Automotive Seats Market Research Report: Forecast (2023-2028)

Market Definition

An automotive seat is a safety-critical part of a vehicle designed to provide comfortable seating and accommodate & protect occupants in case of sudden brakes or acceleration. In addition, they ensure that passengers sitting inside have minimum impact in case of collision or accident, per industry guidelines. These seating systems come in various forms, from simple to complex systems that satisfy both manufacturers and consumers and are designed to support thighs, buttocks, and lower and upper back. Moreover, a front driver and passenger seat comprises three main parts: a squab, cushion, and headrest. Nowadays, seating systems incorporate innovative features like laptop stands, folding pads, airbags, and more to provide comfort, safety, and style.

Market Insights

The Global Automotive Seat Market is projected to grow at a CAGR of around 3.0% during the forecast period, i.e., 2023-28. The growth is primarily attributed to the elevating demand and development of hybrid and electric vehicles, which mainly incorporate modular seating systems. Additional features, including climate control, ventilation, better support, noise cancellation, safety, and more, are projected further to garner consumer interest and open avenues for the market. In addition, the rising focus on advanced driver assistance, electric vehicles, high-end cars, SUVs, and more is further expanding the market.

The rise in disposable income with increasing urbanization, especially in economically developing countries, combined with the growing consumer urge to own a vehicle, is propagating new opportunities for the industry. Additionally, with increasing usage and popularity of modular seating to decrease the vehicle’s interior weight, consumers are moving towards smart and advanced features. Furthermore, with a swift surge in vehicle sales, the industry is facing a boost in seats production to fulfill the intensifying desire for connected and autonomous vehicles.

However, the higher cost of advanced modular seats compared to conventional seats is expected to restrain the market growth. On the other hand, the penetration of electric vehicles into different countries’ automotive industries and the popularity of automatic vehicles are surging the need for advanced seating systems, which compliments the smart technological integration in automobiles. Vigorous competition among the market players for introducing new innovative features promises further market expansion.

Market Dynamics

Key Driver: Ever-Expanding Demand for Hybrid and Electric Vehicles

The growing acceptance of hybrid and electric vehicles in emerging nations has accelerated automotive seat sales. With developments in the automotive industry, manufacturers focus on lightweight seats, comfort, and advanced features to lure more consumers. Besides, the manufacturer’s focus on smart cars is raising the market for smart seats. In addition, rising focus on advanced driver assistance, especially in automatic and semi-automatic vehicles, electric vehicles are likely to influence further development in the industry. Furthermore, government initiatives in emerging countries to promote electric vehicles consecutively propagate the seating enhancement industry. Thus, new advancements and increasing attention to hybrid and electric vehicles across developing countries are driving the automotive seat industry.

Possible Restraint: Non Budget-Friendly Nature of Modular Seats

Advanced modular seats are anticipated to cost more than conventional seats; this, coupled with incurring high expenses, could hinder market expansion. The higher cost of modular seats with heated, ventilated, massage, climate-controlled, and similar features restrict their penetration to high-end cars. Since a significant share of the industry is held by emerging economies and developing countries where the adoption of high-end vehicles is lower and automated seats are majorly integrated into high-end vehicles, the market expansion could be limited and impeded due to these factors. Lastly, the increasing customer preference for comfortable and luxurious features raises the extra pressure on automotive OEMs regarding lowering production costs, again hampers market flow.

Growth Opportunity: Growing Preference for Automated Driving Prompts Passenger-Centric Interiors

The automotive industry’s focus on providing a fully automated driving experience presents a growth opportunity for the industry, as L4 and L5 autonomous cars would require minimal or no driver intervention, and the interior would be completely passenger-centric. Additionally, with the rising preference for car-sharing, the durability and other features of seats will be more critical. Adding individual, private listening zones attached to the seat’s headrest, noise-canceling systems, and other facilities are pushing manufacturers to innovate new and compelling products. These advanced features and rising consumer demands offer lucrative industry opportunities.

Key Trend: Introduction of Climate Control Features in Seating Systems

The rising climate changes, global warming, and extreme temperature fluctuations result in complications for passengers or drivers traveling. For instance, if left in the sun all day, the trapped heat will make the car uncomfortable for passengers and drivers. As a result, the automotive seat industry has developed new technologies to accommodate consumers to overcome such issues.

