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The automotive upholstery market was valued at USD 7.63 billion in 2019 and is poised to register a CAGR of 6.57% over the forecast period (2020-2025).

  • In the past, automotive upholstery played a secondary role in the market. However, currently, car buyers consider it as one of the most important prerequisites while purchasing a car.
  • The rising demand for lightweight automotive materials, various non-fabric substitutes for automotive upholstery, and rising demand for advanced automotive interiors are some of the most important aspects that are likely to propel the development of the global automotive upholstery market, over the forecast period.
  • The OEM channels are expected to register faster growth than the aftermarket. However, the concentration of aftermarket suppliers may lead to market expansion and the fragmented nature of the industry. This is due to the escalating demand for customization and rising disposable incomes of customers in the Asia-Pacific region, which is the largest market for the automotive upholstery industry



Key Market Trends


Leather Is Expected to Lead the Market Owing To The Growing Demand For Luxury Interiors

In the current scenario, buyers consider the vehicle’s interior as an important feature while purchasing a car, truck, or an SUV. Upholstery is an integral part of the interior. As vehicle interior is becoming more elaborate, with contrasting surfaces and textures used to bring in the decorative and functional effect, automotive makers are considering new materials for the upholstery, with enhanced environmental performance.

Fabric coatings, such as Scotchgard, also observed significant growth, as customers work to preserve the upscale interiors that they purchase. In general, the peripheral industries to the automotive upholstery industry are also experiencing steady growth. As upholstery continues to evolve and capture the attention of automotive buyers, the materials and tools used to maintain that upholstery naturally experience an increasing demand.

Leather is known for giving luxury sense, owing to which people are demanding more leather upholstery. Apart from giving a premium look and feel, leather upholstery gives 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-type automotive upholstery market. The rising buyer inclination for retrofitting of automobiles with leather upholstery, is also supporting the market development through the aftermarket channel

Asia-Pacific Will Lead the Upholstery Market

The Asia-Pacific will lead the upholstery market over the forecast period followed by Europe and North America. China holds significant share in the automotive upholstery market in the Asia-pacific region followed by Japan and India respectively. In 2017, 24,961,948 units of passenger vehicles were sold in China, compared to 24,376,902 units in 2016. However, in 2018, the country witnessed a decline in vehicle sales by 3%, owing to trade tensions and shaky consumer confidence. In January 2019, government unveiled numerous measures with an aim to increase sales of cars. The National Development and Reform Commission (NDRC) announced that the restrictions will be loosened on the second-hand automobile market, and appropriate subsidies will be provided to boost rural sales of some vehicles, as well as purchase of new energy vehicles.

The growing trend electric vehicles is another factor which is driving the upholstery market in Asia-Pacific. For instance, in August 2018, Japan decided to join the aim of zero emissions by committing to domestic production and sale of only EVs by 2050, which in turn, is expected to propel the demand in the automotive upholstery market in the country.

Competitive Landscape


The global automotive upholstery market is fragmented, however the major players in the market are Adient Plc, Lear Corporation, Toyota Boshoku Corporation, Faurecia S.A and among others. Manufacturers are focusing on improving and upgrading the fabric used and competitively pricing them to meet the customers’ budgets. As the market is fragmented and majority of the market is flooded with small and medium local enterprises that capture the bulk of aftermarket sales.

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