Automotive Interior Trim Parts Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Cars and Commercial Vehicles), By Material Type (Leather/Fabric, Metal, Plastic, Composites, and Others), By Component (Seats, Dashboard, Door Panels, Headliner, Carpets, and Others), By Level (Base, Mid-Level, and High-End), and Regional Forecast, 2023-2030

The global automotive interior trim parts market size was valued at USD 42.95 billion in 2022. The market is projected to grow from USD 44.04 billion in 2023 to USD 61.19 billion by 2030, exhibiting a CAGR of 4.8% during the forecast period.

The automotive interior trim parts encompass various interior parts of a vehicle that are more decorative or aesthetic than functional ones. The primary purpose of the interior trim parts is to provide a warm and comfortable environment inside of a vehicle.

The market of automotive interior trim parts has witnessed steady growth in recent years, driven by factors such as increasing consumer demand for enriched comfort, aesthetic appeal, and advanced technology features in vehicles. Car makers are consistently exploring methods to enhance fuel efficiency and decrease the overall weight of automobiles. This shift has prompted a move toward the utilization of lightweight materials in interior trim components, including advanced plastics and composites. The increasing integration of sustainable and eco-friendly materials in interior trim parts is expected to propel the global market growth over the forecast period.

COVID-19 IMPACT

Temporary Shutdown of Automotive Production Facilities During the Pandemic Hampered the Market Growth

The automotive industry, as many others, experienced disruptions in the supply chain due to lockdowns, restrictions, and reduced production capacities. This impacted the availability of raw materials and components required for manufacturing interior parts. Many automotive manufacturing facilities faced temporary closures or slowdowns to comply with lockdown measures and ensure the safety of workers. This directly affected the production of vehicles and, consequently, the demand for interior trim parts.

However, this gave time to the automotive companies to redesign their vehicles and provide comfortable and accessible interiors in their vehicles. This boosted the market growth after the lift of the pandemic regulations and restrictions. In addition, vehicle production and sales were boosted, which resulted in greater demand for interior trim parts indirectly. For instance, in 2021, according to OICA (International Organization of Motor Vehicle Manufacturers), passenger car sales witnessed a rise of 4.7% compared to the previous year, 2020. Overall, the market fluctuated during the pandemic, which was balanced by technological development and increased vehicle sales post-pandemic.

LATEST TRENDS

Increasing Emphasis on Sustainability and Use of Eco-friendly Materials to Encourage the Market Development

The increasing emphasis on sustainability and the use of eco-friendly materials has a significant impact on the market of vehicle interior trim parts. Automotive companies recognize the importance of a positive brand image and corporate social responsibility. Adopting sustainable practices, including the use of eco-friendly materials in interior trim parts, contributes to a positive public perception and aligns with CSR initiatives.

For instance, in the creation of the electric Rolls-Royce Spectre, a black wood veneer was innovatively crafted by repurposing wood scraps typically considered waste on the production floor. These discarded pieces were meticulously stacked and colored, resulting in the development of a novel material that is both eco-friendly and contemporary.

Manufacturers are leveraging sustainability as a point of innovation and product differentiation. Companies that pioneer the use of eco-friendly materials can position themselves as leaders in the industry, attracting environmentally conscious consumers.

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DRIVING FACTORS

Rapidly Changing Consumer Preferences Related to Vehicle Aesthetics to Augment the Market Growth

The primary driver behind the automotive interior trim parts market growth is the surging production and sales of vehicles. As the global demand for automobiles increases, there is a parallel increase in the demand for interior trim components to equip these vehicles. Advancements in automotive technology contribute to the demand for sophisticated interior components. Features such as advanced connectivity, smart interfaces, and integrated electronics require corresponding innovations in interior trim parts.

In January 2023, Chrysler unveiled the Chrysler Synthesis demonstrator during CES 2023. This innovative showcase highlights distinctive Chrysler-branded Advanced Technology for Real Life, integrating the STLA Smart Cockpit, STLA Brain, and STLA AutoDrive technology. The aim is to seamlessly merge contemporary and premium design with intuitive, advanced technology and features.

Consumers are increasingly seeking personalized and customizable options for their vehicles. This includes choices in interior color, materials, and finishes, leading to a diverse range of interior trim parts to meet individual preferences. All these factors are expected to fuel the growth of the market during the forecasted period.

RESTRAINING FACTORS

Fluctuations in the Prices of Raw Materials May Hamper the Market Growth

One of the key restraints in this market is the volatility in raw material prices. Automotive interior trim parts are often made from a variety of materials, such as plastics, leather, metals, and textiles. Sudden increases in the prices of these raw materials significantly raise production costs for manufacturers. This, in turn, limits profit margins and makes it challenging for companies to stay competitive in the market.

