Automotive Interior Leather Market Size Worth $46.84 Billion By 2025
The global automotive interior leather market size is projected to reach USD 46.84 billion by 2025, according to a new study by Grand View Research, Inc., progressing at a CAGR of 6.5% during the forecast period. Boom in automotive manufacturing industry, particularly in emerging economies of Asia Pacific, coupled with rise in demand for artificial leather is poised to propel the market over the forecast period.
Considerable shift in consumer preference towards artificial leather for applications in the automotive industry is likely to drive the market over the forecast period. Development of bio-based leather is further anticipated to unfold ample growth opportunities for the market. Renewable biobased sources used for manufacturing of biobased variants include cellulose and vegetable oil. Petroleum-based and other toxic chemicals are not incorporated into its production process.
Upholstery dominated the global automotive interior leather market in 2017 and is expected to maintain its position over the forecast period. Massive adoption of the product in interiors as an upholstery material is driven by various merits offered by it such as softer feel, premium finish, and durability. Market players are engaged in supplying kits that contain pre-sewn upholstery covers designed as per each vehicle need.
Leather is among the most preferred materials for manufacturing automotive carpet. It is a naturally-derived material, which is durable and delivers a premium finish to the vehicle. They are easy to maintain and easy to clean. Several unique properties imparted by it such as softness and ability to repel stain are estimated to augment the demand for automotive interior leather in carpet application.
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Further key findings from the repot suggest:
- China is the largest producer as well as largest consumer in the global market in 2017. It is projected to rise at a CAGR of 6.8% over the forecast period. China is also among the largest luxury markets, globally. Consumers in the country prefer genuine leather to synthetic leather in automotive interior
- India is among the fastest growing economies in Asia Pacific. Favorable government policies, availability of cheap labor, and rising disposable income are attracting investments in the automotive manufacturing industry
- Genuine leather held considerable revenue share on account of its massive demand in manufacturing upholstery for high-end luxury vehicles. Its ability to impart premium finish to vehicle leads to improved aesthetics
- Key players include Eagle Ottawa, LLC, Alphaline Auto, DK Leather Corporation Berhad, and Wollsdorf Leder Schmidt & Co Ges.m.b.H.
- In January 2014, GST Autoleather Inc. and Tata International Limited signed an agreement to enter into a joint venture company named JV Automotive Leather Company, which has its registered headquarters at Mumbai. The company has its operations office situated at Dewas, India to cater to surging demand for the product across domestic as well as international original equipment market.