Automotive Upholstery Market Size, Share, Opportunities, And Trends By Material Type (Leather, Vinyl, Others), By Product (Dashboard, Seats, Roof Liners, Door Trim), By Sales Channel (OEM, Aftermarket), And By Geography - Forecasts From 2024 To 2029

Automotive Upholstery Market is projected to grow at a CAGR of 5.32% from US$6.349 billion in 2022 to US$9.129 billion in 2029 during the forecast period.

Automotive upholstery is the covering or material that is used for improving the interior quality or visually appealing decoration for the interior of vehicles such as cars and trucks. Automotive upholstery contains several components, including trim panels and seats, that contribute significantly to improving a vehicle’s overall look, which is important for attracting customers as they check the interior before they buy any vehicle.

Automotive upholstery has several purposes, such as aesthetics and function. For instance, a vehicle's seat material should be visually appealing and comfortable for the driver, and sometimes the customer demands customization in the material used for seats, which is provided by several automakers to cater to different customer needs. Hence, automotive upholstery plays an important role in providing comfort and design to the vehicle's interior according to the consumer choice.

Several kinds of materials are used in automotive upholstery to cater to different customers’ needs, and the type of vehicle fabrics for its interior range from luxurious options like suede or leather for luxury cars to basic cloth materials used in low-budget cars, which is chosen based on its qualities like durability and aesthetics that can improve the vehicle design.

INTRODUCTION:

The automotive upholstery market is driven by the overall growth and expansion of the automotive industry, including increased vehicle production and sales globally. The growing market for electric vehicles or EVs and autonomous vehicles or AVs presents new opportunities for automotive upholstery manufacturers which directly increases the growth in demand for automotive upholstery.

The major vehicle sales have been boosted in the Asia Pacific region, especially in countries like China and India where the automotive industry is rapidly growing and is predicted to positively impact the upholstery market over the forecast period. For instance, in China, the domestic production of vehicles is expected to reach 35 million vehicles by the year 2025.

Moreover, the rising consumer demand to make visually appealing and comfortable interiors of vehicles is increasingly leading automakers to make significant efforts to provide comfortable seating options, premium materials such as leather, and aesthetically pleasing interior designs to satisfy different customer needs, which is anticipated to drive the automotive upholstery market growth.

Advancements in durable and efficient material technology and automakers that offer customization options in the interior, especially in luxury vehicles, to cater to different customer demands are all contributing factors to the automotive upholstery market growth.

MARKET DRIVERS:

• Growth in demand and sales of vehicles is predicted to propel the market:

The demand for vehicles is growing rapidly with the growing population worldwide, leading to a boost in the production of automobiles by key players. The manufacturing process of new vehicles requires suitable automotive upholstery materials for the vehicle production process to be complete and successful in the interior design of the vehicle.

Therefore, the growing demand for vehicles across the globe, with growth in GDP and economies of several regions leading to an increase in disposable incomes among the general public, is proportionally driving the market growth for automotive upholstery.

The rapid adoption of EVs worldwide, with several governments making significant improvements and regulations regarding EVs as they are more eco-friendly and sustainable than ICE vehicles, is driving the growth for automotive upholstery as special automotive upholstery components that are made for the specific requirements of EVs and AVs are anticipated to fuel the market growth. For instance, to increase the demand for EVs, the Japanese government offered subsidies for purchases of new EVs with a revised budget of 70 billion Japanese Yen, which is approximately US$501 million in the year 2022.

• The growing consumer demands for comfort, aesthetics, and customization are projected to drive the automotive upholstery market.

The growing consumer demand for personalized or customized vehicles drives the demand and trend for them in the automotive industry. This leads to the vehicle and upholstery manufacturers to offer customization options to the customers that allow them to choose from a wide range of materials and other necessary elements in upholstery that is best suitable for the vehicle and their individual preferences. Hence, this is boosting the demand for automotive upholstery in the market.

The rising demand of consumers for aesthetically pleasing and comfortable vehicles is making major vehicle and upholstery manufacturers focus on improving the overall interior of the vehicle with enhanced comfort and luxury features to make the vehicle unique from other vehicles in the market. Therefore, this demand for comfort and luxury by consumers is predicted to fuel the demand for the automotive upholstery market over the forecast period.

MARKET RESTRAINT:

Automotive upholstery, despite having an important role in providing comfort and improving the visible features like the interior of a vehicle, can be difficult for manufacturers to produce as the global economy fluctuates and creates uncertainties in GDP and incomes of the general public in several regions worldwide. This might negatively affect the global sales of vehicles and hinder the upholstery market growth over the forecast period.

Prominent growth is projected in the Asia Pacific region.

The Asia Pacific region is expected to show major growth in the automotive upholstery market with growing sales for vehicles in the region that include improved visual appearance that catches the eyes of consumers and luxurious comfort features in different segments of vehicles like passenger, commercial, autonomous, and electric vehicles according to the customers’ needs.

The growth in economies and automotive industries in countries like India, Japan, and China contribute to the rise in disposable incomes among the general public, which is increasing the production of vehicles in the Asia Pacific region. This growth in sales and production of vehicles is anticipated to boost the automotive upholstery market growth in the APAC region over the forecast period. For instance, according to the Ministry of Industry and Information Technology, over 26 million vehicles were sold in China in the year 2021.

Products Offered by Key Companies:

• Seiren Co.: The Super Raschel has high short pile density and is a high-quality texture velour fabric that gives automotive interior space a high-quality feel.
• Banswara Syntex Limited: The automotive fabric has a unique aesthetic and design and is durable and lightweight. It also has wear, tear, and abrasion resistance.

Key Developments:

• In March 2023, Toyota and BASF together launched brand new automotive interior trims using the ultramid deep gloss grade material that reduces harmful emissions in the environment during the production or manufacturing process.
• In February 2022, Valeo and Motherson signed an agreement to make automotive vehicle interiors of the future by using advanced surface finishes with the lighting system.

Automotive Upholstery Market Scope:

Segmentation:

• By Material Type
  • Leather
  • Vinyl
  • Others
• By Product
  • Dashboard
  • Seats
  • Roof Liners
  • Door Trim
• By Sales Channel
  • OEM
  • Aftermarket
• 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