When raw material prices rise, manufacturers may face the difficult decision of either absorbing the increased costs, which can impact profitability or passing them on to consumers through higher prices. Higher prices, however, may lead to reduced demand among consumers, affecting the overall market growth.

The automotive industry heavily relies on materials such as plastics, leather, textiles, and various metals for interior trim components. Thus, fluctuations in the prices of these raw materials can significantly impact the manufacturing costs for interior trim parts.

SEGMENTATION

By Vehicle Type Analysis

Increasing Demand for Luxury and Comfort to Foster the Passenger Cars Segment Growth

Based on vehicle type, the market is fragmented into two sub-segments, including passenger cars and commercial vehicles.

The passenger cars segment held the dominant market share in 2022. Passenger cars include plug-in hybrid electric vehicle PHEV, BEV, and ICE-propelled vehicles. Passenger car buyers often prioritize interior comfort, aesthetics, and features. Interior trim parts play a significant role in enhancing the overall comfort and appearance of passenger vehicles. Consumers look for quality materials, ergonomic designs, and innovative features in the interiors of their cars.

Among the showcased vehicles at Mecum’s Las Vegas auction over the weekend in November 2023, a 2023 Corvette Z06 in Rapid Blue, equipped with the Z07 package, Carbon Fiber wheels, and the evident Carbon Fiber aero package was displayed. The interior boasts a 3LZ configuration featuring two-tone Tension/Twilight Blue GT2 seats with orange seatbelts. In addition, it was upgraded with the Level 2 interior Carbon Fiber trim package and stealth interior trim.

The commercial vehicles segment is expected to have fastest-growing CAGR during the forecast period. While functionality is crucial, there is a growing focus on improving driver comfort in commercial vehicles. Interior trim parts need to incorporate ergonomic designs, comfortable seating, and features that reduce driver fatigue during long hours of operation. This factor is expected to boost the growth of the segment during the forecasted period.

By Material Type Analysis

Cost-effectiveness and Ease of Manufacturing to Fuel the Plastic Segment Growth

Based on material type, the market is divided into leather/fabric, metal, plastic, composites, and others.

The plastic segment by material type held the largest market share in 2022. Plastic components are often easier and more cost-effective to manufacture compared to some alternative materials. Injection molding, a common process for producing plastic parts, allows for efficient mass production with relatively low tooling costs. This is expected to fuel the segment dominance and overall growth over the period.

The composites segment by material type is estimated to grow with the highest CAGR during the forecast period. Composite materials often exhibit excellent resistance to corrosion, chemicals, and wear. This durability makes them suitable for automotive interior parts that are subject to constant use, exposure to environmental factors, and potential abrasion.

For instance, in June 2023, Swiss sustainable lightweighting company Bcomp, based in Fribourg, revealed the integration of its natural fiber composite technology, ampliTex, in Volvo EX30. This significant initiative involves incorporating Bcomp's flax fiber composites as an optional trim for the dashboard and doors of the EX30.

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By Component Analysis

Seats Segment Dominated Due to Exploration of High-quality Fabrics by Manufacturers

Based on component, the market is categorized into seats, dashboards, door panels, headliner, carpets, and others.

The seats segment by component type held a dominant market share in 2022. Advancements in materials play a significant role in driving the seats segment growth. Manufacturers explore innovative materials, including high-quality fabrics, leather, synthetic materials, and advanced cushioning technologies, to enhance the comfort and aesthetics of seats. In May 2023, Toyota revealed that, in pursuit of creating comfortable car interiors for the future, it employs generative design to craft a seat frame that is not only safe and lightweight but also aesthetically pleasing and environmentally sustainable.

The dashboards segment is expected to grow with the highest CAGR during the forecast period. Modern dashboards feature advanced instrument clusters with digital displays, customizable interfaces, and enhanced visibility. The integration of these instrument clusters is a driving factor, providing vehicle owners with essential information in a clear and user-friendly manner.

By Level Analysis

Balance Between Affordability and High-Quality to Fuel the Mid-Level Segment Growth

Based on level, the market is subdivided into base, mid-level, and high-end.

The mid-level segment dominated the automotive interior trim parts industry in 2022. The mid-level segment is characterized by a balance between affordability and higher quality. Consumers in this segment are willing to pay a bit more for interior trim parts that offer improved materials, features, and overall build quality compared to entry-level options. Thus, due to these advantages, the mid-level segment expected to dominate the overall market.

The high-end segment is estimated to grow with the highest CAGR over the forecast period. The use of high-quality and luxurious materials, such as premium leather, wood veneers, metals, and other exotic materials, is a key driver behind the high-end segment growth. Consumers in this segment expect an opulent and sophisticated interior. This factor is expected to contribute to the segment growth during the forecast period.

