AUTOMOTIVE INTERIOR COMPONENT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Automotive Interior Component Market Size and Trends

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.

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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.

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.