Asia Pacific Automotive Interior Materials Market Share was over USD 13.01 billion in 2019 and will grow at 5.6% CAGR up to 2026.
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Interior materials are materials used to improve functionality durability and aesthetics in the interior of an automobile. Increasing demand from the luxury vehicle segment coupled with the largescale presence of auto manufacturers will positively influence market size. Several initiatives have been taken to improve regional auto manufacturing competitiveness in the forms of tax breaks and incentives, which are set to support the domestic interior material suppliers and manufacturers.
China, India and Japan are the largest contributor in auto manufacturing have recently experienced increased interest and initiatives to establish manufacturing capability. Interior manufacturers are also expected to enjoy the cluster of manufacturers and relational harmony of trade in the region, which in result invites several interior product manufacturers to establish supply chain domestically,
Apart from the largescale presence of manufacturers, stringent emission norms to reduce carbon emissions and improve fuel efficiency has resulted in the adoption of lightweight materials inside the vehicle’s cabin. Composite materials and fabrics are increasingly replacing traditional plastic and leather materials in Asia Pacific. The rise of electric car sales is also set to bring radical change in interior designs with the increasing use of vegan upholstery materials and recycled plastic, which will directly affect the interior material sales positively in Asia Pacific.
The COVID-19 pandemic has depleted consumer demand for automotive drastically, slumping the Asia Pacific automotive industry at a significant level. This low demand situation has critically affected the components manufacturers and automakers owing to the imposition of strict mandatory lockdowns to control the spread of the contagious virus. These unconditional lockdowns have resulted in temporary production halts and disruption in international exports and imports. However, this situation is expected to improve through controlled government measures, and the industry is expected to return to rebound after the lifting of lockdown & transportation restrictions.
In the Asia Pacific automotive interior materials market, the fabric segment holds over 10% share owing to shifting consumer preferences. Fabrics are extensively being used in seating applications owing to low cost, easier maintenance, lightweight, and superior wear and tear resistance. Fabrics have also penetrated the premium segment through the introduction of high-quality textured fabric to provide a luxurious look. Alcantara is amongst the prevalently used premium fabric material famously used in sports and hyper cars
The Asia Pacific automotive interior materials market by application includes seats, doors, floor carpet, steering wheel, consoles & dashboard, and others. The consoles & dashboard segment is expected to cross USD 3 billion by the end of 2026. The segment held the second-largest share in the regional interior materials market and is expected to grow owing to increasing functionality and featured in passenger and commercial vehicles requiring manufacturers to incorporate more dials and buttons onto the car’s central console.
Based on vehicles, the market is divided into PCV, LCV, and HCV segment. PCV held a substantial share in the market and is expected to grow at a relatively fast pace with a growth rate of CAGR of 5.5% in terms of value between 2020 to 2026. Passenger car sales are rising incrementally. Increasing government initiatives to increase electric vehicle sales through incentives and tax breaks are boosting consumer demand for electric vehicles, increasing interior material sales.
The key players in the Asia Pacific automotive interior industry include Continental AG, SABIC, Arkema, BASF SE, EVONIK Industries AG, Hexcel Corporation, Toray Industries Inc, Huntsman International, Dow Chemical Company, Covestro, etc. Companies are increasingly investing in research & development activities, partnering with other companies, and diversifying sales & distribution network to strengthen their market presence. Companies are also engaged in establishing long-term contracts and agreements with manufacturers for material supply.