Automotive Interior Market

Automotive Interior Market Size, Growth Report & Forecast

[425 Pages Report] The global automotive interior market is estimated to be USD 157.4 Billion in 2023 and is expected to reach USD 194.8 Billion by 2028, at a CAGR of 4.4%. Larger, more accurate touchscreens and enhanced voice controls are included in new infotainment systems for a better cabin experience. Improved control systems in the center console make the car's handling steadier, smoother, and safer. As more people use smartphones and other smart devices, automakers increasingly put the newest technology inside their cars. 

As a result, seamless communication between automobiles and gadgets is becoming essential. The Mercedes-Benz EQS offers a 56-inch Hyperscreen spanning the dashboard, while the new BMW i7 (2023) includes a 31-inch rear entertainment screen. The Lucid Air features a 34-inch curved cockpit display. As consumers increasingly expect larger screens and advanced features such as gesture control in BMW models and voice assistants in Mercedes-Benz and BMW, these vehicles meet the growing demand for more immersive and interactive in-car experiences. Customers expect their cars to have features like easy access to apps, social media, navigation, music streaming, and other online services directly from their car's infotainment system, increasing the need for connectivity options. Furthermore, an increased awareness of environmental impact has caused a growth in demand for eco-friendly and sustainable materials.

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Automotive Interior Market Growth Dynamics:

Driver: Integration of smartphone connectivity

Smartphone connectivity is adding a smartphone as a controlling and sharing device with the infotainment system. It allows the driver to use some of the features and applications of the smartphone while driving, such as GPS, music, and communication. The ability to connect a smartphone to an infotainment system such as Android Auto, Spotify, or Apple CarPlay heightened the demand for sophisticated infotainment systems in cars and further propelled the automotive interior market. Apple CarPlay and Android Auto use smartphones to run operating systems tailored for use on roads, making them comparable. Considering the growing consumer expectation for infotainment systems, OEMs have provided these systems across most small vehicle segments. Also, Companies began offering wireless Apple CarPlay and Android Auto for automobiles as the demand for smartphone connectivity applications with infotainment systems increased. In March 2014, Mercedes-Benz, Volvo, and Ferrari were key manufacturers that adapted Apple CarPlay and offered the technology in their vehicles. Android Auto was released in March 2015. The systems allow for simple navigation, integration of cutting-edge features with cockpit electronics, easy access to music, and call management- all without detracting from the driver. To provide a hand-free experience, both operating systems even incorporate voice assistants such as Siri and Google Assistant.

Restraint: Increasing competition from local companies offering counterfeit/retrofit solutions

Substandard or fake solutions pose a significant risk to marring the reputation and trust that reputable manufacturers have built over the years. The brand's image may be hampered if they unknowingly purchase counterfeit products or opt for inferior retrofitting solutions. For example, counterfeit xenon lamps can cost USD 15, whereas genuine LED headlights cost USD 100. Parts at such low costs are typically fake and obvious to spot. For instance, two decent halogen bulbs cost (10 to 30 USD) more than one xenon lamp (50 to 200 USD) from Osram. It should raise concerns if a vendor justifies the absence of original packaging by claiming it's a bulk item. Reputable auto lamp manufacturers typically supply their products directly to headlight manufacturers. Therefore, this becomes a major restraint for established companies in providing genuine automotive interior products. 

Opportunity: New entertainment and smart mirror applications

The need for automobile displays has increased due to the demand for car convenience features. Opportunities for smart display applications, such as rear-seat entertainment systems and intelligent rearview mirror displays, have grown as OEMs release new variations with high-end instrument clusters, center stack screens, and enhanced functions for drivers and passengers. To meet these requirements, automotive display suppliers apply their experience and diversify their offerings. Another feature OEM uses in luxury and high-end cars is rear seat entertainment systems. Headrests or rear integrated seats with large LCD screens are provided for comfort and theatre-like feelings.

