Automotive interiors are usually made of materials such as leather, wood, vinyl, fabric, and polymers. The leathers used can vary from genuine leather to synthetic leather and PVC leather to PU leather. Of the various materials, leather and PVC are the more popular materials used in automotive interiors.
The global automotive interior materials market is progressing at a CAGR of 2.70% between 2015 and 2023. The market was valued at US$111.61 bn in 2014. Given the current rate of growth and positive scope in the near future, this market is expected to reach US$137.06 bn by the end of 2023. The key players in the global automotive interior materials market are BASF SE, Lear Corporation, Grammer AG, Johnson Controls, Inc., and Faurecia SA.
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Global Automotive Interior Materials Market Gets Investor Interests Piqued
The key reason for the growth of the global automotive interior materials market, currently, is the higher amount of investments offered by multiple private equity firms across the world. These companies are seeking investment opportunities in the global automotive interior materials market in a buy-and-build manner. A large proportion of this investor interest is going to the automotive companies in the U.S., Germany, and the U.K., where they are looking for big automotive names and startups alike. This is due to the high success rates held by the original equipment manufacturers of these nations.
The global automotive interior materials market is also propelled by the increase in research and development efforts taken in its more mature areas. This market, however, is currently being restrained by a slowdown in the global rate of automotive production, which is the direct application sector of the global automotive interior materials market. This lower production rate could affect the regional players in the global automotive interior materials market. Additionally, this market is also restrained by the changing costs of raw materials.
Leather is the Leading Material, Passenger Vehicles the Leading Application in Global Automotive Interior Materials Market
In terms of materials used, the global automotive interior materials market can be segmented into wood, vinyl, fabric, thermoplastic polymers, and leather. Of these, nearly 30.0% of the global automotive interior materials market was occupied by leather in 2014. Leather is the most preferred type of material in automotive interiors due to its superior utility, aesthetics, and comfort than other materials. The segment of leather materials is further divided into the sub-segments of artificial leather, synthetic leather, PVC leather, and genuine leather.
In terms of applications, the global automotive interior materials market is segmented into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. Of these, the global automotive interior materials market was dominated by the segment of passenger vehicles. This segment accounted for more than 60.0% of the market in 2014, and is projected to maintain its leading position in the near future.
While Europe was the leading region in the global automotive interior materials market in 2014, its future lies in the burgeoning developing economies of the world, such as the regions in the Asia Pacific and the Rest of the World segments.