Automotive Interior Materials Market Trends
Growth Drivers
- Rapid Growth in Population Across the World - The constant rise in the population is raising the demand of vehicles worldwide. An increase in demand of vehicles is expected to escalate the need of automotive interior materials for increasing the durability, upgrading the looks and addition of stunning finish. Thus, the rapid growth in the population is expected to fuel the market growth in the assessment period. As per the World Bank, it is estimated that the world population stood at 7.84 billion in 2021, an increase from 7.09 billion in 2021. This number is anticipated to rise to 9.8 billion in 2050 and 11.2 billion in 2100, as per United Nations, Department of Economic and Social Affairs
- Soar in Number of Vehicles on the Roads – The recent urbanization has led the number of vehicles on the roads to increase. As a result, the utilization of automotive interior materials is expected to also surge considerably. The latest reports suggest that were approximately 2 billion vehicles on roads across the globe by the end of first quarter of 2022.
- Improved Production Rate of Vehicles - International Organization of Motor Vehicle Manufacturers (OICA), released the global sales of vehicles statistics which revealed that it rose from 56,398,471 units in 2021 to 53,917,153 units in 2020. Whereas, the global production of vehicles calculated to be 57,054,295 units in 2021, an increase from 55,908,989 units in 2020.
- Increased Interest of Population in Luxury Cars - A latest report suggested that the global sales of luxury cars is anticipated to stand at 200K vehicles in 2026, a rise from 190K vehicles in 2022.
Challenges
- Rising Concerns Related to Disposable of Effluents
- Stringent Government Rules Regarding Environment Protection
- Fluctuation Costs of Raw Materials
Automotive Interior Materials Market: Key Insights
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
3.3% |
|
Base Year Market Size (2024) |
USD 53.62 billion |
|
Forecast Year Market Size (2037) |
USD 80.27 billion |
