Automotive Interior Material Market Size, Share & Trends Analysis Report By Product (Leather, Composite, Metals, Fabrics, Plastic), By Application (Dashboard, Seats, Airbags & Seatbelts, Carpets & Headliners, Others), By Vehicle Type (Passenger Vehicles, Commercial Vehicles) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global automotive interior material market size was valued at USD 56.26 billion in 2022. It is projected to reach USD 80.08 billion by 2031, growing at a CAGR of 4% during the forecast period (2023–2031).

Roofing and flooring materials, plastics, leather, steering wheels, seatbelts, and airbags are all automotive interior materials. Every component used in a car's interior is there for a reason and it all works together to improve the vehicle. These components improve the car's interior design and significantly impact consumers' decisions to purchase. Additionally, the growing popularity of electric and autonomous cars has dramatically increased the need for lightweight construction components. Vehicles with advanced features, such as autonomous driving or electric propulsion, have numerous electronic control units (ECUs) and chips that must be integrated into the vehicle, which increases the vehicle's overall weight and necessitates the use of lightweight materials for the vehicle's body and other parts.

Market Dynamics

What are the Primary Factors Driving the Market for Automotive Interior Materials?

Increased Demand for Customization and Comfort

Recent years have seen a dramatic increase in the number of reasonably priced vehicles available as more and more people take to the road. For this reason, there is a greater demand for cars with aesthetically pleasing and ergonomically sound interiors. The market for automotive interior materials is propelled by rising demand for personalization and technological progress in the industry. As a result, businesses now provide options for personalization to develop fresh interiors in response to client needs. Furthermore, the rising consciousness of consumers about health is inspiring the development of environmentally friendly automotive interior materials that will contribute to improved comfort. The demand for automotive interior materials is rising due to these factors.

What are the Main Factors that will Slow Down the Market for Automotive Interior Materials?

Consequences of Improper Tanning Industry Effluent Disposal on the Genuine Leather Trade

Genuine leather is currently the most expensive material used for automotive upholstery. The harmful effects of leather processing on the environment have prevented its use from expanding in developed markets. The leather processing industry is struggling in most developed markets due to strict environmental regulations that have made it difficult for local manufacturers to compete. As a result, there has been a rise in the import of leather from the countries of Africa (heavy leather) and the Asia-Pacific region (India, light leather). Most manufacturers have switched to eco-friendly alternatives like synthetic leather because of the high import price, the abundance of other options, and the shifting perceptions of consumers toward genuine leather.

What are the Future Opportunities for Automotive Interior Materials?

Adoption of Green Technology in Automotive Leather Manufacturing

Tanneries produce the most wasteful byproducts of the leather industry because of their central role in the tanning process. Metals like chromium and aluminum chlorides, potassium and aluminum sutates, and zirconium sulphates are used in this process. In light of this, manufacturers have used green chemistry to create safer chemicals that are simpler to dispose of. Notable methods include tanning skins with glutaraldehyde in the presence of artificial d-AA like d-alanine or d-lysine, which results in highly stable leather thanks to the carboxylic and amine group of the amino acids' bridging feature. Since no toxic tanning agents are used in the process described here, the wastewater produced is completely safe for treatment plants to process and dispose of.

Regional Analysis

North America Dominates the Global Market

The global automotive interior material market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific is the most significant shareholder in the global automotive interior material market and is expected to grow during the forecast period. It is because of the potential expansion of the auto industry in emerging economies like China and India. Passenger and commercial vehicle sales have increased in these areas due to the rising demand for transporting raw materials, people, and consumer goods, driving up the demand for interior materials. The APAC market for automotive interior materials is projected to grow due to increased government support in subsidies and positive regulations, which are expected to attract automotive manufacturers to set up regional plants.

North America is expected to grow during the forecast period. A large part of this is the growing demand for high-end interiors and increased security features among today's consumers. Manufacturers of passenger vehicles in the country have been encouraged by safety mandates and regulations to include safety features such as seatbelts and airbags in their products. North America has a more mature market for automotive interior materials than other regions because of rising demand for passenger vehicles, regular technological advancements, and the relative affordability of premium options. Market expansion in North America is anticipated to be stable thanks to the region's heavy reliance on automobiles for personal transportation. Strict fuel economy standards are also expected to significantly increase demand.

