GVR Report cover Automotive Interior Leather Market Size, Share & Trends Report

Automotive Interior Leather Market Size, Share & Trends Analysis Report By Vehicle (Passenger Cars, LCVs, Trucks & Buses), By Material (Genuine, Synthetic), By Application, By Region, And Segment Forecasts, 2020 - 2025

  • Report ID: GVR-2-68038-524-3
  • Number of Pages: 100
  • Format: Electronic (PDF)

Industry Insights

The global automotive interior leather market size was estimated at USD 31.98 billion in 2019. It is projected to expand at a compound annual growth rate (CAGR) of 6.5% from 2020 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.

U.S. automotive interior leather market

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.

Automotive Interior Leather Market Trends

The Asia-Pacific automotive industry is booming. China and India are the main growth drivers for industry in the region. Steady GDP growth, income growth and government support are driving automobile production in these countries. SAIC Motor, Dongfeng, FAW and Changan Automobile Group are the largest automobile manufacturers in China. The other manufacturer is Beijing Ki Ki Group. Brilliance Motors; BYD Auto Co., Ltd.; Chery Automobile Co., Ltd.; Anhui Jianghuai Automobile Co., Ltd.; Great Wall Motor Co., Ltd.; Guangzhou Automobile Group.

The growing population of the middle class and the cheap availability of labor and other resources are complementing the growth of the automotive industry in the Asia-Pacific region. The region also sees investments from major car companies such as BMW, Fiat, Ford, Mazda, Nissan, and Jaguar.

China's automobile industry is the largest in the world in terms of production volume. In the Asia-Pacific region, car production increased even during the recession. The increase in per capita consumer income has led to an increase in demand for automobiles in the domestic market. In addition, many luxury brands, including BMW, have relocated their manufacturing facilities to China by reducing labor and overhead costs.

Natural leather is obtained from animals, which has resulted in animal killings. Several countries across the globe have laid down various guidelines and established laws to protect animal rights. Animal rights laws have become a major hurdle for the manufacturers of natural leather in several countries. Growing awareness among consumers regarding animal exploitation aided by programs by organizations such as PETA has played a major role in triggering the demand for leather alternatives. The growing supply-demand gap in the natural leather industry is also a major factor that is triggering manufacturers to opt for synthetic or artificial leather.

Another major factor driving the use of synthetic leather is its cheaper manufacturing cost. The cost of production of synthetic leather is less than that of natural leather. The manufacturing process of synthetic leather is also an easier one. This has led to increased investment in synthetic leather and is expected to help in improving the overall market penetration.

The production of natural leather, particularly tanning, has resulted in pollution of the surrounding environment. This is another primary reason that is leading to a shift in preference toward synthetic leather. Environmental legislation and government regulations have played a role in increasing demand for synthetic leather.

The production of leather can have several hazardous impacts on the environment. The effluents emitted from the tannery contain a considerable amount of pollutants, which include sulfide, lime sludge, acids, and salt. The tanning process stabilizes the protein fibers or collagen in the skin to halt their biodegradation process. The individuals exposed to toxic chemicals that are utilized in the processing and dyeing of leather are also at a higher risk for cancer.

 Artificial leather also possesses serious environmental threats.  PVC is derived from plastic sources and, like most plastics, it contains carcinogens and other toxic chemicals that can transfer to the user’s skin through contact. Furthermore, PVC has a prolonged rate of biodegradation and, therefore, it has a negative impact on the environment. Similar toxicity concerns do not apply to PU, as it is only toxic during its production and, once dried and sealed, it does not pose a threat like PVC.

The production of PU fabrics can be toxic for factory workers as it releases harmful chemicals. The production process involves the use of solvents mostly used for painting the polyurethane in liquid form on a fabric backing. Solvents required in this process are highly toxic. However, new polyurethane versions use waterborne coatings, which do not have the same kind of damaging impact on the environment as exhibited by other grades. This is expected to be a critical aspect concerning the overall product development and sustainability. In addition, synthetic leather made from PU or PVC cannot be remade into leather products, as it does not recycle very well and cannot be reused when it is worn out.

Automotive Interior Leather Market Trends 

Automotive manufacturing industries in Asia Pacific are booming. China and India are the key growth drivers of the sector in the region. Steady GDP growth rate, income growth, and government support are driving automotive production in these countries. SAIC Motor, Dongfeng, FAW, and Changan Automobile Group are the major domestic Chinese auto manufacturers. Other manufacturers include Beijing Automotive Group; Brilliance Automotive; BYD Auto Co., Ltd.; Chery Automobile Co., Ltd.; Anhui Jianghuai Automobile Co., Ltd.; Great Wall Motors Company Limited; and Guangzhou Automobile Group.

