Automotive Interior Materials Market – Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2017–2025

Automotive interiors are the interior hardware of the vehicle such as seats, door panels, cockpit modules, steering wheels, and dashboards that aim at offering comfort to the driver and enhancing the aesthetic appeal of the vehicle. Automotive interiors of superior quality minimize engine vibrations and act as effective cabin insulators, thereby enhancing the consumer’s riding experience. Attributed to the growing consumer preference for premium automotive interior materials and the desire to enhance the aesthetic appeal of the interiors, the global automotive interior material market is expected to witness a significant growth during the forecast period.

Growth of the automotive interior materials market is mainly driven by the rapidly growing automotive industry and the need to improve driving experience. OEMs offer high customization to satiate the specific demands of consumers, in order to capitalize high consumer purchasing power. Consumers are increasingly inclined towards vehicles with features that were until now reserved for premium vehicles. These include premium seat covers, leather covered dashboards, and luxury carpeting, among others. This creates a highly conducive environment for growth of the market.  Furthermore, increasing demand for lightweight vehicles due to its low carbon emission quality, is also driving the manufacturers to focus on smart textiles appropriate for vehicles thereby, boosting the demand for automotive interior materials. In 2015, the global vehicle production was pegged at over 90 million, which increased to around 95 million in 2016. This creates a highly conducive environment for growth of the automotive interior materials market.

Growing awareness about the amount of waste disposed during the leather manufacturing process  required for the automotive interiors, along with high prices of leather material, are expected to restrain the growth of the market. Leather manufacturing is affected by a number of factors such as the use of chemicals namely,  formaldehyde, coal-tar derivatives, cyanide based materials and others that result in toxicity of the environment, usage of animal by-products that pressurize the animal population, and manufacturers who use premium leather to manufacture automotive interiors. A number of U.S. cities have passed on procurement policies on phasing out the purchase of PVC, which is considered to a toxic material that can contaminate the environment. Hence the use of PVC in automotive interior materials is decreasing, thereby hampering the growth of the market.

Automotive Interior Materials: Market Taxonomy

By Material Type

On the basis of material type, the global market can be segmented into: Synthetic leather

  • Pure leather
  • Fabrics
  • Thermoplastic polymers

By Vehicle Type

On the basis of vehicle type, the global market can be segmented into:

  • Passenger vehicles
  • Light commercial vehicles
  • Heavy commercial vehicles

By Interior Type

On the basis of interior type, the global market can be segmented into:

  • Seat belts
  • Steering wheel belts
  • Seat covers
  • Upholstery
  • Interior roofing
  • Cockpit
  • Others

Global Automotive Interior Materials Market Outlook: Burgeoning growth of Automotive Sector in Asia Pacific to Fuel Market Growth

Geographically, the global automotive interior materials market is segmented into North America, Europe, Asia Pacific, Middle East, and Africa. Booming automotive industry along with rising middle class population with high spending power, creates highly lucrative opportunities for players in the automotive interior materials industry. In Asia-Pacific region, government initiatives in terms of subsidies and tax concessions across various countries are attracting the automotive OEMs to build their manufacturing plants in the region. For instance, in July 2016, the South Korean Ministry of Trade, Industry and Energy announced plans to make electric car batteries run longer, build a network of charging stations, and make electric car purchases and ownership more affordable. The government expects that the current and future policy programs will help increase the electric car market share in South Korea to 0.5% in 2017, up from 0.2% in 2015, and to achieve 5.3% by 2020. Also, In April 2014, the Indian government announced a new plan to provide subsidies for hybrid and electric vehicles. The plan granted subsidies up to US$ 2,314 for cars and US$ 463 for two wheelers. This in turn positions Asia Pacific as a high growth market for automotive interior materials.

Global automotive interior materials market is extremely competitive and consolidated with the presence of large players accounting for major share. Key players in the market include Sage Automotive Interiors Inc., BASF S.E., Katzkin Leather Interiors Inc., Eagle Ottawa, Borgers A.G., International Textile Group Inc., Faurecia S.A, Johnson Controls Inc., Lear Corporation, Dow Chemical Company, DK Leather Corporation Berhad, and E.I.DU Pont De Nemours.

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  • Primary Research (Trade Surveys and Experts Interviews)
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In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

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  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
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Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

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Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

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  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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