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Market Insight- Global Automotive Interior Leather Market

Market Overview

The automotive interior leather is used in the upholstery and interior of a vehicle, in order to enhance the feel and appearance of the vehicle. The passenger and driver can actually experience the texture and feel of the leather. It is an essential part of the automotive industry, which is used to enhance the esthetics of the vehicle since it can cover the infotainment center, controllers, and steering. Apart from appearance, automotive leather is used to sustain various types of fatigue such as wear & tear and scratches. The automotive interior leather is different from furniture leather as less fat liquors are used in the production of automotive interior leather, in order to make it more resistant to stretching and bagging. Moreover, automotive interior leather is adequate protection from the sun’s UV rays.

The global Automotive Interior Leather Market was to accounted for US$ 29,441.6 Mn in terms of value and 741.4 Mn sq meter in terms of volume in 2019 and is expected to grow at CAGR of 5.2% for the period 2019-2027

Market Dynamics- Drivers

  1. Increasing demand for lightweight leather is expected to drive growth of the global automotive interior leather market during the forecast period

The global market is actively shifting towards the use of lightweight leather products. Since there is a high demand for lightweight automotive vehicles, the leather industry is focused on providing similar products. Lightweight vehicles are more fuel-efficient and contribute to reduced emissions. Moreover, constant research and development activities in the fuel economy of the automotive vehicle show a direct correlation between fuel efficiency and vehicle weight. This correlation has compelled manufacturers to reduce the weight of automotive vehicles and to opt for lightweight leather products in automotive vehicle body panels. Therefore, these factors are expected to drive the global automotive interior leather market growth over the forecast period. For instance, in 2016, Elmo Sweden AB introduced Elmolite II- an ultra-light luxury type of leather, for their automotive leather business.

  1. Growing demand for hybrid and electric vehicles is expected to propel the global automotive interior leather market growth over the forecast period

Increasing the implementation of strict environmental regulations and emission control norms has increased the demand for Hybrid Electrical Vehicles (HEVs) powered by a combination of IC engines and electric motors are gaining traction. High demand for novel weather solutions such as thermo cool leather, anti-soiling leather, and antimicrobial & antibacterial leather is expected to drive the global automotive interior leather market growth in the near future. Furthermore, leading carmakers are competing to introduce climate-controlled automotive seats in hybrid vehicle models, which can convert electricity to heat or cool vehicle seats. Some of these are already integrated into a small percentage of electric and hybrid cars available in the market.

Asia Pacific region dominated the global Automotive Interior Leather Market in 2019, accounted for 45.9% share in terms of value, followed by Europe, North America, Latin America and Middle East and Africa.

Automotive Interior Leather  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. Lowering hide production is expected to hinder the global automotive interior leather market growth during the forecast period

A massive shift in consumer aesthetic preference including inclination towards the use of premium leathers in car interiors has resulted in high demand for leather. However, global hide production is growing at a pace that is unable to sustain this increasing demand. Moreover, change in eating habits and increasing vegetarian and vegan population is expected to lower hide production since it is a byproduct of the meat industry. Apart from this, lengthy and complex hide processing techniques are other major reasons expected to hinder the global automotive interior leather market growth in the near future.

  1. Slowdown in global automotive production is expected to hamper the global automotive interior leather market growth over the forecast period

The global automotive interior leather market growth is hampered up to a certain extent due to a slowdown in global automotive production. According to Coherent Market Insights’ analysis, Total automobile production increased at a rate of 3.7% between 2013 and 2014, while during 2014–2015, vehicle production increased at a mere 1.1% rate This slow production rate of automobiles globally could have a negative impact on regional players in the global automotive interior leather market.

Market Opportunity

  1. Sustainable leather production can provide major growth opportunities

Integration of green technology in the automotive industry is a growth opportunity for growth and can help market players to increase their share and expand business revenue. The global automotive interior leather market is following the automotive industry by adopting green technology for production of automotive leather. For instance, in 2015, BOXMARK Leather GmbH & Co KG introduced GREEN – a sustainable leather for automotive, living, sea and air applications. The sustainable leather developed by BOXMARK Leather GmbH & Co KG uses full vegetable tanning agents and novel recovery of oiling & fillers from previous waste products to manufacture leather.

  1. Product innovation can offer lucrative business opportunities

Key companies in the market are focused on product innovation, in order to offer novel products in the market. Although the majority of players in the auto upholstery market focus on traditional colors and materials, a spectrum of materials, finishes and customization options available can provide massive opportunities. For instance, in September 2015, Lear Corporation purchased a property in Detroit, the U.S. to establish an innovation and design center. The company will work with the College for Creative Studies (CCS) to conduct R&D on fabrics & leather to produce next-generation vehicle interiors.

