According to a recent report published by Allied Market Research, titled, “Automotive Fabric Market by Fabric Type, Vehicle Type and Application: Global Opportunity Analysis and Industry Forecast, 2018-2025,’the global automotive fabric market was valued at USD 29,839.9 million in 2017, and is projected to reach USD 37, 282.2 million by 2025, registering a CAGR of 2.9% from 2018 to 2025.
At present, Asia-Pacific dominates the market, followed by Europe, North America, and LAMEA. China dominated the global automotive fabric market in 2017, whereas India is expected to grow at a significant rate in Asia-Pacific during the forecast period.
The growth of the global automotive fabric market is driven by rise in sales of vehicle; rapid economic improvement; and implementation of stringent safety standards for usage of airbags, safety belts, and others. Moreover, growth in production of passenger vehicles in developing countries of Asia-Pacific is majorly characterized by rise in disposable income. These factors are largely responsible for the expansion of the automotive fabric market, as growth in adoption of fabric materials is directly related to advancement in applications of the passenger vehicle segment.
Automobile companies focus on the innovations of fabric material. The recent developments are done nylon fabric form that is provided specifically for the application of automotive. The innovation in varieties of polyamides like high ultra violet resistance provides a spectrum of colour choices. In addition, recently in 2018, SUVs such as Mazda, Holden Acadia, Kia Sorento, and Toyata Kluger have started offering digital fit floor liner to improve interior protection in premium models in Australia.
Automakers alongwith the vendors are equally trying to improve safety factors of various systems implemented in automobiles. In addition, the leather manufacturing companies are expanding their business, R&D centers with the latest technical innovation. For instance, BoxMark Leather Company has developed Research and Development Centers (RDC) to innovate products as well as state-of-the-art manufacturing technologies for the development in leather product.
The automotive environment is changing at a rapid pace due to globalization. The increase in automotive sales has been caused due to the improvement in manufacturing facilities in most of the emerging countries such as China, India, and Brazil among others. Global automotive sector promises better productivity and sales as this sector consists of different segment such as premium and four wheelers among others, which in turn drives excellent profitability. This factor majorly influences prominent players of automotive sector to invest and expand the business through different segments to gain better profitability. Also, increase in disposable income of consumers and surge in passenger vehicles sale across the globe has fueled the rising demand for automotive vehicle. Developing countries such as India, China, and Brazil among others are the most promising countries for the automotive sector. The increasing demand for vehicles in automotive sector fuels the growth of the fabric market. In recent years, consumers have shifted their interest to technologically advanced, requiring low cost and maintenance vehicles that has number of interior applications. This in turn increases the overall use of fabric in vehicle. Thus, such rise in the sales of automotive vehicles due to their advanced features is expected to create numerous opportunities for market expansion.
In 2017, based on fabric type, the polyester segment generated the highest revenue. In 2017, based on application, the carpets/flooring segment was the highest revenue contributor. In 2017, based on vehicle type, the passenger car segment was the highest revenue contributor. In 2017, based on region, Asia-Pacific contributed the highest market revenue, followed by Europe, North America, and LAMEA. The key players analyzed in this report are SRF Limited, Lear Corporation, Acme Mills Company, Suminoe Textile Co. Ltd., Adient Plc, Heathcoat Fabrics Limited, Seiren Co., Ltd., Toyota Boshoku Corporation, Martur Automotive Seating System, and Grupo Antolin Irausa, S.A.
The automotive market is positively affected by safety regulations implemented by government for installation of airbags, seat belts and anti-lock braking systems (ABS) in every vehicle. Europe and North America have been witnessed to follow these regulations more stringently as compared to Asia-Pacific and rest of the world. However, in developing countries, OEMs are providing airbags and anti-lock braking system (ABS) as standard features in vehicles, supporting the government to improve safety measures. This in turn increases the use of fabric material needed for in-vehicle safety features. These safety systems need separate fabric material for different component applications to function. Also government of India is planning to set up its own safety authority Bharat National Car Assessment Programme (NCAP) that rates vehicle on the basis of safety features used inside the car. Such initiatives from the various governments are creating awareness about the safety features that directly boosting the growth of automotive fabric market.
A Various raw materials such as steel, rubber, and leather, are used to manufacture interior components. Therefore, increase in the prices of these raw materials negatively affect the automotive interior vendors. The tariff on import of steel and aluminum is adversely affecting many players in the market. Growth in demand and addition of tariffs increased the steel prices by around 40% in the U.S. from 2017 to 2018. This rise in prices of raw materials is expected to hamper the growth of the automotive interiors market during the forecast period.
For more information on the research report, refer to below link:-
Global Automotive Fabric Market
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