Automotive Interior Leather Market Research Report Information By Type of Cover (Leather, Synthetic Materials), Application (Headliners, Seats, Door Trims, Consoles, Others), Distribution Channel (Online, Offline) And By Region (North America, Europe, Asia-Pacific, Latin America and Middle East & Africa) - Forecast Till 2030

Global Automotive Interior Leather Market Overview

Automotive Interior Leather Market Size was valued at USD 27.4 billion in 2021. The Automotive Interior Leather market industry is projected to grow from USD 28.0 Billion in 2022 to USD 41.7 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.10% during the forecast period (2022 - 2030). Leather's increasing popularity as an automotive interior material due to its high durability and luxury texture is the primary reason propelling the market forward. Additionally, the aftermarket leather business has experienced a meteoric expansion in response to the rising consumer desire for customization and luxury seat texture.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Interior Leather Market Trends

• The Automotive Sector's Rapidly Increasing Desire For Leather

Due to its high level of durability and upscale feel, leather is frequently utilized in automobile interiors. It is utilized in many interior components of an automobile, including the gearbox, consoles, seats, infotainment systems, instrument panels, and interior decor. They are extremely comfortable and resistant to alcohol, water, stains, extreme heat, and cold due to their high leather elasticity, which also increases their durability and lowers maintenance expenses. One of the most often utilized materials in the automobile industry is the PVC vinyl fabric used for seat upholstery. Most passenger automobiles utilize leather. The need for leather in the aftermarket sector has grown exponentially along with customer desire for customization and the premium feel of the seats. Further, the automobile industry is seeing enormous expansion.

The automotive industry has been growing significantly during the past few years, coupled with the growth of e-vehicles in recent years. The automotive market has a significant growth rate in the Asia-Pacific region. The automotive market in the Asia Pacific has been one of the fastest-growing sectors in recent years and is expected to dominate the market during the next ten years. Moreover, reducing harmful emissions protects the environment, increases safety and comfort, and creates more economic. Fuel-efficient vehicles are some significant trends running through the automotive market in the Asia Pacific. Due to the high wear resistance and durability of automotive interior leathers, they are widely used across heavy vehicles and carriers, passenger vehicles, and other locomotives. Additionally, the growth of autonomous or e-vehicles is further expected to boost the automotive interior leather market. For instance, 61% of the consumers in China and 48% in Japan are likely to prefer a hybrid-electric or a battery-electric transportation medium in their next vehicle. However, an increase in petrol and diesel-based vehicle consumption is still expected to propel the automotive market in the coming years. These trends in the growth of the automotive industry are expected to boost the demand for automotive interior leather during the forecast period.

Figure 1: Prevalence of spine degeneration diagnosis by type, age, gender, and obesity

Source: Organisation Internationale des Constructeurs d' Automobiles

The sale of commercial vehicles in the US is an additional factor in the region's consumption of automotive interior leather. In 2020, commercial vehicles sold were 12,058,515. The trucking sector has seen substantial expansion recently, and the American Trucking Association (ATA) predicts that the trend will continue over the next eight years. Moreover, the expanding e-commerce business has fuelled the growth of the manufacturing sector, where commercial vehicles are the primary source for the delivery of goods.  

The growth of e-vehicles adds to the demand for automotive interior leather in the review period. Overall, the EV sales volumes are becoming large enough to create substantial profit pools for well-positioned leather suppliers and upstream players in the automotive industry. Thus, the increase in the production of e-vehicle coupled with gasoline-based cars is expected to increase the Automotive Interior Leather market revenue generation opportunities during the assessment period.

Automotive Interior Leather Market Segment Insights

Automotive Interior Leather Type of Cover Insights

The Automotive Interior Leather market segmentation, based on the type of cover, includes leather and synthetic material. The synthetic Automotive Interior Leather segment held the majority share in 2021 contributing to around ~67-69% concerning the Automotive Interior Leather market revenue. This is primarily owing to predicted market drivers such as rising demand from the automotive sector and the growing need for improved aesthetics in interior components of automobiles. Over the next few years, demand is expected to be driven largely by the rising popularity of cars in the economy and middle price ranges. A growing number of luxury automakers are showing a preference for synthetic leather in response to rising consumer demand for cruelty-free products and pushback against the usage of leather manufactured from cattle hides. They think of it as a superior substitute for genuine leather. As a more cost-effective alternative to genuine leather, synthetic leather trim has become increasingly common. Diverse clients are now actively seeking it out, particularly those who value eco-friendly automobiles. This is poised to positively impact the automotive interior leather industry in the medium-term forecast period.

June 2022: Benova Eco Protect is a brand-new premium surface material that Continental has created. Benefits: It simultaneously increases the comfort, durability, and sustainability of car interiors. Germany is presently producing the surface material.

