Automotive Interior Leather Market Growth & Trends

The global automotive interior leather market size is expected to reach USD 54.22 billion by 2030, according to a new study by Grand View Research, Inc. It is projected to expand at a CAGR of 6.3% from 2022 to 2030. The primary reason driving the growth of the automobile interior leather industry is the increasing demand for lightweight design and optimal efficiency and at the same time providing comfort for the driver and passengers.

Over the forecast period, it is projected that a significant movement in consumer preference for artificial leather for uses in the automotive industry will fuel the product demand. The lower cost of manufacturing synthetic leather is a significant factor in its increased demand. Synthetic leather can be produced at a lower cost than natural leather, and its manufacturing process is simple as compared to natural leather. These factors have increased the demand for synthetic leather and are expected to expand market penetration.

Seats & center stack dominated the market in 2021 and are anticipated to maintain their dominance over the forecast period. Massive adoption of leather in interiors provides various benefits such as a softer feel, premium finish, and durability. Manufacturers are engaged in providing kits that consist of pre-sewn upholstery covers designed as per each vehicle’s need.

One of the most popular materials for making vehicle carpets is leather. It is a strong, naturally derived substance that gives the interior of the car an aesthetic finish. They are simple to clean and maintain. The softness and stain-repelling abilities it confers, among other distinctive qualities, are projected to increase demand in the carpet application of the worldwide automobile interior leather industry.

Major industry players are involved in developing innovative solutions for producing superior-quality leather that provides improved features. For instance, in March 2021, Stahl launched a range of next-generation solutions that allow tanners to produce lightweight leather for the automotive industry without compromising on the quality and durability of the material.

Automotive Interior Leather Market Report Highlights

  • The Asia Pacific region accounted for the major share of the market in 2021. It is expected to grow at a CAGR of 7.1% over the forecast period. In Asia Pacific, China and India are among the fastest-growing economies. Favorable government policies, availability of cheap labor, and the rising disposable income are the factors attracting investments in the automotive manufacturing industry which in turn is positively influencing the growth
  • Genuine leather accounted for more than 60% in 2021. Genuine leather has massive demand in manufacturing upholstery for high-end luxury vehicles. Its ability to impart a premium finish to the vehicle which results in improving the overall aesthetics is expected to drive demand over the forecast period
  • Luxury car segment dominated the car class segment with a revenue share of more than 69.0% in 2021. Luxury vehicles provide better comfort, higher performance, and better technology, making them suitable for purchase by high-net-worth individuals, thereby raising the demand for luxury vehicles. This is anticipated to fuel the growth of the automotive interior leather industry over the forecast period