US Automotive Interior Market Outlook to 2028

US Automotive Interior Market Outlook to 2028

Market Overview:

The US automotive interior market is a dynamic sector within the broader automotive industry, encompassing the design, materials, and technologies used to create the interior environment of vehicles. In recent years, there has been a notable shift in consumer preferences towards more sophisticated, technologically advanced, and comfortable interiors. This has led to increased demand for features such as touchscreen infotainment systems, advanced driver assistance systems, premium upholstery materials, customizable ambient lighting, and ergonomic seating arrangements.

US Automotive interior market is growing by the CAGR of ~5% during the period of 2022-2028. The interior is the most important part of the car as it includes components such as headliners, cockpit modules, door panels, and automotive seats, is designed to provide comfort, grip, and sound insulation for the vehicle cabin. In addition, the inside of a car is the primary aspect that determines a buyer's sense of a vehicle's quality. In the past, automotive interiors played a secondary role in the market, but now they are one of the most significant factors for any car buyer to consider.

US Automotive interior Market Analysis:

The US Automotive interior market is expected to grow at a CAGR of ~4%. During 2017-2022
There has been a significant increase in the demand for better interiors and designing in Spacious designs and better featues are constantly needs upgradation and the market is doing justice in this sector by launching new innovations and trending news for better business expansion in US Automotive interior market.
The major driving factors of the US Automotive interior market are the advent of new materials and cutting-edge technologies and the growing penetration of Larger Displays. Also Increasing consumer safety concerns, rising technological advancements and a surge in demand for luxurious vehicles are expected to boost the market growth.

Key Trends by Market Segment:

By Vehicle Product Type: Based on vehicle product, the US Automotive interior market is segmented into Passenger cars and commercial vehicles.
The passenger cars segment is dominating the vehicle product type in 2022. Increased number of passenger vehicles across the globe owing to the rise in disposable income, rising standards of living, and increased demand for the personal luxury vehicles across the globe has augmented the growth of the passenger vehicles segment. Moreover, the rising adoption of electric vehicles and autonomous vehicles is further expected to drive the growth of this segment in the forthcoming years.

By component type: The US Automotive interior market, by component type, is segmented into instrument Panels Infotainment Systems, Interior Lighting, Body Panels and others.
The instrument panel section of an automobile is the most dominating segment in the automotive interior market in 2022. It is most dominating due its central role in providing crucial vehicle information and control functions to drivers. It encompasses essential components such as gauges, displays, controls, and infotainment interfaces, directly influencing driving experience and safety. As vehicles become more technologically advanced, the demand for sophisticated instrument panels incorporating infotainment and connectivity features has risen, solidifying its significance and market dominance in the automotive interior segment.

By Geography: The US Automotive interior market is segmented into East, west, north and South regions
The southeast region has the dominating region in the automotive interior market in 2022. According to recent market data, the southern states, including Texas, Florida, and Georgia, collectively contribute over 40% of the country's total vehicle production. This concentration of automotive manufacturing facilities establishes a significant demand for interior components.

Southern states are experiencing a net population influx, resulting in heightened vehicle ownership rates. This demographic shift has bolstered the demand for comfortable, technologically advanced, and aesthetically pleasing automotive interiors.
The presence of major automotive OEMs and suppliers in the southern region also plays a pivotal role. Many prominent companies have established their manufacturing plants and headquarters here, leading to a well-established automotive ecosystem. This ecosystem enables streamlined supply chains, lower production costs, and access to skilled labor, all of which contribute to the dominance of the southern region in the automotive interior market.

Competitive Landscape:

Major companies listed in the report are Adient PLC, Lear Corporation, Visteon Corporation, Faurecia, Grammer AG and others are key players in US Automotive interior market.

Simultaneously, a multitude of tier-1 suppliers such as Magna International, Lear Corporation, and Adient contribute to the competitive ecosystem by specializing in producing a diverse range of interior components, including seats, instrument panels, and infotainment systems.
In recent years, the influx of technology-driven trends has intensified competition. Companies like Tesla have redefined automotive interiors through innovative electric vehicles (EVs) with cutting-edge infotainment and autonomous driving features. Moreover, tech giants like Apple and Google are entering the market, potentially disrupting traditional interior designs with their software-focused approaches.
Customization and sustainability have emerged as competitive differentiators, prompting companies to adopt eco-friendly materials and offer personalized interior options. Start-ups focused on interior innovation, such as interior lighting solutions and advanced material technologies, are also challenging the status quo.
In essence, the US automotive interior market's competitive landscape is a fluid blend of traditional automakers, established suppliers, tech newcomers, and sustainability-driven innovators, all vying to capture market share by addressing the evolving demands of both tech-savvy and environmentally conscious consumers.

Recent Developments:

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.Jeep also proposed that Jeep Grand Cherokee 2022 model might have two rear seat infotainment screens with a screen in the dashboard for the front-seat passenger to interact with the driver's navigation systemFaurecia announced a USD 147 million investment in developing a new facility in Nuevo Leon. Faurecia and Veolia signed an agreement to develop innovative compounds for automotive interior modules jointly.

Future Outlook:

US Automotive interior market is expected to show constant increase and is expected to grow at a CAGR of ~5% from 2022 to 2028 with increasing focus of better features and sustainability issues.

Electric and autonomous vehicles require redesigned interiors to accommodate new functionalities, like advanced infotainment systems, autonomous driving interfaces, and energy-efficient controls. This shift places a premium on creating seamless, comfortable, and user-friendly interiors, driving demand for innovative interior designs and technologies.
As autonomous driving becomes more prevalent, interiors will need to cater to passengers' comfort and entertainment during travel. This opens avenues for interactive infotainment systems, augmented reality displays, and flexible seating arrangements, elevating the overall in-car experience.
With growing environmental consciousness, there's an increasing demand for sustainable and eco-friendly materials in vehicle interiors. Companies that offer interiors made from recycled or renewable materials will be well-positioned for growth.
Ambient lighting and dynamic lighting displays are becoming prominent features in vehicle interiors, enhancing aesthetics and user experience. This trend is expected to continue as lighting technology evolves, contributing to market growth.

Please Note: It will take 5-7 business days to complete the report upon order confirmation.