automotive Interior Bovine Leather market was valued at US$ 5,689.9 Mn in 2019 and is expected to reach US$ 7,989.2 Mn by 2028 at a CAGR of 3.8% between 2021 and 2028.