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The Automotive Seats Market size is forecast to increase by USD 18.28 billion, at a CAGR of 4.9% between 2023 and 2028. The market's growth is driven by several factors, including the increasing demand for lightweight seats in Electric Vehicles (EVs) to improve efficiency. The rising popularity of SUVs is also influencing market dynamics. Moreover, strategic partnerships and acquisitions among companies are amplifying competitiveness, fostering innovation, and expanding the market to meet evolving consumer preferences and industry trends. These factors collectively contribute to the market's expansion, reflecting the industry's efforts to adapt to changing demands and embrace innovation in the automotive sector.
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The market experiences growth driven by customization options catering to diverse consumer preferences and the demand for luxury features like powered and climate-controlled seats. With a focus on lightweight materials and advanced technologies, such as carbon impression and synthetic leather, manufacturers aim to enhance seat comfort and efficiency. However, challenges like motion sickness and fluctuating valuation pose hurdles. Despite this, the market witnesses steady Y-o-Y growth rates, indicating sustained demand. Balancing luxury with affordability remains a challenge, especially in targeting both luxurious vehicles and middle-class families. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing strategic partnerships and acquisitions among companies, coupled with a focus on safety regulations, industry standards, and quality, are notably driving market growth. Vendors are expanding their presence across regions, collaborating with regional counterparts to offer advanced feature enabled and cost-effective solutions. For example, in August 2022, Gentherm, a global leader in thermal management technologies, acquired Alfmeier Prazision SE's automotive business. Similarly, in March 2022, Lear Corporation acquired Kongsberg Automotive's Interior Comfort Systems unit. Acquiring companies with innovative solutions, like smart seating systems, positions firms at the forefront of the industry. This trend, exemplified by Toyota Boshoku Corp.'s acquisition of Toyota Body Seiko in December 2022, strengthens competitiveness and fosters innovation.
Further, streamlining supply chains and consolidating manufacturing facilities enhance cost-effectiveness and contribute to overall efficiency. The evolving landscape, with a focus on electric vehicles and driver assistance technologies, underscores the importance of adapting to meet consumer demands and industry trends. Also, the market is evolving rapidly with the emergence of autonomous cars and the demand for flexible, safe, and luxurious seating solutions, catering to diverse needs and preferences. Such factors are expected to drive the regional market growth during the forecast period.
Technological advancements in automotive smart seats are an emerging trend shaping market growth. Automakers are offering braking systems such as ABS and electronic brake distribution as standard stock fitment in most of their vehicles owing to regulatory mandates and consumer preferences. The automatic emergency braking system is a new braking technology that succeeds the conventional braking system in aspects such as accuracy, efficiency, stopping distance, and safety. The ABS capitalizes on various types of onboard sensors installed in the systems, such as radar, Lidar, and cameras, to monitor real-time conditions and then either informs the driver, applies brakes or boosts the braking power in case the driver fails to do so.
For instance, the drowsiness sensor in the smart seats monitors the driver continuously and warns the person. The integration of both these systems will allow the vehicle to safeguard against emergency crashes due to drowsiness by applying emergency brakes (similar to collision avoidance). Similarly, advanced seats provide a dynamic type of lateral support during quick cornering maneuvers of the vehicle. Hence, with the advancement in automotive seats, the market is expected to witness growth during the forecast period.
The decline in sales and production of vehicles is a significant challenge hindering market growth. The adoption of shared mobility solutions is increasing in the world. The availability of shared mobility service providers, improvements in Internet connectivity, and the increase in the adoption of smartphones are paving the way for the mass adoption of shared mobility solutions. Moreover, the ease of accessing shared mobility solutions, the increase in fuel price, and the rise in the cost of vehicles due to the implementation of stringent emission norms are driving consumers to prefer vehicle users over vehicle ownership. This is directly hurting the demand for vehicles.
