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The Global Automotive Interior Leather Market, by Material Type (Genuine Leather and Synthetic Leather(PU Leather and PVC Leather)), by Vehicle Type (Passenger Vehicles(Compact , Sub-compact, Mid-size, Sedan, Luxury and Van) Heavy Commercial Vehicles and Light Commercial Vehicles), by Application (Upholstery, Dashboard , Seat belts , Air-bags , Floor & trunk carpets , Headliners and Others) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 44,722.2 Million by 2027, exhibiting a CAGR of 5.2 % during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.


The interior leather in an automotive vehicle is a specialty leather used in the upholstery and interior of an automotive vehicle. The automotive interior leather is typically used to augment the feel and appearance of the vehicle. Vehicle occupants get to experience the texture and feel of the leather. The automotive interior leather is considered as one of the most important parts in the automotive industry, which is used to enhance the esthetics of the vehicle since it can cover the steering, controllers, and infotainment center. Apart from appearance, automotive leather is used to withstand 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 Driver

Advent of aesthetic features in compact and mid-size cars is expected to boost the global automotive interior leather market growth over the forecast period

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 Opportunities

Automotive seating manufacturers can offer a full range of seat cover design solutions

Key players in the global automotive interior leather market are integrating with interiors of supply chain, in order to ensure that they can meet the demand from OEMs and offer a full range of automotive interior systems with low production cost. For instance, in 2015, Lear Corporation, a fully integrated manufacturer and supplier of complete automotive seating systems acquired Eagle Ottawa LLC, a leather manufacturer for several automotive interior applications, to offer a full range of seat cover design solutions and expand its business in automotive interior systems.

Market Restraint

Adoption of low-priced and inferior substitutes is expected to restrain the global automotive interior leather market growth during the forecast period

Rising prices of raw materials is a major hindering factor for the market. As a result of this, there has been a substitution effect, which is causing high-end materials to be replaced by low-end materials. Furthermore, this rise in raw material prices is expected to hamper the profitability and sustainability of interior leather manufacturers since the rise in production cost would affect overall vehicle production cost. Increasing prices of genuine leather owing to the supply-demand gap and ban on PVC materials in Europe are some major factors restraining growth of the market to a certain extent.

Market Trends

  1. Increasing demand for fake/synthetic leather

Majority of premium car owners recommend 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.

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

On the basis of vehicle type, the passenger vehicle segment is expected to account for a 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.

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 product launches, in order to enhance the market presence. For instance, in 2016, Leather Resource of America Inc. launched two new series of products in its aniline leather product line- Florence and Chesapeake Collection.
  2. Major market players are involved in product launches, in order to expand the product portfolio. For instance, in 2016, Elmo Sweden AB launched Elmonubuck, a buffed leather featured with a soft velvet surface, in 4 specific colors.


Market Taxonomy:

  1. By Material Type
    • Genuine Leather
    • Synthetic Leather
    • PU Leather
    • PVC Leather
  2. By Vehicle Type
    • Passenger Vehicles
    • Compact
    • Sub-compact
    • Mid-size
    • Sedan
    • Luxury
    • Van
    • Heavy Commercial Vehicles
    • Light Commercial Vehicles
  3. By Application
    • Upholstery
    • Dashboard
    • Seat belts
    • Air-bags
    • Floor & trunk carpets
    • Headliners
    • Others
  4. By Region
    • North America
    • Latin America
    • Europe
    • Asia Pacific
    • MEA
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