Automotive Fabric Market - Forecast(2023 - 2028)

Automotive Fabric Market Overview

The Automotive Fabric market size is estimated to reach US$39.6 billion by 2027 after growing at a CAGR of 4.9% during the forecast period 2022-2027. Automotive Fabrics such as polyester, leather, vinyl and nylon are used in automotive applications including seats, carpets, headliners, hood liners and others. High-performance features provided by automotive fabric such as comfort, safety, decoration and moisture retention ability are significantly influencing the automotive fabric market. Factors such as growing demand for e-vehicles, growing investment in automotive sectors and an increase in production of heavy commercial vehicles are driving the automotive fabric industry. However, the growing prices of crude oil from which fabrics such as polyester, vinyl & nylon are derived are anticipated to pose a challenge to automotive fabric market growth. Also, the COVID-19 pandemic resulted in a decrease in the market demand for automotive fabric due to the closure of various manufacturing plants and factories in the automotive sector. However, the steady increase in automotive production on account of the slowly growing demand for new cars would positively impact the Automotive Fabric industry outlook during the forecast period.

Automotive Fabric Market Report Coverage

The “Automotive Fabric Market Report – Forecast (2022–2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Automotive Fabric Industry.

By Product Type – Woven, Non-Woven, Composites and Others.
By Fabric – Nylon, Polyester, Vinyl, Leather and Others.
By Application – Carpets, Seats, Headliners, Door Liners, Belts, Airbags, Hood liners and Others.
By Automotive Type – Passenger Vehicles (PV), Light Commercial Vehicles (LCV) and Heavy Commercial Vehicles (HCV).
By Geography - North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and the Rest of the World (the Middle East and Africa).

Key Takeaways

• Asia-Pacific dominated the Automotive Fabric market owing to the growing production of passenger as well as commercial vehicles in the region which is significantly influencing the demand for Automotive Fabric in the region.
• Bolstering growth in transportation and logistics services has boosted the demand for heavy commercial trucks resulting in an increase in the production of such vehicles. Thus, this would create more usage of Automotive Fabric in such vehicles, thereby positively impacting the Automotive Fabric industry outlook.
• Growing demand for e-vehicles to tackle pollution issues has increased the production of such vehicles, resulting in more usage of Automotive Fabrics for seats, belts, airbags and door liner applications in e-vehicles.
• An increase in the price of crude oil would affect the demand and usage of certain Automotive Fabrics such as polyester, nylon and vinyl. It would negatively impact the Automotive Fabric market size during the forecast period.

Figure: Automotive Fabric Market Revenue Share, by Geography, 2021 (%)

Automotive Fabric Market Segment Analysis – by Fabric

The polyester fabric held the largest share in the Automotive Fabric market share in 2021 and is projected to grow at a CAGR of 5.1% during the forecast period 2022-2027. Polyester fabric, in comparison to other automotive fabrics such as nylon, vinyl and leather, is more resilient, elastic, cost-effective and has higher abrasion and UV resistance. Also, polyester, due to its excellent anti-aging performance, provides good shape and dimension stability for a longer period. Owing to its high-performance features along with the rapidly growing automotive sector, the demand for polyester fabric for automotive seats, carpets and headliners is anticipated to increase during the forecast period resulting in the positive segment growth of the fabric.

Automotive Fabric Market Segment Analysis – by Automotive Type

The passenger vehicle held the largest share in the Automotive Fabric market share in 2021 and is expected to grow at a CAGR of 5.6% during the forecast period 2022-2027. Automotive fabrics such as polyester, nylon and leather have high applicability in interiors of passenger vehicles for door liners, seats, carpets and ceiling covering. The growing trend of personal mobility and rising demand for comfort and safety is driving the demand for passenger vehicles, increasing their production. According to the International Organization of Motor Vehicle Manufacturers, in 2021, the global passenger vehicle production stood at 57 million, showing a 2% increase in comparison to the previous year. With the increase in passenger vehicle production, the demand and usage of the automotive fabric for interiors application have also increased, resulting in the positive market growth of the Automotive Fabric sector during the forecast period.

