Automotive Interior Materials Market Size, Share, Growth Analysis, By Product type(Leather, Composite), By Application(Dashboard, Seats), By Vehicle(Passenger vehicle, Light commercial vehicle) - Industry Forecast 2024-2031

Automotive Interior Materials Market size was valued at USD 56.09 billion in 2019 and is poised to grow from USD 78.2 billion in 2023 to USD 80.2 billion by 2031, growing at a CAGR of 3.9% in the forecast period (2024-2031).

The automotive interior materials market is fragmented, with a prominent market player acquiring a sizable portion. The prominent players operating in the market are constantly adopting various growth strategies to stay afloat in the market. Product launches, innovations, mergers, and acquisitions, collaborations and partnerships, and intensive R&D are some of the growth strategies that are adopted by these key players to thrive in the competitive market. The key market players are also constantly focused on R&D to supply industries with the most efficient and cost-effective. 'Lear Corporation', 'Johnson Controls International PLC', 'Faurecia SA', 'Toyoda Gosei Co. Ltd.', 'Adient plc', 'Grupo Antolin-Irausa S.A.', 'Sage Automotive Interiors Inc.', 'Seiren Co. Ltd.', 'DK Leather Corporation Berhad', 'Bader GmbH & Co. KG', 'Suminoe Textile Co. Ltd.', 'Futuris Automotive Inc.', 'Nihon Plast Co. Ltd.', 'GST AutoLeather Inc.', 'BASF SE', 'Covestro AG', 'ExxonMobil Chemical Company', 'Sabic', 'DuPont de Nemours, Inc.', 'Koninklijke DSM N.V.'

The automotive industry's primary goal is to improve fuel efficiency and reduce emissions by reducing vehicle weight. As a result, consumers are adopting various lightweight materials, which are expected to drive market growth. With the imposition of stringent standards such as CAFE (Corporate Average Fuel Economy), automakers are aiming for high consumption of lightweight materials in vehicles such as plastics, composites, and fabrics. In North America, for example, the 2025 CAFE standards require automakers to deliver a fleet average of at least 54.5 mpg. Furthermore, automakers will have more freedom to change the design in order to maximize performance by using materials such as plastics and composites.

Plastics have long been used in the automotive industry for a variety of applications such as interior, exterior, under the hood, and others because they offer several advantages such as reduced weight, flexibility, and design. With fossil fuel as a finite resource for plastics, the industry is now embracing bio-based plastics to ensure the continued use of automobiles for weight reduction and high performance. The interiors of the Lexus HS 250h, for example, are made of bioplastics. Toyota, for example, has used bio-based plastics such as bio-polyesters, bio-PET (polyethylene terephthalate), and PLA-blends (polylactic acid) in various interior components of their vehicles.

Based on region, automotive interior materials market is segmented into North America, Asia Pacific, Europe, Latin America and Middle East Africa. From 2022 to 2028, Asia Pacific is expected to grow at a CAGR of 6.4 percent. Increased government support in the form of subsidies and favourable regulations is expected to entice automotive manufacturers to establish plants in the region, driving the growth of the APAC automotive interior materials market for. Europe is expected to grow at a CAGR of 3.9 percent from 2022 to 2028 and will continue to be a significant market in the scenario. Because of the importance of automotive interiors to European consumers, manufacturers have been able to innovate and market a variety of applications, which is expected to drive demand. Because of increased demand for passenger vehicles, frequent technological advancements, and the economic feasibility of premium options, the market for automotive interior materials in North America is comparatively more developed. Owing to North America's widespread reliance on automobiles for personal transportation, the market in this region is expected to grow steadily. Furthermore, demand is expected to rise significantly as a result of strict fuel economy standards.