Global Automotive Interior Materials

Part
01
of six
Part
01

Automotive Industry Changes

Some changes key players in the global automotive industry have made or announced are new technology for hearing-impaired drivers (Hyundai), the restructuring of the global manufacturing network in response to developments in the electric cars' industry (Honda), the use of graphene parts in vehicles (Ford), the use of 3D printing in mass production (Volkswagen), and the organization of a Collaboration Lab (BMW). Below is an overview of the findings.

Hyundai Reveals New Technology For Hearing-Impaired Drivers

Honda announces global automobile manufacturing restructure

  • Honda has announced that they will organize their global manufacturing network differently.
  • This restructuring comes as Honda focuses on electric cars, in response to the groundbreaking changes in the global automotive industry.
  • As a result of the challenges that come with electrification, Honda will change its global manufacturing operations, and focus on company activities in regions where it anticipates high production volumes.
  • The company will shut Swindon, its vehicle manufacturing plant in the UK, in 2021 as a part of this restructure.

BMW's announcement on First U.S. Collaboration Lab

  • The BMW Group Financial Services in the U.S. has announced the Collaboration Lab and invited startups to participate.
  • The startups will participate in a ten-week lab at BMW Financial Services’ offices in Hilliard, Ohio, aimed to help them further develop their ideas together with leading subject matter experts in the automotive and financial sectors.
  • The Collaboration Lab accelerator program provides entrepreneurs, start-ups, and small businesses in fintech and other fields with the opportunity to partner with BMW Group Financial Services.
  • This would be to develop, and then realize, "innovative solutions and game-changing new technologies that can ultimately benefit consumers, dealers, and partners."
  • The companies selected will work in the categories digitizing the customer journey, building a blockchain strategy, and data analytic and insight.
  • Digitizing the Customer Journey: carLABS has created a conversational AI-powered platform for automating and enhancing sales and marketing in the automotive vertical. It will offer car buyers an easier shopping experience that notably increases conversions and returns on marketing spend for car sellers.
  • Building a Blockchain Strategy: Supermoney is developing a unique digital wallet that allows in-store and online customers to pay with a simple QR scan. The product runs on a system of smart contracts that effectively manage counterpart risk, protecting both buyer and seller. Bloom uses public-private key encryption underpinning blockchain technology to verify customer identity, a technology also used to certify the accuracy of credit history without storing customer raw data on servers.
  • Data Analytic and Insights: Omniscience Corp. is working together with finserv and insurance firms on solutions related to underwriting and capital modeling and is working to scale their analytic efforts on real-world data. Motion Auto Insurance is modern insurance for the modern world and regards fully programmatic, embeddable, insurance as a service delivered from directly inside the customer's mobile app for gig/sharing economy, new modes of vehicle ownership, and autonomous driving technology.

Volkswagen usage of 3D printing

  • Volkswagen is the first manufacturer using the latest 3D printing technology: the "HP Metal Jet."
  • The biggest advantage of this technology is that it improves productivity by fifty in comparison to other 3D printing methods and depending on the component.
  • Three-dimensional printing can be used for mass production in the automotive industry.
  • Along with HP and GKN Powder Metallurgy, Volkswagen is, therefore, pressing ahead with the development of the technology for mass production.
  • By next year, GKN intends to create a process chain for automotive production together with Volkswagen.

Ford to use graphene parts in its vehicles

  • Ford announced that it will be using graphene parts in its vehicles by the end of 2018, starting with the Mustang and F-150.
  • Graphene is a material made from a hexagonal structure of carbon atoms and was first isolated in 2004. It is about 200 times stronger than steel but lighter and flexible. It is a good choice of an electrical conductor and an insulator of sound.
  • Ford is aware of the difficulties of graphene manufacturing and use, but is confident with the partnerships made and has determined how to make use of graphene in certain components in order to strengthen and lighten them, as well as reduce noise.

Research Strategy

Through our research, we found that information on changes the key players in the global automotive industry have made or announced was readily available. We focused on selecting those changes or announcements that could impact the global automotive industry or the global automotive interior materials industry. For example, Ford will be using graphene parts in its vehicles, starting with the Mustang and F-150. This is a change that will impact the make of the car, as this material makes the body stronger and lighter. It also impacts the automotive interior materials industry, which will have to focus on new interior attachments that are more compatible with the new car body.





Part
02
of six
Part
02

Top Global Automakers

The top 10 global automakers by sales volume include Volkswagen Group — 10.81 millions units; Toyota Group — 10.435 millions units; Renault-Nisssan Alliance — 10.346 million units; General Motors- 8.643 million units; Hyundai-Kia — 7.416 million units; Ford Group — 5.632 million units; Honda Group — 5.234 million units; FCA — 4.825 million units; PSA — 4.084 million units; and Suzuki — 3.306 million units.

