Asia-Pacific Automotive Seat Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asia-Pacific automotive seat market is poised to register a CAGR of over 6.12 % during the forecast period (2020-2025).

Key Highlights

• In 2019, the overall vehicle production in Asia-Pacific declined due to the trade war and economic slowdown. Although, Asia-Pacific holds a significant market share in the global automotive seat market.
• An automotive seat is among the important vehicle features for the OEMs as they focus on fuel economy, safety, and overall comfort and elegance.
• The powered seat and ventilated seat segments are expected to record high growth rates, owing to the increasing adoption of such seats in the mid-segment cars. Ventilated seats help in temperature regulation in-turn helps in reducing energy emissions through air conditioners, sunroofs, etc. Increased awareness about the intelligent seating solutions and values offered by the manufacturers have enhanced the perceived quality.
• China is one of the key markets not only in Asia-Pacific but globally. China's automotive industry is developing rapidly, and will also develop firmly in the future, so it will gauge a huge demand for automotive seating.

Key Market Trends

Increase in Electric Vehicle Production

The factor which is likely to fuel the demand of the automotive seat industry in Asia-Pacific is the growing production of electric vehicles. Ventilated seats, which are used in electric vehicles, will witness a surge in demand over the future years, as more customers start purchasing electric vehicles. As China is the leader in the electric vehicle market, the demand for ventilated seats is likely to witness significant growth over the forecast period in the region.

Top automotive OEMs and seat manufacturers have started spending of huge amount on research and development of seats. The revolution started from the child safety seat, lightweight seats to automatically adjustable seats. Also, autonomous cars are revolutionizing the seating arrangements and car interiors.

For instance, in 2016, Faurecia forms a joint-venture with German automaker Borgward in China to jointly develop complete seats for Borgward vehicles.

Whereas, in 2019, Panasonic unveiled SPACe-L, an autonomous cabin in which seats are positioned against each other. Similarly in 2018, Adient's AI18 concept vehicle seating system which provides a flexible, lightweight, and compact features for urban electric mobility vehicles. These futuristic seats have hidden sensors that are capable of providing intelligent telehealth services while traveling.

China to Capture the Major Market Share

China, being the global automotive manufacturing hub, has the presence of numerous industry participants, in which most of the foreign industry leaders have their joint venture with the local manufacturers. Adient PLC which is one of the leading players in the automotive seating market has many joint ventures in the Asia-Pacific market.

For instance, in 2020, Adient made certain changes to their existing joint venture relationships with Yanfeng Automotive Trim Systems Co., Ltd. (Yanfeng). Adient has agreed to sell its 30 percent ownership stake in YFAI to Yanfeng for USD 379 million. Adient and Yanfeng are also extending the term of their YFAS joint venture to 2038.

Also, in 2017, Lear Corporation inaugurated its Asia headquarters and technical center located in the Yangpu District of Shanghai, China. Lear has a good presence in Asia with operations in more than 67 locations. It also has about 9 unconsolidated joint ventures in the Asia-Pacific region.

Competitive Landscape

The Asia-Pacific Automotive Seat market is consolidated and majorly dominated by few players, such as Adient PLC, Faurecia, and others. Adient PLC holds a 40 % - 45 % share of the Chinese passenger seating market. 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 more luxurious experience to the people, major automotive seat manufacturers are establishing a joint venture with seat manufacturers. For instance,

• In 2019, Toyota Boshoku Corporation announced that it will open an office in Gurgaon, India. This facility will be dedicated to sales and development in the country. The company will try to strengthen its presence by offering seats and interior components to the automobile manufacturers.
• In 2018, Adient forms joint venture with Arvind Limited, that will manufacture and sell automotive fabrics for seating systems in India.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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