Automotive Textiles Market Trends

Growth Drivers

• Rising road safety: The innovations in the automotive & transportation sectors are at a surge, owing to the fueled consumer demand. There is an increasing importance given to safety devices, as safety regulations are consumers' priority which demand products such as headrests, seat belts, and airbags. According to a report by the World Health Organization in 2023, about 1.19 million individuals succumb to road traffic crashes.
  
  Additionally, 20-50 million people suffer from disabilities and non-fatal injuries from vehicle accidents. Credited to this, consumers now seek sustainability, and comfort in their vehicle choices which has also fueled the demand for automotive textiles. There is a surge in functional textiles, organic materials, and eco-friendly fabrics. According to a report by IFOAM in 2024, the global area for organic farming surpassed 96 million hectares in 2022. Additionally, the automotive safety system revenue has increased due to the increasing vehicle safety concerns.

• Expanding global population: As the population is constantly increasing, there is a high demand for textiles and clothing in automotive such as seat covers, and roof layers, due to which purchasing of these products has also increased. According to a report by the UN Trade & Development in 2022, the global population in developing countries increased to 83% in 2022 from 66% in 1950 and is expected to witness an 86% gain by 2050.
  
  Moreover, there has been a growth in disposable income which is attributed to the growing need for comfort in automobiles, airbags, and seat belts. According to a report, by the Office for National Statistics in 2023, when compared to the gross disposable household income (GDHI) of 2020, it increased by 3.6% in 2021 in the UK. Moreover, there has been growth in residential housing which fuels the demand for this sector.

Challenges

• Inability to absorb moisture: Carpets, seats, and insulation all use textiles, making them prone to holding moisture over time. Several materials, such as leather, polymers, and synthetic fibers, are hydrophobic, they don't absorb and repel moisture. This can result in the growth of mold and mildew, unpleasant smells, and even health problems. Credited to which moisture can also build up in places like the carpet padding, causing the growth of mold, and limiting the market growth.

• Presence of substitute: With a large number of suppliers and manufacturers across the globe, the textile industry is competitive. Cost pressure and reduced profit margins can result from intense competition, particularly for commoditized textile items. This hinders the market expansion.