According to a new market report published by Lucintel, the future of the global automotive interior material market looks promising with opportunities in the passenger car and commercial vehicle segments. The global automotive interior material market is expected to reach an estimated $108.3 billion by 2022 and it is forecast to grow at a CAGR of 5.5% from 2017 to 2022. The major growth drivers for this market are increasing vehicle production, growing demand for advanced vehicle safety and comfort systems, and rising demand for premium aesthetic vehicles with lightweight interior materials.
In this market, plastics, fabrics, and leather are some of the major segments of automotive interior materials. On the basis of our comprehensive research, Lucintel forecasts that the leather and fabrics segments will show above average growth during the forecast period.
Within the global automotive interior materials market, the leather segment is expected to remain the largest market. Vehicle manufacturers are providing leather upholstery in mid-range and premium cars, which would spur growth for this segment over the forecast period.
Asia Pacific is expected to remain the largest market due to high vehicle production, improvement in the economic conditions, and increasing investment by the industry players within the APAC region.
Asia Pacific and the Rest of the World are expected to witness significant growth over the forecast period because of rapidly increasing demand for premium aesthetic interior materials in small, compact, and mid-size cars.
For business expansion, this report suggests innovation and new product development to produce environmentally friendly, lightweight, smart interior materials which will enhance the aesthetic appeal of the vehicle. The report further suggests the development of partnerships with customers to create win-win situations and the development of low-cost solutions for customers.
Emerging trends, which have a direct impact on the dynamics of the industry, include increasing demand for smart fabrics and increasing demand of natural fiber composites in vehicle interior. BASF SE, Lear Corporation, GST AutoLeather, Inc., Seiren Co., Ltd. and Borger AG are the major automotive interior material suppliers in the global automotive interior material market. Several of these companies are seeking mergers and acquisitions as strategic initiatives to drive growth.