Changing Environmental Conditions and Eco-friendly Production Techniques Drive the European Automotive Interior Leather Market

Automotive Interior Leather

Automotive is a key sector in Europe. According to the forecast, Europe will be the second-largest market in Automotive interior leather market. Expanded industrial activities and technological advancements are causing a shift in consumption patterns for automatic leather sources in the region.  Additionally, the improvement in the global economy will support the market growth for the automatic interior leather market.

Growing demand for technology, an enhanced driving experience, and the development of smart vehicles are the main factors driving the European automotive interior leather market.   According to the current state of developments in the automotive industry, as well as the growing distribution channels, the demand for automatic interior leather is expected to rise over the next few years.

The change in consumer perception toward high-quality leather along with the high cost of leather inputs has prompted most auto manufacturers to switch to eco-friendly alternatives. As the market for automotive interior leather grows in this region, the market for customized cars is projected to grow at a faster rate. Companies are introducing eco-friendly automatic interiors to enhance comfort, which will further drive the automatic interior leather market due to increasing awareness of wellness among consumers.

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Government regulations and environmental conditions have inspired a market demand for eco-friendly leather. Eco-friendly leather manufacturing methods are increasingly used by leather manufacturers to reduce pollution associated with tanning processes. In order to reduce the impact of chemicals on the environment, several manufacturers employ safe chemicals that can be easily disposed of in the environment. Environmental regulations enacted in many developed countries have adversely affected the leather processing industry, leading local manufacturers to have a hard time retaining a profit margin in the market.

Inovev, a French automotive consultancy, predicts that battery-electric vehicles (BEV) sales in Europe will reach 2.1 million in 2019 from 1.7 million in 2022. By 2030, BEV sales will contribute 40% of total sales, with the number increasing steadily from 2.9 million in 2025 to 5.8 million in 2030. Consequently, this region’s demand for automotive interior leather will increase in the future.

Key Takeaways

  • With the introduction of new electric vehicles (EVs), CO2 emissions from cars are expected to be cut by 55% by 2030, fueling further growth in the eco-friendly automotive interior leather market.
  • With competitive pricing strategies, European companies aim to increase the sales and profitability of their vehicles in the future.
  • The aftermarket customization of luxury and sports vehicles will keep growing with growing recreational activities.
  • A United Kingdom report showed the value of passenger car imports increased within this region to 8.2 billion euros, resulting in the automotive interior leather market growing.

Competitive Landscape

Several global and regional players dominate the market, making it largely fragmented. Besides robust distribution networks and suppliers, global players face intense competition from regional players. Major players are involved in research and development to produce leather with improved features. The automotive interior leather industry recognizes the importance of technological collaborations for R&D purposes.

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Recent Developments

  • Hyundai introduces its latest electric car, the Ioniq 6, a coupe-style saloon nearly half the price of a Porsche Taycan. In an eco “vision for sustainability”, Hyundai states that the Ioniq 6 uses “sustainable materials and colors”. The headlining and seats of this car are made out of recycled PET fabric and eco-process leather. As an added bonus, first-time buyers of the limited-run Ioniq 6 First Edition will receive a one-year subscription to IONITY Premium, Hyundai’s European charging network featuring over 400,000 outlets. Ionq 6 customers in Europe can travel without range anxiety.

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