North America Automotive Seat Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Automotive Seat Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North American automotive seat market was valued at USD 20.06 Billion in 2021 and is projected to grow to 26.13 Billion by 2027, registering a CAGR of 4.5% in terms of revenue during the forecast period.

Owing to the COVID-19 pandemic, vehicle production was slowed and demand was reduced, which hampered the overall automotive market in turn dipped the demand for automotive seats in the market. However, in 2021, the market bounced back and the number of vehicles sold in North America picked up the pace and the same momentum was carried over in the first half of 2022.

Over the medium term, the rise in vehicle production across the region is likely to witness major growth in the automotive seat market. The growing consumer trend toward comfort and elegant vehicle interior is likely to increase the demand for leather seats which in turn is anticipated to propel the market growth during the forecast period.

The United States is one of the key markets not only in North America but globally. Although the automotive industry is the largest exporter in the United States after that the aerospace industry. North America has several automotive OEMs who pioneer the global automotive industry due to their constant push for R&D activities. For instance, in the past five years, Stallantis, Ford, and General Motors have invested more than USD 35 billion in their U.S. locations. This investment is for the up gradation and expansion of assembly, plants, R&D labs, headquarters, administrative offices, and other infrastructure.

Additionally, as many governments in the North American region are encouraging the use of electric mobility, this is expected to be among the primary drivers that would aid in the growth of the automotive seat market in the region.

Introduction to heated -ventilated seats, memory seats and massage seats in luxury vehicles is likely to create lucrative opportunities for the market during the forecast period. For instance, customized intelligent seats can detect stress levels and notify the driver, while biometric sensing systems can monitor the passenger’s health and well-being. In autonomous cars rotating seats are already becoming a regular feature.

Key Market TrendsGrowing demand for technologically advanced seats

The increasing global warming at extreme temperatures further makes it difficult for drivers and passengers to travel in the vehicle. The automotive seat market is expected to accommodate new technologies due to growing climate and environmental challenges.

The growing consumer trend toward sports utility vehicles (SUVs) across North America is likely to enhance the demand for powered and ventilated seats. As the SUV has a variety of seat combinations which in turn is likely to witness major growth in the market. For instance, In 2021, the United States witnessed an 11% growth in mid-size SUV sales as compared to 2020. This increase in sales of SUVs across the region is likely to witness major growth in the market during the forecast period.

Technological advancements have led to the development of climate-controlled seating technology in car seats, allowing consumers to cool them immediately. These seats have perforated inserts with chillers and fans built into them to accomplish this task. Similarly, fabric-based heaters are in the seats, which are useful during cold weather. Therefore, there is a growing focus on providing climate-controlled seats. For instance,

• In July 2022, General Motors announced the introduction of heated and ventilated seats in the upcoming vehicles by the end of the year 2022.

With the increase in electrification, seat manufacturers are focusing on efficient heating and air conditioning systems that are needed inside the vehicle. For instance, in 2019, Lear Corporation and Gentherm entered into a partnership for the development of passenger thermal seating solutions.

Whereas, top automotive OEMs and seat manufacturers have started spending huge amounts on research and development of seats. The revolution started with the child safety seat, and lightweight seats, and now autonomous cars are revolutionizing the seating arrangements and car interiors.

For instance, Lear Intu Intelligent Seating Ecosystem takes occupants’ biometric measurements to observe wellness and change the seating position accordingly. In case a passenger is facing fatigue, it can adjust the seat into a more upright posture to improve alertness.

Different strategies are implemented by the giant companies operating in this automotive seat market, aiding in proliferation with the integration of electrical components, thus, increasing comfort. They offer an assortment of functionalities such as ventilation, heating, and massaging. Automated seat adjustment using sensors to assure comfort is another key element aiding the increasing penetration of technology in the automotive seat market.

The United States is Anticipated to Lead the North American Automotive Seat Market

The United States accounts for more than 60% of North America’s total car production. According to OICA, in 2021, about 1.5 million units of cars were produced in the United States which is lower than compared in 2020, when 1.9 million units of cars were produced.

The North American Automotive seat market is expected to lead by the United States followed by Canada and Mexico. North America has the god capability of manufacturing seats due to that it also exports a good share of its locally produced seats to other countries.

Traditionally North America, particularly the United States was the largest consumer and producer of pick-up trucks. Also, the region has witnessed a 2.0% decrease in the production of light commercial vehicles from last year (2020). Many electric passenger car makers are entering the commercial vehicle market by launching their new electric pickup trucks, which will drive the market in the forecast period.

Additionally, new technologies are expected to drive the market. for instance, technological advancements have led to the development of climate-controlled seating technology in car seats, allowing consumers to cool them immediately. These seats have perforated inserts with chillers and fans built into them to accomplish this task. Similarly, fabric-based heaters are in the seats, which are useful during cold weather. Therefore, there is a growing focus on providing climate-controlled seats. Hence carmakers are launching cars with ventilated or climate-controlled seats in the market. For instance,

• In September 2021, Audi launched its flagship electric vehicle e-Tron in the United States. The vehicle comes with climate-controlled seats as well as seats with massaging features and electronic seat adjustment with memory function.

Hence, owing to the development in the seats, and an increase in the number of electric vehicles sold in the country, the market in the United States is expected to grow.

Competitive Landscape

The North America Automotive Seat market is dominated by a few players, such as Adient PLC, Lear Corporation, Magna International., Toyota Boshaku Corporation, and Faurecia. The market is highly driven by factors like advanced technology, more comfort, growing investment in R&D projects, and a growing market of electric and autonomous vehicles around the region.

To provide a more luxurious experience to the people, major automotive seat manufacturers are making joint ventures with seat manufacturers. For instance,

• In March 2022, Lear Corporation acquired Kongsberg Automotive’s Interior Comfort Systems (ICS) business unit. Through this acquisition, Lear Corporation expanded product offerings in increasingly popular thermal and comfortable seating solutions, such as seat heating and ventilation, and massage and lumbar support.
• In October 2021, Faurecia invested an amount of USD 18 Million for an expansion of manufacturing facilities across Maury County, Tennessee.
• In September 2021, TS Tech Co., Ltd. announced that TST NA TRIM, LLC. (TSNT), a consolidated subsidiary of TS Tech in the United States and ML Industries, Inc. established a joint company and its subsidiary. This is conducted as a part of the review of the production layout of automotive seat covers. The joint company will be named TSML Innovations, LLC. (TSML), 51% are owned by TSNT and 49% by MLI.
• In May 2021, Tech Indiana, LLC (Tech Indiana), a consolidated subsidiary of TS Tech in the U.S., invested an amount of USD 9 Million for an expansion of manufacturing facilities across North America.
• In January 2020, Adient PLC invested an amount of USD 23.5 Million for an expansion of its seating manufacturing facility across Lexington, Tennessee.

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