Figure 2: Automotive Interior Leather Market, by Type of Cover, 2021 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Interior Leather Application Insights

The Automotive Interior Leather market data has been bifurcated by surgery into minimal headliners, seats, door trims, consoles and others. Since there has been an increase in the demand for automobiles with aesthetically pleasing interiors, synthetic leathers are being used in interior components like seats. For example, car seats are crucial in helping to lessen the vehicle's overall mass, which in turn increases its MPG. The demand for leather in cars' interiors is projected to grow as a result of rising concerns about personal safety and a growing preference for convenience, luxury, and safety. This has further broadened the growth opportunity for the Automotive Interior Leather industry.

Figure 2: Automotive Interior Leather Market, by Application, 2021 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Interior Leather Distribution Channel Insights

Based on End Users, the Automotive Interior Leather industry has been segmented into orthopaedic clinics, multispecialty hospitals, neurology clinics, and others. Multispecialty hospitals held the largest segment share in 2020, owing to the rapid adoption of advanced Automotive Interior Leather surgery products, and the availability of skilled medical staff. Moreover, increasing government initiatives to improve the healthcare infrastructure, and the growing number. of Automotive Interior Leather surgeries such as minimally invasive spine surgery, and other segments is expected to bolster at a CAGR of 3.17% during the assessed timeline.

The third fastest-growing segment in the Automotive Interior Leather industry is neurology clinics. Neurology Clinics is committed to researching important clinical connections between neurology and neurosurgery. Because both professions deal with nervous system problems, there are clear areas for collaboration and abundant chances for fruitful synergism.

Automotive Interior Leather Regional Market Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific and the Rest of the World. The North America Automotive Interior Leather market accounted for USD 0.88 billion in 2021 and is expected to exhibit a 5.06% market CAGR during the study period. This is due to the region's ageing population as well as the rising prevalence of spine deformities such as scoliosis, kyphosis, and lordosis. Further, the major countries studied are U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: AUTOMOTIVE INTERIOR LEATHER MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

A sizable automotive interior leather industry in the region is likely to make the Asia-Pacific region the largest expanding market for automotive interior leather ly. The market for automotive interior leather is also anticipated to grow throughout the forecast period because of rising automotive sales and shifting consumer preferences in countries like China and India. Because of the high demand for luxurious automotive interior leather, Europe has been actively monitoring the North American market. The growing demand for the product from various applications drives the North American market.

The North America automobile interior leather market is expected to expand at a robust rate over the projected period, according to Market Research Future. Light vehicle sales in the United States will benefit from increased demand. But the commercial vehicle sector is what drives demand in the United States, making up over two-thirds of the market. Sales of motor vehicles in the United States increased to 16.60 million in January 2021, from 16.30 million in December 2020, as reported by Trading Economics. Even if the epidemic has had a devastating impact on car sales in the United States, aftermarket demand will guarantee consistent sales of the automotive interior leather.

Europe’s automotive interior leather market accounts for the second largest market share as of 2021. A potential growth-stifling factor for the British auto sector was averted when the UK and the EU reached an agreement on a trade deal for the period after Brexit. This will aid the UK automotive interior leather market in the long run. There is, however, cause for optimism regarding British automakers' use of leather in their vehicles' interiors because of the aftermarket's ability to provide customization and replacement services. The market for automobile interior leather is being propelled forward by several causes, the most important of which is the rising focus of consumers on cutting-edge amenities within their vehicles' cabins. The aftermarket customization market for high-end and sports cars will continue to see steady growth as leisure time activities expand.

Chinese consumers' propensity to invest in luxury automobiles and their cabins has promising prospects for the growth of the Chinese automotive interior leather market in the country. Moreover, during the foreseen time, there will be promising growth opportunities for artificial/synthetic leather in less expensive motor vehicle variations due to rising demand. In addition, China's rapidly growing automobile industry offers promising prospects for businesses producing leather for car interiors.

Japan has also emerged as a major producer of components for creating plush automotive interiors. Increasing sales of lightweight automobiles are driving demand for lightweight automotive materials for vehicle interiors as both manufacturers and purchasers seek optimum fuel efficiency. When it comes to premium synthetic suede and leather, which are used to cover automobile seats and other interior components, Japanese companies are in the lead. Top-tier seat materials have been developed in Japan thanks to the country's manufacturing prowess, investment in R&D, and capacity to collaborate closely with the country's automobile manufacturers. This is poised to keep the Japan automotive interior leather market ready for newer growth opportunities in the future.

As an important production centre for passenger vehicles in Asia, India is a promising market for the selling of leather for car interiors. There were supply chain issues, however, the Society of Indian Automobile Manufacturers (SIAM) reports that January 2020 saw an 11.4% increase in passenger vehicle entire sales in India. Market Research Future agrees with other analysts that India is one of the most promising growth areas in the South Asia Automotive Interior Leather Market. Demand for automobile interior leather is predicted to increase in the country in response to recovering auto sales, notwithstanding a minor drop reported during COVID-19.

