Automotive Interiors Market- The Inside Story

The interior of a vehicle is extremely essential to the purchasers’ judgement and is one of the important separating criteria for vehicle deals.

The interiors of a vehicle are a key part in offering the wanted comfort and safety by the end-user. Interiors are the main factors influencing the buying decision of the consumer. Based on interior component type, the Automotive Interior market is segmented as Infotainment System, Interior Lighting, Seat, Central Console, Cockpit Module, Door Panel, Overhead Systems and many more.

Global Automotive Interior Market is projected to grow at a CAGR of over 6%, in value terms during the forecast period backed on increasing consumers preferences for cabin comfort and safety.

The passenger and commercial vehicles manufacturers in their economical cars, luxury vehicles, mid-priced vehicles, features them with comfortable and attractive interiors to remain competitive in the market

The Johnson Controls is a global diversified technology and industrial leader creates quality products, services, lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles. In 2015, the company, to diversify its business in automotive interiors market created joint venture with Yanfeng Automotive Trim Systems.

In 2015, the Johnson controls company’s revenue in seating was recorded around USD 16.5 Billion. The company produced around 22 Million seat sets in a year.

Increasing Vehicle Sales and Production Drives the Automotive Interiors Market:

                                                                                                                                                                              Source: OICA

Source: OICA

The booming automobile sector is contributing significantly to the demand of automobile interiors globally. During 2012-2016, total vehicle production globally has witnessed a robust growth with a CAGR of over 3% and the production of the vehicles in expected to grow over the next five years as well. Moreover, increasing vehicle sales backed by growing population and growing disposable income is also driving the global automotive interiors market. Increasing demand, production and sales of the vehicle drives the global automotive interiors market.

Increasing demand of automation in Vehicles:

The demand for safety and security of drivers and passengers along the roadside is increasing. The demand for safety and comfort features in vehicles has been incorporated by different companies based on the requirement by the end user. These technological advancements are further fuelling the global automotive interiors market.

Growing Automotive Component Industry:

                                                                                                                                                                                                    Source: ACMA

The automotive component industry stood at USD 2922 Billion and expected to increase over the next five years due to increasing production and sales of vehicles every year. Every vehicle produced require components. This will boost the demand for automotive interiors market.

United States Concentration in Automotive Interiors Market:

The U.S. automotive industry is at the front line of advancement. New innovative work activities are changing the business to better react to the open doors and rivalry of the 21st century. As per the data released by Select USA, the automotive industry every year spends about $105 billion on R&D around the world, $18 billion of which is spent in the United States.

According to Select USA, in 2016, the United States traded about 2.1 million new, light vehicles esteemed at $57 billion to practically every nation around the globe, with automotive parts esteemed at roughly $80 billion. The United States additionally sent out $5.5 billion in used vehicles, and practically $5 billion in medium and heavy trucks in 2016. With an open venture approach, with larger consumer market, workforce, accessible framework, and nearby and state government motivating forces, the United States is the main for many vehicle manufacturers.

General Motors, FCA USA and Ford have more than 200 manufacturing plants, research & development centres and distribution centres. Manufacturers are spending heavy on manufacturing of vehicles and their components to attract more and more customers in their pocket.

Growing technological advancements, increasing competition among manufacturers, consumers preferences for comfortable and safe drive is driving the automotive interiors market.

Conclusion: Global Automotive Interior Market is projected to grow at a CAGR of over 6%, in value terms over the next five years backed on increasing consumers preferences for cabin comfort and safety. In terms of value, the automotive seat segment is estimated to register the largest share of the automotive interior market and estimated to dominate the market over the next five years as well.