Market Challenges And Opportunities

Drivers

The demand for premium automotive interiors is increasing worldwide, and this is driving the automotive interior materials market growth. Demand for premium-grade interiors with superior aesthetic appeal and tactile experience, even for non-premium cars, from consumers is increasing.

The rising sales of premium passenger cars is expected to have a significant impact on the automotive interior materials market. In China, despite a 10% austerity tax on premium vehicles, automotive sales have been strong with premium automobile manufacturers such as Porsche, Ferrari, McLaren, and Maserati. In the U.S., From July through September 2021, Lexus sold 81,093 vehicles, BMW sold 75,619, and Mercedes was way behind with 55,130 sales. This has augmented the automotive interior materials market growth in the aforementioned countries.

Market Restraints

Also, as automotive companies aim to reduce the weight of vehicles to increase fuel economy, leather may be replaced with lighter synthetic fabrics such as wool, silk, carbon fiber, and faux suede. For instance, Toyota, BMW, Mercedes, and Volkswagen use faux leathers, which are similar to leather in both touch and feel. Leather usage is expected to decline in North America and Europe, owing to the strict emission and waste generation regulations prevailing in these regions.