Armrests are considered to be some of the additional features that are incorporated in the modern vehicles that add up to the luxury of the vehicle as well as adding more comfort. These armrests offer extra comfort to the passengers they can rest their arms on them. It also makes the driving experience a bit more convenient, especially during the long rides. The figure below represents the market size of the global automotive armrest market from 2019 to 2015.
Global Automotive Armrest Market, Forecasts From 2019 to 2025, in US$ Billion
Source: Knowledge Sourcing Estimates
The market for armrests is poised to witness a nominal growth over the course of the next five years. The primary growth factor of the market includes the growing consumer preferences towards having additional comfort features added to their vehicles. Growing automotive production worldwide, despite some slowdown due to shrinking sales in some regions, can be seen as one of the major factors driving the growth of the market. Increasing penetration of advanced comfort features across the automotive sector is significantly driving the adoption of armrests across the different vehicle segments. The growing focus on the reduction of vehicle emissions is encouraging governments to invest heavily in the electric vehicle market. This provides a great business opportunity for armrest manufacturers to expand their market reach and gain a competitive edge over other players. These products are already installed in mid-range and all luxury cars.
However, the presence of a wide variety of aftermarket products that can be tailored as per the needs of different vehicle types further provides an impetus for the market to witness decent growth during the next five years. Integration of technology has led to the development of new armrest products with heating and cooling systems also, this in turn is also positively impacting the demand for these armrests especially in the luxury vehicle segment. For instance, in February 2016, Yanfeng Automotive Interiors a globally known leading company that offers numerous automotive interior solutions announced the development of new heated armrest products for the door panels that are made form much thinner and lighter materials. Thus, the rising trend of heated armrests also plays a significant role in shaping up the global automotive armrest market growth during the next five years.
Growing Automotive Production
The market for armrests is poised to witness a nominal growth primarily on account of the decent growth of automotive production worldwide. The increasing demand for vehicles especially in developing economies such as India, China, and Indonesia among others has led to an upsurge in the production of vehicles as well. Rising disposable incomes and living standards is significantly driving the sales of passenger cars which is fueling the demand for armrests as various automotive manufactures are further offering preinstalled armrests in the vehicles.
Automotive Production in Asean Region, 2014 to 2018
Source: Asean Automotive Federation
The above figure represents the production of automobiles in the ASEAN region between the years 2014 to 2018. Furthermore, booming investments by major automotive manufacturers in the expansion and setting up of new production plants to cater to the growing demand for vehicles also provides an impetus for the market to witness a growth until the end of the forecast period. For example, In January 2018, Toyota announced to spend $471 million to upgrade and expand its factory near Valenciennes, northern France. Similarly, in July 2018, Renault announced to invest $1.2 billion to increase electric vehicle production capacity in France. In July 2018, Nissan announced its investment in Argentina for boosting the production of pickup trucks in order to meet the growing global demand. The company also announced its key milestone which is aimed towards the increase in the sales of light commercial vehicles by 40% by the year 2022. Thus, all these factors are anticipated to positively impact the demand for armrests, thereby augment the market growth during the next five years.
COVID-19 to Hamper the Demand
The global automotive armrest market is poised to witness a slight downfall on account of the recent outbreak of the novel coronavirus disease. The strict government restrictions to control the impact of the diseases have led to a temporary halt in the manufacturing activities across many regions due to social distancing measures and lockdowns. Also, many automotive manufacturers have temporarily suspended manufacturing activities, thereby inhibiting the demand from the OEMs.
The global automotive armrest market has been segmented on the basis of position, vehicle type, sales channel, and geography. On the basis of position, the segmentation of the market has been done into front and rear. On the basis of vehicle type, the classification of the market has been done on the basis of passenger vehicle, light commercial vehicle and heavy commercial vehicle, By sales channel, the market has been classified into OEMs and aftermarket. Geographically, the classification of the market has been done on the basis of North America, South America, Europe, Middle East and Africa, and Asia Pacific.
By position, the front segment is anticipated to hold a substantial market share throughout the forecast period as these armrests are widely adopted across all luxury vehicles as well as some of the mid-range vehicles as well. Also, these armrests are already equipped in some vehicles by the automotive manufacturers. The rear segment is expected to show decent growth throughout the forecast period.
By vehicle type, the passenger vehicle segment is projected to hold a significant share in the market over the course of the next five years on account of the growing production of passenger vehicles throughout the globe. Furthermore, the LCV segment is anticipated to show a healthy growth over the forecast period on account of the booming e-commerce and logistics industry in many parts of the world.
Geographically, the APAC region is expected to hold a considerable share in the market due to the presence of one of the largest automotive industries in countries like China and India among others. Furthermore, the rapid urbanization and industrialization are also some of the factors bolstering the market growth in the Asia Pacific region over the course of the next five years.