The rear-seat entertainment systems in vehicles, including the Jaguar XJ, Mercedes E Class, and Hyundai Genesis, are sophisticated. Automotive display suppliers are investing in R&D for technological advancements in cars. In May 2022, Hyundai Mobis developed the world's first adjustable display technology for an integrated automotive cockpit system. This new technology adopted the concept of a movable, ultra-large, curved screen. With increasing electrification and autonomous vehicle developments, the coming decade will see significant changes in features inside a car that will utilize efficient and large displays for clear communication between vehicle and vehicle (V2V) and vehicle and infrastructure (V2I). These developments will offer varied opportunities for the growth of the automotive interior market.

Challenge: The presence of unorganized aftermarket

OEMs do not offer high-end interior features for all vehicles, so customers typically have them installed from the aftermarket. Examples include ambient lighting, digital instrument clusters, rearview mirror displays, and rear seat entertainment systems. Consumers, thus, are not inclined to buy the highest variations just due to these attributes, as the latter comes with a relatively high price. Also, they would prefer things from the aftermarket. Moreover, the interior accessories of the automotive aftermarket are relatively cheaper. Therefore, one gets to find a large market for automobile interiors. As stronger ambiance lights are a distraction, OEMs typically have guidelines and regulations for producing specific car interior components. This aspect cannot be regulated when the items are produced as an aftermarket accessory. This unorganized market is a significant challenge to the growth of the OEM automotive interior market.

Automotive Interior Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of automotive interior components. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include FORVIA Faurecia (France) and Adient plc. (Ireland), Robert Bosch GmbH (Germany), Yanfeng (China), Lear Corporation (US), and Antolin (Spain).

Seats are anticipated to hold the largest market share during the forecast period.

As seats are an integral part of any passenger or commercial vehicle, the seat segment is projected to have the largest share of the automotive interior market during the forecast period. This market is expanding due to rising vehicle production and consumer demand for comfort and luxury. In addition to being the world's largest market for vehicle production, Asia Pacific also dominates the seat market. The economy car segment, which dominates the Asia Pacific market, is responsible for the region's higher adoption of conventional car seats. The mid and luxury-car categories drive the markets in North America and Europe. Customers are especially interested in comfort options and high-tech seating in these regions. Consequently, powered and heated, heated and ventilated, heated, ventilated, and memory seat options are becoming increasingly common in North America and Europe. Vehicles with more advanced systems are available in technologically advanced nations, including the US, Germany, the UK, and France. These nations are market leaders because they have already adopted digital center stacks and instrument clusters, even in their mass-produced cars, as standard display systems. Government requirements for in-vehicle safety features in various nations would further promote expanding the automotive interior market.

The economy car segment is expected to account for the largest market size during the forecast period.

Economic cars are expected to hold the largest market share in 2023. Economic cars are adding features like Bluetooth, basic infotainment systems, and others as technology becomes more accessible and cheaper. Advancements in materials and technologies in electrical components enable OEMs to offer visually appealing pieces at a reduced cost. After Tata's successful acquisition of Jaguar Land Rover, there has been a significant improvement in the interior and exterior of the company's new lineup of passenger cars compared to earlier Tata models. The latest models have more luxurious interiors that are more reasonably priced. The interior's standout features include the floating infotainment display system, the semi-digital instrument cluster, and the cabin's significantly more upscale appearance and feel. The Nexon 2023 model has a 7-inch touchscreen infotainment system with Android Auto and Apple CarPlay. The top-spec XZ+ Lux variant gets an upgraded 10.25-inch touchscreen infotainment system with Harman Kardon sound system. Such development will drive segment growth in the forecast period.

 "North America is projected to witness notable growth during the forecast period."

North American consumers expect luxury and upscale, creating a need for top-of-the-line stereo systems, massage chairs, and heated/ cooled vehicle seats. Car interiors are becoming increasingly more technologically complex, with features like touchscreen infotainment systems, advanced driver assistance systems (ADAS), connectivity options, and adjustable settings. These characteristics are driving demand for more elegant and user-friendly interior designs. The rise of electric and autonomous vehicles in North America has also brought about changes in interior design. Electric cars often have simplified powertrains, allowing for more space and creative interior layouts. Due to the strong demand for feature-rich passenger cars and pickup trucks and the US market for modern technology being more developed than Canada or Mexico, the US is expected to lead the North American automotive interior market.

