Automotive Interior Materials Market Size Worth $66.5 Billion by 2025
The global automotive interior materials market is anticipated to reach USD 66.5 billion by 2025, according to a new report by Grand View Research, Inc. The market is projected to witness a high growth rate owing to increase in demand for lightweight passenger vehicles.
Factors such as improved economic conditions and rapid urbanization are likely to fuel the automotive interior materials market. In addition, there has been a rise in demand for personalization of cars, which will further create a positive outlook for this market.
Growth in interest for attractive automobile interiors, coupled with improved economic conditions in developing regions, is expected to boost this market over the forecast period. Market players are likely to focus on product differentiation and expanding their product catalog in order to grab market opportunities over the forecast period.
Presence of multiple leading market players has led to increased competitive rivalry within the market for automotive interior materials. Focus on product differentiation and expansion is expected to be the key to market dominance over the forecast period. Leading players have expressed interest in expanding their distribution channels as well as investing in mergers and acquisitions to strengthen their global reach in the market for automotive interior materials.
By product, plastic accounted for a revenue share of 43.6% in 2016. Plastics are used in lightweight vehicles, which have gained consumer preference in recent years.
Composite products accounted for a revenue share of 10.2% in 2016 and is projected to grow at a CAGR of 5.3%. This can be attributed to rise in demand for lightweight and fuel-efficient vehicles.
Dashboard held a share of 33.0% by application in 2016 and is expected to witness significant growth over the forecast period. Plastics and composites are likely to be utilized in dashboard applications by automotive manufacturers due to their low cost and high durability.
Asia Pacific held the highest revenue share of 53.0% by region in 2016 and is estimated to dominate the market over the forecast period. This dominance can be attributed to increase in demand for vehicles from developing countries such as India and China.
Regional expansion by way of mergers and acquisitions, along with new product development, is a key strategy adopted by major market players in order to strengthen their position globally. Players are focused on innovating new products with multiple applications to expand their product portfolio.
In June 2016, Lear Corporation signed an agreement to construct a technology complex in Shanghai, China. The aim of the agreement was to boost the company’s business in China and rest of Asia Pacific, thus creating a pathway for long-term growth in the developing region.
Browse report here.