Automotive Interior Market Report by Component Type (Center Stack, Head-Up Display, Instrument Cluster, Entertainment, Dome Module, Headliner, Seat, Interior Lighting, Door Panel, Center Console, Adhesive & Tape, Upholstery), Material (Leather, Fabric, Vinyl, Wood, Glass-Fiber Composite, Carbon-Fiber Composite, Metal), Level of Autonomy (Semi-Autonomous, Autonomous, Non-Autonomous), Vehicle Type (Passenger Car, Light Commercial Vehicle, Heavy Commercial Vehicle) - Global Industry Revenue Estimation and Demand Forecast to 2030

Automotive Interior Market Size and Share

The global automotive interior market generated revenue of USD 155.8 billion in 2023, which is expected to witness a CAGR of 4.2% between 2024 and 2030. This is due to the integration of advanced technologies such as touchscreens, infotainment systems, voice control, and augmented reality, which drives innovation in automotive interiors.

• Moreover, automotive interior manufacturers and automakers are constantly working to incorporate the latest technology into vehicle cabins.
• Also, the rise in people’s luxury lifestyles and demands creates an opportunity for market players.
• Furthermore, many automotive manufacturers and car makers are introducing newly smart and advanced interior systems including touchscreen infotainment systems, which have completely changed the in-house cabin experience.
• On the other hand, governments are constantly involved in the automotive industry for safety concerns of vehicle users and implement several laws and regulations to improve the quality of products and promote a green environment.
• Furthermore, carmakers and manufacturers constantly trying to upgrade their inbuilt infotainment systems to provide their customers with premium and luxury features with advanced technologies.
• For instance, in 2022, The Grand Cherokee 2022 model by Jeep has rear infotainment screens with an inbuilt screen in the front dashboard for passengers to interact with the driver’s navigation systems.

Growing Preference Toward Luxury Features, Advance Safety, and Convenience

The interior of any automobile has become a crucial factor for choosing a vehicle, such as a passenger or commercial vehicle, by customers. Earlier, companies offered feature-loaded interiors only in the premium segment vehicles; however, the scenario is going to change day by day.

In today’s world, OEMs have recognized the need for such advanced features and luxuries and they have started offering innovative features in all segments of vehicles to attract customers. Moreover, with growing economic status and increasing people’s expenditure globally, there is a change in the overall lifestyle of consumers, which, in, turn, drives the market growth.

Moreover, people are purchasing luxury cars to avail advanced features and luxuries. Thus, the sales of premium segment cars have increased all around the world. Some of the luxury features include memory seats, a wide and smart panoramic sunroof, electronic gear knob, heated and ventilation seats, and others.

In addition, to maintain their presence and position in the automotive sector, manufacturers have launched such luxury features in mid-segment automotives, which create healthy competition among manufacturers.

Furthermore, the surging need for luxury automobiles has created the demand for advanced automotive interior products. Luxury segment vehicles are known as high-end premium vehicles, and for their quality and luxuries, they include features such as heads-up display, inbuilt augmented reality, smart seating system, and ambient lighting.

According to the financial release by BMW, in the fiscal year of 2022, China was the largest market for BMW vehicles. Thus, due to the surging demand for luxury vehicles, the need for automotive interior designing or advanced interior techniques will be high during the forecast period.

Seat Category Holds the Largest Market Size

• Based on component, the seat category accounted for the largest revenue share, of 40%, in 2023, and it is further expected to maintain its dominance during the forecast period as well.
• The seat is an essential part of any passenger and commercial vehicle, so the utilization of seats in every automotive vehicle is necessary.
• Thus, the increasing production of automobiles and the growing demand for cars with comfort and luxury drive the growth of the market in this category.
• Moreover, surging strictness in safety regulations and industry standards, the demand for quality and advanced seating is increasing.
• Also, growing concern about seating comfort, manufacturers are more focused on the manufacturing of comfortable seats.
• Whereas, the entertainment category is expected to witness the fastest growth over the forecast period. This can be due to the rapid innovation in the automobile industry and the increasing demand for listening to music while traveling.
• In addition, technological advancements in entertainment devices placed in automobile dashboards such as cluster displays and infotainment systems in vehicles have increased.
• Furthermore, the interior lighting category is projected to record significant growth over the forecast period. This can be ascribed to the surging need for aesthetic looks and people are more inclined to the interior lighting.
• Today, interior lighting gaining traction among the trendiest car interior accessories. Thus, many car makers launch their cars with advanced interior and aesthetic lighting in a very creative manner in their vehicles.
• Some of the highly renowned car makers give this feature with their cars including Mercedes-Benz, BMW, Jaguar, and Cadillac. There are several medium-range brands also offering interior lighting in their vehicles.

