AUTOMOTIVE INTERIOR COMPONENT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)
The automotive interior components market is estimated to be valued at USD 164.64 Bn in 2024 and is expected to reach USD 255.56 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031. The market has been witnessing steady growth on account of increasing vehicle production across the world. Further, rising spend on in-vehicle entertainment and comfort features by OEMs is also propelling the demand.
Discover market dynamics shaping the industry: Request sample copy
The automotive interior components market is witnessing significant trends such as increased focus on sustainability and light weighting. Owing to stringent emission norms, auto manufacturers are adopting greener materials and technologies to manufacture interior components. For instance, the use of bio-based and recycled plastics is gaining traction in the industry. Furthermore, with the goal of improving fuel-efficiency, various lightweight components such as seats made from aluminum and magnesium are being increasingly used. The trend towards electrically-powered vehicle is also influencing the materials and technologies used for interior components.
Rising electrification in the automotive industry
There has been a steady rise in demand for vehicles with luxury and premium features across all segments in recent years. For instance, according to data published by Economics tines in 2023, the passenger vehicle segment achieved a new all-time high in January, retailing 393,250 vehicles and surpassing the previous record set in November 2023. Customers who could earlier only afford compact or mid-sized econoboxes now have greater access to higher-trim versions of those same vehicles owing to strategic product planning by automakers. Brands have introduced luxury and comfort focused trims of some of their most popular nameplates targeted at the "mass affluent" buyers seeking some indulgence without paying flagship prices. Features like leather upholstery, power-adjustable front seats, navigation, and premium audio have become much more common in the mid-segment cars and crossovers. This has driven the automotive interior components market growth.
Get actionable strategies to beat competition: Request sample copy
Rise of Ride-Hailing Services and Shared Mobility
The rapid growth of transportation networks companies operating ride-hailing services has brought about new requirements for vehicle interiors. Fleet operators partnering with these companies need fleet vehicles that can efficiently serve multiple riders daily and withstand the rigors of commercial use. This has boosted demand for durable and easily cleanable interior components that can endure frequent disinfection without degrading in quality. There is a growing focus on materials that do not absorb odors or stains and can be wiped down quickly between rides. Easy-to-clean leatherette and vinyl upholstery instead of fabric is now common in these fleet vehicles. Lighting manufacturers also provide customizable interior lighting solutions for driving and rider comfort. The exploding popularity of shared mobility is poised to open new verticals for automotive interior suppliers catering to commercial applications with an emphasis on parts tailored for vehicle sanitization requirements in between shared use. This novel mobility landscape will open fresh avenues for innovation and revenue growth.
To learn more about this report, Request sample copy
Market Challenges: Rising raw material costs
The automotive interior components market faces several challenges. Vehicle components must demonstrate increased durability while meeting stringent safety and emission regulations. Rising raw material costs also pressure margins. Customers increasingly demand sophisticated infotainment and connectivity features, requiring extensive research and development to integrate new technologies. With electric vehicles on the rise, interior component designs must adapt to different vehicle structures and engineering requirements.
Market Opportunities: Demand for Luxury and Premium Vehicles
Demand for luxury and premium vehicles is growing in developing markets, requiring high-end trims and amenities. Customization tools allow manufacturers to profit from customized interior packages. Partnerships across the supply chain can maximize the use of new light weighting and sustainable materials. Advanced driver assist systems also spur innovation in digital displays and intuitive control interfaces.
Discover high revenue pocket segments and roadmap to it: Request sample copy
Insights, By Vehicle Type: Passenger Vehicle contributes the highest share of the market owing to higher production volumes
The passenger vehicle segment dominates the automotive interior components market with market share of 60% compared to its commercial vehicle counterpart. Massive production and sales figures of various passenger car models globally are a primary reason. Consumer preference for private transport instead of public modes especially in developed markets has boosted passenger car demand tremendously. A wide range of vehicle segments exist to serve diverse needs, from small economical cars to large luxury limousines. Each type utilizes unique interior components tailored for its intended purpose.