As the European Union's automotive and manufacturing sectors expand, the demand for automotive interior materials is expected to rise sharply. Due to the push from these industries for greater automation and digitization in Europe's manufacturing ecosystem, the demand for automotive interior materials is expected to rise in the coming years. Europeans place a high value on automotive interiors, which has freed producers to develop and promote new uses for them.

Production of automobiles is expected to rise in the Middle East and North Africa (MENA) as countries like Egypt, South Africa, Nigeria, and Iran experience solid and consistent sales growth in the automotive industry over the next few years. There are promising growth prospects in the Middle East and Africa (MEA) market for automotive interior materials due to the rising demand for heavy commercial vehicles caused by the region's rapid infrastructural development. However, the market for automotive interior materials has grown significantly in LAMEA due to influential factors like the presence of developing economies like Africa and the rising need for industrial development.

Segmental Analysis

The global automotive interior material market is segmented by product, application, and vehicle type.

By Product Overview

Based on product, the global automotive interior material market is bifurcated into leather, composites, metals, fabrics, and plastic.

The plastic segment is the highest contributor to the market and is expected to grow during the forecast period. Polymers are thermoplastics that can be shaped into specific objects by heating the material. When they cooled, they hardened into a new shape. Inside and out, numerous automotive components are made from thermoplastic polymers. Using these polymers, ODMs can create interior parts that are both lightweight and long-lasting. Innovations in blended polymers and design and processing methods have made it possible for plastics to mimic the look and feel of high-end materials in today's modern interiors. Over the forecast period, demand for plastics in automotive interiors will rise as consumers desire more aesthetically pleasing vehicles.

By Application Overview

Based on application, the global automotive interior material market is bifurcated into dashboards, seats, airbags & seatbelts, carpets & headliners, and others.

The plastic segment is the highest contributor to the market and is expected to grow during the forecast period. The automotive industry benefits significantly from better dashboards and dashboard materials because dashboards are now expected to be safe for the environment and free of hazardous materials. The market is expected to be driven by an increase in dashboard production that makes use of cutting-edge techniques, designs, and materials. Carbon fibers and other composites are being used in automotive seating to reduce weight and increase passenger comfort.

By Vehicle Type Overview

Based on vehicle type, the global automotive interior material market is bifurcated into passenger vehicles and commercial vehicles.

The passenger segment is the highest contributor to the market and is expected to grow during the forecast period. All vehicles designed to transport people are included in the category of passenger vehicles. Vehicles that are used solely for personal transportation are classified here. Depending on the model, these automobiles have seating for anywhere from one to eight people. Due to increasing consumer demand for comfort and convenience features, the technology used in this car category is constantly evolving. When designing a new passenger vehicle, automakers place a premium on ensuring their products are as secure and comfortable as possible for their customers. Consumer demand for high-quality automotive interior materials is fueled by several factors, including rising incomes in developing countries and the relocation of manufacturing facilities from established automakers to these areas.

Impact of covid-19

The pandemic led to a temporary lockdown of the nations, which on a wide scale hindered the verticals of businesses and the industry. The automobile industry, which primarily involves outdoor jobs, has been poorly exposed to the challenges that have contributed to a dramatic decrease in car sales. Furthermore, the instability of the supply chain market mainly due to the closing of national and foreign borders and the adherence to the decision not to use Chinese produced products hampered the growth of the market. However, the considerable spike seen in the sale of the automotive vehicle to limit the usage of public and crowded places may positively affect the growth of the market in the upcoming years.

Recent Developments

• June 2022- Toyota Boshoku and Aisin have made a deal to switch production and commercial rights for parts of car seat frame mechanisms.
• October 2022- As the industry leader in automotive seating, Adient has formed a strategic partnership with EnerTech Capital, a venture capital firm that invests in new mobility-related technologies and business models.