Automotive Upholstery Market

Automotive Upholstery Market Outlook (2023 to 2033)

The global automotive upholstery market is set to expand rapidly at a CAGR of 7.1%, increasing from its current valuation of US$ 5 billion to US$ 10 billion by the end of 2033.

Automotive upholstery includes reupholstering, restoring seats, and trimming the interior of vehicles. It comprises trunk space, seat covers, center console, carpets, door interiors, and roof covers. It is made of faux leather, leather, polyvinyl chloride (PVC), vinyl, and nylon, which makes the seat sturdy and resistant to chemicals, moisture, abrasion, and stains. It keeps dirt from forming and safeguards against pet dander, pollen, and dust, which trigger allergies and breathing issues.

Vehicle upholstery improves the aesthetic appeal of automobiles while also protecting the back and spine of passengers, improving driving posture, and providing a better driving experience. Aside from that, textiles used in upholstery offer insulation and help keep automobiles cool during the warmer months. As a consequence, automotive upholstery is gaining widespread acceptance around the world.

The COVID-19 pandemic hampered the expansion of the automotive upholstery industry, as new vehicle production fell owing to global lockdowns and travel restrictions. Supply chain problems and changes in raw material pricing restricted the market expansion even further. Nonetheless, the market expanded considerably once manufacturing facilities began operations in the second half of 2020.

As people become more aware of environmental issues, there is a greater demand for sustainable and eco-friendly materials in the global market. Manufacturers are exploring new materials and manufacturing technologies to fulfill this demand.

Advancements in automobile coating materials showed that plant-based woven textiles provide various extra advantages compared to conventional fibers. Moreover, introducing lighter materials that require significantly less stitching also provides revenue generation opportunities. Furthermore, lowering the weight of the covering materials can improve fuel efficiency.

• Seiren Co. Ltd has created an eco-friendly material product line of automotive upholstery with the goal of lowering CO2 emissions, eliminating organic solvents, and utilizing recycled fiber.

Manufacturers are also focusing on producing stretchy material-based seat coverings that can adjust to the passengers' bodies, making them more comfortable. Moreover, the worldwide market is seeing an increase in demand for luxury and premium materials such as leather and high-end fabrics. Automakers are incorporating these materials in vehicles to give a more premium and pleasant driving experience.

Report Attributes	Details
Automotive Upholstery Market Size in 2023	US$ 5 Billion
Projected Market Value (2033)	US$ 10 Billion
Global Market Growth Rate (2023 to 2033)	7.1% CAGR
North America Market Share (2022)	35%
Leading Material Segment	Leather
Key Companies Profiled	BASF SE Borgers SE & Co. KGaA BASF Corporation Cha Technologies Group Hyosung Corporation Johns Manville Hollingsworth & Vose Company Freudenberg SE Seitec Co., Ltd

Why is Global Demand for Automotive Upholstery Expanding?

“Increasing Production of Vehicles across Regions”

The growing production rate of various kinds of vehicles is the main factor driving the demand for automotive upholstery products.

• According to the India Brand Equity Foundation (IBEF), overall passenger vehicle sales from 2019 to 2020 were roughly 2.8 million.
• In 2020, the American auto industry sold around 3.4 million vehicles.

Automobile manufacturers use upholstery material for a variety of purposes, such as automotive carpeting, auto floor mats, seat belts, seat coverings, and automotive seating. As a result, increasing production and sales of vehicles are raising the demand for automotive upholstery products.

“Growing End User Demand for Comfort and Safety”

Upholstery is increasingly being used for insulating material, airbags and cladding, column padding, anti-rattle pads, under shields, and outer wheel arch liners. Due to its lightweight and inexpensive cost, it is widely utilized in vehicles for comfort, safety, acoustics, low emissions, and fuel efficiency applications. With consumers increasingly demanding safety, comfort, and aesthetics in automobiles, upholstery usage will rise in the coming years, fueling market expansion.

With people spending more time in their vehicles, there is a greater demand for comfortable and ergonomically built seats and interiors. Manufacturers are introducing innovative materials and designs to boost comfort and lessen tiredness during long trips.

“High Demand for Personalized Automotive Interiors”

Customers are becoming more interested in personalizing and customizing their vehicles, such as interior upholstery. As a result, manufacturers of vehicle upholstery are providing a broader range of customization options, such as different textures, colors, and finishes.

Country-wise Insights

Why is the United States an Attractive Market for Automotive Upholstery?

“Rapidly Rising Demand for Electric Vehicles”

North America accounted for 35% of the global market for automotive upholstery in 2022. The United States is one of the world's leading automobile producers. The United States ranks at the top in passenger vehicle production among all North American countries.