Insights, By Components: Door Panel contributes the highest share of the market owing to consumer focus on safety and comfort
The door panel segment within the automotive interior components market holds the 47% share globally. There are several factors contributing to its dominant position. Consumer preference for safety and comfort while traveling plays a big role. Door panels house important safety features like airbags and also contribute significantly to the overall in-cabin feel and ergonomics. Automakers therefore prioritize door panel design and quality to enhance occupant protection and experience. Advanced materials and technologies are being increasingly used in door panel manufacture. Lightweight composites and premium leather or suede upholsteries are gaining preference to differentiate vehicles. Interactive surfaces and convenient storage spaces are other new concepts being evaluated. With autonomous driving on the rise, the interior is where much of the marketing emphasis lies presently. Stylish and functional door panels thus serve as a crucial selling point. Growing automotive sector is expected to drive the segment growth. For instance, according to data published by The International Trade Administration, the U.S. Department of Commerce in 2023, the U.S. has one of the largest automotive markets in the world. In 2020, U.S. light vehicle sales were 14.5 million units.
To learn more about this report, Request sample copy
North America has established itself as the dominant market with 43.2% share for automotive interior components globally. The large presence and concentration of automakers in countries like the United States makes it an attractive hub for interior component suppliers. Major domestic players like Ford, GM and others have their global or regional headquarters located in this market, driving significant home-grown demand. This has led to development of a vibrant supply chain ecosystem with several Tier 1 and Tier 2 suppliers having sizable manufacturing footprints. The integration with customers is higher in this region compared to others. In addition, the purchasing power of consumers for personal vehicles has supported higher average spend on interiors over the years.
Asia Pacific, especially China, has emerged as the fastest growing regional market for automotive interior components. With increasing disposable incomes, urbanization and focus on mobility solutions, vehicle ownership in several APAC countries is growing at an accelerated pace. Coupled with the view of governments to promote localized manufacturing under initiatives like 'Make in India', there is a major influx of global automakers setting up inexpensive production sites. This has accelerated demand growth from the OEM assembly lines. In particular, several Chinese suppliers have scaled up rapidly by supplying internationally as well. Their competitive pricing and ability to replicate advanced designs, often in partnership global leaders, have found acceptance globally too. Proximity to both vehicle manufacturing plants as well as end markets gives them an edge over other regions.
Automotive Interior Component Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 164.64 Bn |
| Historical Data for: | 2019 To 2023 | Forecast Period: | 2024 To 2031 |
| Forecast Period 2024 to 2031 CAGR: | 6.5% | 2031 Value Projection: | US$ 255.56 Bn |
| Geographies covered: |
|
||
| Segments covered: |
|
||
| Companies covered: |
Johnson Control, Toyota Boshoku Corporation, Lear Corporation, Toyoda Gosei Co., Ltd., Faurecia SA, Continental AG, Magna International, Delphi, Adient plc., Robert Bosch GmbH, Yanfeng (China), Lear Corporation, Antolin, Polydesign Systems, and Machino Plastics Limited |
||
| Growth Drivers: |
|
||
| Restraints & Challenges: |
|
||
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
*Definition: The automotive interior components market includes all the parts and materials used inside a vehicle cabin. This includes dashboards, seats, doors, Headliners, Flooring's, air-conditioning system components and others. The market caters to the aftermarket as well as OEM segments. Some key products are instrument panels, consoles, armrests, door panels, seating, interior trim, and lighting components. The market aims to provide comfortable, durable, and aesthetically pleasing interior components and systems to.
Share
About Author
Yash Doshi is a Senior Management Consultant. He has 12+ years of experience in conducting research and handling consulting projects across verticals in APAC, EMEA, and the Americas.
He brings strong acumen in helping chemical companies navigate complex challenges and identify growth opportunities. He has deep expertise across the chemicals value chain, including commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals. Yash is a sought-after speaker at industry conferences and contributes to various publications on topics related commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals.
Missing comfort of reading report in your local language? Find your preferred language :
Transform your Strategy with Exclusive Trending Reports :
Frequently Asked Questions
Credibility and Certifications
860519526
9001:2015
27001:2022
Need a Custom Report?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports
Customize NowSelect a License Type
Credibility and Certifications
860519526
9001:2015
27001:2022
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients
U.S.: 
U.K. : 
India : 