The global automobile interior material market is expected to grow at a CAGR of 7% during the forecast period 2023 and 2030. The Asia Pacific and the Middle East have the most developed automobile interior markets. This growth is due to better economic conditions and urbanisation across the Middle East, Africa, Asia, and the Pacific. The desire for new technologies and customization, growing globalisation, and optimising fuel efficiency by reducing vehicle weight are driving the automotive interior materials market. Inappropriate disposal of effluents created during the tanning process hinders the market growth. Beam house procedures like soaking, liming, and deliming produce alkaline wastewater. This wastewater comprises decomposing organic debris, hair, lime, sulphide, and organic nitrogen and has a high BOD and COD (COD). This problem stunts market growth. This market is problematic because of the regulatory structure. Increasing demand for electric, shared, and connected vehicles, and the utilisation of bio-composites and lightweight polymers enhance the market growth. Connected and shared automobiles increase the market growth. Several factors are expected to boost the automobile interior material market throughout the forecast period. Growing demand for high-quality, long-lasting interior materials in developed nations, as well as beautiful, opulent interiors.
Due to more travellers in recent years, the number of affordable vehicles has increased. As a result, car interiors must be both aesthetically beautiful and comfortable. Rising demand for customised automotive interior materials and increased industrial technology are driving the market. Businesses are offering customising options to create cutting-edge indoor places for their customers. As customers become more health concerned, businesses are developing environmentally friendly materials for car interiors, which will boost driver comfort. These elements affect the growth of the auto interiors industry.
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Plastics offer reduced weight, flexibility, and design; therefore, the car industry has long used them for interior, exterior, under-the-hood, and other uses. Because fossil fuel is a finite supply for plastics, the auto industry is using bio-based plastics to reduce weight and improve performance. This is to keep utilising cars. Lexus HS 250h has bioplastic interior. Automakers like Toyota have introduced bio-based plastics including bio-polyesters, bio-PET, and PLA blends into vehicle interiors. Bio-plastics replace petroleum-based alternatives. Toyota Prius and Toyota SAI have bio-plastic headliners, sun visors, and floor mats. The term "veganism" is also used in the auto industry. Due to demand, automakers are offering vegan inside leather alternatives. Volkswagen revealed its full-size electric car, "ID Roomzz," with an apple leather interior at the 2019 Shanghai Motor Show. Volvo and Audi have also announced vegan-friendly projects.
The auto industry aims to reduce fuel use, pollution, and vehicle weight. Customers are buying lightweight materials, which will enhance the market growth. Due to CAFE restrictions, automakers are using more lightweight materials. Plastics and textiles are examples. In 2025, North American CAFE guidelines will force automakers to attain a 54.5 mpg fleet average. Adopting plastics and composites gives automakers more flexibility to adjust designs for maximum performance. PETA's restrictions on natural leather are pushing demand for lightweight synthetic leather in the vehicle industry. Consumer awareness drives this desire.
As environmental concerns and the depletion of fossil fuels mount, the global market for electric vehicles is increasing. Plastics and other lightweight materials are utilised to build electric vehicles for higher fuel efficiency and faster battery charge. Electric vehicles are seen as a more economically and environmentally feasible alternative by legislators worldwide. Customers of electric vehicles are offered a variety of programmes and financial incentives to promote green technology. As a result, more people are buying electric cars, and more are inspired to join the "clean league" in the future. Global sales of electric vehicles rose 73% in 2018. Genuine leather is the most expensive material for car upholstery. Because tanning harms the environment, its use in developed countries has remained mostly constant. Environmental regulations that make it harder for local producers to remain profitable have hurt the leather processing business in most developed nations. In these markets, leather processing has suffered. As a result, more heavy leather from Africa and light leather from India were imported. Due to high import costs, the availability of alternatives (such as synthetic leather), and changing client attitudes towards genuine leather, most makers have switched to eco-friendly alternatives.
In recent years, the rise of major automotive markets throughout the world has hampered the auto interior materials market. Even large countries like India saw their economies collapse in 2019, affecting regional industry earnings. The coronavirus epidemic in China has impacted auto industry growth in that country and another region. Hyundai, a South Korean company, paused vehicle production for a few days in February 2020 due to a disruption in automobile parts from China, which was ascribed to the coronavirus. The scenario could slow market development in 2020. Changing emissions requirements, such as BSIV (India) "Bharat Stage 6," Euro6, etc., have also hurt the global auto industry. Due to the increasing number of disruptions in the car industry, it is expected that market growth will be hampered over the analysed period.
