Automotive Interior Market by Component (HUD, Door Panel, Dome Module, Seat, Headliner, Center Console, Center Stack & Others), Material Type, Level of Autonomy, Electric Vehicle, Passenger Car Class, ICE Vehicle Type and Region - Global Forecast to 2028
[425 Pages Report] The global automotive interior market by value is estimated to be USD 157.4 billion in 2023 and is projected to reach USD 194.8 billion by 2028, at a CAGR of 4.4% from 2023 to 2028.
The integration of advanced technologies such as infotainment systems, touchscreens, voice control, augmented reality, and autonomous driving features drives innovation in automotive interiors. Manufacturers are constantly working to incorporate the latest tech trends into vehicle cabins. Also, With the rise of smartphones and the Internet of Things (IoT), seamless connectivity between devices and the vehicle is crucial. Consumers expect their vehicles to be an extension of their digital lives, leading to increased demand for connectivity features. Moreover, Environmental consciousness has led to a growing demand for eco-friendly and sustainable interior materials. Manufacturers are exploring alternatives to traditional materials, such as recycled plastics, natural fibers, and bio-based materials.
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Market Dynamics:
Driver: Increasing customer preference for convenience, premium features, and advanced safety
The automotive interior has become a crucial factor for customers’ preference in selecting vehicles in passenger as well as commercial vehicle segments. Earlier, only premium segment vehicles had feature-loaded interiors; however, OEMs have recognized the need for and are providing innovative features in all vehicle segments to attract customers. With improving economic status globally, there is a change in the overall lifestyle of consumers. This change is noticeable in developing countries such as China, India, and Brazil. For instance, In FY 2022, According to a report published by Mercedes-Benz Group AG, Mercedes-Benz Passenger Cars retail deliveries 751,700 units to customers. Additionally, as more families transition to greater economic status, their choices have altered as a result of their changing needs to fit new lifestyles. Premium car sales have increased as a result all around the world. Some of the features that were only available in the premium car sector included memory seats, a panoramic sunroof, heated and ventilated seats, and heated steering wheels. To preserve their positions in the market, manufacturers are including these features in mid-segment automobiles, which has sparked healthy competition among automakers.
The demand for advanced automotive interior components is expected to grow in line with the increased demand for luxury automobiles. Luxury vehicles are high-end premium vehicles and include features such as smart seating systems, HUDs, lighted headliners, heated steering wheels, and ambient lighting. Also, the adoption of HUDs and smart seating systems is observed in the high-end premium vehicle brands such as BMW, Mercedes-Benz, and Audi. In the fiscal year of 2022, China was the largest sales market for BMW. China accounted for around 33.1 percent of Rolls-Royce, BMW, and MINI sales. Thus, due to increasing demand of luxury vehicle demand for automotive interior components will be high during the forecast period.
Restraint: Significant power consumption in automotive interior electronics
The electrical interior parts of cars require complex software algorithms that take up a lot of processor space and use a lot of battery power. The battery power supply is used by infotainment systems, multi-information displays, on-board diagnostics systems, connected automobile features, and sensors for data processing. For instance, using gesture recognition technology requires turning on the camera each time, which uses power. All of the operations, including automatic seat adjustments, control of the sunroof, and massage, have also been motorized. Also, the integration of smartphones, wireless communication technologies (such as Bluetooth and Wi-Fi), and GPS modules in automotive electronics contributes to power consumption. These features require continuous power to maintain connections, transmit data, and search for available networks. Thus, high power consumption by electronic systems is a major restraint for the market.
These vehicle electronics applications might require the restructuring of electrical architecture or increasing the in-vehicle battery capacity, which will invite additional costs. Also, a higher power battery will be large and add to the weight of the vehicle. Many semiconductor vendors are focused on integrating the software at the chip level. This will help reduce the cost and aid the development of processors that support advanced automotive interior electronic system technologies, making the impact of this restraint lower during the forecast period.
Opportunity: Growing trend of interior customization in premium vehicles and interior styling
One of the key drivers fueling the demand for car interiors is the rising trend of interior personalization or customization by end users based on their needs for comfort, convenience, and aesthetic appeal. Many OEMs are providing their customers with personalized interiors due to the rising demand for luxury category automobiles around the world. For instance, Mercedes-Benz gives consumers the ability to select the inside highlights, accent colors, textiles, lighting, and headliners. Tesla allows customers to customize the interior of their vehicles with a variety of options, including seat materials, color schemes, and trim finishes. Also, BMW offers a variety of interior customization options for its vehicles, including different seat materials, colors, and trim finishes. Customers can also choose from a variety of ambient lighting options and wood trim finishes. Therefore, automobile interior providers may benefit from the trend toward more frequent such upgrades.
