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The Automotive Interior Market is estimated to be USD 235.59 billion in 2017 and is projected to reach USD 301.56 billion by 2022, at a CAGR of 5.06%. The automotive interior industry has seen tremendous changes in the past few years with the advent of advanced technology and innovative designing catered to enhance the comfort, safety, and driving factors.

The emergence of industry-wide standards such as the 3D displays, HUDs, smart seating system, OLED interior lights, and LED-lighted headliner would trigger growth in this market. The growing demand for convenience and safety also presents an opportunity for OEMs to develop new and innovative automotive interior components that would attract customers.

The automotive interior ecosystem consists of component manufacturers such as Lear Corporation (U.S.), Magna International, Inc. (Canada), Faurecia S.A. (France), Continental AG (Germany), Calsonic Kansei Corporation (Japan), Delphi Automotive PLC (U.K.), Panasonic Corporation (Japan), Hyundai Mobis Co. Ltd. (South Korea), Toyota Boshoku Corporation (Japan), and Tachi-S Co. Ltd. (Japan).

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The automotive seat segment is estimated to register the largest share in this market by component, in terms of value. The average distance traveled by passengers has increased over the years and thus the need for comfort and convenience has increased substantially. Consumers now have higher disposable income and are willing to spend more on the travel and comfort. These factors have positively impacted the growth of the market. Infotainment systems are estimated to be the fastest growing market in terms of value. Some of the infotainment systems provide time and temperature display, features such as navigation and more. The type of displays being used for infotainment system may vary depending upon the cost of the vehicle, for example, a basic infotainment system can be used in economy cars while advanced display for premium cars.

The Passenger Vehicle (PV) segment is estimated to be the largest market, by vehicle type, in terms of value. The quality of automotive interior components being perceived by a consumer is much higher in case of PVs in comparison with commercial vehicles. In general, consumers are willing to spend more on vehicles for personal usage than commercial use. The large number of PVs compared to commercial vehicles also adds to the growth of this market.

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Asia-Pacific is estimated to lead this market by region. The Asia-Pacific region comprises countries such as China, India, Japan, South Korea, and others. The tremendous vehicle production in countries such as China and Japan have led to the growth of the global market in this region. The consumer disposable income for developing economies such as India and China has increased over the years, due to which the spending capability of consumers on automotive interior styling and components have witnessed a significant rise.  These factors contribute to the growth of the market in the Asian region.

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