Automotive Interior Leather Market Size, Share & Trends Analysis Report By Material (Genuine, Synthetic), By Vehicle (Passenger Cars, Light Commercial Vehicles), By Car Class, By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global automotive interior leather market size was estimated at USD 31.82 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.3% from 2022 to 2030. The growth is anticipated to be driven by the growing demand from the automotive industry and the rising demand for enhanced aesthetics in interior components of vehicles. The surge in demand for synthetic leather in the economy and mid-segment car variants is likely to further fuel the demand over the forecast period. Automotive manufacturing is booming in the Asia Pacific region. The top two countries for industry growth are China and India. The countries with high rates of GDP growth, rising disposable income, and government assistance are propelling the production of vehicles across the region. Among China's leading domestic auto manufacturers are Dongfeng, SAIC Motor, FAW, and others. BYD, Brilliance Automotive, Chery, Greely, Jianghuai (JAC), and Guangzhou Automobile Group are among the additional producers.

The growing middle-class population and cheaper availability of leather and other resources supplement the growth of the motor vehicle manufacturing industry in the Asia Pacific. The region is also witnessing investments from key players such as BMW, Ford Motor Company, Jaguar, and Nissan Motor Co., Ltd.

Animal rights laws are an obstacle for genuine leather producers in several countries. Growing awareness among consumers towards animal exploitation, aided by programs conducted by organizations such as the World Wildlife Fund (WWF), People for the Ethical Treatment of Animals (PETA), and others has played a major role in increasing the demand for leather alternatives. The growing supply-demand gap in the genuine leather industry is also a factor responsible for manufacturers opting for artificial leather.

Another major factor driving the use of synthetic leather is its cheaper manufacturing cost. The manufacturing process of synthetic leather is cheaper and easier than that of natural leather. This has led to increased investment in synthetic leather and will help improve the overall market penetration.

Vehicle Insights

The passenger vehicles segment dominated the automotive interior leather market in terms of revenue with a share of more than 51.0% in 2021. The rise in the use of passenger cars on account of the protection from various environmental conditions such as dust, heat, accidents, and others. is anticipated to enhance the production of passenger vehicles, which is expected to positively impact the growth over the forecast period.

The light commercial vehicles (LCV) segment is expected to witness promising growth from 2022 to 2030. Favorable growth in commercial transportation services such as taxis is anticipated to drive the demand for light commercial vehicles. The development of emerging economies on account of rapid industrialization and an increase in logistics facilities is projected to boost the sales of light commercial vehicles. These factors are expected to drive the demand for automotive interior leather.

A positive outlook of the heavy commercial vehicle manufacturing market on account of the developing logistics industry is expected to drive the demand for automotive interior leather. In addition, favourable improvement in the building & construction, coupled with the growing infrastructural demand is likely to augment the demand for heavy commercial vehicles which in turn is expected to drive the demand.

Material Insights

Genuine leather held the largest revenue share of more than 60.0% in 2021. Genuine leather is manufactured from tanning the animal hide and is mostly produced from the skin of lamb, deer, and cattle. It is a byproduct of the Middle East & Africa industry and is gaining massive adoption, particularly in luxury vehicles despite the availability of cheaper options. Bayerische Motoren Werke AG, Land Rover, and Rolls-Royce Motor Cars are some of the largest end-users of the product. These factors are expected to drive the demand for the material over the forecast period.

However, synthetic leather is attaining popularity owing to the growing manufacturing activities in developing economies, better product performance as compared to other leather alternatives, and steady technological advancements. Synthetic leather is also called artificial, and faux leather. It is a leather alternative utilized in the automotive industry, where a leather-like finish is required and the material is too expensive, unsuitable, or unusable. These factors are expected to augment the demand for the material over the forecast period.

Car Class Insights

The luxury car segment is anticipated to dominate with a revenue share of more than 69.0% in 2021. In the past decade luxury vehicles have witnessed a significant rise in demand from the high-net-worth population. In addition, these vehicles offer higher performance, and better comfort, and are technologically advanced making them suitable for purchase across populations with specific vehicle requirements. The rise in demand for luxury vehicles is anticipated to propel the industry growth over the forecast period.