OEMs have a chance to develop new features in their offerings to draw in more end users as a result of the rising desire for customized interior styling. OEMs are spending money on adding features like panoramic roofs, fully functional doors, separate customizable climate controls, amazing surround sound quality, LED lighting, plush seating, storage compartments in convenient locations, and digital cockpit modules to the interiors of cars. All of these features come in stylish color-coordinated themes. This trend has highlighted that even entry-level automobile buyers want a machine that is a cut above the rest. The concept of visual aesthetics is not only restricted to luxury class vehicles but also extends to budget automobiles as well. It is important that appealing interiors are available in every class of vehicles, not just luxury models that most consumers will never be able to afford.
Challenge: High cost of advanced automotive display systems
The automotive interior market has witnessed numerous innovations and technological advancements. Making consumer-friendly and regulatory compliant systems is an important aspect of automotive cockpit electronic systems development. The prices of automotive cockpit electronic systems have decreased in the past few years, but they still come at a higher price range. Integrating advanced display systems into vehicles involves significant research, development, and manufacturing costs. These expenses can drive up the overall production costs for manufacturers, which may need to be passed on to consumers, further impacting affordability and market demand. Also, scaling up the production of vehicles with advanced display systems can be challenging due to the higher costs involved. Achieving economies of scale becomes essential to drive down production costs and make these systems more affordable. Manufacturers need to carefully evaluate market demand and production volumes to optimize costs and maintain profitability.
Mid-size passenger vehicles are generally equipped with basic electronics, such as infotainment displays and digital/analog instrument clusters. Unless the price of advanced systems is reduced, their application in low-end or economy cars will continue to be restricted, thus limiting the demand for advanced and innovative displays in the interior market for automotive.
Automotive Interior Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of Automotive interior components. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include FORVIA Faurecia (France), Adient plc. (Ireland), Robert Bosch GmbH (Germany), Yanfeng (China), Lear Corporation (US), and Antolin (Spain).
By Component type, Seat segment is estimated to account for the largest market during the forecast period
As seats are an integral part of any passenger or commercial vehicle, the seat segment is projected to have the largest share of the automotive interior market during the forecast period. This market is expanding as a result of rising vehicle production and rising consumer demand for comfort and luxury. In addition to being the world's largest market for vehicle production, Asia Pacific also dominates the market for seats. The small/economy car segment, which dominates the market in Asia Pacific, is responsible for the region's higher adoption of conventional car seats. The mid- and luxury-car segments are what drive the markets in North America and Europe. In these areas, consumers are particularly interested in high-tech seats and comfort solutions. As a result, there is a growing prevalence of powered and heated, heated and ventilated, heated, ventilated, and memory, and heated, ventilated, memory, and massage seats.
Vehicles with more advanced systems are available in technologically advanced nations including the US, Germany, the UK, and France. These nations are leaders in these markets because they have already adopted digital center stacks and instrument clusters as standard display systems, even in their mass-produced cars. Government requirements for in-vehicle safety features in various nations would further promote the expansion of the automotive interior market.
By Passenger Car Class, Economic Car segment is projected to account for the largest market size during the forecast period.
Economic cars are projected to hold the largest market share in 2023. As technology becomes more accessible and affordable, economic cars are incorporating basic infotainment systems, Bluetooth connectivity, and other convenient tech features. OEMs provide aesthetically pleasing elements at a lower cost as a result of material advancements and technological developments in electrical components. After Tata's successful acquisition of Jaguar Land Rover, there has been a significant improvement in the interior and exterior of the company's new lineup of passenger cars as compared to earlier Tata models. The new models have more luxurious interiors that are more reasonably priced. The floating infotainment display system, the semi-digital instrument cluster, and the cabin's significantly more upscale appearance and feel are among of the interior's standout features. The Nexon 2023 model has a 7-inch touchscreen infotainment system with Android Auto and Apple CarPlay. The top-spec XZ+ Lux variant gets an upgraded 10.25-inch touchscreen infotainment system with Harman Kardon sound system. Such development will drive the segment growth in the forecast period.