Automotive Fabric Market Segment Analysis – by Geography

Asia-Pacific held the largest share of up to 55.5% in the Automotive Fabric market in 2021. The region is considered the manufacturing hub for the automotive industry in the world. Growing investments and adoption of technological upgradation in the automotive sector, along with rapid urbanization in the region, have resulted in a significant increase in the demand for new cars. This has fueled the demand for automotive fabric in Asia-Pacific. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2021, automotive production in Asia-Pacific stood at 46.7 million units, showing a 6% increase in comparison to the previous year. The region also witnessed an increase in automotive production at the country level. According to the same data, automotive production in China and India increased by 3% and 30%, respectively. With the increase in automotive production, the demand and usage of Automotive Fabric have also increased, which is boosting the growth of the Automotive Fabric market in the Asia-Pacific region.

Automotive Fabric Market Drivers

Growing Demand for E-Vehicles:

Growing pollution concern has increased the demand for fuel-efficient and pollution-free vehicles around the world. This has increased the demand for e-vehicles. According to the Statement by electric vehicle manufacturer Tesla, in June 2022, the global electric vehicle production of the company increased by 46% compared to the same month of last year. Furthermore, according to the European Automobile Manufacturing Association, in 2020, e-vehicle production in the EU increased up to 11% in comparison to 2019. Such an increase in the production level of electric vehicles on account of the high demand for electric hybrid vehicles would accelerate the market demand for Automotive Fabrics such as nylon, polyester, leather and vinyl resulting in a positive growth of the Automotive Fabric industry during the forecast period.

Increase in Production of Heavy Commercial Vehicles:

Heavy commercial vehicles such as trucks are mainly used during logistics for transporting heavy commodities such as cement and metals. The rapid development in major end-users of heavy commercial vehicles such as building & construction and metallurgy has increased the demand for such vehicles, boosting their production level. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2021, heavy truck production at the global level stood at 4.29 million units, showing a 4% increase in comparison to the 2019 production level. Furthermore, heavy truck production increased at regional levels also. According to the same 2021 data provided by OICA, heavy truck production increased by 31% in Europe and by 19% in North America in comparison to 2020. Such an increase in heavy truck production would raise the demand for automotive fabric for seat, carpet and ceiling covering applications, thereby stimulating the growth of the Automotive Fabric industry during the forecast period.

Automotive Fabric Market Challenge

Increase in the Price of Crude Oil:

Automotive Fabrics such as polyester, nylon and vinyl, being synthetic in nature, are made from petroleum or crude oil. The price of crude oil has increased due to growing industrial demand. This is posing a challenge to the growth of the automotive fabric market. According to the Energy Information Administration, in October 2021, crude oil price stood at US$86 per barrel, showing a 104% increase in the price in comparison to the previous year's same month. Thus, the increase in the price of crude oil would accelerate the overall price of automotive fabrics such as polyester, nylon and vinyl. This would limit their usage in the automotive sector, thereby restraining the growth of the Automotive Fabric market size during the forecast period.

Automotive Fabric Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Automotive Fabric market. The top 10 companies in the Automotive Fabric Market are:

1. Acme Mills Company
2. Heathcoat Fabric Ltd.
3. Lear Corporation
4. Toyota Boshoku Corporation
5. Seiren Co. Ltd.
6. Suminoe Textile Co. Ltd.
7. Sage Automotive Interiors Inc.
8. SRF Limited
9. Adient Plc
10. Tenowo GmbH

Recent Developments

• In February 2022, Japan’s Teijin launched a strong and cost-effective carbon fiber woven fabric that can be majorly used for automotive interiors such as seats, door liners and carpets.
• In March 2020, Sage Automotive Interior Inc. acquired Adient’s Automotive Fabric business for US$175 million. Such an acquisition would increase automotive production capacity of Sage.
• In March 2020, Automotive Fabric manufacturer Tesca acquired Willy Schmitz. Such an acquisition would expand Tesca’s automotive fabric products in Germany’s automotive market.

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