Automotive Interior Materials Market size is expected to reach USD 80 Billion by the end of 2033, growing at a CAGR of 3% during the forecast period i.e., 2023-2033. In the year 2022, the industry size of automotive interior materials was over USD 50 Billion. The primary factor attributed to the growth of the automotive interior materials is attributed to the rapid growth in the automotive industry during the years. The recent statistics reveal that the global automotive industry is expected to reach approximately USD 9 trillion by 2030.
The automotive interior materials carry a huge importance as these are the primary factors that pleases and attracts the customers. Also, the increased technological advanced and demand for customization of the automotive interiors is expected increase the sales of automotive interior materials market in the forecast period. Owing to this new trend, the employment rate in the automotive industry has significantly risen up in the fast years. Thus, the high employment in the global automotive industry is expected to increase the usage of automotive interior materials in manufacturing vehicles. In fiscal year 2018, the Indian automotive industry employed approximately 2 million people.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~3% |
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Base Year Market Size (2022) |
~ USD 50 Billion |
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Forecast Year Market Size (2033) |
~ USD 80 Billion |
Vehicle Type (Passenger Cars, LCVs, HCVs)
The automotive interior materials market is segmented and analyzed for demand and supply by vehicle type into passenger cars, LCVs, HCVs, and others. Out of these, the passenger cars segment is expected to garner the highest market share by 2033, owing to the high demand of personal vehicles by the burgeoning population. International Organization of Motor Vehicle Manufacturers (OICA) stated that the global passenger vehicles sales rose from 53,917,153 units in 2020 to 56,398,471 units in 2021, whereas, the production rose from 55,908,989 in 2020 to 57,054,295 in 2021. Also, the growth in disposable income, increased interest in travelling and rising need for comfortable vehicles are some of the other factors that are expected to bring lucrative growth opportunities for the market in the assessment period.
Major Macro-Economic Indicators Impacting the Market Growth
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Application |
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By Vehicle Type |
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Regionally, the global automotive interior materials market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in Asia Pacific is projected to hold the largest market share by the end of 2033, owing to the increased demand of vehicles by the growing population. The total production of vehicles in the region was 46,732,785 units in 2021, a rise from 44,276,549 units in 2020. Similarly, the total sales in the region was 42,663,736 units in 2021, a rise from 40,322,544 in 2020 as per statistics released by International Organization of Motor Vehicles. Another factors that are attributed to the increase the utilization of automotive interior materials is the presence of major key players and leading exporters and importers of vehicles in the region. In 2021, China exported around 402,000 commercial vehicles and around 2 million passenger vehicles. Also the growing Gross Domestic Product (GDP) level along with the rising employment rate and rising income levels are another factors for increased adoption rate of automotive interior materials.
Lear Corporation has entered into a definitive agreement to acquire substantially all of Kongsberg Automotive’s Interior Comfort Systems (ICS) business unit.
Toyoda Gosei Co., Ltd. has decided to apply its newly developed cellulose nanofiber (CNF)-reinforced plastic for interior and exterior automotive products to make lightweight containers.
Author Credits: Smruti Ranjan, Rajrani Baghel
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