The Latin America and Middle East & Africa regions are showing consistent growth during the forecast period. The latest market report from Market Research Future depicts that, due to technological developments in these countries, it is anticipated that the Middle East, Africa, and Latin America markets will experience considerable growth over the projection period.

Automotive Interior Leather Key Players & Market Competitive Landscape

The Automotive Interior Leather market is expected to expand thanks to the heavy investment in research and development by market major players. Recent market statistics show that new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations are just some of the strategic steps market participants are doing to expand their footprint, broaden their market outlook and focus on market growth.

There are numerous worldwide, regional, and local players in the market for vehicle interior leather. There is a lot of competition in the market, and everyone is trying to expand their part of it. The primary factors that challenge the expansion of the market are the rapid development of new materials and the expanding use of synthetic leather in the automotive industry. The suppliers contend on the basis of price, product quality, and, most importantly, product availability across different regions. In order to be competitive, suppliers must offer reasonably priced, high-quality leather for vehicle interiors. While tier-1 and tier-2 corporation control over 67% of the worldwide market share between them, tier-3 companies make up the rest of the pie. A number of factors, including market and economic growth, government laws, and technological progress, affect how quickly and how large market players can expand. As a result, businesses in the sector need to concentrate on increasing output to keep up with demand and bettering their offerings to grow in line with the expected market forecast.

Latest market report from Market Research Future portrays the leading players in the automotive interior leather industry, which include GST AutoLeather Inc, Boxmark Leather GMBH & CO KG, Midori Auto Leather CO., LTD., BADER GMBH & CO KG, CONTINENTAL AG, Nan Ya Plastics Corporation, Zhejiang Hexin Holdings Co., Ltd, Teijin Limited, Gruppo Mastrotto spa, and Asahi Kasei Corporation. Most of these firms are investing R&D resources into creating new, high-end leather interior blends. Despite the dominance of corporations, a number of regional and local players with relatively minor market shares are present as well. In key markets like North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America, the players who have established production facilities or sales offices have expanded their operations. The Middle East is home to one of the largest consumer bases for synthetic Leather, giving a significant competitive edge to businesses with local representation and a distribution network there.

Key Companies in the Automotive Interior Leather market include

• GST AutoLeather Inc.


• Boxmark Leather GMBH & CO. KG


• Midori Auto Leather CO., LTD.


• Bader Gmbh & Co. Kg


• Continental Ag


• Nan Ya Plastics Corporation


• Zhejiang Hexin Holdings Co., Ltd.


• Teijin Limited


• Gruppo Mastrotto Spa.


• Asahi Kasei Corporation

Automotive Interior Leather Industry: Market Developments

June 2022: Benova Eco Protect is a brand-new premium surface material that Continental has created. Benefits: It simultaneously increases the comfort, durability, and sustainability of car interiors. Germany is presently producing the surface material.

April 2022: Continental opens a 200-Crore Greenfield Surface Solutions Plant in Pune, manufacturing surface solutions materials mainly for the Indian automotive and two-wheeler market.

December 2019: Autoleather Inc has invested USD 5 million in its new R&D offices in suburban Detroit where researchers study into how leather surfaces can be applied in a new era of vehicle trends, making them lighter in weight, perfecting how they adhere to seats made from new materials and developing new features such as quilting and perforations.

July 2018: The Teijin Group's fibre and products converting company, announced that it has agreed to acquire J.H. Ziegler GmbH (Ziegler), a leading supplier of automotive interior materials in Germany, at a cost of approximately EUR 125 million. Ziegler will become a wholly owned subsidiary of Teijin Frontier.

Automotive Interior Leather Market Segmentation

Automotive Interior Leather Type of Cover Outlook

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  Leather

  
  


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  Synthetic Material

  
  

Automotive Interior Leather Application Outlook

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  Headliners

  
  


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  Seats

  
  


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  Door Trims

  
  


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  Consoles

  
  


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  Others

  
  

Automotive Interior Leather Distribution Channel Outlook

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  Online

  
  


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  Offline

  
  

Automotive Interior Leather Regional Outlook

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  North America

  
  

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    US

    
    
  
  
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    Canada

    
    
  
  
  
  

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  Europe

  
  

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    Germany

    
    
  
  
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    France

    
    
  
  
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    UK

    
    
  
  
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    Italy

    
    
  
  
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    Spain

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  

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  Asia-Pacific

  
  

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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    South Korea

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  

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  Latin America

  
  

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    Brazil

    
    
  
  
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    Mexico

    
    
  
  
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    Argentina

    
    
  
  
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    Rest of Latin America

    
    
  
  
  
  

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  Middle East & Africa

  
  

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    GCC Countries

    
    
  
  
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    South Africa

    
    
  
  
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    Rest of MEA