Increasing demand from the middle-class population due to increased disposable income and purchasing power parity in addition to increasing desire for an improved lifestyle is anticipated to fuel the demand for mid-segment vehicles which in turn is expected to drive the demand over the forecast period.

Application Insights

Seats & center stack dominated with a market share of more than 31.0% in 2021. leather in interior components of the vehicle such as the seat and the center stack is gaining popularity owing to the benefits such as durability, softer feel, lower interior noise levels, lesser vibrations, and aesthetic characteristics. Furthermore, the demand from luxury vehicles is expected to drive the demand for leather across automotive interiors over the forecast period.

Leather is one of the preferred materials for the production of automotive carpets. It is a naturally derived material that delivers a premium finish to the vehicle, requires low maintenance, and is easy to clean. Different properties displayed by leather such as durability, softness, and ability to repel stains are likely to augment market demand for leather in carpet application. They are available in a wide range of colors and sizes.

Headliner application of leather includes the utilization of leather in covering the car ceiling. Market players are engaged in undertaking research & development to develop automotive headliners to provide better aesthetic appeal and comfort to the interior. Thus, supplementing a significant demand for leather which offers better aesthetics than plastic and composites.

Regional Insights

Asia Pacific held the largest revenue share of more than 41.0% in 2021. The rapid development of motor vehicle manufacturing industries is supplementing the regional product demand. China and India are expected to dominate the regional demand. Asia Pacific is characterized by the presence of several market players engaged in expanding their production capacities to cater to the import needs of countries such as the U.S., Germany, and the U.K. Major players are targeting developing economies to cater to the rising product demand and increase their profitability.

China is the largest producer as well as the largest consumer of automotive interior leather in the global industry. The market is featured with consumers which prefer genuine leather over synthetic leather in the automotive interior. Durability, stain resistance, and cleanability are among the key parameters considered by Chinese buyers in the industry. In addition, a significant consumer shift toward anti-soiling leather is anticipated to further drive the market demand in the upcoming years.

India is one of the fastest-growing economies on the global stage. Favorable government policies, availability of cheap labor, and rising disposable income are attracting investments in the automotive manufacturing industry in the country. This is expected to positively impact the growth of the industry in the country.

Key Companies & Market Share Insights

The market is largely fragmented with the presence of a large number of global and regional players. Key global players are facing acute competition from regional players, who have robust distribution networks and an adequate understanding of suppliers and regulations.

Major players are involved in the research & development for the production of superior-quality leather that provides improved features. Technological collaborations are witnessed in the industry to carry out R&D activities related to the automotive interior leather.

Market players are engaged in new product launches. For instance, in July 2022, Synthetic leather manufacturer and supplier Sage-ONF launched serial production of silicone synthetic leather for automotive interiors. The sage-ONF plant has started its manufacturing in Shanghai, China owing to high demand from the customers.Some prominent players in the global automotive interior leather market include:

• GST Autoleather Inc

• Eagle Ottawa

• CTL leather

• Alphaline auto

• DK leather corporation

• Scottish leather group

• Wollsdorf leder schmidt & Co Ges

• Classic soft trim

• Katzkin Leather inc

• Kuraray plastics

• Alfatex Italia

• Seiren Co Ltd

• Lear Corporation

• Bader GmbH & Co. KG

• BOXMARK Leather GmbH & Co KG

Automotive Interior Leather Market Report Scope

Global Automotive Interior Leather Market Segmentation

This report forecasts the volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the global automotive interior leather market report based on vehicle, material, car class, application, and region:

• Material Outlook (Volume, Million Sq. Ft.; Revenue, USD Million, 2019 - 2030)

  • Genuine

  • Synthetic

• Vehicle Outlook (Volume, Million Sq. Ft.; Revenue, USD Million, 2019 - 2030)

  • Passenger Cars

  • Light Commercial Vehicles

  • Trucks & Buses

• Car Class Outlook (Volume, Million Sq. Ft.; Revenue, USD Million, 2019 - 2030)

  • Economy Car

  • Mid-Segment Car

  • Luxury Car

• Application Outlook (Volume, Million Sq. Ft.; Revenue, USD Million, 2019 - 2030)

  • Upholstery

  • Headliners

  • Seat Belt

  • Carpet

  • Seats & Centre Stack

  • Door Panels

  • Others

• Regional Outlook (Volume, Million Sq. Ft.; Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa