The global size of the automotive seats market is expected to rise from USD 52 billion in 2020 to USD 62 billion by 2027, at a CAGR of 3.3%. The automotive demand and the growing trend of high-value seating with embedded smart technology for advanced vehicle comfort and safety are the key drivers of growth for this sector.
The development of the market for automobile seats is motivated by an increase in luxury car purchases in developed countries, an increase in the demand for climate-controlled seat technologies and an increase in the need for lightweight seat frames. In addition, factors such as the rise in sales of passenger vehicles due to the improved lifestyle of middle-class families coupled with an increase in disposable income and an increase in demand for features allowed advance seats to boost the growth of the market for automotive seats market.
The global automotive seats market was led by the Asia Pacific in 2020, with China accounting for the bulk of the market, which is projected to continue over the forecast period. During the forecast period, Asia Pacific is also projected to rise at the highest CAGR level.
The Asia Pacific market for automotive seats is driven by the rising demand for automobiles in countries such as China, India and Japan in the Asia Pacific region.
Increase in Production of Automobiles
Passenger car purchases have been rising across the globe. The production of global passenger cars accounted for 95,634,593 units in 2018. In the passenger car market, China has the biggest share, led by the United States, Japan, Germany, South Korea, and India. The demand for passenger cars in developed countries is powered by improving road networks and a rise in disposable income for middle-class customers. In developed countries, aggressive pricing of automobiles by automobile manufacturers has also generated a massive market for passenger cars. It is also expected that the electric vehicle industry will experience a substantial growth rate during the study period.
This increase in demand for passenger cars has contributed to a rise in the production of vehicles and a resulting increase in demand for related parts, such as upholstery, seats, etc. In addition, in contrast to hatchbacks and sedans, the industry is seeing a market demand for SUVs and MPVs that typically have more seats. Overall, the rising demand for passenger cars serves as a big catalyst for the market for automobile seats.
Increasing vehicle production
In May 2020, most OEMs resumed production of vehicles amid the detrimental effects of the COVID-19 pandemic. Volkswagen, Nissan, Hyundai, and Honda, for example, reopened their plants in China; production in the US was restarted by FCA, Honda, and Toyota. Production has also resumed, to a small degree, in Europe. Global vehicle demand is projected to rise at a CAGR of 3.3 percent from 2020 to2025, given these factors. This rise in the production of automobiles would lead to a directly proportional increase in seat demand.
Growing focus on autonomous cars and increasing preference for ride sharing
With the aim of designing and introducing a truly autonomous driving experience, the automobile industry is increasing its focus on the advancement of innovative driver assistance technologies. Consumer expectations for mobility-on-demand technologies, such as vehicle sharing and ride sharing, have also risen.
Key Market Players
In March 2020, Adient has entered into an agreement to sell USD 175 million to Sage Automotive Interiors, an Asahi Kasei group, for its automotive fabric manufacturing operation, including its laminating business.
In January 2020, Adient sold Recaro Automobile Seating to Raven Acquisitions LLC, a privately held investment company headquartered in Detroit. Recaro Automotive Seating is expected to be able to focus on its core business under the current organisational structure, being performance chairs, ergonomic seats, and special applications, with quicker and quicker decision-making cycles that allow more flexibility to help satisfy consumer requirements.
In June 2019, Lear Company invested USD 30 million in a new 240,000square-foot assembly and subassembly facility in Hammond, Indiana, where Ford's Chicago Assembly Plant is planned to continue as a supplier.
Global Automotive Seats Market Coverage
Seat Type Insight and Forecast 2015 - 2027
Technology Insight and Forecast 2015 - 2027
Trim Material Insight and Forecast 2015 - 2027
Component Insight and Forecast 2015 - 2027
Vehicle Insight and Forecast 2015 - 2027
Off-Highway Vehicle Insight and Forecast 2015 - 2027
Global Automotive Seats Market by Region
Rest of the World (RoW)