Industry Trends

North America Automotive Interior Materials Market Growth was USD 4,659.3 million in 2019 and will grow at 5.0% CAGR up to 2026.
 

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Increasing demand from the utility vehicle segment and large vehicles will positively influence North America automotive interior materials market size. According to the Environmental Protection Agency (EPA), cars and truck SUVs captured a record 46% market share in the year 2018. Rising consumer inclination towards large vehicles coupled with increasing rider comfort and utility features offered by the manufacturers is dramatically increasing the use of interior materials to fulfill desired consumer demand. Many luxury and high-end car manufacturers are also introducing luxury utility vehicles in the U.S. to capitalize on the growing markets. Post Porsche’s entry into the SUV market in 2002 with its Cayenne model, brands that are historically known to be absent in the luxury SUV segment also introduced their offering subsequently. Stating through some examples, Bentley introduced its Bentayga SUV in 2015, Jaguar’s F-Pace SUV in 2016, Lamborghini introduced its URUS SUV in 2017, Rolls Royce Cullinan SUV in 2018, and Aston Martin’s DBX SUV in 2020.

Interior materials used in the vehicles sold are gradually increasing as rising consumer expectations amidst fierce competition from vehicle manufacturers. Manufacturers are introducing new plush interiors with improved functionality and material quality. Another reason resulting in increasing demand for interior materials is the changing functionality, design, and feature landscape of vehicles. New Radical design shift towards utilitarian and functional use of space has increased the use of conventional materials like plastics. Increasing features of the vehicles resulted in an increased number of dials, sticks shifters, and assemblies which result in the incorporation of more and more material.

The COVID-19 pandemic has brought consumer demand virtual standstill, crippling the North American automotive industry in a significant manner. This dire situation has affected automakers and components manufacturers due to the imposition of temporary and unconditional lockdowns to bring control to the spread. Due to production halts and international trade restrictions, manufacturers have suffered heavy losses. However, this situation is expected to improve through controlled action, and the industry will return to normalcy after the lifting of lockdown & transportation restrictions.

In the North America automotive interior materials market, the business plastic segment is expected to cross 90% share in terms of volume by 2026 owing to favorable characteristics of the material. Plastic since its initial usage in vehicles in the early years has since experienced massive technological change, improving its capabilities and durability. Plastics have also helped shed a lot of weight through innovation in material science and since gained market share rapidly, supporting high MPG requirements set by the government through the light-weighting application.

The market by application includes consoles & dashboard, doors, seats, steering wheel, floor carpet, and others. The seating segment generated over USD 1.5 billion in 2019. Seats held the largest share in the North American automotive interior materials market and can be conjugated to the large presence of Sport Utility Vehicles.

Vehicles, such as Passenger Carrying Vehicles (PCV), Light Commercial Vehicles (LMV), and Heavy Commercial Vehicles (HCV) are considered in North America automotive interior materials market. LCV includes trucks and SUVs and will gain significant traction from 2020 to 2026. The region is apparently dominant in terms of sales from this segment owing to supportive consumer preference. Light truck sales are also on the rise with a large consumer base preferring bedded trucks as a daily workhorse.

U.S. is expected to cross USD 3.5 billion by 2026 owing to the growing automotive sector. Increasing launches from manufacturers to support the ever-growing SUV market in the country is expected to influence growth. In 2019, commercial vehicles in the country also witnessed growth in sales from 12,397,822 units sold in 2018 to 12,764,999 units sold in the year 2019.

The key players in the North America industry include Continental AG, UFP Technologies, 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.