North America is anticipated to witness significant growth during the forecast period.
Autonomous vehicles are expected to become increasingly popular in North America in the coming years. These vehicles will require different interior designs than traditional vehicles, as they will not have a driver or passengers. This is driving demand for new and innovative automotive interior solutions. Also, Consumers in North America are increasingly demanding more comfort and luxury in their vehicles. This is driving demand for automotive interiors with features such as heated and cooled seats, massage chairs, and premium sound systems. Automotive interiors are becoming more technologically advanced with features such as touchscreen infotainment systems, ADAS, connectivity options, and personalized settings. These features are driving demand for more sophisticated and user-friendly interior designs. The rise of electric and autonomous vehicles in North America has brought about changes in interior design. Electric vehicles often have simplified powertrains, allowing for more space and creative interior layouts. The US is predicted to lead the North American automotive interior market due to high demand for feature-rich passenger cars and pickup trucks, as well as being a matured market for modern technology in comparison to Canada and Mexico. Furthermore, due to significant R&D investments, the country is seeing a continuous expansion in the semi-autonomous vehicle category, leading to an increase in demand for car interiors.
Key Market Players
The automotive interior market is dominated by global players such as FORVIA Faurecia (France), Adient plc. (Ireland), Robert Bosch GmbH (Germany), Yanfeng (China), Lear Corporation (US), and Antolin (Spain). These companies adopted new product launches, deals, and other strategies to gain traction in the automotive interior market.
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Report Metric |
Details |
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Market size available for years |
2018–2028 |
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Base year considered |
2022 |
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Forecast period |
2023-2028 |
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Forecast units |
Volume (Thousand Units) and Value (USD Million/Billion) |
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Segments covered |
Component, Material, Level of Autonomy, Electric Vehicle Type, ICE Vehicle Type, Passenger Car Class, and Region. |
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Geographies covered |
North America, Asia Pacific, Europe, and Rest of the World. |
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Companies Covered |
FORVIA Faurecia (France), Adient plc. (Ireland), Robert Bosch GmbH (Germany), Yanfeng (China), Lear Corporation (US), and Antolin (Spain) |
This research report categorizes the automotive interior market based on Component, Material, Level of Autonomy, Electric Vehicle Type, ICE Vehicle Type, Passenger Car Class, and Region.
Based on Component Type:
- Center Stack
- Head-Up Display
- Instrument Cluster
- Rear Sear Entertainment
- Dome Module
- Headliner
- Seat
- Interior Lighting
- Door Panel
- Center Console
- Adhesives & tapes
- Upholstery
- Others
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 Electric Vehicle:
- Battery Electric Vehicle (BEV)
- Fuel Cell Electric Vehicle (FCEV)
- Hybrid Electric Vehicle (HEV)
- Pulg-in Hybrid Electric Vehicle (PHEV)
Based on Passenger Car Class:
- Economic cars
- Mid Segment Cars
- Luxury Segment cars
Based on ICE Vehicle Type:
- Passenger Car
- Light Commercial Vehicle
- Heavy Commercial Vehicle
Based on the Region:
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Asia Pacific
- China
- India
- Japan
- South Korea
- Thailand
- Rest of Asia Pacific
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North America
- US
- Canada
- Mexico
-
Europe
- Germany
- France
- UK
- Spain
- Italy
- Russia
- Turkey
- Rest of Europe
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Rest of the World
- Brazil
- Iran
- Others
Recent Developments
- In June 2023, Samvardhana Motherson International Limited, a flagship company of Motherson Group, announced that it has completed the additional 30% stake of Youngshin Motherson Auto Tech Limited from Youngshin Components Co. Ltd.
- In June 2023, Toyota Boshoku Corporation has developed highly comfortable seats that allow convenient seating arrangements. The seats will be available in the new Alphard and Vellfire models announced in June by Toyota Motor Corporation.
- In April 2023, Lear Corporation acquired IG Bauerhin (IGB), further expanding its suite of in-vehicle comfort technologies. IGB is a privately held supplier of automotive seat heating, ventilation, active cooling, steering wheel heating, seat sensors, and electronic control modules.
- In February 2023, TrinamiX, and Continental is presenting a world innovation the Driver Identification Display with an integrated camera solution for biometric driver identification.
