Automotive Interior Materials Market Analysis

Plastic material segment will generate more than USD 20 billion revenue by 2026 owing to its favorable capabilities and the vast chemical know-how of the material. Plastic is amongst the most researched materials and has gained mutual adoption in the automotive industry due to its good mechanical properties combined with excellent aesthetical appearance. With clever interior placements and improvements in manufacturing capabilities, the material witnessed a rapid growth and gained the second position amongst the most common class of materials used in vehicle manufacturing next to ferrous metals.

Seats application segment will account for over 30% automotive interior materials market share by 2026. Seats are of considerable importance as they mitigate driver discomfort during long drives or bad driving conditions. Various psychological & physiological studies on human perception, weight distribution, posture and adjustability have resulted in the use of a variety of materials.

High-performance polyurethane foams coupled with covering materials, such as leather or fabric, are used in the manufacturing of seat cushioning. The need for lightweight components in modern vehicles has also resulted in the use of carbon fibers and other performance composites in the back portion of seats.

Passenger cars segment is projected to register around 5.5% growth rate during 2020-2026. These hold the major sales share with a decrease in update cycles and its consumption is set to remain high. However, several government initiatives to curb environmental pollution and material pollution have resulted in a surge in demand for composite materials. The use of thermoplastics is also on the rise due to their recyclability.

The aftermarket end user segment is expected to witness more than 6.5% CAGR through 2026 led by a large presence of small & large-scale suppliers. Components, such as floor carpets, replacement seat covers, and steering covers, will significantly contribute to the segment growth. E-commerce platforms are also anticipated to play a major role and small manufacturers will be able to expand their reach and base.

Asia Pacific automotive interior materials market is likely to hold above 45% revenue share by 2026. It can be ascribed to the development in the regional automotive industry. Robust economic development, rising urbanization, increasing spending power of the middle-class populace, supportive government initiatives, etc., are some of the factors boosting the regional automotive industry growth. The proliferating demand for passenger cars coupled with rising aftermarket activities will boost the regional market demand.