The most polluting stage of leather processing is tanning. This approach uses chromium, aluminium chlorides, potassium and aluminium sulphates, and zirconium sulphates. Green chemistry helps producers utilise safer, easier-to-dispose-of chemicals. Tannin peels with glutaraldehyde in the presence of artificial d-AA, such as d-alanine or d-lysine. Due to the bridging carboxylic and amine groups of amino acids, this process produces stable leather. Because the mentioned technique does not employ toxic tanning agents, the wastewater formed contains no dangerous compounds, allowing wastewater treatment plants to properly handle and dispose of trash.
Thermoplastics are used in car interiors. Thermoplastics are multiphase compositions consisting of hard material at room temperature and a soft elastomeric substance at room temperature. They're comprised of flexible materials that, when heated, become moldable. They cooled into a smooth, hard form. Thermoplastic polymers are used inside and outside of cars. Polymers help OEMs make lightweight, durable interior components. Auto interiors use polypropylene, polyurethane, polyvinyl chloride, and other polymers. Polymers' low weight increases automotive fuel economy.
Injection-moulded interior trim components reduce noise, vibration, and harshness (NVH). Value-wise, leather dominates the market. Natural leather is pricier than synthetic. Luxury and premium car buyers' need for real leather interiors and seating drives the natural leather in the automobile interiors industry. Mid-sized premium vehicles also use natural leather. The market for natural leather may see sluggish growth in the auto industry due to improved synthetic leather and vegan leather.
In 2021, passenger automobiles dominated the market, and this tendency should continue. Passenger automobiles are expected to continue capturing the largest revenue share, which was over 50% in 2020. Rising sales of passenger automobiles, plus driverless and electric vehicles, are driving industry growth. COVID-19 has also sped up the sale of privately owned passenger cars, which helps preserve social distance. This has hindered the development of shared transportation but increased the number of people owning cars. Rising living standards in developing economies and the migration of manufacturing operations to these locations are driving the use of automotive interior materials in passenger vehicles. The market for light commercial vehicles is predicted to rise due to e-commerce and retail logistics, especially in emerging countries. The Coronavirus has contributed to the increase in online purchasing. E-commerce and retail logistics grew, which boosted the market for LCVs.
2021's auto interior materials application market was dominated by door panels. Automobile door panels reduce side impact and increase occupant safety. They increase the door's rigidity. The interior door panel is made from a range of materials, and its finish depends on the dashboard and carpets, among other things. Door panels might be composed of plastic or hand-stitched leather, depending on the vehicle and market. The door panel improves car functionality, ergonomics, and aesthetics. This improves the car's interior. Door panels affect NVH, packing, storage, and aesthetics. Interior trim accounts for 40% of a vehicle's total plastic consumption. Door panels and trimmings make up a large section of the automobile interiors industry, allowing manufacturers to customise and save weight. These applications use acrylonitrile butadiene styrene (ABS), polypropylene (PP), polyethylene terephthalate (PET), polyoxymethylene (POM), and polyvinyl chloride (PVC). Because customers customise automotive carpeting and headliners, this market category is growing the fastest.
Due to the region's robust economic growth, Asia-Pacific has the world's largest market for automobile interior materials. The most important automobile manufacturers in the world are based in Asia and the Pacific.Europe is expected to be the second-largest market for car interior materials during the forecast period, due to its expanding industrial sector and rapid technological advancement. The expansion of the market is also expected to be aided by the strengthening of the global economy. A robust automotive sector in China, India, South Korea, Japan, and Thailand has propelled Asia-Pacific to the forefront of the global market for car interior materials. It is predicted that the region will grow rapidly over the forecast period due to the growing middle class in countries such as India, China, Taiwan, Thailand, and others.
Regional and local companies hold more than 70% of the overall market share, indicating that there are a large number of participants. The dominant businesses only control 27-32% of the revenue share, indicating that there are few barriers to entry into this competitive market area. Key manufacturers are diversifying their product offerings to provide customers with a wide selection of materials for vehicle interiors. These materials must be compatible with and customised to the ever-changing needs of customers and environment goal across the globe.
