Automotive Interior Materials Market Expected to Reach $80.2 Billion by 2030—Allied Market Research

According to a new report published by Allied Market Research, titled, “Automotive Interior Materials Market," The automotive interior materials market was valued at $55.0 billion in 2020, and is estimated to reach $80.2 billion by 2030, growing at a CAGR of 3.9% from 2021 to 2030.

Technological advancements, rise in vehicle customization activities, increase in consumer demand for lightweight vehicles, surge in demand for low-emission materials, and growth in electric vehicles market are the key factors that drive the growth of the global automotive interior materials market. In addition, adoption of green technology in the production of automotive leather is expected to provide growth opportunities for the market players. The plastics segment generated the highest revenue in 2020, and is expected to remain dominant throughout the forecast period. This is attributed to its superior mechanical properties along with excellent aesthetical appearance.

The automotive interior materials are primarily used in the production of headrests, seat covers, door panels, consoles, floor mats, and dashboards. These gain traction in passenger cars, light commercial vehicle, and heavy commercial vehicles. The automotive sector in developing countries is predicted to grow, owing to growth in manufacturing sector and improvement in economic conditions. Increase in demand for luxury vehicles in developed and developing countries drives the growth of market for automotive interior materials.

The automotive interior materials market is segmented on the basis of type, vehicle type, application, and region.

On the basis of type, the market is segmented into plastics, metals, fabric, leather, composites and others. Depending on vehicle type, it is classified into PV, LCV and HCV. As per the application, it is segmented into dashboard, door panel, seats, floor carpets and others. The door panel segment accounted for the highest market share in 2020, owing to surge in usage of automotive interior materials in door panels of the vehicles to enhance aesthetic appeal. Region wise, Asia-Pacific dominated the market in 2020, and is expected to maintain its dominance during the forecast period. There is increase in adoption of automotive interior materials products in the region, owing to rise in urbanization, surge in economic development, and growth in automotive sector in China, India, Japan, South Korea, and Thailand, which, in turn, boost the growth of the automotive interior materials market.

The key players profiled in the report include 3M, ARKEMA Group, BASF SE, Covestro AG, Dow, Evonik Industries AG, HEXCEL CORPORATION, HUNTSMAN INTERNATIONAL LLC, STAHL HOLDINGS B.V., and WACKER CHEMIE AG.

The other companies operating in the automotive interior materials industry include Bayerische Motoren Werke AG, Celanese Corporation, Delphi Automotive Plc Grammer AG, Grupo Antolin-Irausa SA, Technical Textile Services Ltd., Toyota Boshoku Corporation, Toyoda Gosei Co., Ltd., and ZF Friedrichshafen AG which compete for the share of the market through product launch, joint venture, partnership, and expansion of the production capabilities to meet the demand for the automotive interior materials during the forecast period. For instance, October 2021, Huntsman announced the launch of new range of low-emission MDI-based foam systems for automotive interiors, including the ACOUSTIFLEX LE and RUBIFLEX LE polyurethane product lines. These innovative technologies allow global automotive formulators and foam producers to develop high performance polyurethane foams, while lessening interior emissions levels to meet OEMs requirements.

IMPACT OF COVID-19 ON GLOBAL AUTOMOTIVE INTERIOR MATERIALS MARKET

• Emergence of COVID-19 pandemic negatively impacted the global automotive interior materials market.
• This impact is attributed to substantial disruptions in the raw material transportation and shutdown of manufacturing as well as end-use industries, including automotive sector, hence resulting in decline in demand for automotive interior materials during this period. For instance, there were large scale production interruptions across Europe, disruption in Chinese parts exports, and closure of assembly plants in the U.S. owing to COVID-19. Furthermore, vehicle sales in China declined in February 2020. Sales had plunged in the U.S. and Europe in April 2020. The passenger car sales in Europe declined by more than 65% between March and April 2020.

Key Findings of Study

• By region, Asia-Pacific held a dominant position in 2020.
• By type, the composites segment is projected to be the dominating segment during the forecast period.
• By vehicle type, the PV segment held the largest market share in 2020.
• By application, the door panel segment is projected as the most lucrative segment.