February 29, 2024
Automotive Interior Materials Market

Increasing Demand for Luxury Vehicles to Drive Growth in the Global Automotive Interior Materials Market

The global Automotive Interior Materials Market is estimated to be valued at US$ 203.4 Mn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Automotive interior materials are used to furnish the interior cabin of vehicles. They include seat cover materials, flooring materials, door panels, interior trims, headliners, and instrument panels among others. Luxury automobile manufacturers are focusing on offering premium interiors to attract affluent customers. High-quality leathers, artificial leathers, genuine wood trims and soft-touch plastics are being increasingly utilized to enhance the aesthetics and feel of vehicle cabins. Additionally, breathable, anti-microbial, and odor resisting fabrics are gaining traction owing to rising consumer inclination towards hygienic interiors.

Market key trends:
Growing demand for comfort and convenience in vehicles has accelerated the incorporation of advanced materials such as active carbon fiber composites and shape memory alloys in seat frames, rearview mirrors, and door handles. Furthermore, the integration of consumer electronics in instrument panels and rising popularity of electric vehicles (EVs) have opened lucrative opportunities for lightweight and conductive materials. Luxury automakers have also commenced utilizing natural and recycled materials to improve sustainability. Strong focus on research & development of novel biomimetic and biomass-derived interior solutions is expected to define future trends in the automotive interior materials landscape.
Porter’s Analysis

Threat of new entrants: The automotive interior materials market requires high R&D investment and resources. Established manufacturers have strong brand recognition and economies of scale which pose barriers for new entrants.

Bargaining power of buyers: Customers in the automotive interior materials market have moderate bargaining power due to presence of multiple manufacturers. However, switching costs are low which gives buyers more options.

Bargaining power of suppliers: Few raw material suppliers exist for automotive interior materials which gives them stronger bargaining power against manufacturers. Suppliers also have opportunities to integrate forward.

Threat of new substitutes: Substitute materials like carbon fiber and artificial leather pose threats. However, established materials still dominate due to brand loyalty, affordable costs and compliance with strict regulations.

Competitive rivalry: The market is highly competitive with few global players dominating. Manufacturers differentiate based on innovation, customization, and strategic partnerships.

Key Takeaways

The global Automotive Interior Materials Market Share is expected to witness high growth, exhibiting CAGR of 4.0% over the forecast period, due to increasing environmental regulations and demand for lightweight vehicles. Asia Pacific dominates the market currently due to presence of automotive manufacturing hubs in countries like China, India, and Japan.

The market size for automotive interior materials was US$ 203.4 Mn in 2023. Stringent fuel efficiency and emission norms are driving automakers to adopt lightweight materials for interiors. This is propelling demand for engineered plastics, composite materials, and recycled automotive plastics.

Key players operating in the automotive interior materials market are BASF SE, Dow Chemical Company, Borgers A.G., Faurecia S.A., Adient Plc, Lear Corporation, Eagle Ottawa, D.K. Leather Corporation Berhad. These companies are focusing on new product development through R&D and partnerships to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it