Automotive Seat Control Module Market Trends

Growth Drivers

• Expansion in vehicle production: The automotive seat control module market is driven by the constant increase in the level of sophistication in seating technology. To reap benefits from the strong macroeconomic factors in the nation, demand in the domestic automotive sector has risen. For instance, in February 2024, Continental Automotive India planned to grow by 12% annually in CY2024. It intended to increase production capacity at its plants in Bengaluru and Manesar with an airbag control unit, telematics control unit, and tire pressure monitoring system sensors. Thus, companies through their contributions strive to change the landscape of the market.
• Rising disposable income: With the advent of enhanced purchasing power, mainly through emerging economies, buyers have begun to shift their demand towards premium and luxury cars, thus driving the automotive seat control module market. For instance, in July 2022, it was revealed that rising disposable income gives thrust to demand for premium vehicles. Every 1% rise in income corresponds to 1.5% rise in advanced seat control modules in luxury cars.  The latest automobile offers comfort-oriented seat functionalities in terms of memory settings, warming, and massaging functions.

Challenges

• Global supply chain disruption: The critical shortages of semiconductors pose a significant challenge for the automotive seat control module market. Electronic components are an integral part of seat control systems. Owing to its limited supplies, the car industry has thus significantly slowed down its production pace. Disruptions to the supply and logistics of raw materials are further entrenching delays and pushing up costs, as geopolitical tension and regulatory restrictions feed into these concerns. These challenges strain the automakers' ability to meet demand for advanced seat control modules and result in delayed deliveries of vehicles.
• Elevated development and integration costs: Advanced electronics, sophisticated software, and sophisticated integration with the vehicle's electrical architecture add to research and development and production costs extensively. The cost incurred by the auto manufacturer becomes challenging to balance out for profitability, especially for budget and mid-range vehicles. This may slow down the adoption of advanced seat control, making it possible only for high-end models and also limiting mass-market penetration. High developmental and integration costs pose a major challenge in the automotive seat control module market due to the complexity of designing advanced features.