- Infotainment system is estimated to act as the fastest growing segment of the automotive interior market by component.
- The North American region holds the second largest share in the automotive interior market.
- Emergence of industry-wide standards such as the 3D displays, HUDs, smart seating system, OLED interior lights, LED-lighted headliner would trigger growth in this market.
The Automotive Interior Market is projected to grow from $235.59 billion in 2017 to $301.56 billion by 2022, at a CAGR of 5.06%. Increased demand for premium segment vehicles with advanced interior styling is one of the major factors for the growth of this market.
The automotive interior ecosystem consists of component manufacturers such as Lear Corporation (U.S.), Magna International, Inc. (Canada), Faurecia S.A. (France), Continental AG (Germany), Calsonic Kansei Corporation (Japan), Delphi Automotive PLC (U.K.), Panasonic Corporation (Japan), Hyundai Mobis Co. Ltd. (South Korea), Toyota Boshoku Corporation (Japan), and Tachi-S Co. Ltd. (Japan).These automotive interior components, such as automotive seats, central console, cockpit module, door panels, headliners, and others are supplied to automotive OEMs.
- Increase in Demand for Autonomous Vehicle
- The advent of Concept Cars and Electric Vehicles in the Automotive Industry
- Rise in Demand for Technologically Advanced Materials
- The rise in the Demand for Interior Styling
The automotive seat segment is estimated to hold the largest share of the automotive interior market by component, in terms of value
The automotive seat segment is projected to be the largest market for automotive interior components from 2017 to 2022. The increased demand for passenger comfort and convenience is the major reason for the growth in this market.
For example, Faurecia S.A. (France) and Wuling Industry (China) entered into a joint venture and formed Faurecia Liuzhou Automotive Seating Co. Ltd. to cater the demand of SGMW (Stoever Glass Wealth Management)-affiliated OEM brands and other customers. The company will sell a complete range of frames, seats, and other seat components. Magna International, Inc. (Canada) entered into a joint venture with Chinese seating supplier Hubei Aviation Precision Machinery Co., Ltd. (HAPM) to develop innovative seating systems for the automotive industry. These market players such as Faurecia S.A. (France), Lear Corporation (U.S.), and Magna International, Inc. (Canada) are trying to maintain their market share by implementing various strategies for the automotive seat market.
Rising demand for interior styling, cabin comfort, perceived quality, and convenience features
The automotive interior solution in the automotive industry has transformed in recent years. The complexities in controlling and operating the functions have been eliminated. Also, more comfort features and electronic systems have been introduced in seat, lighting and infotainment systems, which enhance the overall experience of the driver in a vehicle. Earlier the share of electronics system in the vehicle was just 1 to 2% of vehicle cost, but due to the rising trend for enhanced user experience and convenience features, the share of such systems has now increased to 8 to 12% of the total vehicle cost.
The amount of time people spend inside vehicles is growing substantially, given the rise in traffic and the increasing need for transportation. Hence, there has been growing interest in the comfort and convenience features offered by vehicles. This has led to the development and integration of innovative technologies that reduce human effort and maximizes comfort as well as aesthetics. The OEMs are integrating these technologies in vehicle interiors to improve the overall customer satisfaction levels and to stay competitive in the global market. As a result, many manually operated systems have now been replaced with electronically controlled systems, and the vehicle interiors are designed to maximize the ergonomics of the vehicle.
The North American region holds the second-largest share in the automotive interior market
North America has been projected to hold the second-largest share of the automotive interior market. The North American automotive industry is advanced with powerful economies such as the U.S. and Canada present across this region. Some of the major OEMs such as General Motors, Ford Motors, and Fiat-Chrysler Automotive are present across this region. High consumer disposable income and a significant market for luxury cars, technologies such as advanced instrument clusters, infotainment, and the navigation system has led to the growth of the automotive interior component market.