Europe Automotive Seat Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Currently, the Europe automotive seat market is valued at USD 11 billion in 2021. It is expected to reach USD 18 billion in the next five years, registering a CAGR of around 5.2% during the forecast period.
• The COVID-19 pandemic severely impacted the automobile industry as many countries imposed lockdowns. The subsequent disruptions among supply chains led to a decline in production operations and even temporarily stopped the flow of raw materials and finished goods, halting manufacturing. The automotive sector is cautiously looking forward to growing in the post-pandemic period. As many economies are recovering, the industry is expected to witness positive growth in the coming years.
• Over the long term, the rising vehicle sales are expected to boost automotive seat production to meet the increasing demand. Increasing passenger comfort has become one of the most important considerations in the passenger car market, and seats are significant in this aspect.
• Consumer demand for safety and comfort in automobiles is a vital factor driving the changes in the manufacturing of automotive seats. Luxurious, comfortable, and safe automotive seating systems are gaining preference among consumers, which, in turn, is prompting OEMs to seek automotive seats that could satisfy consumer expectations.
• Growing concerns about the use of plastic and plastic disposal are causing automotive seat manufacturers to invest heavily in the research and development of new materials for manufacturing automotive seats.
• The powered seat and ventilated seat segments are expected to record a high growth rate because of the rising sales of luxury vehicles and the increasing adoption of such seats in mid-segment cars. Ventilated seats help in temperature regulation, which helps in reducing energy emissions through air conditioners, sunroofs, etc. Increased awareness about the intelligent seating solutions offered by manufacturers has enhanced the perceived quality.

Europe Automotive Seat Market Trends

Increase in Electric Vehicle Production

• Over the years, the demand for lightweight seats has been rising. With concerns about fuel efficiency, the seats are focused on cutting down weight to aid the performance of vehicles. Additionally, sustainability is gradually becoming a key factor influencing consumer decisions. This pervasive trend is estimated to boost the demand for lightweight automotive seats to produce fuel-efficient and high-performance vehicles.
• Heated seats are gaining prominence in Europe due to climatic conditions as they offer better comfort and convenience than conventional seats. On the other hand, powered seats are also seeing an apparent demand, especially in premium luxury vehicles. This trend will likely continue during the forecast period because of rising consumer purchasing power in emerging economies and increasing demand for SUVs and luxury vehicles.
• The factor likely to fuel the demand in the Europe automotive seat industry is the growing production of electric vehicles. Ventilated seats, which are used in electric vehicles, may witness a demand surge in the future as more customers start purchasing electric vehicles. Among the European countries, the Netherlands and Norway have been the leading markets in the electric vehicle industry, and the demand for ventilated seats is likely to witness significant growth over the forecast period in the region.
• Top-tier companies are making heavy investments in the R&D of automotive seats to meet the demand by offering the latest features. Also, autonomous cars are revolutionizing seating arrangements and car interiors.
• For instance, Following the boom of 2020, electric car sales in Europe increased by more than 65% year on year to 2.3 million in 2021. Even if the broader car market has not yet fully recovered from the epidemic, EV sales have remained high.

Germany Captures the Major Market Share

• Germany leads the Europe automotive seat market, followed by Spain and France. Europe has the potential capability to manufacture advanced seats, which led the region to capture a significant share of automotive seat exports in the global market. Regarding seat manufacturing capabilities by country, Germany dominates the major share in the production of seats in Europe, followed by the United Kingdom and the Czech Republic.
• With major carmakers in the region, automotive seats also have significant production facilities across the country. Germany has the largest and most industrious economy in Europe. Germany's automotive seat market reflected a steady growth trajectory in 2021 despite weak market sentiment in overall car sales. The overall car sales of the country decreased by around 10.1% in 2021 compared to 2020. Being home to the largest automotive seat manufacturers, Germany leads the way both in terms of production and revenue. For instance,
• In June 2022, Grammer AG (Grammer) announced the establishment of the Ergolab at its headquarters in Ursensollen, Germany, to produce ergonomic and comfortable seats. Team members at the Ergolab work on research and pre-development projects, as well as rigorous comfort and ergonomic testing on prototype and series production seats and components.

Europe Automotive Seat Market Competitor Analysis

The Europe automotive seat market is consolidated and majorly dominated by a few players, such as Adient PLC, Faurecia, and others. The market is highly driven by factors like advanced technology, more comfort, growing investment in R&D projects, and a growing market of electric and autonomous vehicles around the region. To provide a more luxurious experience to the people, major automotive seat manufacturers are investing in R&D.

For instance, in 2022, Adient PLCs displayed an AI18 demonstration for a full seating concept for Level 4 autonomous ride-sharing cars. The AI18 delivers optimal seating configurations, usage options, and technology to users to improve mobility experiences and allow efficient, comfortable, and safe travel. Moreover, the company is also developing AI 17 and AI 18 for a better mobility experience.

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