Moreover, high motorization rates in North America and Europe, an increase in tariffs on imported vehicles in the US and China, and the economic slowdown are likely to decrease vehicle sales. Considering the decline in vehicle sales, several vehicle manufacturers are halting vehicle production. Such halts in vehicle production ahead of the decline in sales are expected to reduce the demand for associated components during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bharat Seats Ltd. - The company offers proteins such as plant-based protein which includes pea, soy and wheat protein.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is a dynamic sector influenced by various factors, including customization options, seating segments, and the integration of powered seats as a luxury feature. Valuation metrics and Y-o-Y growth rate indicate its significance within the automotive industry. Innovations like climate-controlled seat technology and lightweight seat frames cater to diverse consumer needs, from luxury vehicles to middle-class families. Feature enabled advance seats, crafted from lightweight materials like synthetic leather seats and polyurethane foam, address comfort and motion sickness concerns. Companies like Indorama Ventures drive advancements with materials like polyethylene terephthalate, reducing the carbon impression. Products like Auraloop enhance the automotive experience, reflecting ongoing advancements in the automotive seating segment.
The passenger cars segment is estimated to witness significant growth during the forecast period. The passenger cars segment of the market is anticipated to be driven primarily by the increasing adoption of SUVs among customers. Multipurpose applications, added comfort, and higher ground clearance and in-vehicle space of SUVs compared with other passenger vehicles are driving consumers across the globe to opt for SUVs. Moreover, the availability of inexpensive compact and mini-SUVs is contributing to the global demand for SUVs. Apart from SUVs, the demand for EVs is increasing significantly across the globe.
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The passenger cars segment was the largest and was valued at USD 48.61 billion in 2018. Considering the consumer preference for in-vehicle comfort, several mid-segment vehicle manufacturers are offering heated and ventilated seats in their latest vehicle models. New EVs are specially equipped with heated and ventilated seats. The launch of vehicles with technologically advanced features seats is anticipated to drive the market in terms of revenue. Meanwhile, APAC nations such as India and China and ASEAN countries have a considerable demand for vehicles with more than five seating capacities. Considering this, several vehicle manufacturers are launching vehicle models that meet this seat specification. The launch of such vehicles, with higher seating capacity than sedan and hatchback cars, is anticipated to drive the growth of the market during the forecast period.
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APAC is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The improved economic conditions in APAC, particularly in China and India, are fueling the expansion of the automotive industry. A burgeoning middle-class consumer base with rising per capita income drives sales of passenger and commercial vehicles, aided by accessible auto financing. The region's growing e-commerce, mining, and construction sectors boost demand for commercial vehicles. Heavy-duty trucks are essential for transporting finished automobiles, prompting automotive component manufacturers to establish facilities.
In addition, the SUV market is booming, prompting seat manufacturers to expand product offerings, especially in the luxury segment. Rising EV demand, supported by incentives and emission regulations, creates opportunities for automotive seat manufacturers. South Korea's EV initiatives further drive EV production, boosting demand for automotive seats. Overall, the increasing production of EVs across APAC is expected to drive automotive seat demand during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market encompasses a wide range of segments and features tailored to diverse consumer preferences. From mid-segment car to premium car, seating solutions are evolving to meet the demands of various customer demographics. Car-sharing companies increasingly utilize modular seats for flexibility and versatility. Advanced features like massage seats and memory seats enhance comfort and convenience, while innovations in autonomous vehicles integrate smart seating systems for enhanced safety and comfort. Companies like Toray lead in developing cutting-edge trim materials, ensuring the durability of seats and aesthetics. Safety remains paramount, with side curtain airbags and smart features enhancing protection in traffic accidents. Additionally, advancements in lightweight interior parts contribute to improved fuel efficiency and customer-perceived value.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.9% |
Market Growth 2024-2028 |
USD 18.28 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.16 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 48% |
Key countries |
US, Canada, China, Japan, and Thailand |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adient Plc, Bharat Seats Ltd., Chongqing Huixinyi Technology Co. Ltd., COBRA SEATS, FP Seating Systems Pvt. Ltd., Gentherm Inc., Glide Engineering INC, Lazzerini S.r.l. S.B., Lear Corp., Magna International Inc., NHK Spring Co. Ltd., RCO Engineering Inc., RECARO Automotive GmbH, SAIC Motor Corp. Ltd., SAL Automotives Ltd., Stellantis NV, TACHI S Co. Ltd., Toyota Motor Corp., TS TECH Co. Ltd., and Victora Auto Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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