The Europe Automotive Upholstery Market is anticipated to register a CAGR of less than 5% during the forecast period (2020 - 2025).
Key Highlights
- The demand for more personalized vehicles is growing around the world. Car customization plays a significant role in making the car more appealing, as they need top-class upholstery to grow. Another factor that is driving the Automotive Upholstery demand is the rise in luxury car sales.
- As of 2019, Europe holds the second largest market share in the automotive upholstery market at 30%. In 2019, Germany recorded worldwide car exports over 12.1 % and vehicle parts, which account for another 4.9%. Amongst the vehicle parts, the upholstery market plays a dominant role in total sales made annually.
- 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 Grow at a Fast Pace Owing to the Growing Demand for Luxury Interiors
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 forces automakers and OEMs to provide leather upholstery in their mid-range and premium car offerings, thereby driving the leather segment of the automotive.
Fabric coatings, such as Scotchgard, also observed significant growth, as customers focus on preserving the upscale interiors that they purchase. In general, the peripheral industries of 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 are naturally experiencing increasing demand.
Germany poised to lead the luxury automotive interiors market
Europe is the hub for the luxury car market in the global scenario. Customer's focus on the latest features of car interiors and other upholstery has now become a deciding factor driving the purchase of any car. In 2019, German premium brands and luxury carmakers had strong sales and gained market share in several major market segments. Mercedes-Benz and BMW both had their ninth consecutive record year in 2019. Also, Porsche gained the most in 2019 with record deliveries 10% higher than a year ago. German luxury car brands mostly outperformed the markets in major countries with all gaining market share in China, and the USA were the broader new car markets were weaker in 2019.
Moreover, with the growing trend of electric vehicle sales for durable. As of 2018, Germany has over 200,000 plug-inn electric cars. It has decided to join the aim of achieving zero emissions by committing to the domestic production and sales of only EVs by 2050.
With a growing demand for luxury and electric vehicles, it is expected that the German automotive upholstery market will only rise in the coming future.
Competitive Landscape
The Europe Automotive Upholstery market is neither fragmented, nor consolidated. Some of the major players are: Adient PLC, Grupo Antolin, Panasonic Corp., Faurecia, Lear Corporation, etc. Now-a-days, major car manufacturers are setting up their own upholstery manufacturing factories. Although to have the edge over its competitors, the major car manufacturers are making joint-ventures, partnerships to launch newer products.
BMW uses standard Nappa leather in most of its luxury cars. However, even costlier Merino leather, which is not dyed with any artificial colors or coating, is sold in BMW 7 Series. The main reason for the high price is predominantly because Merino leather only with higher-end models, and the rich prefer the most premium leather offered in the market.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
Methodology
LOADING...
