Automotive Interior Materials Market CAGR Of 3.9%

Allied Market Research recently published a report titled “Automotive Interior Materials Market By Type (Plastics, Metals, Fabric, Leather, Composites, Others), By Vehicle Type (PV, LCV, HCV), By Application (Dashboard, Door Panel, Seats, Floor Carpets, Others): Global Opportunity Analysis and Industry Forecast, 2020-2030.” According to the report, the global automotive interior materials industry was valued at $55.0 billion in 2020 and is expected to reach $80.2 billion by 2030, growing at a CAGR of 3.9% from 2021 to 2030.

Key Drivers, Restraints, and Opportunities

The rise in the focus on reducing the overall weight of automobiles to enhance fuel efficiency and the increased use of plastics in automotive production have been major factors driving the growth of the global automotive interior materials market. However, the high volatility in the prices of raw materials has been a significant restraint. On the other hand, the growing adoption of green technology for producing automotive leather presents new opportunities for the market.

Covid-19 Impact

The Covid-19 pandemic had a severe impact on the global automotive sector, with strict restrictions on transportation and cross-border trade. Manufacturing plants in the automotive industry were shut down, which negatively affected the international trade of automotive interior materials. However, with the rollout of vaccination programs and relaxation of lockdown norms, the market is expected to recover.

Segment Analysis

The composites segment accounted for the largest share in 2020, contributing to more than one-third of the global automotive interior materials market. The segment is expected to witness the highest CAGR of 4.8% during the forecast period due to its use in making vehicles lighter, safer, and more fuel-efficient. Other segments include plastics, metals, fabric, leather, and others.

The door panel segment is projected to exhibit the highest CAGR of 4.3% during the forecast period, while also dominating the market in terms of revenue, contributing to nearly two-fifths of the global automotive interior materials market. This is attributed to the segment’s role as an interface between the car’s interior and the door’s inner workings. Other segments analyzed in the report include dashboard, seats, floor carpets, and others.

Regional Analysis

Asia-Pacific held the largest share in 2020, accounting for almost half of the global market. The region is expected to register the highest CAGR of 4.3% from 2021 to 2030, driven by urbanization and increasing demand for automobiles. The report also covers North America, Europe, and LAMEA.

Major Players

Key players in the market include 3M, ARKEMA Group, BASF SE, Covestro AG, Dow, Evonik Industries AG, Hexcel Corporation, Huntsman International LLC, Stahl Holdings B.V., and Wacker Chemie AG.