The Asia-Pacific automotive industry is booming. China and India are the main growth drivers for industry in the region. Steady GDP growth, income growth and government support are driving automobile production in these countries. SAIC Motor, Dongfeng, FAW and Changan Automobile Group are the largest automobile manufacturers in China. The other manufacturer is Beijing Ki Ki Group. Brilliance Motors; BYD Auto Co., Ltd.; Chery Automobile Co., Ltd.; Anhui Jianghuai Automobile Co., Ltd.; Great Wall Motor Co., Ltd.; Guangzhou Automobile Group.

The growing middle-class population, cheap availability of labor, and other resources are supplementing the growth of automotive manufacturing industry in Asia Pacific. The region is also witnessing investments from key automotive players such as BMW, Fiat, Ford, Mazda, Nissan, and Jaguar.

The growing population of the middle class and the cheap availability of labor and other resources are complementing the growth of the automotive industry in the Asia-Pacific region. The region also sees investments from major car companies such as BMW, Fiat, Ford, Mazda, Nissan, and Jaguar.

China automobile industry is the largest in the world, in terms of unit vehicle volume produced. Asia Pacific witnessed an increased production of automobile even during the recession. The growing per capita income of consumers has resulted in an increased demand for automobiles in the domestic market. In addition, many luxury brands including BMW have shifted their manufacturing plants to China owing to lower labor costs and overheads.

China's automobile industry is the largest in the world in terms of production volume. In the Asia-Pacific region, car production increased even during the recession. The increase in per capita consumer income has led to an increase in demand for automobiles in the domestic market. In addition, many luxury brands, including BMW, have relocated their manufacturing facilities to China by reducing labor and overhead costs.

Natural leather is obtained from animals, which has resulted in animal killings. Several countries across the globe have laid down various guidelines and established laws to protect animal rights. Animal rights laws have become a major hurdle for the manufacturers of natural leather in several countries. Growing awareness among consumers regarding animal exploitation aided by programs by organizations such as PETA has played a major role in triggering the demand for leather alternatives. The growing supply-demand gap in the natural leather industry is also a major factor that is triggering manufacturers to opt for synthetic or artificial leather.

Natural leather is obtained from animals, which has resulted in animal killings. Several countries across the globe have laid down various guidelines and established laws to protect animal rights. Animal rights laws have become a major hurdle for the manufacturers of natural leather in several countries. Growing awareness among consumers regarding animal exploitation aided by programs by organizations such as PETA has played a major role in triggering the demand for leather alternatives. The growing supply-demand gap in the natural leather industry is also a major factor that is triggering manufacturers to opt for synthetic or artificial leather.

Another major factor driving the use of synthetic leather is its cheaper manufacturing cost. The cost of production of synthetic leather is less than that of natural leather. The manufacturing process of synthetic leather is also an easier one. This has led to increased investment in synthetic leather and is expected to help in improving the overall market penetration.

Another major factor driving the use of synthetic leather is its cheaper manufacturing cost. The cost of production of synthetic leather is less than that of natural leather. The manufacturing process of synthetic leather is also an easier one. This has led to increased investment in synthetic leather and is expected to help in improving the overall market penetration.

The manufacturing of natural leather, especially tanning, has led to the pollution of nearby surroundings. This is another primary reason that is leading to a shift in preference toward synthetic leather. Stringent environmental laws and government regulations have been influential in promoting the demand for synthetic leather.

The production of natural leather, particularly tanning, has resulted in pollution of the surrounding environment. This is another primary reason that is leading to a shift in preference toward synthetic leather. Environmental legislation and government regulations have played a role in increasing demand for synthetic leather.

The production of leather can have several hazardous impacts on the environment. The effluents emitted from the tannery contain a considerable amount of pollutants, which include sulfide, lime sludge, acids, and salt. The tanning process stabilizes the protein fibers or collagen in the skin to halt their biodegradation process. The individuals exposed to toxic chemicals that are utilized in the processing and dyeing of leather are also at a higher risk for cancer.

The production of leather can have several hazardous impacts on the environment. The effluents emitted from the tannery contain a considerable amount of pollutants, which include sulfide, lime sludge, acids, and salt. The tanning process stabilizes the protein fibers or collagen in the skin to halt their biodegradation process. The individuals exposed to toxic chemicals that are utilized in the processing and dyeing of leather are also at a higher risk for cancer.