Additionally, the nation is witnessing steady growth in the semi-autonomous vehicle category due to large R&D expenditures, driving up demand for automobile interiors. In the coming years, autonomous vehicles will increase in popularity in North America. Companies such as Cruise LLC (US), Zoox, Inc. (US), and more are driving the innovation in autonomous driving technologies. In August 2024, Cruise LLC announced that Uber would add Cruise autonomous vehicles to Uber's platform. Since these vehicles won't have a driver or passengers, their interior designs must be distinct from those of ordinary automobiles. This is driving the need for fresh and creative car interior solutions.

Key Market Players

Global players such as FORVIA Faurecia (France) and Adient plc dominate the automotive interior market. (Ireland), Robert Bosch GmbH (Germany), Yanfeng (China), Lear Corporation (US), and Antolin (Spain). These companies adopted new product launches, deals, and other strategies to gain traction in the automotive interior market.

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Scope of the Report

This research report categorizes the automotive interior market based on Component, Material, Level of Autonomy, Electric Vehicle Type, ICE Vehicle Type, Passenger Car Class,  and Region.

Based on Component Type:

• Center Stack
• Head-Up Display
• Instrument Cluster
• Rear Sear Entertainment
• Dome Module
• Headliner
• Seat
• Interior Lighting
• Door Panel
• Center Console
• Adhesives & tapes
• Upholstery
• Others

Based on Material:

• Leather
• Fabric
• Vinyl
• Wood
• Glass Fiber Composite
• Carbon Fiber Composite
• Metal

Based on Level of Autonomy:

• Semi-Autonomous
• Autonomous
• Non-autonomous

Based on Electric Vehicle:

• Battery Electric Vehicle (BEV)
• Fuel Cell Electric Vehicle (FCEV)
• Hybrid Electric Vehicle (HEV)
• Pulg-in Hybrid Electric Vehicle (PHEV)

Based on Passenger Car Class:

• Economic cars
• Mid Segment Cars
• Luxury Segment cars

Based on ICE Vehicle Type:

• Passenger Car
• Light Commercial Vehicle
• Heavy Commercial Vehicle

Based on the Region:

• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Thailand
  • Rest of Asia Pacific
• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Spain
  • Italy
  • Russia
  • Turkey
  • Rest of Europe
• Rest of the World
  • Brazil
  • Iran
  • Others

Recent Developments

• In July 2024, Antolin partnered with MIT Art Design and Technology University in India to enhance innovation and experiential learning in automotive interior design.
• In April 2024, FORVIA acquired the remaining 50% shares from Aptoide in their joint venture, Faurecia Aptoide Automotive (FAA).
• In January 2024, Yanfeng unveiled its EVI (Electric Vehicle Interior) concept at CES, showcasing a future vehicle architecture that eliminates the traditional instrument panel by integrating key features and interior functions into a Smart Cabin seat.
• In January 2024, Antolin inaugurated its new plant in Pune, marking its first factory in India focused on lighting, HMI systems, and electronics, in line with its transformation plan to strengthen its presence in high-growth markets.
• In January 2024, Continental AG introduced its Crystal Center Display at CES 2024, a premium automotive display fully embedded in crystal housing, offering a frameless and semi-transparent design in car interiors.
• In April 2023, Lear Corporation acquired IG Bauerhin (IGB), further expanding its suite of in-vehicle comfort technologies. IGB is a privately held supplier of automotive seat heating, ventilation, active cooling, steering wheel heating, seat sensors, and electronic control modules.
• In February 2023, TrinamiX and Continental presented a world innovation. The Driver Identification Display with an integrated camera solution for biometric driver identification.

Frequently Asked Questions (FAQ):

To know about the assumptions considered for the study, download the pdf brochure