The North America Automotive Upholstery Market is anticipated to register a CAGR of about 5.45% during the forecast period (2020 - 2025).
- The demand for more personalized vehicles is growing around the world. Car customization plays a significant role in making the car more personalized, owing to which they need for top class upholstery is growing. Another factor that is driving the Automotive Upholstery demand is the rise in autonomous driving and luxury car sales.
- As of 2019, North America holds the largest market share in the automotive upholstery market at 35%. Along with the world’s leading automobile manufacturers, the US is also the home to 12% of total cars driven around the world. Due to which the upholstery market has always remained in demand.
- However, the rising cost for raw materials and early wear and tear leads to cut-throat competition amongst the upholstery manufacturers. Nevertheless, engineers are developing innovative and affordable materials that can both satisfy the aesthetic and the damages to the upholstery as a result of smoking, liquid spillage, and also collisions.
Key Market Trends
Leather is Expected to Lead the Market
The vehicle’s interior may not be a deal-breaker or winning feature for the customer.; however, they are the customer's first and last contact with the car. The primary function for passengers while purchasing Automotive Upholstery for the car, truck, or an SUV, after with the cost and quality of the material, is the contrasting surfaces and textures used to bring in a decorative effect and functionality. As a result, automotive makers are considering new materials for upholstery, with enhanced environmental performance.
For those interested in adding a luxury element in their cars, leather has remained in demand amongst the wealthy. Moreover, it is known for giving a premium look and feel. As a result, leather upholstery offers certain utilitarian benefits over ordinary materials used in car interiors. This is forcing automakers and OEMs to provide leather upholstery in their mid-range and premium car offerings, thereby, driving the development of the leather segment of the automotive industry.
United States Holds the Largest Market Share
In the case of passenger cars, most of the volume is occupied with in-car upholstery. With a trend of owing lager vehicles in the United States, opportunities improve for automotive upholstery also on the rise. In 2019, 700,000 thousand square meters of leather, which accounted for 30% of the total leather sold in the United States, was used by upholstery applications. With both the SUVs and mid-sized vehicles seeing an increase in sales for the forecasted period of 2019 - 2020, this shall reflect on the Automotive Upholstery Market as well.
There is also a growing demand for luxury cars. Consumers today are willing to shell out extra cash in luxurious upholstery in vehicles. In the United States, luxury variants of pick up vans and MUVs in North America are offered with leather upholstery as an optional fit.
The North America Automotive Upholstery market is fragmented with various small and medium sized companies such as Adient PLC, Grupo Antolin, Panasonic Corp., Faurecia and Lear Corporation. The major car manufacturers are setting up its own upholstery manufacturing factories. Although, in order to have an edge over its competitors the major car manufacturers are making joint-ventures, partnerships to launch newer products. For instance,
Nappa leather is considered the standard on most luxury BMWs. However, demand for an even costlier, Merino leather is sold in its 7 Series. The high price is predominantly because Merino leather only with higher-end Models. Also, since it’s not dyed with any artificial colors or coating, the rich prefer the most premium leather offered in the market.
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Table of Contents
1.2 Scope of the Study
4.2 Market Restraints
4.3 Porters Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.2 Sales Channel
5.3.3 Roof Liners
5.3.4 Door Trim
6.1.1 United States
6.1.3 Rest Of North America
7.2 Company Profiles
7.2.1 Adient Plc
7.2.2 Toyota Boshoku Corp
7.2.3 Faurecia SE
7.2.4 CMI Enterprise
7.2.5 IMS Nonwoven
7.2.6 Lear Corp
7.2.7 Seiren Co. Ltd.
7.2.8 The Woodbridge Group
7.2.9 Katzkin Leather Inc.