Artificial leather also possesses serious environmental threats.  PVC is derived from plastic sources and, like most plastics, it contains carcinogens and other toxic chemicals that can transfer to the user’s skin through contact. Furthermore, PVC has a prolonged rate of biodegradation and, therefore, it has a negative impact on the environment. Similar toxicity concerns do not apply to PU, as it is only toxic during its production and, once dried and sealed, it does not pose a threat like PVC.

 Artificial leather also possesses serious environmental threats.  PVC is derived from plastic sources and, like most plastics, it contains carcinogens and other toxic chemicals that can transfer to the user’s skin through contact. Furthermore, PVC has a prolonged rate of biodegradation and, therefore, it has a negative impact on the environment. Similar toxicity concerns do not apply to PU, as it is only toxic during its production and, once dried and sealed, it does not pose a threat like PVC.

The production of PU fabrics can be toxic for factory workers as it releases harmful chemicals. The production process involves the use of solvents mostly used for painting the polyurethane in liquid form on a fabric backing. Solvents required in this process are highly toxic. However, new polyurethane versions use waterborne coatings, which do not have the same kind of damaging impact on the environment as exhibited by other grades. This is expected to be a critical aspect concerning the overall product development and sustainability. In addition, synthetic leather made from PU or PVC cannot be remade into leather products, as it does not recycle very well and cannot be reused when it is worn out.

The production of PU fabrics can be toxic for factory workers as it releases harmful chemicals. The production process involves the use of solvents mostly used for painting the polyurethane in liquid form on a fabric backing. Solvents required in this process are highly toxic. However, new polyurethane versions use waterborne coatings, which do not have the same kind of damaging impact on the environment as exhibited by other grades. This is expected to be a critical aspect concerning the overall product development and sustainability. In addition, synthetic leather made from PU or PVC cannot be remade into leather products, as it does not recycle very well and cannot be reused when it is worn out.

Material Insights

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.

Vehicle Insights

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.

Application Insights

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.

Global automotive interior leather market

Regional Insights

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.

Asia Pacific was the largest regional market for automotive interior leather in 2017 and accounted for 40.93% of the global market share, in terms of revenue. It was followed by Europe, which was the second largest market constituting a revenue share of 24.69% in 2017. North America was the third largest market in 2017 and held a revenue share of 19.38%. Central & South America and the Middle East & Africa markets accounted for revenue shares of 10.44% and 4.57%, respectively.

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.

Automotive Interior Leather Market Trend by Region

The Asia Pacific automotive interior leather market is predicted to grow at the fastest rate during the forecast, owing to the fast-growing automotive sector in emerging nations like India and China. Due to rising per capita income in emerging regions, a growing middle-class population, and improving living standards, the Asia-Pacific automotive interior leather market is predicted to grow at the quickest rate over the forecast period. The region's product demand should be boosted by the automotive industry's rapid development. China, Indonesia, India, and Bangladesh are likely to be the main drivers of regional market expansion. China is a major producer and consumer of leather around the globe. The Asia Pacific area is characterized by a number of industry players who are growing their manufacturing capacity.

The European market held a significant share of automotive interior market in terms of valuation in USD Million. Europe witnessed significant growth on account of the presence of dominant automobile and consumer appliances sectors. After the economic downturn, several governments in the region focused on bio-based, low-cost products with high durability. As a result, the demand for synthetic leather is expected to grow in this region over genuine leather. European companies are focusing on increasing vehicle sales by attracting customers with interesting pricing schemes.

Key Companies & Market Share Insights

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.

Automotive Interior Leather Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 34.04 billion

Revenue forecast in 2025

USD 46.84 billion

Base year for estimation

2019

Historical data

2014 - 2018

Forecast period

2020 - 2025

Quantitative units

Revenue in USD million/billion and CAGR from 2020 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Vehicle, material, application, region

Regional scope

North America; Europe; Asia Pacific; Middle East & Africa; Central & South America

Country scope

U.S.; Canada; Mexico; Germany; France; U.K.; Spain; China; India; Japan; South Korea; Brazil; Argentina; South Africa

Key companies profiled

Gst Autoleather, Inc.; Eagle Ottawa, Llc; Ctl Leather Inc.; Alphaline Auto; Dk Leather Corporation Berhad; Scottish Leather Group Limited; Wollsdorf Leder Schmidt & Co Ges.M.B.H.; Classic Soft Trim; Katzkin Leather Inc.; Mayur Uniquoters Limited; Kuraray Co., Ltd.; Alfatex Italia Srl

Customization scope

Free report customization (equivalent to up to 8 analyst working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Global Automotive Interior Leather Market Segmentation

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:

Global Automotive Interior Leather Market Segmentation

  • 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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