With top players holding over 50% share in 2016, the global automotive carpeting and roofing market exhibits a fairly consolidated vendor landscape. These companies were Faurecia, Lear Corporation, Autoneum Holding Ltd., and Magna International Inc., finds Transparency Market Research (TMR) in a new study. Besides investing in product development, a majority of the leading market players are exploring mergers and acquisitions to gain stronger foothold in the global automotive carpeting and roofing market.
Because the market players are operating in a dynamic business environment, they are keen on aligning their strategies with technological shifts. Considering this, in the next few years, the automotive carpeting and roofing market is likely to witness increasing investment in research and development activities as companies aim to benefit from technological advancements.
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Spurred by these strategies and other growth drivers, the global automotive carpeting and roofing market is prophesized to progress at a CAGR of 5.9% between 2017 and 2025. At this pace, the market’s valuation is expected to reach US$22.69 bn by the end of 2025, from US$13.51 bn in 2016. Based on vehicle type, passenger vehicles, light commercial vehicles, and heavy commercial vehicles constitute the key market segments. Of these, passenger vehicles held the dominant share of over 56% in the global market in 2016, reporting higher demand for aesthetics.
Regionally, North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa are the key market segments. Among these regions, Asia Pacific emerged dominant with a share of 33.5% in the market in 2016. The rising demand from India, Japan, and China is aiding the expansion of the automotive carpeting and roofing market in Asia Pacific.
Rising Investment Aimed at Technological Advancements Aids Market’s Expansion
A majority of companies operating in the global automotive carpeting and roofing market are pumping investment through private equity in the sector. These firms have become increasingly active and thus have significant impact on the automotive carpeting and roofing market. With private equity firms pursuing the buy and build strategies, sooner than expected the automotive carpeting and roofing market will reap the benefit of the same.
Besides this, factors such as the increasing application of green technologies in automotive leather materials, use of nano materials in automotive fabric, and other recent advancements are paving way for the market’s growth in the future. This transition has been brought about by the increasing research and development in the automotive sector. These recent trends could usher lucrative prospects for the market as world is gradually inclining towards more eco-friendly living. Integrating green technologies will entail lesser emission thus making the vehicles more eco-friendly and fuel-efficient.
These developments are a part of recently introduced hybrid and electrical vehicles. Not only are these vehicles lightweight and more fuel-efficient, but they include aforementioned attributes. Thus with the increasing demand for electric vehicles, the market players in the automotive carpeting and roofing market will gain immensely, especially the manufacturers offering green technologies in automotive leather materials and nano materials for automotive fabric.
Changes in Global Vehicle Production have Negative Impact on Overall Market
On the downside, the fluctuating global production of vehicles is negatively impacting the overall market. Alteration in vehicle production could decelerate the demand for automotive carpeting and roofing materials. This pose considerable threat to the market, inhibiting its trajectory to an extent. Nevertheless, with rising opportunities across emerging nations of Asia Pacific, the impact of the restraint can be lessened. The demand for vehicles in countries such as China, Japan, and India is rising at a high pace. Furthermore, the increasing demand for advanced, electric, and hybrid vehicles from these nations are tipping scales in favor of the automotive carpeting and roofing market.