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The worldwide market for leather used in car interiors is predicted to grow well from 2022 to 2030. In 2021, it was valued at $27,448.62 million and is expected to increase at a rate of 5.10% annually, reaching $41,760.46 million by 2030. In terms of quantity, the market measured 721.64 million square meters in 2021 and is likely to grow at a rate of 4.76% to 1,067.24 million square meters by 2030.
The growth of this market is due to the increasing use of leather in car interiors, thanks to its stretchiness, ability to breathe, and resistance to heat. It's not just cars; leather is used in buses, trucks, agricultural machinery, bikes, and more, covering steering wheel covers, door trims, knob covers, seats, infotainment boxes, gear boots, and other parts. Additionally, the shift towards using materials derived from plants to make automotive interior leather is expected to provide new opportunities for market players. However, the environmental impact of leather made from polyurethane (PU) and polyvinyl chloride (PVC) is a significant concern that could slow down global market growth.
The global market for automotive interior leather has been analyzed by MRFR based on the type of cover, application, distribution channel, and region. When it comes to the type of cover, the market is divided into leather and synthetic materials. Synthetic materials, including PVC-based, PU-based, and bio-based, make up the largest share, accounting for 68.99% in 2021. This segment was valued at $18,937.16 million in 2021, with a projected annual growth rate of 4.83% to reach $28,144.88 million by 2030. The popularity of synthetic leathers is attributed to their wide range of properties.
In simpler terms, the market for the leather used inside cars is expected to grow steadily over the next decade. This growth is driven by the fact that carmakers are using more leather in vehicle interiors because it's stretchy, breathable, and resistant to heat. This isn't just for cars; leather is used in buses, trucks, tractors, bikes, and more, covering various parts like steering wheel covers, door trims, knob covers, seats, infotainment boxes, gear boots, and others. Additionally, there's a trend towards using materials derived from plants to make this type of leather, which creates new opportunities for companies in the market. However, there's a downside because leather made from certain materials can harm the environment. The market has been looked at in terms of the type of cover, and synthetic materials, like those made from PVC, PU, and plants, are the most popular. They make up almost 70% of the market, valued at nearly $19 billion in 2021, and are expected to keep growing to reach around $28 billion by 2030. The popularity of these synthetic leathers is because they have a lot of useful properties.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Growth Rate | (2022 to 2030 |
Automotive Interior Material Market Highlights:
Automotive Interior Material Market Overview
The automotive interior material market size is estimated to reach USD 149.6 billion by the end of the current forecast period in 2030, at a CAGR of 4.50%. The automotive interior materials market has a higher penetration in the Asian Pacific region and the Middle East & Africa. This growth can be attributed to the rising economic condition and urbanization in the Asian Pacific and the Middle East & African countries. In addition, optimizing fuel efficiency by reducing the overall vehicle weight, followed by other factors like the increased globalization and the high demand for new technologies and customization, are driving the automotive interior materials market.
COVID 19 Analysis
The global pandemic has affected the automotive interior material market, which is expected to be moderately affected due to disruptions in the global supply chain. The global market functioning is highly dependent on the refinery & petrochemical, chemical, metal, and other power generation industries. China is a significant market for exports and industrial production, and the imposition of strict lockdowns in the country's significant provinces affected the industrial activities. The propelling demand for industrial equipment declined significantly in the first quarter of 2022, mainly due to the outbreak of COVID-19, followed by the imposition of restrictions and lockdown. The Chinese region is among the largest producers of automobiles. However, many disruptions in the supply of raw material have weakened the production of automotive interior material in the country.
Automotive Interior Material Market Dynamics
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Drivers
The availability of affordable vehicles has grown considerably over the recent years due to increased traveling among people, and the same can be seen during the continuous period. Subsequently, it has resulted in the increased expectation of automotive interior designs, and these are both visually appealing and comfortable. Furthermore, the increased technological advancements in the market and the rising demand for customization of automotive interior materials are driving the market. Therefore, the global automotive interior material market companies are offering customizations to create innovative interiors following the customer's demand. Furthermore, there has been an increase in health awareness among consumers, and it is encouraging companies to introduce eco-friendly automotive interior materials, which will help enhance comfortable driving. These factors influence the growth of the automotive interior material market and will expand the market share during the period ending in 2030.
It is imperative to understand that the automotive interior materials market includes various functions, and leather manufacturing is one. The tanning process in leather manufacturing is a sub-divided market inclusion is the most polluting stage of leather processing. It includes metals such as chromium, aluminum chlorides, sulfates of potassium, and others like aluminum and zirconium sulfates. Hence, with the help of green chemistry, global market manufacturers have developed methods to use safer chemicals that can be disposed of quickly. The unique techniques among them include tanning skins with glutaraldehyde in unnatural d-AA such as d-alanine or d-lysine. These highlight results like providing high leather stability due to the bridging feature of the carboxylic and the amino group of the amino acids. The wastewater generated amid the conduction of such processes contains no hazardous chemicals, as toxic tanning agents are not used during the described process. Hence, wastewater and water treatment system plants gain the benefit from proper handling and final disposal of waste. All these factors are likely to play a significant role in the expansion of the automotive interior material market during the period ending in 2030.
