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The automotive interior materials market share is expected to increase by USD 26.43 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 4.24%.
This automotive interior materials market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers automotive interior materials market segmentations by material (plastic polymers, leather, textile fabric, and others) and geography (APAC, North America, Europe, South America, and MEA). The automotive interior materials market report also offers information on several market vendors, including Adient Plc, Borealis AG, Covestro AG, Faurecia SE, GRAMMER AG, Grupo Antolin-Irausa SA, Lear Corp., Sage Automotive Interiors Inc., SEIREN Co. Ltd., and Toyota Boshoku Corp. among others.
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The rise in improved passenger car sales due to financing flexibility is notably driving the automotive interior materials market growth, although factors such as fluctuations in raw material prices may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the automotive interior materials industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Automotive Interior Materials Market Driver
One of the key factors driving the automotive interior materials market growth is the rise in improved passenger car sales due to financing flexibility. Car loans are an integral component of the automotive industry and form the biggest driving factor for car sales. This subsequently leads to an increase in automotive glove box sales. General Motors was the first company in the automotive industry to establish a non-banking institution that would support potential buyers to buy cars and indirectly assist OEMs in improving their car sales. In Europe, OEMs such as Fiat and Renault were offering discounts on new car sales to expand their customer base. This strategy worked well for the automakers. For the first time since the global recession period, new car sales registered growth and marked the beginning of passenger car sales in Europe. Auto industry observers found car loans as the biggest driving factor for the expansion of the compact car segments globally. With the increase in passenger car sales, the market for automotive interior materials is expected to witness steady growth.
Key Automotive Interior Materials Market Trend
Innovations in lightweight materials is the major trend influencing automotive interior materials market growth. The consumer demand for automobiles with improved fuel efficiency has considerably increased over the years, primarily due to the rise in fuel prices. Automobile manufacturers are exploring solutions that can reduce the weight of automobiles to enhance fuel efficiency. The demand for fuel efficiency in vehicles has contributed to the popularity of lighter automobiles. Vendors are introducing innovative and lightweight materials for the interior and exterior parts of vehicles. Huntsman is focusing on the development and introduction of dense PU elastomers with barium sulfate mineral fillers that are lightweight and can contribute to NVH insulation. Another breakthrough in this industry is the development of seats that are thinner and much more comfortable. These seats have achieved a drastic reduction in weight by using composites materials and plastic polymers instead of the currently used metal side plates. Such a reduction in seat weight has resulted in more floor space and overall weight reduction of the vehicle. The use of nanotechnology to develop such thinner and lighter materials is another ongoing trend in this segment. In addition, acrylic powder is increasingly being used in automotive interior materials to enhance durability and provide a sleek, modern finish to vehicle components.
Key Automotive Interior Materials Market Challenge
Fluctuations in raw material prices is one of the key challenges hindering the automotive interior materials market growth. The manufacturing of PU foams and polyethylene foams requires raw materials, such as benzene, toluene, and other chemicals, from the oil and gas industry. Elastomers and other polymer plastics, such as PP, are used in vehicles as they are crude-oil-based materials. The oil and gas industry is one of the principal suppliers of raw materials for the global polymer market and is affected by the price fluctuations of crude oil. Crude oil prices in the market are currently highly volatile, which leads to unstable feedstock prices for polymers that are used in the production of automotive interiors. These unstable prices alter the total cost of the product, and this affects the revenue of vendors. Manufacturers in several regions are also dependent on raw materials that are imported from other countries, exposing them to international market risks such as the increase in prices and uncertainty about the timely supply of raw materials.
This automotive interior materials market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global automotive interior materials market as a part of the global automotive components and accessories market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the automotive interior materials market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the automotive interior materials market encompasses successful business strategies deployed by the key vendors. The automotive interior materials market is fragmented and the vendors are adopting organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The automotive interior materials market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the automotive interior materials market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
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52% of the market's growth will originate from APAC during the forecast period. China, Japan, and South Korea (Republic of Korea) are the key markets for automotive interior materials market in APAC. Market growth in this region will be faster than the growth of the market in other regions.
APAC will lead the global automotive interior materials market owing to the growing economic developments in the Association of Southeast Asian Nations and an increase in per capita income that has bolstered the purchasing power of consumers. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
Manufacturing activities in APAC were adversely impacted in 2020 due to the COVID-19 pandemic. The imposition of stringent lockdowns and social distancing regulations forced many business owners to shut down their facilities temporarily. However, the manufacturing industries are expected to recover in 2021 as various countries in the region have started rolling out vaccines which would result in full-fledged manufacturing operations. Therefore, the growth in capital spending is expected to drive the demand for commercial vehicles, which will positively impact the growth of the automotive interior materials market in the region over the projected period.
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The automotive interior materials market share growth by the plastic polymers segment will be significant during the forecast period. Polypropylene (PP) is a thermoplastic polymer that is used in a wide range of markets such as packaging, household appliances, construction, textiles, and automotive. It is widely used in interior trims, such as the door trim and lining of vehicles, thereby driving the demand of this segment.
Besides the above-mentioned factors, the post COVID-19 impact has brought forth a slowdown in or fast tracked the demand for the service or product. This report provides an accurate prediction of the contribution of all the segments to the growth of the automotive interior materials market size and actionable market insights on post COVID-19 impact on each segment.
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Automotive Interior Materials Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2020 |
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Forecast period |
2021-2025 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.24% |
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Market growth 2021-2025 |
USD 26.43 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
3.45 |
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Regional analysis |
APAC, North America, Europe, South America, and MEA |
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Performing market contribution |
APAC at 52% |
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Key consumer countries |
US, China, Germany, Japan, and South Korea (Republic of Korea) |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Adient Plc, Borealis AG, Covestro AG, Faurecia SE, GRAMMER AG, Grupo Antolin-Irausa SA, Lear Corp., Sage Automotive Interiors Inc., SEIREN Co. Ltd., and Toyota Boshoku Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Material
6 Customer landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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