Automotive Headliners Market

Automotive Headliners Market Outlook

The global automotive headliner market is projected to expand at a steady CAGR of around 4% by garnering a market value of US$ 13.32 Bn through 2032.

With the transition of the automotive industry towards electric and hybrid vehicles, the car headliners market is likely to start recovering towards 2021. Newly released data from Fact.MR states the global sales of automotive headliners surpassed US$ 9 Bn in 2022. Innovations in automotive designs and materials will play key roles in market developments for the foreseeable future.

Report Scope

Market Size Value in 2022	US$ 9 Bn
Project Market Forecast Value in 2032	US$ 13.32 Bn
Global Growth Rate (2022-2032)	4%
Market Share of Asia	45%
Key Companies Profiled	Lear Corporation Toyota Boshoku Corporation International Automotive Components Group S.A. Grupo Antolin Motus Integrated Technologies UGN Inc. Atlas Roofing Corporation Acme Auto Headlining Company American Foam & Fabric Howa Tramico

Demand Analysis of Automotive Headliners from 2017 to 2021 Vs Market Projections for 2022-2032

As per Fact.MR’s report, from 2017 to 2021, the global automotive headliners market reflected a growth rate of around 3%. Demand remained modest amid the recessionary pressures experienced due to the COVID-19 pandemic, in combination with a general stagnation experienced in the automotive industry since 2019.

Throughout 2020, the global automotive industry experienced multiple fluctuations. During the initial quarters, there were massive disruptions with regard to demand and supply of automotives and associated components, given the complete cessation of manufacturing activity. However, there was a significant proportion of the population which began investing in alternatives such as electric and hybrid vehicles, which generated renewed opportunities in the 2nd, 3rd and 4th quarters.

Major manufacturers increasingly displayed interest in offerings for mass-produced products for low- and mid-range cars and commercial vehicles. Geographical expansion of automotive production activities by OEMs around the world was a major contributor to automotive headliners market growth. Thus, automotive headliners is expected to register a CAGR of 4% in the assessment period 2022-2032.

Sustainability & Efficiency Driving Developments in Automotive Headliners Industry?

Sustainability and efficiency are key parameters being considered by automotive component manufacturers. Weight reduction and recyclability are factors that are gaining traction in the automotive industry. The Woodbridge Group unveiled StrataLiner NET headliner material, which offers superior environmental stability for the finished assembly, in addition to better acoustics, and weight reduction up to 40 % in comparison to competing composite materials. This innovation has set the path for the StrataLiner NET, which offers similar characteristics in smaller space constraints.

The product offers OEMs an affordable alternative to conventional fiberglass and polypropylene composite materials for superior forming and acoustical performance characteristics as to that provided by polyurethane solutions. This innovation is aided by improvements in low mass technology. Further, the GreenLite environmental initiative offers similar performance and quality for polyurethane foam components, with significant weight reductions. This technology responds to major challenges facing the auto industry, including fuel efficiency.

Low mass solutions are to aid product performance while keeping costs low. Other advantages to the approach include superior design flexibility, thinner cross-sections, improved acoustics, enhanced surface quality, and better compatibility in side curtain airbags. Offerings in the industry are provided as complete systems or as individual parts, to meet customer requirements. This trend is likely to create long-term opportunities for players in the automotive headliners market space.

Are Premium Car Sales Influencing Market Development for Automotive Headliners?

Fueled by trends such as increasing disposable income and car sharing programs around the world, consumer demand for luxurious interiors is growing rapidly. This is likely to bode well for leading technical textile manufacturers, including Asahi Kasei, Toray Industries, and Seiren, who are key suppliers of headliners. Luxury car sales have also risen. Mercedes alone delivered close to 500,000 vehicles worldwide in 2020.

With the introduction of car sharing concepts, high-end driver services, and, autonomous cars, tactile experience has become increasingly important. Also, odor control characteristics have been gaining interest for adoption in high-end cars, including headliner panels. A key trend with high potential for benefiting headliner material suppliers is the growing number of electric vehicles on the road. One of the major focuses of electric car manufacturers is weight reduction to increase range per battery charge.

Alcantara has already been mandated by several electric vehicle manufacturers. As per a global EV Outlook 2020 report, sales of electric cars reached 2.1 million in 2019, surpassing 2018, which was already a record year, to bolster overall EV stock to 7.2 million units. Alcantara has announced a spending plan of US$350 million over five years to expand its production facilities.

Country-wise Analysis

Automotive Production Plants Surging Demand for Automotive Headliners in North America?

The United States has one of the largest automotive markets in the world. In 2018, sales of light vehicles in the U.S. surpassed 17 million units, making it the fourth consecutive year in which sales reached this number. Overall, the United States is the world’s second-largest market for vehicle sales and production. As per the Fact.MR report, the U.S. market for headliners is likely to accumulate over US$ 1 Bn in 2022.