- In February 2023, Faurecia has signed with the Motherson Group an agreement by which Motherson commits to acquire Faurecia SAS Cockpit Modules division (assembly and logistics services), reported as part of its Interiors Segment, for an enterprise value of €540 million (USD 570.9 Million). The transaction will be subject to customary conditions precedents, including regulatory approvals.
- In January 2023, Technology company Continental will present its Curved Ultrawide Display at CES September 2023. “Ultrawide” refers to a width of 1.29 meters, curving from one A-pillar to the other. The 47.5-inch TFT display is illuminated by more than 3,000 LEDs on a 7,680 by 660-pixel active area.
- In December 2022, Toyota Boshoku Corporation, Toyota Auto Body Co., LTD. and Toyota Body Seiko Co., LTD. have concluded an agreement to transfer shares of Toyota Body Seiko, which is a subsidiary of Toyota Auto Body, to Toyota Boshoku to make Toyota Body Seiko a subsidiary of Toyota Boshoku.
Frequently Asked Questions (FAQ):
What is the current size of the global automotive interior market?
The global automotive interior market is estimated to be USD 157.4 Billion in 2023 and is projected to reach USD 194.8 Billion by 2028, at a CAGR of 4.4%.
What are different countries covered in Asia Pacific region for automotive interior market?
The countries covered in report for automotive interior market are China, Japan, India, South Korea, Thailand.
Who are the winners in the global automotive interior market?
The global automotive interior market is dominated by global players such as FORVIA Faurecia (France), Adient plc. (Ireland), Robert Bosch GmbH (Germany), Yanfeng (China), Lear Corporation (US), and Antolin (Spain). These companies develop new products, adopt expansion strategies, and undertake collaborations, partnerships, and mergers & acquisitions to gain traction in the high-growth automotive interior market.
What are the driving factor impacting the growth of the automotive interior market?
Increasing customer preference for convenience, premium features, and advanced safety features, Integration of smartphone connectivity, Use of variety of lightweight & advanced materials and innovative finish, Enhanced functionalities in lighting, Rise in demand for SUVs to fuel demand for modular seats, Growing demand for advanced infotainment systems, Growing penetration of ADAS systems are the driving factor impacting the growth of the automotive interior market.
What are the new market trends impacting the growth of the automotive interior market?
Digital Cockpits and Infotainment Systems, Electrification-Influenced Interiors, Advanced Seating and Comfort, Soundscaping and Acoustics and Others are some of the major trends affecting this market.
To know about the assumptions considered for the study, download the pdf brochure
The study involved 4 major activities in estimating the current size of the automotive interior market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. The top-down approach was employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used in estimating the market size of segments and subsegments.
Secondary Research
The secondary sources referred to for this research study include the organizations in the automotive sector involved with head-up displays; publications from government sources [such as country level automotive associations and organizations, Organization for Economic Co-operation and Development (OECD), World Bank, CDC, and Eurostat]; corporate filings (annual reports, investor presentations, and financial statements); and trade, business, and automotive associations. Secondary data has been collected and analyzed to arrive at the overall market size, which has been further validated through primary research.
Primary Research
Extensive primary research has been conducted after acquiring an understanding of the global automotive interior market scenario through secondary research. Several primary interviews have been conducted with market experts from both the demand (OEMs/vehicle manufacturers) and supply (component manufacturers, module manufacturers, material providers, and system integrators) sides across four major regions, namely, North America, Europe, Asia Pacific, and the Rest of the World. Approximately 21% of the experts involved in primary interviews have been from the demand side, and 79% have been from the supply side of the industry. Primary data has been collected through questionnaires, emails, and telephonic interviews. Several primary interviews have been conducted from various departments within organizations, such as sales, operations, administration, to provide a holistic viewpoint in the report.
After interacting with industry participants, some brief sessions have been conducted with experienced independent consultants to reinforce the findings from the primary interviews. This, along with the in-house subject matter experts’ opinions, has led to the findings delineated in the rest of this report. Following is the breakdown of primary respondents
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The bottom-up approach was used to estimate and validate the total size of the automotive interior market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and markets have been identified through extensive secondary research.
- The industry’s supply chain and market size, in terms of volume, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Bottom- up Approach
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Top- down Approach
Data Triangulation
After arriving at the overall market size—using the market size estimation processes as explained above—the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation, and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Market Definition
Automotive interiors refer to the interior components of the cabin/body of vehicles, which include various components such as center stack, door panel, seat, instrument cluster, lighting, headliner, dome module, center console, and others.
