PUBLISHER: The Insight Partners | PRODUCT CODE: 1761176
PUBLISHER: The Insight Partners | PRODUCT CODE: 1761176
The leather for automotive seats market size was valued at US$ 48.93 billion in 2024 and is expected to reach US$ 69.12 billion by 2031; it is estimated to register a CAGR of 5.3% from 2025 to 2031.
The rise in fuel prices and the environmental impact of conventional gasoline vehicles have paved the way for alternative fuel vehicles across the globe. Buyers are gradually getting inclined to use battery-powered or hybrid automobiles, which is anticipated to boost the demand for electric vehicles in emerging and developing countries. According to the International Energy Agency's annual Global Electric Vehicle Outlook, China registered 6.4 million electric vehicles in 2024, an increase from 5.4 million in 2023. As the automotive industry witnesses a transformative shift toward electric vehicles (EVs), the demand for leather for automotive seat applications increases. To promote the sale of EVs, governments are providing attractive laws and incentives. Reduced selling costs, no registration fees or minimal registration fees, and free EV infrastructure charging at various charging points are a few of these incentives. Furthermore, due to various subsidies, many countries worldwide exclude import, purchase, and road taxes. These auto industry incentives have led to a rise in the manufacture of electric vehicles. Governments have also created beneficial policies and invested heavily in infrastructure. For instance, the US government plans to spend US$ 87 billion on new highway construction by 2028. Additionally, the government will be installing EV charging stations across the country to encourage the development of these automobiles.
In terms of vehicle type, the market is categorized into passenger cars, light commercial vehicles, heavy commercial vehicles, and others. The passenger cars segment held a larger market share in 2024 and is expected to register the highest CAGR from 2025 to 2031. Leather seats are popular in passenger vehicles, especially in luxury or premium vehicles, as they provide superior comfort and a premium look compared to leatherette or fabric. Leather seats add to the visual appeal for buyers looking for a more attractive interior. Vehicles with leather seats are viewed as higher-end models. Leather is also known for its exceptional durability, making it an ideal choice for cars frequently used by families or those with pets. Leather seats retain their original appearance and softness for years, making them an ideal long-term choice for maintaining the vehicle's luxury. High-grade leathers such as Nappa or full-grain leather are common in premium passenger vehicles, offering superior softness and durability. Another advantage of choosing leather seats in passenger vehicles is their increased resale value. Leather seats are often perceived as a premium feature in a car, making it more appealing to potential buyers.
Asia Pacific is estimated to register the fastest CAGR in the global leather for automotive seats market from 2025 to 2031. Asia Pacific is home to major automotive companies, including Toyota Motor Corp, Tata Motors Ltd, Hyundai Motor Co, Nissan Motor Co Ltd, and Honda Motor Co Ltd. Further, Asia Pacific is a center for automotive manufacturing, with a significant presence of international and domestic players in the region. The growing vehicle production, increasing demand for luxury vehicles, and rising electric vehicle production are anticipated to create lucrative opportunities for manufacturers of leather for automotive seat applications. Research from the International Renewable Energy Agency indicates that 20% of all vehicles in Southeast Asia will be electric by 2025. China has emerged as the global leader in electric vehicles (EVs), having sold over 11 million cars in 2024. Due to the country's expertise in this area, many Chinese manufacturers have expanded into Asia and are experiencing notable success.
Some of the key players operating in the global leather for automotive seats market include San Fang Chemical Industrial Co Ltd, Mayur Uniquoters Limited, Nan Ya Plastics Corp, FILWEL Co., Ltd., Kolon Industries Inc, BASF SE, Kuraray Co Ltd, Teijin Ltd, Toray Industries Inc, Covestro AG, Wollsdorf Leder Schmidt & Co Ges.m.b.H., Curtidos Trevino S.A. de C.V., Wickett-Craig, Super Tannery Ltd., and Elmo Sweden AB. Players operating in the market focus on providing high-quality products to fulfill customer demand. Also, they are focusing on launching new and high-quality products for their customers.
The overall global leather for automotive seats market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers-along with external consultants such as valuation experts, research analysts, and key opinion leaders-specializing in the leather for automotive seats market.