Global Automotive Leather/Fabric Market By Type (Genuine Leather, Synthetic Leather), By Application (Headliners, Seats, Door Trims, Consoles, Others), By Region, And Segment Forecasts, 2023 to 2032
Report Id: 44216 | Published Date: Jul 2024 | No. of Pages: 10 | Base Year for Estimate: Jul 2024 | Format:
Market Overview:
Automotive leather provides stain-free and abrasion resistance when you buy a car, consequently, it also helps in keeping the vehicle clean and reducing maintenance charges during the vehicle's lifespan. Leather is in high demand for car interiors due to it being high quality, durable as well as lightweight. It not only enhances the aesthetic appeal of the car but also provides comfort for drivers and passengers alike.
The global automotive leather/fabric market was valued at USD 40.4 billion in 2023 and is projected to reach USD 51.5 billion by 2030, growing at a CAGR of 5% from 2023-2030. The automobile sector has been undergoing a transition towards increased safety protocols that is anticipated to propel the need for automotive fabric. Automotive fabric is utilised in airbags, seatbelts and headrests and various other safety components. Furthermore, as advancements in autonomous driving technologies increase, so does the demand for novel fabric materials with extra safety features like impact absorption and injury reduction.
Premium Insights:
Increasing demand for customised vehicle interiors is boosting the market for premium leather and fabric materials
Growing environmental concerns are driving the adoption of eco-friendly and sustainable materials in the automotive industry.
Global Automotive Leather/Fabric Market Dynamics:
Drivers: Diverse consumer preferences, advancements in comfort & ergonomics and rising demand for premium and luxury vehicles.
-Consumers have a wider range of preferences for car interiors, seeking options that cater to comfort, luxury, practicality, and budget. The market offers both high-end leather and various fabric options to cater to this diverse demand.
-Advancements in fabric technology are leading to the development of comfortable and breathable seat fabrics that provide superior ergonomics and support for long drives. This focus on driver and passenger comfort is a key driver for the automotive fabric market.
-The growing demand for luxury and premium vehicles with high-quality interiors fuels the market for leather seating surfaces. Leather is often associated with luxury and prestige, offering a premium aesthetic and feel.
Restraints: Cost fluctuations, perception of leather as superior and durability concerns for fabrics.
-The price of leather can fluctuate depending on global market conditions and animal hide quality. Additionally, disruptions in the supply chain can impact the availability and cost of both leather and fabric materials.
-Despite advancements in fabrics, leather remains associated with luxury, durability, and a more refined aesthetic in the minds of some consumers. This perception can be a hurdle for wider fabric adoption in certain vehicle segments.
-While advancements are being made, some fabrics may not offer the same level of perceived durability compared to leather, particularly for high-wear areas like seats.
Opportunities: Innovation in sustainable materials, focus on advanced fabric features and focus on customisations & design flexibility.
-Developing and adopting sustainable, eco-friendly leather alternatives and recycled fabrics can attract environmentally conscious consumers and position the industry as more sustainable.
-Continued advancements in fabric technology can lead to the development of self-healing fabrics, temperature-regulating materials, and integrated functionalities like massage capabilities. These features can enhance the overall comfort and appeal of fabric interiors.
-Offering a wider range of fabric colors, textures, and patterns allows for greater customization and personalization of car interiors, catering to individual preferences and aligning with design trends.
Market By Automotive Leather/Fabric Type Insights:
Based on vehicle type, the market is segmented into passenger cars, light commercial vehicles, heavy trucks and buses & coaches. The passenger car segment had the highest revenue share in the year 2023 as passenger cars provides protection from a variety of environmental factors, such as heat, dust and accidents, that have increased their usage. These factors is expected to boost output of passenger cars, which is expected to positively impact growth of this segment.
Based on material type, the market is segmented into Automotive leather and Automotive Fabric. The automotive leather segment led the market in 2023. The skins of lambs, deer, and cattle are used to tan animal hides which produces most real leather. Rolls Royce Motor Cars, Land Rover and Bayerische Motoren Werke AG are a few product's principal end-users. In the upcoming years, these elements are probably going to increase demand for real leather.
Based on application, the market is segmented into Upholstery, Airbags, Safety Belts, Floor coverings, Tires, PRIC (Pre-assembled Interior Components) and others. The floor coverings segment experienced rapid growth which consists of carpets and car foot mats that play a crucial role in enhancing comfort, aesthetics, and insulation of vehicle interiors. The demand for high-quality automotive floor covering is being influenced by the increasing consumer preference for customised and premium interiors, coupled with the growing trend of luxury and comfort-focused vehicle features. Advancements in automotive floor covering technology is also one significant driver.
Market By End-Use Insights:
Based on End-Use, the market is dominated by the passenger car segmented followed by Electric Vehicles (EVs). The first segment dominates the market due to the sheer volume of passenger cars manufactured globally. The market also offers a wide range of leather and fabric options to cater to various car classes and consumer preferences.
Market By Region Insights:
Based on regional coverage, the market is segmented into Asia-Pacific, Europe, North America, Latin America and Middle East & Africa. In terms of both volume and value, Asia-Pacific is the largest and fastest-growing region. The shift towards in EV’s in the region is opening up new prospects for automotive fabric manufacturers as EV’s frequently demand specialised materials with good thermal management and lightweight properties. The need for automotive fabric in the region is further fueled by the existence of significant automotive manufacturing hubs in countries like Japan, China, India, South Korea that have established the area as a major manufacturing hub for automotive fabric.
Competitive Scenario:
Major Players in this sector are, GST Autoleather Inc., Eagle Ottawa, Alfatex Italia, CTL Leather, Alphaline Auto, DK Leather Corporation, Kuraray Plastics,Scottish Leather Group, Katzkin Leather Inc., Wollsdorf Leder Schmidt & Co Ges, Classic Soft Trim, Seiren Co Ltd, Lear Corporation, Bader GmbH & Co. KG
Scope of Work-Global Automotive Leather/Fabric Market
Key Market Developments:
November 2022-Lear acquired InTouch Automation on November 18 2022 to enhance its seating capabilities and industry 4.0 strategy by integrating vital technologies for automotive seat production
October 2022-Lear revealed the new ReNewKnit sued material, intended for the door panel and seating use in collaboration with a major global automaker and composed of 100% recycled bottles. The products were spun from polyester yarn and finished with a foam-free, recycled fleece backing to reduce water and energy consumption
June 2023- Autoliv had recently announced that it plans to launch it first motorcycle airbag in 2025. This bag-on-bike airbag is expected to make a significant expansion of the company’s product offerings beyond automotive safely systems.
Frequently Asked Questions (FAQs)
What are the main drivers of the automotive leather/fabric market?
Ans. The main market drivers are diverse consumer preferences, advancements in comfort & ergonomics and rising demand for premium and luxury vehicles.
Who are the major players in the automotive leather/fabric market?
Ans. The major players in the market include GST Autoleather Inc., Eagle Ottawa, Alfatex Italia, CTL Leather, Alphaline Auto, DK Leather Corporation, Kuraray Plastics,Scottish Leather Group, Katzkin Leather Inc., Wollsdorf Leder Schmidt & Co Ges, Classic Soft Trim, Seiren Co Ltd, Lear Corporation, Bader GmbH & Co. KG
What are the primary challenges faced by the automotive leather/fabric market?
Ans. The primary challenges include cost fluctuations, the perception of leather as superior and durability concerns for fabrics
What opportunities exist in the automotive leather/fabric market?
Ans. Opportunities include innovation in sustainable materials, focus on advanced fabric features and focus on customisations & design flexibility.
Speak with an analyst to get exclusive insights tailored to your needs