The global automotive interior leather market size was estimated at USD 28.32 billion in 2017. It is projected to expand at a CAGR of 6.5% from 2018 to 2025. Rising automotive manufacturing activities, especially in emerging economies of Asia Pacific such as China, and India, is one of the key trends escalating market growth. Moreover, surging demand for artificial/synthetic leather in cheaper motor vehicle variants is poised to provide an upthrust to the market during the forecast period.
Asia Pacific is observing a boom in manufacturing in the automotive industry. China and India are the sights of high growth rates in the region. Strong GDP growth rate, rising disposable income of the populace, and government support are revving up the production of motor vehicles in these countries. Moreover, their demand in lower-tier cities is likely to augment with declining prices.
SAIC Motor, Dongfeng, FAW, and Chang’an Automobile Group are major domestic auto manufacturers of China. Other manufacturers include Beijing Automotive Group, Brilliance Automotive, BYD, Chery, Greely, Jianghuai (JAC), Great Wall, and Guangzhou Automobile Group.
Widening base of middle-class population and cheaper availability of labour and other resources are supplementing the growth of the motor vehicle manufacturing industry in Asia Pacific. The region is also witnessing investments from key players such as Bayerische Motoren Werke AG, Fiat S.p.A, Ford Motor Company, MazdaMotor Corporation, Nissan Motor Co., Ltd., and Jaguar.
There has been a considerable shift towards synthetic/artificial variants, which are considered a cheaper alternative of genuine leather. Their cost of production is less than that of natural leather and also has an easier manufacturing process. Growing prominence of artificial leather is leading to an increase in investments in the sector, which will subsequently help improve overall product penetration.
Steps involved in the manufacturing of natural leather, especially tanning, lead to pollution of nearby surroundings. This is another major reason leading to the shift in preference toward synthetic leather. Stringent environmental laws and government regulations are playing a vital role in promoting demand for synthetic leather.
Genuine leather dominated the global automotive interior leather market in terms of value in 2017. It is a by-product of the meat industry and has high penetration, particularly in high-end vehicles despite the availability of cheaper artificial or faux variants. Rolls-Royce Motor Cars Limited, Land Rover, and Bayerische Motoren Werke AG are among the major end users of the product.
However, synthetic leather is rapidly gaining popularity on account of rising consumer disposable income, steady technological advancements, and better product performance as compared to other leather alternatives. Moreover, the rapid growth of the automotive industry is likely to open new avenues for synthetic leather manufacturers in the forthcoming years.
Passenger vehicles are anticipated to be the largest vehicle segment for automotive interior leather globally, with a revenue share of over 52.0% in 2017.Light commercial vehicles (LCV) are expected to emerge as the most promising segment during the forecast period.
Growing use of passenger cars on account of protection from various environmental conditions such as dust and heat is estimated to encourage the production of passenger vehicles. China and India are major passenger vehicle manufacturing hubs in APAC. These countries are witnessing a continual spike in production of passenger vehicles. Besides production, the sale is also treading along a healthy growth track, thanks to rapid urbanization. Rise in demand for passenger vehicles is projected to trigger the growth of the overall market.
Favourable growth in commercial transportation services such as taxis is poised to supplement the growth of the LCV segment. Moreover, improved road infrastructure, rapid urbanization in emerging economies, and favourable regulations are stimulating the adoption of automotive interior leather in the segment.
On the basis of application, the market is segmented into upholstery, headliners, seat belts, carpet, and others. Upholstery is anticipated to dominate the market throughout the forecast period. Automotive upholstery includes utilization of skilled knowledge as well as skillset regarding usage of specialized materials and machinery. Reupholstering & recovering of seats and trims of a vehicle's interior are the major application pertaining to upholstery. Seats are the most commonly reupholstered part because they are exposed to the most damage and use.
Asia Pacific is expected to register the fastest growth over the forecast period owing to rising per capita income in emerging economies, expanding middle-class population base, and improving standards of living. Rapid development of motor vehicle manufacturing capacities is boosting the demand for automotive leather in the region. China, Indonesia, India, and Bangladesh are estimated to be the key revenue contributors in APAC.
China is the largest market for synthetic leather in Asia Pacific. Automotive industry, which is a vital application segment, is witnessing rapid growth in the country. Abundant availability of resources, easy accessibility to the latest technologies, and rising penetration of premium automotive are some of the primary growth stimulants for the market in the country.
Key players operating in the market include Alphaline Auto, Eagle Ottawa LLC, San Fang Chemical Industry Co., Ltd., Wollsdorf Leder Schmidt & Co Ges.m.b.H., Nan Ya Plastics Corporation, and Tata International Ltd. In the recent past, there has been an increase in focus on the provision of high-quality products in order to retain customer loyalty.
Attribute |
Details |
Base year for estimation |
2017 |
Historical data |
2014 - 2016 |
Forecast period |
2018 - 2025 |
Market representation |
Revenue in USD Million & CAGR from 2018 to 2025 |
Regional scope |
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa |
Report coverage |
Revenue forecast, competitive landscape, growth factors and trends |
Country Scope |
U.S., Canada, Mexico, Germany, France, U.K., Spain, China, India, Japan, South Korea, Brazil, Argentina, South Africa |
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts revenue growth at global, regional, & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global automotive interior leather market report on the basis of vehicle, material, application, and region:
Vehicle Outlook (Revenue, USD Million, 2014 - 2025)
Passenger Cars
Light Commercial Vehicles
Trucks & Buses
Material Outlook (Revenue, USD Million, 2014 - 2025)
Genuine
Synthetic
Application Outlook (Revenue, USD Million, 2014 - 2025)
Upholstery
Headliners
Carpet
Seat Belt
Other
Regional Outlook (Revenue, USD Million, 2014 - 2025)
North America
The U.S.
Canada
Mexico
Europe
Germany
France
The U.K.
Spain
Asia Pacific
China
India
Japan
South Korea
CSA
Brazil
Argentina
MEA
South Africa
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