For instance, in November 2022, BMW M unveiled the BMW XM, its second standalone model, following the iconic BMW M1. The front seats are designed for an active driving experience, while the rear of the BMW XM offers an exclusive lounge atmosphere. The rear seats showcase three-dimensional diamond quilting, diamond-shaped contours on the backrest, and integral head restraints, creating a modern and sporty appearance. Optional features include high-quality cushions with soft, quilted Alcantara covers matching the seat surfaces and an inscribed M logo.

REGIONAL INSIGHTS

Well-Established Automotive Industry in the Asia Pacific Fuels the Regional Growth

Based on region, the market is analyzed across North America, Europe, the Asia Pacific, and the rest of the world.

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The Asia Pacific region dominated the automotive interior trim parts market share in 2022. The region is subjected to rapid economic growth and urbanization, leading to an increase in disposable income. As a result, consumers in the region are more inclined to invest in vehicles with advanced and aesthetically pleasing interiors, driving the demand for high-quality interior trim parts thus fueling the market growth. The well-established automotive industry in China and Japan is expected to support the market growth in the region.

Rest of the world comprises of Latin America and the Middle East & Africa. The region is slated to grow at the highest CAGR during the forecast period. As consumer preferences evolve, there is a greater emphasis on comfort, aesthetics, and advanced features in vehicles. Interior trim parts play a crucial role in enhancing the overall driving experience, and automakers are responding to consumer demands for high-quality, visually appealing interiors, thus boosting market growth.

Europe market for automotive interior trim parts held a substantial share in 2022. European consumers have a strong emphasis on design and aesthetics in automotive interiors. This drives the demand for interior trim parts that feature stylish designs, high-quality materials, and innovative finishes to enhance the overall look and feel of the vehicle interiors, propelling the market advancement in the region.

North America market for automotive interior trim parts held the second-largest share in 2022. Consumer preferences for stylish and aesthetically pleasing interiors drive the demand for innovative and well-designed interior trim parts. To cater to this demand, in August 2023, Toyota Boshoku Corporation set up an entity named TOYOTA BOSHOKU WESTERN KENTUCKY, LLC. This establishment, situated in Hopkinsville, Christian County, Kentucky, U.S., focuses on the production of automotive interior parts. By internally producing seat frame mechanism components, which is anticipated to see a rise in demand, the company aims to enhance its competitiveness in the North America.

KEY INDUSTRY PLAYERS

Companies are Focusing on Innovative Product Developments to Gain the Competitive Edge in the Market

The global market is considered to be fragmented, with established and emerging players. Significant players include companies such as Lear Corporation, Adient, Faurecia, Grupo Antolin, and Magna International, among others. The competitive landscape in the market is fueled by a focus on innovation and the integration of advanced technologies. This includes the incorporation of smart materials, connectivity solutions, advanced manufacturing processes, and building domestic manufacturing facilities.

List of Key Companies Profiled:

• Faurecia (France)


• Grupo Antolin (Spain)


• Lear Corporation (U.S.)


• Magna International (Canada)


• Neaton Auto Products Manufacturing, Inc. (U.S.)


• Machino Plastics Limited (India)


• CIE Automotive (Spain)


• 3D Systems, Inc. (U.S.)


• KASAI NORTH AMERICA (U.S.)


• COBA Automotive Ltd (U.K.)


• 3M (U.S.)


• Celanese Corporation (U.S.)


• LACKS ENTERPRISES, INC. (U.S.)


• MacDermid, Inc. (U.S.)


• TMI AUTOMOTIVE PRODUCTS, INC. (U.S.)


• HEXPOL AB (Sweden)


• TOYOTA BOSHOKU CORPORATION (Japan)

KEY INDUSTRY DEVELOPMENTS:

• March 2023 − BASF unveiled a novel Ultramid Deep Gloss variant, specifically designed to enhance the glossiness of automotive interior components. This innovative grade was debuted on the garnish of Toyota's latest Prius model.


• October 2022 − Faurecia advances into biocomposites and intelligent materials to promote sustainable interiors for vehicles. The company is committed to enhancing sustainability across its four business segments: Seating, Interiors, Clean Mobility, and Electronics. Through these sectors, Faurecia aims to achieve an 87% reduction in the CO2 footprint of its materials by 2030. This goal is pursued through three key principles: integrating recyclable and recycled materials and devising alternatives to petroleum-based solutions without affecting costs.


• March 2022- Grupo Antolin was honored with the esteemed Plastics Recycling Award Europe 2022 for its environmentally-friendly modular headliner designed for vehicle interiors. The recognition was achieved in the Automotive, Electrical, or Electronic Product of the Year category.


• August 2021 – HEXPOL TPE, the global polymer compounding group, broadened its Thermoplastic Elastomer (TPE) material selection by introducing Dryflex Circular TPE grades featuring recycled content. These new grades have undergone testing to evaluate their odor and emissions performance in automotive interiors.

REPORT COVERAGE

The automotive interior trim parts market report provides a detailed analysis of the market trends and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides this, the report highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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