Three factors primarily drive the demand for PVC and PU leather for automotive interiors: the production of automobiles, the preference for leather free of animals, and rising Asian demand. These three factors are interconnected; as automobile production rises, so does the demand for interior parts like seats and door panels. PVC & PU Leather for the Automotive Interior market is expanding as a result of rising demand and rising desire for alternatives to leather made from animals. Further, because of the flourishing automotive industries in nations like China, India, and Japan, the Asia Pacific region is anticipated to have the greatest growth in the PVC & PU Leather for Automotive Interiors market.
The automotive sector has been booming recently due to the rise in demand for automobiles around the world. This has increased the demand for automotive parts and components as well as the manufacture of automobiles. One of the major areas that have experienced rapid expansion in recent years is the inside of automobiles. The need for automotive interior products such as couches, door panels, junction boxes, and consoles has expanded as a result of the greater production of cars.
For interior applications including seats, door panels, instrument panels, and consoles, the car industry uses PVC & PU leather. It resembles genuine leather in appearance and is manufactured of polyvinyl chloride (PVC) or polyurethane (PU). Fabric or paper is laminated with PVC or PU to create PVC & PU Leather for Automotive Interiors. It can be engraved to produce a three-dimensional look and is offered in a variety of colours and motifs.
The market size was evaluated at USD 31.82 billion in 2021 and is likely to reach USD 42.99 billion in 2031. During the forecast period of 2021–2031, the worldwide PVC & PU Leather for Automotive Interior market is anticipated to develop at a CAGR of 6.9%.
This expansion is linked to elements including rising vehicle manufacturing, the predilection for leather made without using animals, and rising Asian consumption.
The PVC & PU Leather for the Automotive Interior industry has several obstacles to overcome. The erratic price of raw materials is one of the biggest problems. The cost of petroleum-based raw materials, like polyurethane and polyvinyl chloride, varies with the price of crude oil. This volatility directly affects the entire cost of manufacturing PVC and PU leather, which is anticipated to restrain market growth throughout the forecasting period. The growing environmental laws are a problem for PVC & PU Leather in the Automotive Interior industry. PVC and PU leather manufacturing processes produce a significant amount of toxic waste that is bad for the environment. Various nations throughout the world impose strict environmental restrictions to manage environmental pollution. This is anticipated to be a major obstacle to market expansion over the forecast period. But due to rising automobile production and consumer preference for leather-free products, the PVC & PU Leather for Automotive Interior market is anticipated to expand.
Asahi Kasei Corporation, Teijin Limited, Toray Industries, Inc., Kuraray Co., Ltd., Daiichi Kigenso Kagaku Kogyo Co., Ltd., DIC Corporation, Fuyang Sinotex Composite Co., Ltd., Koza World of Leathers, and Sumitomo Chemical Co., Ltd. are the major competitors in the market. Over the course of the forecast, these companies are anticipated to maintain their leadership in the automotive leather market. Consequently, this report provides a thorough analysis of the market, including Porter's Five Forces analysis, product segmentation, and company biographies.
The PVC Leather Type emerged as the Most Booming Segment
Over the course of the projected period, PVC leather is anticipated to expand at a faster rate. The primary factors driving this rise are PVC's inexpensive cost and simple accessibility relative to PU. It is a great option for automotive applications because it also provides exceptional resistance to heat, UV, and abrasion. But because of its opulent appearance and feel, PU leather is also anticipated to expand at a high rate during the projected timeframe.
The Most Popular Application Segment is the Seat
The automotive leather market is segmented into seats, door panels, instrument panels, consoles, and other applications based on where it would be used. During the projection period, the seat segment, which had the highest share in 2020, is anticipated to rise at a CAGR of 6.8%. The popularity of premium vehicles outfitted with luxuries like heated and ventilated seats made of leather, along with factors like increased vehicle production, is credited for this expansion. Additionally, during the projected period, the rising demand for leather devoid of animals is anticipated to boost market expansion.
The North American Region followed by Europe renders Ample Financing Opportunities
The automotive industry heavily influences PVC & PU Leather for the Automotive Interior market. Due to the presence of some of the top automotive firms in this area, the market in North America is anticipated to rise steadily throughout the forecast period. Additionally, the US is one of the biggest markets for premium vehicles, whose interiors make considerable use of PVC & PU leather. Furthermore, due to the region's highly varied automotive industry, the market in Europe is anticipated to expand at a substantial rate throughout the forthcoming years.
COVID-19 Impact and Market Status
The COVID-19 epidemic has had a significant impact on the automotive sector. The automotive distribution network has been interrupted and manufacturing has decreased as a result of the lockdown imposed by various governments around the world to stop the virus' spread. Demand has decreased as a result of the COVID-19 outbreak as customers are being more careful when making big transactions. Additionally, this has had a detrimental effect on the market for PVC & PU Leather used in automotive interiors. Nevertheless, the automotive industry is anticipated to recover in 2021 thanks to the gradual removal of limitations and an increase in government stimulus measures, and this is anticipated to also have a favourable effect on the PVC & PU Leatherette for Automobile Upholstery.
Recent Developments in the PVC & PU Leather for Automotive Interior Market
• PU leather created from recycled plastic bottles has been developed, according to a May 2021 announcement from the South Korean company Kolon Industries Inc. Because it uses fewer petroleum-based products than traditional PU leathers, this product, named Eco Leather, is believed to be more environmentally friendly.
• Jiaxing Hexin Leder Co., Ltd. of China stated in April 2021 that it has created a brand-new variety of PU leather manufactured from recycled plastic bottles. As it uses fewer petroleum-based ingredients, this product, dubbed Eco Leather, is touted to be more environmentally friendly than traditional PU leathers.
• Toray Industries Inc. of Japan stated in July 2021 that it had created a new kind of PU leather that was devoid of PVC, plasticizers, and other dangerous chemicals. Given that it is more environmentally friendly and durable than conventional PU leather, this product is anticipated to be employed in automobile upholstery.
• Hanwha Chemical Corporation, a South Korean business, announced in May 2021 the introduction of its new "Eco-Leather" line of synthetic leather products. PVC, plasticizers, and other hazardous chemicals are not used in the manufacture of this item, which is made from environmentally friendly materials like recycled PET bottles. Numerous applications, including automotive interiors, are anticipated for its use.
PVC & PU Leather for Automotive Interior Market Scope
|Revenue forecast in 2031
|USD 42.99 billion
|CAGR of 6.9% during 2021-2031
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Asahi Kasei Corporation, Teijin Limited, Toray Industries, Inc., Kuraray Co., Ltd., Daiichi Kigenso Kagaku Kogyo Co., Ltd., DIC Corporation, Fuyang Sinotex Composite Co., Ltd., Koza World of Leathers, and Sumitomo Chemical Co., Ltd.
Key Segment of Global PVC & PU Leather for Automotive Interior Market
By Type Overview 2021-2031, (USD Billion)
• PVC Leather
• PU Leather
By Application Overview 2021-2031, (USD Billion)
• Door Panel
• Instrument Panel
By Region Overview 2021-2031, (USD Billion)
• Rest of Asia Pacific
• Rest of North America
• Rest of Europe
Middle East and Africa