|Study Period:||2018 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The automotive interiors market was valued at USD 109 billion in 2020, and it is expected to reach USD 141 billion by 2026, registering a CAGR of about 5% during the forecast period (2021 - 2026).
The COVID-19 pandemic has hindered the growth of the automotive interior market due to its impact on vehicle production. However, a steady recovery post-2020 in vehicle production will support the growth of this market in the coming years. For instance, Marelli had a significant impact of COVID-19 on its overall production in the first two quarters of 2020. The company had to shut its facilities for around two weeks in the country after the nationwide lockdown, which started in March 2020. However, the company resumed its operations in April 2020 with the necessary measures.
Increasing safety concerns among consumers, a rising number of technological advancements, and a surge in demand for luxurious vehicles are expected to boost the market growth. Government support for lightweight and safety vehicles is likely to surge the market growth.
Asia-Pacific accounted for the largest share in terms of consumption in the automotive interior materials market. Japan and China will be the primary support for the region’s increasing demand. Moreover, an improved outlook for product demand in India is yet another potential factor for the growth. Europe, with its large OEM base of automobile manufacturers, will also add up to the demand in the interior material market.
Scope of the Report
Automotive interiors of the vehicles consist of infotainment system, instrument panel, body panels, etc. The automotive interior plays a very important role in vehicle’s performance, aesthetic appeal, and salability. The automotive interiors market report covers the latest trends, COVID-19 impact followed by technological developments in the market. The scope of the report covers segmentation based on vehicle type, component type, and geography.
By vehicle type, the market is segmented into passenger cars and commercial vehicles. By component type, the market is segmented into infotainment systems, instrument panels, interior lighting, body panels, and other component types. By geography type, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the world. For each segment, the market sizing and forecast have been done on the basis of value (USD billion).
|By Vehicle Type|
|By Component Type|
|Other Component Types|
Key Market Trends
Infotainment System Expected to Dominate the Automotive Interiors Market
The infotainment system is the largest segment in the automotive interiors market. Earlier, the cars were offered with only one infotainment screen, but as the technology is advancing, the number, as well as the dimension of the infotainment screens, is also increasing.
As such, the infotainment screens have become the main focal points for every automaker, and these screens are packed with the latest technology capabilities, as the 2021 Mercedes S-Class will be coming with five touch screens along with the central unit of a 12.8-inch OLED screen. Honda revealed the new Honda E, which has pillar to pilar screens. This includes two 6-inch screens with an 8.8 TFT screen and two 12.3-inch LCD screens.
Automakers are constantly upgrading their infotainment systems to provide the best features and technologies to their customers. Some of the recent launches and models are:
- In July 2020, Volkswagen announced the upgrades in its 2021 lineup of vehicles, one of the main changes is the MIB3 infotainment system. The new MIB3 infotainment system offers wireless App-Connect, with multi-phone pairing and enhanced voice recognition.
The MIB3 infotainment system features a redesigned navigation system with enhanced map designs, intuitive route options, quick access to frequently visited locations, and advanced route management. MIB3 also has SiriusXM’s newest and most advanced audio entertainment platform SiriusXM with 360L.
As the cars are coming with more and more connected features, the telecom and technology players are partnering with major automotive players to develop the best connectivity and infotainment solutions for the customers. For instance,
- In May 2020, Honda entered a partnership with Tencent to develop an infotainment system for the Chinese market. The new infotainment system will enable passengers to listen to Tencent's exclusive music streaming content, internet radio, and audiobooks and newspapers.
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Asia-Pacific is Leading the Automotive Interiors Market
The automotive interiors market is projected to propel with the maximum CAGR over the estimated period from 2021 to 2026. The market in Asia-Pacific is driven by the small/economy car segment, which accounts for higher adoption of interior components. Leading automakers in this region, such as Toyota, Honda, and Hyundai, are embracing the advantages of advanced seating systems, lighting, electronics, and various safety systems, making them essential features across their car models. The emergence of electric vehicles in major economies, including Japan, China, and India, are further supporting the market value.
The demand for premium interiors, comfort, and new and innovative features, like head-up displays and navigation systems, along with the growing focus toward sufficing the safety standards, is driving the market in the region. Major countries in this region, such as China, Japan, India, and South Korea, are anticipated to witness the rapid adoption of new technologies. China, due to its high vehicle production capacity, is expected to significantly contribute to the market growth in Asia-Pacific.
In China, local players are collaborating to produce the best interior products. For instance, BAIC Yunxiang Automobile Co. Ltd collaborated with ADAYO for the development of vehicle infotainment systems. This partnership will build new platforms for BAIC Yinxiang and helps to restructure the platform production mode for intelligent vehicle manufacturing.
In Asia-Pacific, government initiatives, such as subsidies and tax concessions, across various countries are attracting automotive OEMs to build their manufacturing plants in the region.
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The automotive interiors market is likely to expect competition in the coming years, owing to the implementation of various strategies, such as focused research and development activities, new product developments, acquisitions, etc., by major product manufacturers to gain a competitive advantage in the market. For instance,
- Stahl acquired BASF’s leather chemical business, thus, acquiring chemical expertise for its leather chemical business and enabling significant expansion in its offerings.
- SABIC launched its PP compounds portfolio, especially for automotive interior applications, strengthening its market position.
Key automotive interior market participants are Continental AG, Magna International Inc., Denso Corporation, Faurecia, and Adient.
- In January 2020, Grupo Antolin and Eyesight Technologies entered a collaboration agreement to offer innovative solutions for the future electric, connected, and autonomous vehicles by applying the full technological potential of driver and passenger monitoring systems inside the vehicle.
- In March 2020, Sage Automotive Interiors entered an agreement to acquire the automotive fabric business of Adient. Sage Automotive Interiors will be paying around USD 175 million for Adient’s automotive fabric business.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Vehicle Type
5.1.1 Passenger Cars
5.1.2 Commercial Vehicles
5.2 By Component Type
5.2.1 Instrument Panels
5.2.2 Infotainment Systems
5.2.3 Interior Lighting
5.2.4 Body Panels
5.2.5 Other Component Types
5.3 By Geography
5.3.1 North America
188.8.131.52 United States
184.108.40.206 Rest of North America
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
5.3.4 South America
188.8.131.52 Rest of South America
5.3.5 Middle-East and Africa
184.108.40.206 United Arab Emirates
220.127.116.11 Saudi Arabia
18.104.22.168 South Africa
22.214.171.124 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Adient PLC
6.2.2 Grupo Antolin
6.2.3 Panasonic Corp.
6.2.5 Magna International
6.2.6 Toyota Boshuku Corporation
6.2.7 Hyundai Mobis Co.
6.2.8 Pioneer Corporation
6.2.9 JVCKENWOOD Corporation
6.2.10 Robert Bosch GmbH
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Automotive Interior Market market is studied from 2018 - 2026.
What is the growth rate of Automotive Interior Market?
The Automotive Interior Market is growing at a CAGR of >5% over the next 5 years.
What is Automotive Interior Market size in 2018?
The Automotive Interior Market is valued at 126 Billion USD in 2018.
What is Automotive Interior Market size in 2026?
The Automotive Interior Market is valued at 141 Billion USD in 2026.
Which region has highest growth rate in Automotive Interior Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Automotive Interior Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Automotive Interior Market?
Faurecia, Denso Corporation, Robert Bosch GMBH, Magna International Inc., Adient are the major companies operating in Automotive Interior Market.