The Total Addressable Market (TAM) for Automotive Fabric was valued at USD 34.03 billion in 2021. It is expected to reach USD 44.40 billion by 2030, growing at a CAGR of 3% during the forecast period (2022–2030).
Automotive fabrics are textiles used to create the upholstery and interiors of vehicles in the automotive industry. Interior carpets, seats, and automobile dashboards are frequently covered with fabrics. The automotive fabric makes the car’s interior more comfortable and safer. It has low fatigue, high durability, UV ray stability, easy cleaning, and resistance to cold cracking. Auto fabrics such as headlining, truck lining, and spray adhesive are used to fix or replace damaged interior surfaces. Automotive fabric covers various car interior parts, including headliners, cockpit modules, door panels, seats, flooring, and acoustics.
|Market Size||44.40 billion|
|Fastest Growing Market||Europe|
|Largest Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Growing Sales of Automobiles
Globalization is causing the automotive industry to change quickly. In most emerging nations like China, India, and Brazil, improvements in manufacturing facilities result in higher automotive sales. The global automotive market's growth is driven by various segments, including premium and four-wheelers, which promises improved productivity and sales. This factor significantly affects critical players in the automotive industry to invest and grow the business through various segments to improve profitability. The demand for automotive vehicles is also fueled by rising consumer disposable income and increased sales of passenger vehicles worldwide. Furthermore, the automotive industry is most promising in developing nations like Brazil, China, and India. As a result, the market for automotive fabric is expanding due to the rising demand for vehicles in the automotive industry.
Mandates on Safety Belts, Airbags, and other Devices
The installation of airbags, seat belts, and anti-lock braking systems (ABS) in every vehicle is required by safety regulations put in place by several governments, which have a positive impact on the automotive market. Compared to Asia-Pacific and the rest of the world, Europe and North America adhere to these rules more strictly. However, OEMs are helping the government in developing nations improve safety measures by including airbags and anti-lock braking systems (ABS) as standard car features. As a result, more fabric is used to create the safety features inside the car.
In order to function, these safety systems require different fabric types for various component applications. The Bharat National Car Assessment Programme (NCAP), a safety organization established by the Indian government, also rates vehicles based on the safety equipment they contain. Such government initiatives are raising public awareness of safety features and fostering the expansion of the automotive fabric market.
Rising Cost of Raw Materials
Interior parts are made from various raw materials, including steel, rubber, and leather. As a result, the suppliers of automotive interiors suffer when the price of these raw materials rises. Many market participants are suffering as a result of the import tariff on steel and aluminum. Additionally, from 2017 to 2018, the price of steel in the United States increased by about 40% due to increased demand and the addition of tariffs. It is anticipated that the rise in raw material prices will restrain the expansion of the global market over the forecast period.
Increasing Demand for Eco-Friendly Fabric Materials
Since studying the unfavorable effects of fabric material on the environment, governments in Asia-Pacific and other regions actively promote environmentally friendly leather or fabric in their respective countries. Many producers are choosing non-animal and environmentally friendly substitutes. Natural leather producers now face a significant obstacle due to animal rights laws in many nations. Additionally, the programs run by groups like PETA, PAWS, WWF, and others have significantly increased consumer awareness of animal cruelty, increasing demand for other options. Future profitable opportunities for the automotive fabric market are being created by innovation and technological advancements in the quality of faux leather materials.
By regions, the global automotive fabric market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific Dominates the Global Market
Asia-Pacific is the most significant global automotive fabric market shareholder and is expected to grow at a CAGR of 5.8% during the forecast period. Due to increased auto production in nations like China and India, the Asia-Pacific automotive interior market has experienced significant growth. For instance, Kia Motors invested USD 1.1 billion in the construction of a factory in the Indian state of Andhra Pradesh to enter the Indian market for vehicle production. Automobile sales in this region are boosted by factors like rapid urbanization, expanding economies, and rising personal income levels. As a result, these elements fuel the Asia-Pacific region's expanding market for automotive fabric. The expansion of automotive manufacturing facilities and the rising demand for raw material components are also anticipated to expand the market for automotive fabrics. Additionally, a rise in disposable income in Asia-Pacific nations boosts the region's auto sales.
Europe is expected to grow at a CAGR of 3.9%, generating USD 11,150.05 million during the forecast period. Germany, the UK, France, Russia, and the rest of Europe are all included in the European market analysis. Leading businesses are active in the European automotive fabric market, including Lear Corporation, Faurecia, and others. The market is expanding as a result of increased vehicle production and sales in the region. In Europe, emphasis is placed heavily on increased fuel efficiency and autonomous driving. Furthermore, due to tighter safety regulations in Europe, demand for these features has grown. As a result, the requirement for safety features like seat belt reminders and electronic stability control increases the demand for manufacturers to produce new kinds of fabric.
