The global automotive interior market is expected to grow to an estimated $153.8 billion by 2025, according to a new report.
Research firm Markets and Markets forecasts a 4.5% increase in the interior market’s size over the next five years. The market is currently valued at $123.2 billion.
They attribute the growth to a number of factors, including:
- Autonomous vehicles requiring reimagined interiors
- Connected technology embedded throughout cabins
- Strict emissions standards requiring lighter materials
- Increased focus on comfort and luxury at all trim levels
- The shift from traditional to eco-friendly textiles
“The passenger car segment is projected to have the largest share of the automotive interior market during the forecast period,” the report says. “The increasing purchasing power of consumers, growing sales of semi-luxury & luxury vehicles, and high demand for convenience features are expected to boost the passenger car segment. The advent of semi-autonomous and autonomous vehicles is also attributed to the overall growth of the market.”
What’s more, car buyers in all markets are demanding premium upholstery and high-tech features.
“Significant demand for high-end premium vehicles with advanced interior features and technologies such as HUD, powered & heated seats with massage function, center stack, rear-seat entertainment, and interior/ambient lighting are fueling the growth,” the report said.
Basically, automakers are refocusing their attention on interior cabins to satisfy consumer demands. That’s good for OEMs and the aftermarket, which includes shops like ours.
The full report — titled “Automotive Interior Market by Component, Material, Autonomous Driving, Electric Vehicle, Vehicle Type and Region – Global Forecast to 2025” — is available from Markets and Markets.