The global automotive interior materials industry size is anticipated to reach USD66.38 billion by 2026,on account of the increasing production of automobiles worldwide. Automotive interior is the most crucial feature of an automobile that catches the user’s attention. Therefore, it is extremely essential to ensure it meets all safety and maintenance demands of the consumer. A recently published report by Fortune Business Insights offers a detailed analysis of the market and its prime growth parameters. According to the report, the market stood at USD 51.09 billion in 2018 and will rise at a CAGR of 3.84% between 2019 to 2026.
Increasing Popularity of Electric Vehicles to Boost Market
The rise in modernization and urbanization, coupled with the rise in living standards and the increase in disposable incomes have increased the number of automobile owners worldwide. This ultimately propelled the growth of the automobile industry. Keeping in mind the rising number of vehicular accidents worldwide, manufacturers invested heavy amount into developing the interiors of automobiles.This stands as a major automotive interior materials market growth driver. Additionally, the advent of electric vehicles, and lightweight vehicles have also propelled growth of the market attributed to the high amount of plastic used in them. This, accompanied by government restrictions on promotion of cleaner technology are expected to aid in expansion of the market in the forecast duration.
Merger and Acquisition Strategies to Help Players Gain Competitive Edge
The competitive landscape of the automotive interior materials market is segregated in nature owing to the presence of diverse portfolio. Companies such as DuPont launched a new series of renewably sources automotive materials that comprises of Sorona fiber that is utilized in seat fabrics, carpeting, and headliners of the vehicle. The surge in environmental concerns have propelled manufacturers to opt for renewable products to manufacture vehicles. Companies are acquiring strategies such as mergers and acquisitions, company collaborations, joint ventures and others to attract high automotive interior materials market in the forthcoming years.
Asia Pacific will Dominate Market Owing to Increasing Adoption of Electric Vehicles
Geographically, the global automotive interior materials market is categorized into the regions of North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Among these, Asia Pacific is holding the dominant automotive interior materials market share on account of rapid expansion of the market in countries such as China, South Korea, Thailand, India, and Japan. Moreover, the rise in adoption and sales of e-vehicles will also help this region continue dominating the market in the coming years. The market in Europe ranks second attributed to the increasing popularity of the e-vehicle market. However, North America market generated a significant automotive interior materials market revenue of USD 7,626.7 million in 2018. Growth of this region is attributed to the advent of electric vehicles and steady improvement of the automotive industry in the region. Furthermore, the Latin America market will witness healthy growth owing to the expansion of automotive industry in nations such as Mexico and Brazil.