Market Trends of Automotive Interior Industry
This section covers the major market trends shaping the Automotive Interior Market according to our research experts:
Infotainment System Expected to Dominate the Automotive Interiors Market
The infotainment system is the largest segment in the automotive interiors market. Earlier, cars were offered only one infotainment screen, but as technology advances, the number and dimension of infotainment screens are also increasing.
As such, the infotainment screens have become the main focal point for every automaker, and these screens are packed with the latest technology capabilities, as In 2022, Mercedes-Benz launched its S-class fleet for the Indian market, namely, S350d and S450 importing 150 new cars. The infotainment system in the vehicle amazes the consumer; with 64-colour ambient lighting and rear seat infotainment screens, the car offers ultimate comfort and luxury.
Automakers constantly upgrade their infotainment systems to provide their customers with the best features and technologies. Some of the recent launches and models are:
- In 2022, Jeep also proposed that Jeep Grand Cherokee 2022 model may have two rear seat infotainment screens with a screen in the dashboard for the front-seat passenger to interact with the driver's navigation system.
- In 2022, Toyota launched its new segment Tundra TRD truck, powered by the 3.5-liter V6 twin-turbo hybrid engine. The pickup truck's interior seems promising from a consumer's point of view. It is equipped with the in-dash infotainment system, which changes brightness randomly without a change in natural lighting.
- In 2022, Rivian launched its new electric pickup truck considering all the requirements of critical consumers. This newly launched pickup truck is equipped with decorated ash wood on the dash infotainment system board. The system comprises of 12.3 landscape-oriented screen inbuilt placed just above the HVAC vents of the car.
As the cars come with more connected features, the telecom and technology players are partnering with major automotive players to develop the best connectivity and infotainment solutions for the customers.
Considering all the factors above and the development of in-vehicle infotainment systems, the automotive interiors market is expected to witness prosperity in the forecast period.
Asia-Pacific is Leading the Automotive Interiors Market
The Asian-Pacific market is driven by the small/economy car segment, which accounts for higher adoption of interior components. Leading automakers in this region, such as Toyota, Honda, and Hyundai, are embracing the advantages of advanced seating systems, lighting, electronics, and various safety systems, making them essential features across their car models. The emergence of electric vehicles in major economies, including Japan, China, and India, further supports the market value.
In April 2022, Chinese passenger car production reached 996,000 units, with sales registering 965,000 units. This accounts for the downfall of 41.9% and 43.4% respectively in production and sales compared to the previous year. In 2022, from January to April, passenger car production decreased by 2.6% year-on-year, registering 6,494 million units.
In China, local players are collaborating to produce the best interior products. For instance, BAIC Yunxiang Automobile Co. Ltd collaborated with ADAYO to develop vehicle infotainment systems. This partnership will build new platforms for BAIC Yinxiang and helps to restructure the platform production mode for intelligent vehicle manufacturing. Chinese players are debuting in the market with a new vision to provide growth to the market. For instance, In November 2021, China's leading automotive supplier for interior components, Yanfeng Automotive Interiors (YFAI), introduced an industry-first camera under panel onboard intelligent screen, which is co-developed with TCL and its subsidiary TCL CSOT.
The demand for premium interiors, comfort, and new and innovative features, like head-up displays and navigation systems, along with the growing focus on sufficing the safety standards, is driving the market in the region. Major countries in this region, such as China, Japan, India, and South Korea, are anticipated to witness the rapid adoption of new technologies. Due to its high vehicle production capacity, China is expected to contribute to Asia-Pacific's market growth significantly.
In Asia-Pacific, government initiatives, such as subsidies and tax concessions, across various countries are attracting automotive OEMs to build their regional manufacturing plants.