Key Stakeholders
- ADAS Integrators
- ADAS/Occupant Safety Solution Suppliers
- Augmented Reality HUD Technology Providers
- Automobile Organizations/Associations
- Automotive Center Stack Manufacturers
- Automotive Cockpit Manufacturers
- Automotive Component Manufacturers
- Automotive Display Suppliers
- Automotive Electronic Hardware Suppliers
- Automotive Electronic System Integrators
- Automotive Instrument Cluster Manufacturers
- Automotive Interior Component Suppliers
- Automotive Interior System Manufacturers
- Automotive Seats Manufacturers
- Automotive Smart Display Panel Manufacturers
- Automotive SoC and ECU Manufacturers
- Automotive Upholstery Suppliers
- Country-specific Automotive Associations
- European Automobile Manufacturers Association (ACEA)
- EV and EV Component Manufacturers
- Government & Research Organizations
- HUD Technology Providers
- National Highway Traffic Safety Administration (NHTSA)
- Raw Material Suppliers for Automotive Interior Manufacturers
- Raw Material Suppliers for Automotive Interiors
- Regulatory Bodies
- Smart Display Technology Providers
- Software Providers
- Traders, Distributors, and Suppliers of Automotive Interior Components
- Vehicle Safety Regulatory Bodies
Report Objectives
- To define, describe, and project the automotive interior market in terms of volume (thousand units) and value (USD million)
- To define, describe, and forecast the market on the basis of component type, material type, passenger car class, electric vehicle (EV) type, level of autonomy, ICE vehicle type, and region
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To analyze the regional markets for growth trends, prospects, and their contribution to the overall market
- To segment and forecast the market on the basis of component type: instrument cluster, HUD, center stack, rear seat entertainment, interior lighting (dashboard light, glove box light, reading light, dome light, rear view mirror interior light, engine component light, passenger area light, driver area light, footwell light, and others), door panel, seat (Standard seat; only powered; only heated; powered and heated seat; powered, heated and ventilated seat; powered, heated & memory seat; powered heated, ventilated, & memory seat; and powered, heated, ventilated, massage, and memory seat), dome module, headliner, center console, adhesive & tapes, upholstery, and others
- To segment and forecast the market on the basis of material type: leather, fabric, vinyl, wood, glass fiber composite, carbon fiber composite, and metal
- To segment and forecast the market on the basis of passenger car class: mid-segment cars, luxury cars, and economic cars
- To segment and forecast the market on the basis of electric vehicle type: battery electric vehicle (BEV), fuel cell electric vehicle (FCEV), hybrid electric vehicle (HEV), and plug-in hybrid electric vehicle (PHEV)
- To segment and forecast the market on the basis of level of autonomy: non-autonomous cars, semi-autonomous cars, and autonomous cars
- To segment and forecast the market on the basis of ICE vehicle type: passenger car (PC), light commercial vehicle (LCV), and heavy commercial vehicle (HCV)
- To forecast the market size, by volume and value, with respect to four regions: North America, Europe, Asia Pacific, and the Rest of the World (RoW)
- To provide detailed information regarding the major factors influencing market growth (drivers, restraints, opportunities, and challenges)
- To strategically analyze markets with respect to individual growth trends, future prospects, and contribution to the total market
- To analyze the opportunities for stakeholders and details of the competitive landscape for market leaders
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To study the following with respect to the market:
- Supply Chain Analysis
- Ecosystem Analysis
- Technology Analysis
- Case Study Analysis
- Patent Analysis
- Regulatory Landscape
- Key Conferences and Events
- Average Selling Price Analysis
- To strategically profile key players and comprehensively analyze their market ranking and core competencies
- To track and analyze competitive developments such as deals (joint ventures, mergers & acquisitions, partnerships, collaborations), product developments, and other activities carried out by key industry participants
Available Customizations
With the given market data, MarketsandMarkets offers customizations in accordance with a company’s specific needs.
- Automotive Interior Market, by Electric Vehicle Type at Country Level
- Automotive Interior Market, by ICE Vehicle Type at Country Level (for countries not covered in the report)
Company Information
- Profiling of Additional Market Players (Up to 3)
Generating Response ...
Growth opportunities and latent adjacency in Automotive Interior Market
Who are the major automotive players for interior door panels? specifically Asia and North America
I am looking specifically for Reports on European Automotive Interior Coatings Market and European Automotive Metal Components Coatings Market. Thank you for circling back.