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Global Market of Automotive Interior Leather Market is Reach to USD 43,000 Million by End of 2026, and Expected CAGR of 3.7% During the Forecast Period of 2016-2026

11-06-2018 10:49 AM CET | Industry, Real Estate & Construction

Press release from: Future Market Insights

Global Market of Automotive Interior Leather Market is Reach

Leather used in car and vehicle interiors continues to be sourced from the hide produced as a by-product of processed meat. Advanced meat processing techniques and a rise in vegetarianism witnesses across the globe are factoring the dip in production of leather from animal hides & pelts. Leather car interiors are gradually losing their momentum in the global automotive industry as more and more automakers are opting for synthetic fabrics as alternative for leather materials. A recent study conducted by Future Market Insights projects that between 2016 and 2026, global revenues amassed from sales of automotive interior leather will grow steadily, registering a modest CAGR of 5.2%. 

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Apropos the study, surging preference of global automobile manufacturers to cheap and easily available synthetic fabrics as substitute for leather will continue to be a major growth inhibitor for global automotive interior leather market. Nevertheless, growing preference to synthetic leather will continue to help the market gain a balanced growth over the forecast period. According to Future Market Insights, the global market for automotive interior leather, which is presently valued to be an estimated US$ 25.6 billion, is expected to reach US$ 42.5 billion value by the end of 2026. On the basis of materials, global consumption of synthetic leather over genuine leather will continue to gain traction, accounting for nearly 60% share of global revenues through 2026. 

Higher Demand for Leather in Upholstery of Vehicle Interiors

According to the study, the presence of leather materials in the interior of an automobile will continue to be majorly concentrated in its upholstery. Consumers and vehicle owners will continue preferring leather for their car interior upholsteries. In 2016, nearly 670,000 thousand square meters of leather in the world was used for automotive interiors. About 30% of this was accounted by upholstery applications, followed by headliners, which procured over US$ 5 billion global revenues in 2016. Likewise, global revenues accounted by sales of automotive interior leather in production of floor & trunk carpet will also incur a healthy growth, increasing steadily at an estimated 5% CAGR over the forecast tenure. 

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Leather Remains Prevalent in Interiors of Compact & Mid-Sized SUVs

Passenger cars such as SUVs and sedans continue to be the largest end-user vehicle of automotive interior leather. Passenger car manufacturers from around the world will continue to promote the use of leather over other materials. In 2016, more than 500,000 thousand square meters of automotive interior leather was consumed for interiors of passenger cars. Global revenues accrued from sales of leather in manufacturing interiors of compact and mid-size SUV are expected to grow at a healthy CAGR of more than 5% through 2026. On the other hand, revenues accounted by light-weight commercial vehicles (LCVs) and heavy commercial vehicles (HCVs) are anticipated to increase at a sluggish rate. 

GST AutoLeather Inc., Leather Resource of America, Inc., and Eagle Ottawa Inc. are US-based manufacturers of automotive interior leather, which are also recognised as industry leaders in the global market. Owing to such companies, North America will continue to hold more than 15% share of the global automotive interior leather market throughout the forecast period. Western Europe is also expected to be observed as dominant region, primarily for the presence of leading automotive interior leather manufacturers such as Scottish Leather Group Limited, WOLLSDORF LEDER SCHMIDT & Co. GmbH, Bader GmbH & Co. KG, BOXMARK Leather GmbH & Co KG, and Elmo Sweden. With more than 35% revenue share and key contribution from Malaysia’s D. K. Leather Corporation, Asia-Pacific excluding Japan (APEJ) region will remain the most-lucrative and largest region in the global market for automotive interior leather. 

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ABOUT US:

Future Market Insights is the premier provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India.

FMI’s research and consulting services help businesses around the globe navigate the challenges in a rapidly evolving marketplace with confidence and clarity. Our customised and syndicated market research reports deliver actionable insights that drive sustainable growth. We continuously track emerging trends and events in a broad range of end industries to ensure our

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