TOP TEN GLOBALLY BY number of units sold (2018)

TOP TEN GLOBALLY BY number of units sold (2017)

BRIEF SUMMARY OF TOP PERFORMING VEHICLE CATEGORIES

Volkswagen Group
  • Volkswagen features two main categories: passenger cars and commercial vehicles.
  • In 2018, the passenger car business category was the top performing at 10,206 vehicles sold. The commercial vehicles segment came second, with 694 units sold.
  • In 2017, the passenger car business category was the top performing at 10,077 vehicles sold. The commercial vehicles segment came second, with 700 units sold.
Toyota Group
  • SUVs is the best performing segment for Toyota by number of sold units, followed by the compact cars and trucks.
Renault-Nissan Alliance
  • The best performing segment for Renault is the Light Commercial Vehicles. The total sales of Light Commercial Vehicles (LCVs) rose 13.5% to 2 million units in 2018.
  • The cumulative sales of electric vehicles was estimated to be 725,000 electric vehicles.
General Motors
  • The best performing segment is the utility vehicles segment. The total sales of all utility vehicles, including large SUVs, totaled 1,295,700, up 7 percent from 2017.
  • The second most performing category is the pickup trucks segment, which sold 973,463 new units in 2018.
Hyundai-Kia
  • The best performing segment of the company was the Small PC, selling 2,490 units in 2018. It was followed by the RV segment at 1,357 units, the Mid-Large PC sector with 764 units sold and the CV segment with 303 units.
FORD Group
  • Ford classifies its vehicles in three groups/categories: Ford brands, Ford-Lincoln brands, and Lincoln brands.
  • The performance of the categories is grouped by the number of dealerships.
  • The top performing category was the Ford Brand, with 10,345 dealerships, while Ford-Lincoln had 820 dealerships and Lincoln had 263.
Honda Group
  • The best performing category for Honda is their automobile segment, with 3,683,000 units sold in fiscal year 2017, giving a revenue of over 10 Billion yens.
  • Hondas consolidated unit sales of motorcycles and all-terrain vehicles (ATVs) in fiscal year 2017 totaled 11,237,000 units, generating 1.716 Billion yens.
FCA
  • The best performing segment for Fiat is their SUV and crossover segments, contributing 11.6 percent to the total sales of the company.
  • The second most performing category is the pickup trucks segment, which sold 1500 new units in 2018.
PSA Group
  • The best performing segment of the business is the SUV segment, which accounted for 28% of the company sales or 609,300 units sold.
Suzuki
  • Suzuki has three main categories: automobiles, auto cycles, and marine vehicles.
  • The best performing category is the automobile segment, featuring a global production of 3,338,000 units.
  • Motorcycles (including ATVs) is the second best-performing segment for Suzuki with 1,580,000 units sold.

Research Strategy:

We began our research by looking at industry publications that listed the top global automakers by sales. Some of the industry publications included Largest.org and Focus2move.com, which were able to provide us with the list of the top 10 global automakers by sales.

We then cross-referenced our results with data from databases such as Statista, the companies' annual reports, and the Auto Global Database. Unfortunately, the reports only provided the revenue values and performance of the companies, not by sales volumes or units, which made that the results were not considered. As such, we moved on to each company's annual statement. The intention was to get the sales volume for each of the companies and chose the ones with the highest ones. According to our research, the companies with the highest sales volume were Toyota, Honda, Ford, VW, PSA Group, FCA, GM, Suzuki, Renault-Nissan, and Hyundai-Kia.
Part
03
of six
Part
03

Global Automotive Interior Materials: Top Global Players Comparison, Part 2

Details pertaining to Sage Automotive and Borgers AG have been populated in column F&G of the attached spreadsheet.

SAGE AUTOMOTIVE

  • Sage Automotive is headquartered in Greenville, South Carolina. It manufactures high-performance automotive interior fabric.
  • Sage Automotive is committed to sustainability, has a global footprint, a good understanding of its consumers, world-class manufacturing, engineering, and design capabilities.
  • Chrysler, Daimler, Fiat Automobiles S.p.A., Ford Motor Company, General Motors Company, Honda Motor Co., Hyundai Motor Company, Jaguar, Kia Motors, Mini, Nissan Motor Company, Suzuki Motor Corporation, Toyota Motor Corporation, Volvo Car Corporation, and Volkswagen AG are some of its clients.

BORGERS AG

  • Borgers AG is headquartered in Bocholt, Germany and manufactures absorbers, carriers, insulations, trims, and decor for automobiles.
  • It develops and manufactures acoustically efficient, lightweight, and high-quality components. It has a strong presence in Europe.
  • General Motors, Volvo Trucks, Toyota, Volvo Car Corporation, Volkswagen, Ford, Renault, Audi, Mercedes, BMW, Opel, Skoda, Peugeot, Nissan, and Rolls Royce are some of its clients.