U.S. affiliates of majority foreign-owned automotive companies account for more than 400,000 jobs in the U.S. Furthermore, a number of auto manufacturers have engine and transmission production plants in the country, while also conducting design, R&D, and testing in the United States. Total foreign direct investment in the U.S. automotive industry reached US$ 114.6 billion in 2018. The U.S. automotive industry is also leading in terms of innovation. According to Auto Alliance, of the US$ 105 billion spent on R&D in the auto sector, globally, a fifth (US$18 billion) can be accounted for by the United States.

In 2018, the United States exported 131,200 medium and heavy trucks (valued at over US$ 60 billion) and 1.8 million new light vehicles to more than 200 countries globally. The U.S. further exported automotive parts worth US$ 88.5 billion. With key factors such as large consumer market, open investment policies, available infrastructure, highly skilled workforce, and government incentives, North America is likely to contribute more than 40% market share for automotive headliner industry.

Sustainability and Recyclability Propelling Demand for Automotive Headliners in Asia?

As per the Fact.MR report, China is the second-largest major market for automotive headliners, albeit displaying a sluggish rate of growth through 2031. In addition, China and India’s automotive industry has been growing rapidly, and the country is playing an increasingly important role in the global automotive market.

With rapid growth in the number of cars in China and India, vehicle emissions have also become a major challenge for the industry. China Vehicle Environmental Management Annual Report showed that emission from motor vehicles constitutes a major source of air pollution. China has made a pledge to reach a carbon emission peak in 2031.

These factors are likely to bolster efforts towards sustainability and recyclability in automotive headliner production in the near future. Thus, the region is expected to hold more than 45% market share in the sales indicator period.

Category-Wise Insights

Versatile Scope of Application Key Factor for Increasing Demand of Foam-backed Cloth?

Automotive headliners can be produced from foam-backed cloth, cotton-napped cloth, synthetic cloth and perforated cloth materials. Of these, foam-backed cloth for headliners accounts for a major market share, albeit gradually declining throughout the forecast period.

Improvements in material choices and versatile scope of applications, including caravans, cars, motor homes, and recreational vehicles, are likely factors influencing developments in the distribution and sales of foam-backed cloth for automotive headliners. Also, foam-backed cloth is ideal for application with fiberglass, hardboard, and resinated cotton, which will help in sustained growth in the years to come. Foam-backed cloth is expected to possess more than 2/5th market share for automotive headliners in the assessment period.

Low Replacement Rates Escalating Demand for Automotive Headliners through OEMs?

Both OEMs and aftermarket distributors are key channels of sales for automotive headliners. Low replacement rates of automotive headliners, and steady growth in vehicle sales over the previous decade, have been major factors bolstering the lead of OEMs over aftermarket channels.

However, increased interest towards customization by vehicle owners has created greater opportunities for aftermarket sales. Sales in both channels are expected to recover in 2021 in the post pandemic period. As per the Fact.MR report, sales of headliners for automobiles through OEMs are slated to account for more than 85% of the market by the end of 2032.

Competitive Landscape

The global automotive headliners market is moderately consolidated and competitive, owing to the presence of numerous regional players in the industry. Major manufacturers are focused on product launches and capacity expansions to bolster their portfolios, in addition to strategic collaborations, to consolidate their positions in the market.

• For example, in October 2020, Oracle Lighting debuted the new StarLINER ColorSHIFT Fiber Optic hardtop headliner. The product has been designed specifically for use in the Gladiator JT and Warngler JL vehicle models.
• In July 2019, International Automotive Components (IAC Group) announced the expansion of the company’s presence in the United Kingdom. This is set to be achieved through the expansion of the headliner manufacturing facility in Elmdon.
• In November 2020, SEAT, for its 2nd Innovation Day, revealed Ku-Fizz, a novel physical foam technology for automotive headliners, which reduces the weight of plastic components, in an initiative towards increasing sustainable materials in the automotive sector.

Key Segments Covered

• Material

  • Foam-backed Cloth Automotive Headliner
  • Cotton-napped Cloth Automotive Headliner
  • Synthetic Cloth Automotive Headliner
  • Perforated Cloth Automotive Headliner

• Headliner Type

  • Hardtop Automotive Headliner
  • Soft-top Automotive Headliner

• Vehicle

  • Compact Automotive Headliner
  • Mid-sized Automotive Headliner
  • Premium Automotive Headliner
  • Luxury Automotive Headliner
  • LCV Automotive Headliner
  • HCV Automotive Headliner

• Sales Channel

  • Automotive Headliner Sales via OEMs
  • Automotive Headliner Sales via Aftermarket