With the additional development of climate-controlled seating technology, manufacturers are providing consumers with features to cool down automobile seats by incorporating perforated inserts with chillers and fans built into them. Similarly, seats are now composed of fabric-based heaters, making them comforting in cold weather. These and other powered, heated, and ventilated applications are now commercialized and used in many vehicles, providing consumers with climate-controlled seats. For instance, on October 2022, NHK Spring Co. Ltd developed automotive seats to reduce motion sickness.

Consumers are following up on this trend, opting for climate-controlling features in their vehicles, as they are now becoming available in the low-cost vehicle too. In addition, market players also provide various functions such as ventilation, heating, and massaging, which proposes more lucrative opportunities for the industry.

• In September 2021, Faurecia developed new ultra-low CO2 seat structure in partnership with a steel manufacturing and processing company SSAB.

Market Segmentation

Based on Type of Vehicle

• Passenger commercial Vehicles
• Heavy commercial vehicles
• Light commercial vehicles

Among all, Passenger commercial vehicles accounted for the largest market share in the global automotive seat market during the forecast period, owing to the wide range of options in terms of features and designs available across these vehicles. Additionally, the rolling consumer inclination for vehicle ownership with more advanced features, combined with the rising disposable income across the globe, is driving the industry with greater sales of passenger commercial vehicles.

Similarly, the boost in the production and manufacture of commercial passenger vehicles influenced by consumers’ rising inclination towards autonomous passenger vehicles further propagates the industry’s adoption and expansion. Moreover, mounting demand for connected vehicles & autonomous driving and increased shared mobility due to the burgeoning emergence of ride-sharing companies in countries like China, India, Australia, and South Korea are factors strongly contributing to the market enlargement in coming years.

Based on Distribution Channel

• OEM
• Aftermarket/ Retrofitting

Among the two, Original Equipment Manufacturers (OEMs) are expected to attain the largest market share during the forecast period on account of the surge in passenger and commercial vehicle production. Besides, with increasing disposable income and rising living standards, automotive seats are now pre-installed with various features, further contributing to market extension.

Further, growing government initiatives to boost the production of advanced technology in vehicles, for instance, awareness and campaigns to fuel the adoption of electric vehicles, are bound to propel the sales of vehicles and cars, which as a result, moves the industry of automotive seating.

Also, OEMs gain consumer preference since the seats are specifically designed to fit the vehicle’s needs and complement the overall idea or function of the vehicle, leading to higher quality. As market participants also benefit from the authenticity and quality component’s popularity in the industry, they further propagate OEMs encouraging the further market expansion.

Regional Projection

Geographically, the Global Automotive Seat Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

Of all countries globally, Asia-Pacific is anticipated to dominate the market with the largest share during 2023-28. This dominance majorly attributes to the presence of leading manufacturers and market participants in the region. Additionally, with increasing disposable income due to rapid urbanization and industrialization resulting in improved vehicle production and sales and rising demands for automotive seats, the Asia-Pacific region is promising lucrative growth prospects for the industry.

Moreover, the increasing appetitive for mid and high-end SUVS in the region would positively increase the popularity and appeal of seating modifications. Furthermore, with the surging requirement for affordable vehicles in the countries like China, India, Japan, and South Korea, the market is expected to flourish further. On the contrary, the popularity and trend of technologically advanced features in cars would influence the industry by elevating the requirement for powered and heated seats. Besides China being the global automotive manufacturing hub, having many industry contributors is leading the region’s progress. For instance, on November 2022, Lear Corporation announced acquiring InTouch Automation, a supplier of complex automated testing equipment and Industry 4.0 technologies that are essential to the production of automotive seats. Likewise, India’s increasing sales of automotive vehicles are expected to fuel the market propagation further.

Recent Developments in the Global Automotive Seat Market

• In December 2022, Faurecia SE (Faurecia) announced that it has signed a development agreement with Indorama Ventures, a leader in the production and recycling of PET (polyethylene terephthalate), to create a new line of cushioning solutions called "Auraloop" for the mobility market that is constructed from a structure of 100% recyclable polyester-based fibers.
• In February 2022, Kia in India launched a new affordable MPV Carens with front ventilated seats offering assortment functionalities such as ventilation, heating, and massaging.
• In January 2022, Toyota Boshaku Corporation developed seats with an electric retraction mechanism and other interior components for LEXUS NX.

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