Market Research Report
Asia-Pacific Automotive Interiors Market - Growth, Trends, and Forecast (2020 - 2025)
|Asia-Pacific Automotive Interiors Market - Growth, Trends, and Forecast (2020 - 2025)|
Published: May 1, 2020
Mordor Intelligence Pvt Ltd
Content info: 75 Pages
Delivery time: 2-3 business days
The Asia-Pacific automotive interiors market is anticipated to register a CAGR of about 7% during the forecast period (2020 - 2025).
Infotainment System Dominates the Automotive Interiors Market
The infotainment system is the largest segment in the automotive interiors market.
A basic infotainment system in a modern vehicle comes equipped with a CD player, a Bluetooth, USB port, lighter port, aux port, video panel, radio, GPS, multiple speakers, and control panels.
The use of infotainment systems in advanced automobiles, such as connected cars and autonomous vehicles, has been continually increasing. The market for infotainment systems may be further strengthened by investments being made by automobile manufacturers and tech companies. In April 2020, Mercedes announced the pricing of its latest AMG GLE SUV which is equipped with latest dual 12.3 inch screens MBUX infotainment system.
Additionally, automobile manufacturers are competing to deploy advanced infotainment system in their upcoming vehicle models during the forecast period. In 2018, Mitsubishi Motors Corporation, Nissan Motor Co. Ltd, Groupe Renault and Nissan Motors decided to adopt Google Inc.'s Android operating system (OS) for their next-generation infotainment systems from 2021.
China is Expected to Dominate the Market During Forecast Period
The automotive interiors market is led by China Asia-Pacific region, followed by India. Due to fall in Chinese automotive production from 27.8 million units in 2018 to 25.72 million units in 2019, the automotive interior market in China has somewhat become stagnant. The Coronavirus outbreak during the start of 2020 is leading to further decline of Asian automotive industry due to production halt by players such as Hyundai, Nissan, etc. However, this halt is expected to remain only for a brief duration of time and major players have started resorting to collaborative strategies. As the middle-class population is purchasing more vehicles, which is creating lucrative opportunities for players in the automotive interior industry.
In South Asia-Pacific, government initiatives, such as subsidies and tax concessions, across various countries are attracting the automotive OEMs to build their manufacturing plants in the region. China is one of the largest consumers of vehicles. The demand for premium interiors, comfort, and new and innovative features, like head-up displays and navigation system, along with the growing focus toward sufficing the safety standards, is driving the market in the region. Although, the demand for passenger cars have declined during 2018 and 2019, there is a subsequent growth in sales of commercial vehicles which is driving the market growth for automotive interiors market for trucks, off the road machinery, etc.
The Asia-Pacific Automotive Interiors Market is a fragmented and competitive market, consisting of various small- and medium-sized companies and a few big players.
Some of the global players are focusing on expanding their Asia-Pacific presence by acquiring or merging with the regional and country-level players. Major investments are being made by companies in the foreign markets to cater to increasing demand and expand their business. Expansion and investments are the most preferred growth strategies, followed by mergers and acquisitions.