Automotive Interior Leather  | Coherent Market Insights

Source: Coherent Market Insights

Market Trends

  1. Increasing demand for automotive interior leather in passenger vehicles segment

On the basis of vehicle type, the passenger vehicle segment is expected to account for significant share in the global automotive interior leather market during the forecast period. This is owing to increasing demand from emerging economies and rising per capita income. According to Coherent Market Insights’ analysis, the passenger vehicle segment continues to rise and is mainly driven by the substantial growth in China, which represents over 25% of global car sales. Other emerging markets, such as South Korea and India are also expected to expand at a healthy rate over the forecast period. Moreover, there is increasing demand for leather, both genuine and synthetic, from OEMs – especially for application in the luxury and premium cars segment.

  1. Rising demand for fake/synthetic leather

Majority of premium car owners recommend the synthetic leather since it is a better alternative to real/genuine leather. Fake/synthetic leather trim was introduced as a cheap substitute for real leather. It is now being keenly sought after by various customers, especially by customers who prefer environmental-friendly vehicles.

Value Chain Analysis

Automotive Interior Leather  | Coherent Market Insights

Segment information:

In global Automotive Interior Leather Market, by material, Synthetic leather sub-segment dominated the global market in 2019, accounting for 58.7% share in terms of value, followed by Genuine Leather.

Automotive Interior Leather  | Coherent Market Insights

Source: Coherent Market Insights

Competitive Section

Key players operating in the global automotive interior leather market are Elmo Sweden AB, D.K Leather Corporation, Scottish Leather Group Limited, GST AutoLeather Inc., Eagle Ottawa LLC, Leather Resource of America Inc., Elmo Sweden AB, Bader GmbH & Co. KG., and WOLLSDORF LEDER SCHMIDT & Co. Get.m.b.H.

Key Developments

  1. Key companies in the market are focused on capacity expansion, in order to enhance the market presence. For instance, in November 2019, Scottish Leather Group Limited, a U.K.-based leather manufacturer, announced to open a new factory in Renfrewshire by the autumn of 2020.
  2. Major market players are involved in product launches, in order to expand the product portfolio. For instance, in 2016, Elmo Sweden AB introduced Elmolite II- an ultra-light luxury type of leather, for automotive leather business.

The automotive interior leather is used in the upholstery and interior of a vehicle, in order to enhance the feel and appearance of the vehicle. The passenger and driver can actually experience the texture and feel of the leather. It is an essential part of the automotive industry, which is used to enhance the esthetics of the vehicle since it can cover the infotainment center, controllers, and steering. Apart from appearance, automotive leather is used to sustain various types of fatigue such as wear & tear and scratches. The automotive interior leather is different from furniture leather as less fat liquors are used in the production of automotive interior leather, in order to make it more resistant to stretching and bagging. Moreover, automotive interior leather is adequate protection from the sun’s UV rays.

Market Dynamics

Many automakers have started to rebrand their respective compact and mid-sized car models with introduction of stylish interior features. This, in turn, has increased adoption of automotive interior leather. Consumers prefer affordable interior leather products that do not require excessive maintenance without compromising on looks. Furthermore, various interior features that were available to luxury cars are now being added in mid-size and compact cars, in order to gain an advantage over competitors and strengthen their product portfolio. According to Coherent Market Insights’ analysis, the base version of a premium car such as Chrysler had around 20% leather interiors until about a few years ago, which is expected to increase to over 40% in the near future. Moreover, growing consumer preference for luxury vehicles and rising attention on automotive interior components such as seat-belts, upholstery, seat, trunk & floor carpets, and leather-covered dashboards are compelling OEMs to lay emphasis on quality of leather used vehicle interiors. Thus, these factors are expected to drive the global automotive interior leather market growth over the forecast period.

Market Taxonomy

This report segments the Global Automotive Interior Leather Market on the basis of Material Type, Vehicle Type, Application and Region. On the basis of Material Type, Global Automotive Interior Leather Market is segmented into Genuine Leather and Synthetic Leather. Synthetic Leather is further segmented into PU Leather and PVC Leather .On the basis of Vehicle Type, the Global Automotive Interior Leather Market is segmented into Passenger Vehicles, Heavy Commercial Vehicles and Light Commercial Vehicles. Passenger vehicles are further segmented into Compact , Sub-compact, Mid-size, Sedan, Luxury and Van. On the basis of Application, the Global Automotive Interior Leather Market is segmented into Upholstery, Dashboard , Seat belts , Air-bags , Floor & trunk carpets , Headliners and Others. On the basis of region, Global Automotive Interior Leather Market is segmented into North America, Latin America, Europe, Asia pacific, Middle East and Africa.

