Automotive and Aircraft Interior Leather Market Size, Share, and COVID-19 Impact Analysis, By Material Type (Genuine Leather and Synthetic leather), By Applications (Automotive Upholstery, Seats, Backrests, Headrests, and Others), By End-Use (Cars, Trucks, Buses, Aircrafts, Helicopters, and Others), By Sales Channel (OEM and Aftermarket) and Regional Forecast, 2024-2032

The automotive and aircraft interior leather market is experiencing notable growth as leather has been a longstanding preferred material for automotive and aircraft interiors due to its luxurious appeal, durability, and comfort. It also adds a touch of elegance to the interior space while providing the passengers with a high level of comfort. In the automotive sector, there is a growing demand for high-quality interior materials, and consumers are willing to spend and invest in comfortable and luxurious leathers. Similarly, airliners seek to create an upscale and soothing ambiance for aircraft to attract passengers and differentiate themselves in the competitive airline market. Furthermore, leather offers excellent wear-tear resistance properties, ease of maintenance, and heat resistance compared to polymers and cotton.

There has also been a growing demand for sustainable and eco-friendly alternatives like synthetic leather made from recycled materials in recent years. Overall the leather market for the automotive and aviation sector is expected to see potential growth in coming years as the rising demand for premium vehicles, the focus on passenger comfort, and inherent appeal and qualities grows.

Impact of COVID-19 on the Automotive and Aircraft Interior Leather Market

COVID-19 had a significant impact on the economy and the interior leather market. The slowdown in Public transportation and disruptions in office work led to reduced demand for vehicles and air transportation interiors. The critical point was the disruption in the supply chain, decreased demand for vehicles, and usage of aircraft for traveling. Many countries worldwide implemented strict sanctions and lockdowns on the movement of components and goods, disrupting the market logistics. People staying at home and less passenger usage led to a decrease in demand for the sales service of these leather components.

Post COVID-19 changes in government regulations for automotive and aviation industries helped boost the production of electric and hybrid vehicles and aircraft. This has increased demand for lightweight interior components, including leather and panel covers, which have good visual aesthetics for every type of vehicle and aircraft. The need for this upholstery is expected to grow as the vehicle market bounces back and consumers prioritize customization. Currently, the aircraft and vehicles' leather is original or faux resin leather. As the market grows and new materials are introduced, an increase in customization will occur, driving future growth for these leather manufacturers.

Key Insights

The report will cover the following key insights:

• Key Industry Developments – Mergers, Acquisitions, and Partnerships.


• Porter's Five Forces Analysis.


• Technological Developments.


• Impact of COVID-19 on the Automotive and Aircraft Interior Leather Market.

Analysis by Material and Applications

In recent years the shift towards sustainable synthetic due to concern about animal rights and harm to the ecosystem has led to a high growth rate among synthetic and faux-leather as they have registered high growth amongst all types of materials used due to their practicality. These materials are more affordable and don't compromise visual aesthetics. Also, automotive upholstery and seats are anticipated to have the highest growth as they are low-cost and easier to make with other materials like resin, direct carbon fiber treated covers, and polyvinyl. The same goes for aircraft also. The choice of material will depend upon various factors such as availability, application, cost, and government regulations.

Analysis by End-Use

The cars and passenger aircraft in the end-use segment are expected to have the highest growth potential due to the increasing demand for luxurious leather upholstery and other components, as well as the rise in disposable income of the consumers. The automotive and aviation industry remains the primary drivers of the market share of leather interiors with a strong focus on passenger comfort, aesthetics, and brand differentiation.

Analysis by Sales Channel 

The Aftermarket segment of the automotive and aircraft leather market tends to be larger than the OEM and is expected to hold the lead over OEM for a long time as most vehicles and aircraft use different aftermarket suppliers for the leather than that which are sold with OEM fittings. The market will rise rapidly, and the aftermarket segment will grow with it in the coming years due to the increasing age of vehicles on the road and the demand for required aftermarket leather interiors market. These interior leather materials and fabrication processes have the highest quality and strict quality control. Suppliers with long-term contracts with manufacturers dominate the OEM market; this segment is highly competitive and requires a high level of technical expertise for manufacturing.

Analysis by Region

The highest growth rate is expected in the Asia Pacific market, especially India and other south East Asian countries, due to having major manufacturers of interiors for seats, headrests, etc. High automation and the presence of major manufacturers of E.V. and hybrids will positively impact electric car sales and user customization process, thus increasing the popularity in the Asia Pacific. The rapid adoption of electric vehicles, increased air travel usage, and affordability by these operators will boost regional growth.

Key Players Covered

Eagle Ottawa LLC (U.S), Alcantara S.p.A (Italy), Scottish Leather Group Limited (U.K), Bader GmbH & Co. K.G. (Germany), Woolsdorf Leder Schmidt & C0. Ges.m.b.H (Germany), Benecke-Kaliko AG (Germany), J & C Aero (Lithuania), Adient plc (U.S), Toyota Boshoku Corporation (Japan), Faurecia SE (France), Collins Aerospace (U.S), Safran S.A (France), Lear Corporation (U.S).

Segmentation

Key Industry Developments

• April 2023: Swedish supplier Elmo created a new technology that takes a by-product of the meat and dairy industry and transforms it into premium leather. All process waste is upcycled and re-used by other industries, and nothing ends up as a landfill.


• Nov 2022: Faurecia, part of the automotive group Forvia, developed a new leather wrapping process that could allow for more unique designs in vehicle interiors.'


• July 2022: LOT Polish Airlines, Poland's flag carrier, appointed J&C Aero to produce more than 3,000 durable leather seat covers for the carrier's Embraer 170/175/190/195 fleet. The contract with J&C Aero is for producing full seat-cover sets, including the headrest, literature pocket, backrest, and cushion.