Since automotive upholstery material is utilized in electric vehicles, rising demand for electric vehicles in the United States is contributing to market growth. Upholstery in electric vehicles is utilized as a divider in fuel cells and batteries, as well as for materials that minimize noise and preserve thermal comfort. Electric vehicle manufacturers in the United States, such as Lucid Motors, Waymo, Tesla, Uber, and others, are large consumers of upholstery materials.

Which Factor is Pushing the Sales Growth of Automotive Upholstery in Japan and South Korea?

“Increasing Popularity of Vehicle Interior Customization”

Asia Pacific is witnessing considerable growth in the worldwide market. The ample supply of low-cost raw materials, as well as the presence of numerous important players in the region, are fueling the regional market expansion.

• According to the International Organization of Motor Vehicle Manufacturers, Asia Pacific was a leading motor vehicle manufacturer in 2019, with a market share of over 40%. The organization also claimed that in 2019, Asia Pacific sold the most passenger cars.

Rising government initiatives and international investment in establishing vehicle production facilities in this region are also driving the demand for automotive upholstery. Due to the availability of low-cost labor, several firms are relocating their gearbox production operations to Asia Pacific.

The Asia Pacific market is also benefitting from the existence of automobile production facilities and rising demand for automobiles, particularly in Japan and South Korea. Moreover, vehicle interior customization is becoming increasingly popular in Japan and South Korea. Since manufacturers and buyers are seeking optimum fuel efficiency, lightweight automotive materials are preferred for vehicle interiors in these countries.

What is Germany's Stance in the European Market?

“Germany to Play Important Role in Regional Market Growth”

Europe is the hub of the luxury automobile market. Germany plays an important role in the European market. In 2019, German luxury carmakers and premium brands experienced good sales and increased market share. BMW and Mercedes-Benz both enjoyed their ninth straight record year in 2019. German luxury automobile manufacturers outperformed markets in key nations like the United States and China.

Furthermore, the demand for electric vehicles is escalating in Germany. In 2018, Germany sold over 200,000 plug-in electric vehicles. It has taken up the goal of reaching zero emissions by committing to producing and selling only electric vehicles domestically by 2050. With rising demand for premium and electric vehicles, the German market is projected to expand further in the coming years.

Category-wise Insights

Why is Leather Extensively Used to Manufacture Automotive Upholstery?

“Excellent Durability and Robustness of Leather”

Leather upholstery is becoming more popular among consumers due to its excellent durability and robustness. Aside from the functional benefits, leather upholstery improves the overall aesthetic of a vehicle's interior. These characteristics, together with consumer preferences, are driving OEM and vehicle manufacturers to boost the production of leather upholstery and provide it at competitive market pricing.

Why is Demand for Automotive Seat Upholstery Rising?

“High Demand for Comfortable Seats and Seat Covers”

Demand for automotive upholstery for seat covers is increasing significantly, mainly due to increased automobile manufacturing. Seat covers make the most of the upholstery material of an automobile. Up to 2 meters of upholstery material is used for each vehicle seat. The upholstery material needed for car seat covers differs by vehicle model and type. For a purchaser who spends significant time on road travel, the comfort of car seats has become an important consideration in determining a purchase decision.

Automotive OEMs are also offering customized seats to meet the increased demand from customers for comfortable seats and seat covers. Customers can currently select from a broad range of seat coverings that are standard fit on vehicle seats.

• Toyota Boshoku Corporation (Toyota Boshoku) presented Its Fatigue Estimation and Drowsiness Suppression System at the JSAE's Automotive Engineering Exhibition in May 2022. The system is a seat cover fitted with features that assess and suppresses the driver's sleepiness and tiredness while driving.

Ergonomically designed car seats and perforated seat covers can help prevent driver tiredness, which is a major cause of vehicle accidents. Innovative seat innovations like sensor-powered seats that track a driver's biometrics and heated seats are expected to fuel the growth of the upholstery market.

Competitive Landscape

The worldwide market is competitive and fragmented because of a few well-established local, regional, and international companies. Automotive upholstery companies are raising their R&D efforts to expand their product variety and customer base. Moreover, several start-ups in the global market are focusing on new developments.

• Lear Corporation acquired Kongsberg Automotive's Interior Comfort Systems (ICS) business unit in October 2022. In addition, the company intends to broaden its product portfolio to include specialist comfort seating solutions to enhance vehicle performance and packaging.
• Toyota Boshoku Corporation announced the creation of new seats and other interior parts for Toyota Motor Corporation's all-new Aqua, which features an expansive baggage compartment and motor core fitted headliners, in August 2021.

Key Segments of Automotive Upholstery Industry Research

• By Material :

  • Synthetic Leather
  • Thermoplastic Polymers
  • Leather
  • Automotive Textiles
  • Smart Fabric
  • Plastic

• By Application :

  • Seat Covers
  • Carpets
  • Roof Liners
  • Dashboards
  • Trunk Lines
  • Sun Visors

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific & China
  • Middle East & Africa