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