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Leather Category Dominates the Market

The leather category held the majority of the market share in 2023, and it is projected to register a CAGR of 5% during the forecast period. This is due to its wide area of applications in automotive interiors, such as for making seats and dashboards to give a rich and spacious feel to automotive interiors.

Moreover, buyers and automakers are more inclined toward leather, due to its advantages such as offering high-quality, long-lasting, and creating an elegant interior setting that stands out. In addition, leather upholstery gives more comfort as compared to other products because it is soft, gives better comfort and feel, and is a lot easier to clean and vacuum as compared to cloth.

Whereas, the fabric material category is expected to show significant growth over the forecast period. This can be because automakers are choosing fabric materials for their lower segment of vehicles. Also, fabric materials are cheap as compared to any other materials and these are easy to use in the manufacturing of automotive interiors.

Moreover, the fabric material is less temperature sensitive and it offers a wide variety of options. Additionally, it is maintenance free which is why people and manufacturers widely use it to make vehicles cheaper.

In addition, the glass fiber composite category is projected to witness a significant growth rate over the forecast period. This can be because glass fiber is widely utilized in the production and manufacturing of a wide variety of automotive interior components.

This is widely used for making components such as headliners, doors, dashboards, center consoles, vents, insulation products, and doors. This material offers several advantages such as low cost, high impact resistance, and lightweight, which make it an idle choice for making automotive interiors.

Light Commercial Vehicle Category Holds Significant Share

The light commercial vehicle category is projected to register a CAGR of 4% during the forecast period.

This can be due to the surging demand for light commercial vehicles for several uses. Also, rapid urbanization has boosted the retail and e-commerce sectors, which require logistic support in a huge amount. This fuels the demand for light commercial vehicles, which, in turn, drives the market growth in this category.

APAC Is Prime Revenue Contributor to the Market

APAC captured the largest revenue share in the market, of around 40%, in 2023, and it is also expected to maintain its prominent position in the market in the coming years, advancing at a CAGR of 6%.

• This is due to the growing sales of small or economical cars, which accounts for a higher adoption of interior components.
• Moreover, the presence of manufacturing facilities of key players in the region and the emergence of electric vehicles in major economies, including Japan, China, and India, further support the regional market growth.

Whereas, the North American market is expected to grow at a significant rate in the coming years. This can be because autonomous vehicles are increasingly popular in the region, and these vehicles require advanced and luxury interior designs as compared to traditional vehicles.

• Moreover, this is due to the surging need for automotive interiors with innovative features, such as cooled or ventilated seats, comfortable seats, and advanced infotainment systems, and the presence of a large number of automotive interior suppliers in the region.

Top Automotive Interior Product Manufacturers Are:

• FORVIA Faurecia
• Adient plc
• Robert Bosch GmbH
• Yanfeng International Automotive Technology Co. Ltd.
• Lear Corporation
• Grupo Antolin
• Denso Corporation
• Magna International Inc.
• Toyota Boshoku Corporation
• Sage Automotive Interiors

Market Size Breakdown by Segment

This report offers deep insights into the automotive interior market, with size estimation for 2017 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.

Based on Component Type

• Center Stack
• Head-Up Display
• Instrument Cluster
• Entertainment
• Dome Module
• Headliner
• Seat
• Interior Lighting
• Door Panel
• Center Console
• Adhesive & Tape
• Upholstery

Based on Material

• Leather
• Fabric
• Vinyl
• Wood
• Glass–Fiber Composite
• Carbon–Fiber Composite
• Metal

Based on Level of Autonomy

• Semi-Autonomous
• Autonomous
• Non-Autonomous

Based on Vehicle Type

• Passenger Car
• Light Commercial Vehicle
• Heavy Commercial Vehicle

Region/Countries Reviewed for this Report

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.