PUBLISHER: The Business Research Company | PRODUCT CODE: 1546414
PUBLISHER: The Business Research Company | PRODUCT CODE: 1546414
Automotive interior leather denotes premium-quality leather utilized in vehicle interiors for a luxurious and long-lasting appearance. Typically sourced from top-grade hides, it undergoes treatments to enhance durability, wear resistance, and aesthetic appeal. Commonly applied in seats, steering wheels, door panels, and other trim components, it adds comfort and sophistication to vehicle occupants.
The primary types of automotive interior leather are genuine and synthetic. Genuine leather is derived from animal hides processed to create a durable and flexible material. It finds application across various vehicle categories such as passenger cars, light commercial vehicles, and heavy commercial vehicles. These include economy, mid-segment, and luxury cars, where it is used for seats, center stacks, carpets, headliners, upholstery, seat belts, door panels, among other components.
The automotive interior leather market research report is one of a series of new reports from The Business Research Company that provides automotive interior leather market statistics, including automotive interior leather industry global market size, regional shares, competitors with a automotive interior leather market share, detailed automotive interior leather market segments, market trends and opportunities, and any further data you may need to thrive in the automotive interior leather industry. This automotive interior leather market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The automotive interior leather market size has grown strongly in recent years. It will grow from $28.33 billion in 2023 to $30.27 billion in 2024 at a compound annual growth rate (CAGR) of 6.9%. The increase in the historic period can be credited to the rising popularity of luxury vehicles, expansion within the automotive sector, increased disposable incomes, and a move towards customizable and technology-driven features.
The automotive interior leather market size is expected to see strong growth in the next few years. It will grow to $40.06 billion in 2028 at a compound annual growth rate (CAGR) of 7.3%. Anticipated growth in the upcoming period can be attributed to a focus on sustainable practices, government mandates, growing interest in electric vehicles, and increasing automotive sales. Key trends in this period include the integration of technology for enhanced comfort and aesthetic appeal, evolving automotive designs, advancements in technology, and innovative design concepts.
The increasing demand for luxury vehicles is expected to drive growth in the automotive interior leather market. Luxury vehicles, distinguished by their enhanced comfort, performance, and advanced features compared to standard models, are gaining popularity due to rising disposable incomes and a preference for premium comfort and features. Automotive interior leather plays a crucial role in enhancing comfort, style, and prestige in these vehicles, offering a superior driving experience. For example, Porsche AG reported delivering 80,767 luxury vehicles in the first quarter of 2023, marking an 18% increase from the same period in 2022, with significant growth seen across major sales regions such as Europe, North America, and China. This surge in luxury vehicle demand is a key driver for the automotive interior leather market.
Leading companies in the automotive interior leather market are focusing on innovation, including the development of eco-friendly products, to promote sustainability and reduce carbon footprints. Eco-friendly automotive interior leather refers to materials sourced and processed with minimal environmental impact, aimed at lowering CO2 emissions across production and disposal phases. For instance, Stahl introduced Stahlite in March 2021, a lightweight automotive interior leather product that enhances sustainability. Stahlite solutions, used in critical stages of leather production, maintain the same quality as traditional leather while reducing weight by up to 30% in luxury vehicles. This innovation significantly cuts CO2 emissions by 0.4-0.5 g/km compared to conventional leather. Additionally, Stahlite leather offers improved heat and oxidation resistance, low odor, and low volatile organic compounds (VOCs), contributing to a greener automotive industry.
In October 2021, PAI Partners acquired Pasubio from CVC Capital Partners for $700 million, strengthening its presence in the premium automotive leather market. This acquisition positions PAI Partners to expand and diversify further through Pasubio's established market position and experienced management team. Pasubio, based in Italy, specializes in high-quality leather products for car interiors, focusing on the premium and luxury automotive segments.
Major companies operating in the automotive interior leather market are Magna International Inc., Faurecia S.A., Lear Corporation, Yanfeng Automotive Interiors, Grupo Antolin, NHK Spring Co Ltd, GST AutoLeather Inc., Tachi-S Co., Ltd., Kasai Kogyo Co., Ltd., Benecke-Kaliko AG, Exco Technologies Limited, Kyowa Leather Cloth Co., Ltd., Scottish Leather Group Limited, Boxmark Leather GmbH & Co KG, Classic Soft Trim, Shinhwa Co., Ltd., Katzkin Leather Inc., Pecca Group Berhad, Douglass Interior Products, Inc., Adient plc, Seiren Co., Ltd., Eagle Ottawa, Wollsdorf Leder, Automotive Leather Company (ALC), Connolly Leather Limited
North America was the largest region in the automotive interior leather market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive interior leather market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the automotive interior leather market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The automotive interior leather market consists of sales of leather steering wheels, leather dashboard covers, and leather armrests. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Automotive Interior Leather Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automotive interior leather market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for automotive interior leather ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The automotive interior leather market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.