Automotive Interior Market Size, Share, Opportunities, And Trends By Component Type (Instrument Panels, Infotainment Systems. Interior Lighting, Body Panels, Other Component Types), By Vehicle Type (Passenger Cars, Commercial Cars), And By Geography - Forecasts From 2024 To 2029

The automotive interior market is anticipated to expand at a high CAGR over the forecast period.

The automotive interior market is responsible for designing the vehicle's interior by improving surfaces, placement, proportion, and shape for many interior components that are present in the vehicle such as seat, instrument panel, pillar trims, door trim panels, and headliner. The main focus in automotive interior design is on enhancing driver's comfort and putting emphasis on ergonomics. Interior design in automotive consists of a color and trim designer who is responsible for the development, design, and research of the colors that will used in the interior of automobiles. The materials used in designing the interior include wood trim, carpet, headliner, grains, fabric design, leather, paints, and plastic.

The new electric vehicles are bringing several changes to interior design enhancing the driver experience of drive and providing more comfort. In these new vehicles, there is HMI or Human-Machine-Interface that will enhance the overall cabin experience with improved connectivity and swivel seats. Also, the automated assistant in the vehicle interior has improved the ability to respond to all passenger's voices that are present in the vehicle and assist them according to their needs.

INTRODUCTION:

The major market driver of the automotive interior market is the increase in demand for more aesthetic-looking vehicles coupled with the use of lightweight materials in designing interiors and growing demand for autonomous vehicles among the general vehicles. All these factors are raising the need for improving the driver's cabin experience by providing top-notch interior design to improve comfort and put emphasis on the ergonomics of the vehicle. Therefore, the rising demand for more aesthetically pleasing and comfortable interior vehicles is predicted to grow the automotive interior market over the forecast period.

The collaboration of component manufacturers with OEMs is also working towards providing advanced interior components to gain a major market share and fuel the overall market. Moreover, an increase in customer preference to get more convenience, advanced safety, and premium features in the vehicles. The growing demand for interior customization or styling in premium vehicles by customers is also fueling the growth of the automotive interior design market.

MARKET DRIVERS:

• Growth in the demand for autonomous vehicles is predicted to propel the market:

The demand for autonomous vehicles has seen a significant growth in the recent years among the general public. These autonomous vehicles are eco-friendly and more fuel-efficient than traditional combustion engine vehicles. Therefore, various governments around the globe are promoting and enhancing infrastructure for these autonomous vehicles. These autonomous vehicles have special interior needs other than common seat, paint, and other things. They require an HMI or human-machine interface that can assist the driver by recognizing his voice. Therefore, the rise in demand for autonomous vehicles is predicted to propel the market.

• The rising demand for premium features in vehicles is projected to drive the automotive interior market.

The features provided by an automobile play a crucial role in the selection of a vehicle by the customer. The customer's demand is rising for providing premium features in the vehicle such as lightweight material use for better fuel efficiency. Also, various features enhance driver’s comfort in luxury vehicles by manufacturers such as Mercedes-Benz, Audi, and BMW.

These features include HUDs, a smart seating system, heated steering wheels and seats, ambient lighting, lighted headliners, memory seats, and panoramic sunroofs. In conclusion, this rise in demand for premium features by customers and manufacturers working to provide them with the latest automobiles is driving the market growth.

• The growing demand for interior customization in luxury vehicles is anticipated to propel growth in the market.

There is a growing demand for the customization of luxury vehicles by customers to enhance the vehicle’s interior according to their needs. To match the rising demand for luxury vehicles around the globe many OEMs are providing these customized interior services. Various major automobile manufacturers provide this option to customize vehicles according to the customer's needs.

For instance, Tesla provides with option to select accent colors, headliners, trim finishes, color schemes, and seat material. This growing demand for interior customization among the general public coupled with the rise in demand for luxury vehicles is predicted to boost the market over the forecasted period.

MARKET RESTRAINT:

The complex software algorithms for the development and maintenance of these electrical interior components of cars require a large amount of battery power and take up a lot of space in the processor. This battery power is used for a variety of interior features like connected automobile features, sensors for data processing, onboard diagnostics systems, and infotainment systems. All these require power consumption and many operations such as control of the sunroof and automatic seat adjustments both use motorized power.

Additionally, the connection of smartphone devices to vehicles to connect with wi-fi, Bluetooth, and GPS for navigation all require power consumption. Therefore, this high power consumption in automotive interior design is predicted to hinder the overall market over the forecast period.

Prominent growth is projected in the North American region.

The North American region is expected to show major growth in the automotive interior market. The rapid growth in demand for autonomous vehicles in the region is a major market driver in the region. It is predicted that in a few years, they will only have autonomous vehicles and no driver or passenger vehicles in the region. Therefore, to match the rising demand for autonomous vehicles the demand for new and innovative automotive interior solutions which are suitable for these autonomous vehicles is also rising. Also, the rising demand in the region for more luxury and premium features in the vehicle is anticipated to propel the market.

As per the IEA, the sales of battery-electric vehicles, hybrids, and plug-in hybrids in the USA’s total vehicles sold accounted for 16% in 2023, which has increased compared to 12.5% in 2022, and 9.0% in 2021. This will positively affect the market growth of automotive interiors in the region.

Products Offered by Key Companies:

• Yanfeng: Armrests are a key touchpoint for occupants. They are available for simple low-cost components and for high-cost components with luxury features such as a charging point, storage, and a touch display to access other features.
• 3M: Thinsulate Acoustic Insulation provides insulation material that is designed to absorb sound vibrations and dissipate heat, excellent for maintaining comfortable interior temperatures regardless of the environment outside.

Key Developments:

• In March 2024, Yangfeng announced that the company has developed a new seat concept that helps in reducing carbon footprint. This is an important milestone in achieving a sustainable future in the automotive interior industry.

Segmentation:

• By Component Type
  • Instrument Panels
  • Infotainment Systems
  • Interior Lighting
  • Body Panels
  • Other Component Types
• By Vehicle Type
  • Passenger Cars
  • Commercial Cars
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others 
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Others 
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others 
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others