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Restraints
As a primary market function, Genuine leather is the most expensive material currently used as automotive upholstery and causes issues for the market players that eye on expansion and growth. The leather processing industry is witnessing many effects in most developed markets due to the stringent environmental regulations that have made it difficult for local or regional manufacturers in these regions to remain profitable and expand during the continuous period. Following this, there has been an increase in the import of leather from African countries with heavy leather, and the Asian Pacific region like India with light leather was observed. However, the birth of market factors like a high import price, availability of alternatives like synthetic leather, and others like the changing perception of consumers toward genuine leather has compelled most manufacturers to switch to eco-friendly alternatives.
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Technology Analysis
Automobile doors panels belong to the automotive interior material market and are components that help mitigate the impact of side collisions and increase the overall safety of the occupant. The interior door panel, as a sub-market segment, is made of various materials, and the finish depends on the rest of the vehicle interiors, which include the dashboard and carpets, among others. Door panels vary from simple plastic and sleek designs to hand-stitched leather finish, depending on the vehicle type and segment. Along with providing an aesthetic appeal, these door panels are also designed to improve the functionality and ergonomics of the vehicle. This increases the comfort level provided by the vehicle. In addition, door panels play an essential role in verticals like NVH, packaging, storage, and vehicle styling.
Automotive Interior Material Market Segment Overview
Based on type, the automotive interior material market has been segmented as follows:
- Polymer
- Genuine Leather
- Fabric
- Synthetic Leather
- PVC
- PU
- Others
Based on vehicle type, the automotive interior material market has been segmented as follows:
- Passenger Cars
- Light Commercial Vehicle
- Heavy Commercial Vehicle
- Buses & Coaches
Based on application, the automotive interior material market has been segmented as follows:
- Dashboard
- Door Panel
- Seats
- Floor Carpets
- Others (Headliners, Sun Visor, Interior Lighting, Rear seat entertainment)
Based on region, the automotive interior material market has been segmented as follows:
- Asia Pacific
- North America
- Europe
- Middle East & Africa
- South America
Automotive Interior Material Market Regional Analysis
Industrial expansion and technological developments in the European region drive the consumption of automotive interior material. The market's global growth is also expected to be supported by the improving global economy and highlighted during the continuous period that ends in 2030. The automotive sector is one of the key industries located in the European region. The major growth drivers for the European automotive interior materials market share include the following:
The growing demand for technology employment.
- The need for a safe driving experience.
- A substantial increase in the development of connected cars.
Major players are automotive interior components and solution providers such as Grupo Antolin (Spain) and others like Faurecia (France). With the ongoing automotive industry developments, on and off-site research, and widening distribution networks, the demand for automotive interior materials is expected to increase during the forecast period ending in 2030.
Automotive Interior Material Market Competitive Landscape
The key market players profiled in the automotive interior material market report include the following:
- Lear Corporation (US)
- DRAXLMAIER Group (Germany)
- Asahi Kasei Corporation (Japan)
- DK Leather Corporation Berhad (Malaysia)
- Grupo Antolin (Spain)
- Toyota Boshoku Corporation (Japan)
- Seiren Co. Ltd. (Japan)
- Faurecia (France)
- Yanfeng Automotive Interiors (YFAI) (China)
- Toyoda Gosei Co., Ltd. (Japan)
Recent Developments
- In 2019, Lear Corporation and Gentherm (NASDAQ: THRM), the global automotive interior material market leader and profound developer of innovative thermal management technologies, internationally announced a strategic joint development partnership to drive the future of passenger thermal seating solutions.
- The Asian Pacific region is the largest automotive interior material market due to rapid economic growth. These factors are essential in driving the automotive interior material market, followed by its expansion during the ongoing forecast period ending in 2030. The developed countries of Asia Pacific house, the critical global automakers, provide them opportunities to dwell. The APAC region serves as a manufacturing hub and has critical R&D facilities. The automotive industry in developing countries of Asia Pacific like India and China is expected to grow because of the improving economic conditions and the booming manufacturing sector. The market in North America is also projected to grow at a moderate rate during the forecast period ending in 2030 because of the shift of manufacturing bases to developing countries. However, the rising demand for luxury vehicles in the US and Canadian region will drive the need for automotive interior materials.
- In 2020, one of the prominent market companies - Sage Automotive Interiors (Sage), an Asahi Kasei subsidiary based in South Carolina, US (CEO: Dirk Pieper), has completed its acquisition of the automotive fabrics business of Adient plc.
Automotive Interior Material Market Outlook
The automotive interior material market report has been prepared to understand the market preparedness to deal with the market functioning before and after the COVID-19 pandemic. The market report highlights the rising degree of competition in the market premises followed by the recent developments undertaken by various market players during the period.
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