In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
Automotive fabric plays an important part in the automotive industry. A good automotive fabric can improve functionality, aesthetics and durability of the vehicles. Automotive fabrics are often used for auto upholstery & interiors that includes interior carpets, seats, headliners, dashboards and other parts of vehicle. Automotive fabric also offers vehicle safety as well as interior ambiance and appealing look to the vehicles.
Global automotive fabric market is expected to witness significant growth over the forecast period. The market is expected to thrive on the back of growing automotive industry across the globe. Increasing sales of vehicles and increased spending of consumers on vehicles ornament are likely to be the key drivers behind the growth of market during the forecast period.
Regionally, the global automotive fabric market is segmented into North America, Latin America, Europe, Asia Pacific and Middle East & Africa regions. Among these regions, Asia Pacific automotive fabric market is expected to witness significant growth in global automotive fabric market by the end of forecast period. Rising vehicle production in Asian countries and increasing sales of passenger cars are key factors which are environed to strengthen the market of automotive fabrics in this region. Additionally, India, China and Japan are some of the major vehicle producer countries and are expected to contribute significantly in the growth of Asia Pacific automotive fabrics market during the in Asia Pacific region.
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Apart from Asia Pacific, North America region grabbed major shares in previous years and is accepted to witness robust growth over the forecast period. Increasing sales and production of luxury vehicles in U.S. and high spending by consumers on vehicle service and up gradation are expected to enhance the demand for automotive fabric market in this region. Apart from this, U.S. is likely to contribute significantly in the growth of automotive fabric market in North America region during the forecast period.
Further, upholstery segment by application grabbed major shares of market in previous year and is expected to continue this positive growth over the forecast period. Availability of wide range of automotive fabrics such as plastics and leathers that can enhance the interior ambiance and can offer better look to the vehicle are expected to drive the growth of this segment during the forecast period.
Our in-depth analysis has segmented global Automotive Fabric market into the following segments:
By Vehicle Type
By Sales Channel
Global automotive fabric market is further classified on the basis of region as follows:
The increasing sales of vehicles are the major factor which is responsible for the growth of automotive fabric market. In addition to this, the global automotive industry is driven by a number of factors such as rinsing consumer’s affordability, growing income of consumers and availability of easy financing options to buy a vehicle. Further, this growth in automotive industry is fuelling the growth of automotive fabric market.
According to OICA, 94.7 million motor vehicle productions was held to be in 2016. Moreover, this represented a Y-o-Y growth of 5.0% as compared to 2015. Additionally, automotive production is anticipated to increase on the account of rising demand. This factor signals promising growth of the automotive fabric market in upcoming years.
Additionally, changing lifestyle of consumers and rising preference for cars over motor bikes is a key factor which has led leading automakers to expand their production range to meet the increasing demand for vehicles across all regions. For instance, total global production of cars in 2016 reached 72,105,435 as compared to 68,539,516 in 2015. Automakers such as Jaguar Land Rovers and BMW are executing aggressive expansion plan to boost the production and sales of the company across the globe. This factor is projected to bolster the growth of automotive fabric market in future.
Growing aftermarket sales of automotive fabric is also strengthening the growth of market across all regions.
However, presence of alternative of fabrics such as synthetic leather, natural leather, and PVC may hamper the growth of automotive fabric market in upcoming years.