Key features of the study:

  • This report provides an in-depth analysis of the Global Automotive Interior Leather Market and provides market size (US$ Million and Million Sq. Meter) and compound annual growth rate (CAGR %) for the forecast period (2019-2027), considering 2019 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global Automotive Interior Leather Market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered in the Global Automotive Interior Leather Market includes Elmo Sweden AB, D.K Leather Corporation, Scottish Leather Group Limited, GST AutoLeather Inc., Eagle Ottawa LLC, Leather Resource of America Inc., Elmo Sweden AB, Bader GmbH & Co. KG., and WOLLSDORF LEDER SCHMIDT & Co. Get.m.b.H.
  • These key market players are focusing on collaboration strategy with other market leaders to innovate and launch new products to meet the increasing needs and requirements of consumers.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up gradation, market expansion, and marketing tactics
  • The global Automotive Interior Leather market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the Global Automotive Interior Leather Market

Detailed Segmentation:

  • Global Automotive Interior Leather Market, By Material Type:
    • Genuine Leather
    • Synthetic Leather
    • PU Leather
    • PVC Leather
  • Global Automotive Interior Leather Market, By Vehicle Type:
    • Passenger Vehicles
      • Compact
      • Sub-compact
      • Mid-size
      • Sedan
      • Luxury
      • Van
    • Heavy Commercial Vehicles
    • Light Commercial Vehicles
  • Global Automotive Interior Leather Market, By Application:
    • Upholstery
    • Dashboard
    • Seat belts
    • Air-bags
    • Floor & trunk carpets
    • Headliners
    • Others
  • Global Automotive Interior Leather Market, By Region:
    • North America
    • Latin America
    • Europe
    • Asia Pacific
    • Middle East and Africa
  • Company Profiles
    • Bader GmbH & Co. KG.
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • K Leather Corporation
    • Eagle Ottawa LLC
    • Elmo Sweden AB
    • m.b.H.
    • GST AutoLeather Inc.
    • Leather Resource of America Inc.
    • Scottish Leather Group Limited
    • WOLLSDORF LEDER SCHMIDT & Co.

Browse all the market data tables and figures on “Global Automotive Interior Leather Market - Forecast to 2027”

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, BY Material Type
      • Market Snippet, By Vehicle Type
      • Market Snippet, By Application
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Industry Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Global Automotive Interior Leather Market, BY Product Type, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Genuine Leather
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Synthetic Leather
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
        • PU Leather
        • PVC Leather
  5. Global Automotive Interior Leather Market, By Vehicle Type, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Passenger Vehicles
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
        • Compact
        • Sub-compact
        • Mid-size
        • Sedan
        • Luxury
    • Heavy Commercial Vehicles
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Light Commercial Vehicles
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  6. Global Automotive Interior Leather Market, By Application, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Upholstery
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Dashboard
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Seat belts
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Air-bags
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Floor & trunk carpets
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Headliners
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Others
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  7. Global Automotive Interior Leather Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, Material Type, 2019–2027(US$ Million)
      • Market Size and Forecast, By Vehicle Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, Material Type, 2019–2027(US$ Million)
      • Market Size and Forecast, By Vehicle Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, Material Type, 2019–2027(US$ Million)
      • Market Size and Forecast, By Vehicle Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, Material Type, 2019–2027(US$ Million)
      • Market Size and Forecast, By Vehicle Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, Material Type, 2019–2027(US$ Million)
      • Market Size and Forecast, By Vehicle Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  8. Competitive Landscape
    • Company Profiles
      • Bader GmbH & Co. KG.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • K Leather Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Eagle Ottawa LLC
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Elmo Sweden AB
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • m.b.H.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • GST AutoLeather Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Leather Resource of America Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Scottish Leather Group Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • WOLLSDORF LEDER SCHMIDT & Co
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  9. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse market data tables and figures on “Global Automotive Interior Leather Market -forecast to 2027”.

Frequently Asked Questions

The global automotive interior leather market is estimated to reach US$ 44,722.2 Million by 2027.
Major players operating in the global automotive interior leather market include Elmo Sweden AB, D.K Leather Corporation, Scottish Leather Group Limited, GST AutoLeather Inc., Eagle Ottawa LLC, Leather Resource of America Inc., Elmo Sweden AB, Bader GmbH & Co. KG., and WOLLSDORF LEDER SCHMIDT & Co. Get.m.b.H.
Lowering hide production is one of the major factors that is expected to hamper growth of the market over the forecast period.
Increasing demand for lightweight leather is one of the major factors that is expected to propel growth of the market over the forecast period.
The global automotive interior leather market is estimated to exhibit a CAGR of 5.2% during the forecast period (2019-2027).
Among regions, Asia Pacific is expected to hold dominant position in the global automotive interior leather market in 2019, accounting for 45.9% share, in terms of value, followed by Europe, North America, Latin America and Middle East and Africa.
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