North America is expected to grow significantly over the forecast period. The United States, Canada, and Mexico make up North America. The growth of the automotive fabric market in North America is fueled by the rise in demand for high-end automotive accessories and technological advancements related to the availability of plush and eco-friendly fabrics across the industry. The demand for automotive fabrics increased as new car sales in North America increased as personal income levels rose. Airbags, metal trim, and two-color seats are also popular in North America. In addition, the automotive industry in the region is experiencing rapid growth for synthetic and polyester-type fabric materials, which is primarily supported by an increase in applications for seat covers and flooring.
Latin America saw strong growth due to the consistent development of its member states, and the market for automotive fabric grew consistently in the region. LAMEA holds the smallest market share for automotive fabric but is anticipated to grow the fastest over the forecast period. Due to an increase in consumer disposable income and living standards, LAMEA has seen steady economic growth over the past few years. This is the primary driver of this area's market growth. The LAMEA automotive fabric market is expected to benefit significantly from the growth in auto sales and the region's economy's transition.
The global automotive fabric market is segmented by fabric type, application, and vehicle type.
Based on fabric type, the global market is bifurcated into polyester, vinyl, leather, and nylon.
The polyester segment is the highest contributor to the market and is expected to grow at a CAGR of 5% during the forecast period. Polyester is a sturdy material that resists a variety of chemicals and is also resistant to stretching and shrinking. The strong and lightweight polyester fibers used to make this fabric prevent wrinkling. Additionally, it has qualities like stiffness, heat resistance (during treatments), and color fastness. Polyester is primarily used to make interior car parts like seat covers, headliners, door panels, package trays, tires, and safety belts.
In the automotive industry, vinyl is frequently used for things like dashboards, armrests, interior upholstery, windscreen system components, and body-side moldings. It offers high quality, is flexible, and is cost-effective. Additionally, it uses relatively little energy, reducing the depletion of natural resources. This is further enhanced in vehicles by lightweight PVC components as opposed to traditional materials, which lowers the weight & fuel usage. PVC enables the most complex interior designs, enhancing the vehicle’s comfort. It also offers a lot of appealing visual characteristics and leather-like softness. As a result of their simplicity to use, versatility, waterproofness, chemical resistance, longevity, and affordability, PVC fabrics are also preferred by many manufacturers.
Based on application, the global market is bifurcated into carpets/floor covering, upholstery, pre-assembled interior components, tires, safety belts, and airbags.
The carpets/floor covering segment owns the highest market share and is expected to grow at a CAGR of 3.9% during the forecast period. In most cases, the backing of carpets is made of rubber. Due to their high-temperature resistance, materials like needle-felt carpets and tufted cut-pile carpets are frequently used in automotive interiors. Additionally, needle-punched nonwovens are used in intermediate or lower-grade cars as opposed to tufted carpets, which are found in more expensive and luxurious vehicles.
Upholstery, which is used to cushion and cover the interior of automobiles, is also referred to as seating fabric. Leather, nylon, polyester, and other fabrics are some of the materials used for seating. The steering wheel cover, dashboard, armrests, door panels, and shifter boots are additional items covered under the umbrella of automotive interior upholstery services. The demand for sophisticated and opulent car features has increased the availability of fully independent, high-definition infotainment systems with built-in games and opulent, configurable seating. For instance, Pacifica began offering rear seating in its vehicles with an innovative stowing and pivoting mechanism more akin to a mobile living room than a traditional minivan.
Based on vehicle type, the global market is bifurcated into passenger and commercial vehicles.
The passenger vehicle segment is the highest contributor to the market and is expected to grow at a CAGR of 5.1% during the forecast period. Different types of fabric are used in passenger cars' interior and exterior components, including steering fabric, infotainment, sun visor, headliners, and sunroofs. Due to an increase in demand for vehicles like sedans, luxury sedans, and mid-range vehicles, the passenger vehicle segment is anticipated to expand significantly during the forecast period. Practical fabric is required for interior applications in passenger vehicles. Consequently, it is anticipated that rising passenger vehicle demand will propel the automotive fabric market. The demand for fabrics is expected to increase in vehicles as consumer demand for driving comfort rises. Additionally, a rise in disposable income in nations like China and India is anticipated to increase demand for passenger cars, which will further fuel the expansion of the global market.
Light commercial and heavy commercial vehicles are included in the commercial vehicle segment. These vehicles are highly sought after in developing countries due to their appealing fabric material and improved safety features. Due to their large carpet sizes and interior and exterior applications, commercial vehicles require a more significant amount of fabric than passenger vehicles. The demand for commercial vehicles is rising as developing nations' manufacturing and construction sectors expand. Additionally, as logistics infrastructure improves, commercial vehicle demand also rises, driving demand for automotive fabric solutions.
The global automotive fabric market’s major key players are