RESEARCH STRATEGY

We searched the respective company websites for any information related to pricing; however, none of the companies have disclosed the price of their products. As the companies develop customized products for vehicles, it is unlikely that they would publish any pricing information (generally for standard products) on their websites. We also searched specifically for deal-related pricing information but did not find any product pricing-specific information. Following this, we made a search for product price information in media sources like Auto News, Automotive World, and Just-Auto, and industry portals like International Automobile Association, International Organization of Motor Vehicle Manufacturers (OICA), European Automobile Manufacturers Association. This also did yield any results. Our last strategy was to look for this information in research reports by agencies like Acquire Market Research, QY Research, and Technavio. Although none of these reports explicitly mention pricing information, they contain analyses of these companies, which may also cover pricing. However, information pertaining to the companies was behind paywalls.
Part
04
of six
Part
04

Global Automotive Interior Materials: Top Global Players Comparison, Part 1

Lear Corporation started business 1917 and has its headquarters in Michigan, USA. 2050 Motors, Inc., Air Industries Group, Boeing, General Motors, Ford Motors, and others are among Lear Corporation's customers. Adient PLC began in 1885 as Johnson Electric Service Company and only became known as Adient PLC in 2015. Adient Corporation's headquarters is in Dublin, Ireland. Tata Motors, General Motors, and Man Trucks & Bus are some of its customers. Grupo Antolin was founded in 1950 in Burgos, Spain, where it still retains its headquarters. Although Grupo Antolin reported that its interior vehicle parts are "present in 9 of the top 10 best-selling cars in the world," there is no information in the public domain revealing the automotive brands that are customers of the company.

Global Automotive Interior Materials: Top Global Players Comparison

  • As per publicly available information, we provided the needed information of the global automotive interior material companies including Lear Corporation, Adient PLC, and Grupo Antolin in columns C-E of this attached spreadsheet.

Research strategy:

We investigated the official directory, product pages, press releases, and news articles of Lear Corporation, Adient PLC, and Grupo Antolin, respectively, in search of the information required for this request. From this research, we identified information relevant to the products, headquarters, and history of each company, as well as other pertinent info. Unfortunately, there was no publicly available information on any of the official directories of these companies revealing their customers or the prices of their products. At most, they only noted that they deliver products to their customers at competitive prices; however, the exact cost of a product could only be available by contacting each company directly.

Therefore, we proceeded to examine reports on trusted media portals including Industry Week, CSI Markets, Mark Lines, Auto News, and others. This time, we located reports in the public domain that listed the customers of Lear Corporation and Adient PLC, respectively, but there was no information in the public domain with insights into the customers of Grupo Antolin. However, we found a report by Grupo Antolin, which revealed that their products were in "9 of the top 10 best-selling cars in the world," as well as in over 500 automotive brands in the world. Unfortunately, this report did not reveal the name of any automaker that uses products by Grupo Antolin. Also, we found a report by Industry Week, which observed that Lear Corporation charges about $1,000 per SUV seating system, but other pricing details of the company's products, as well the other companies in this request, was not publicly available.

Furthermore, we researched the portals of automakers including General Motors, Ford Motors, Toyota, and others, which we found from our research to be some customers to the companies in this request, with the hope of locating reports with insights into what they pay to the suppliers of car interiors such as seats and others. Unfortunately, these companies did not have publicly available information revealing details of partnerships with interior suppliers. Thus, due to the lack of information in the public domain revealing the product pricing of the companies in this request, as well as the customers of Grupo Antolin, we filled the corresponding sections of columns C-E of the attached spreadsheet with N/A (not available).



Part
05
of six
Part
05

Global Automotive Interior Materials: Top Global Players

Some of the top global players in the automotive interior materials market include Lear Corporation, Adient PLC, Grupo Antolin, Sage Automotive Interiors Inc., and Borgers A.G.

FINDINGS

With estimated revenue of $20.7 billion, Lear Corporation is the leading player in the global automotive interior materials market with a market share of 44.39%. Other top 5 players in the market include Adient PLC, Grupo Antolin, Sage Automotive Interiors Inc., and Borgers A.G. Details on the website link and market share for each company have been provided in the attached spreadsheet as well as outlined in the section below.

Lear Corporation (US)

  • Market Share: 44.39%

Adient PLC (Ireland)

  • Market Share: 37.4%

Grupo Antolin (Spain)

  • Market Share: 9.16%

Sage Automotive Interiors Inc. (US)

  • Market Share: 1.6%

Borgers A.G.

  • Market Share: 0.24%

YOUR RESEARCH TEAM CONDUCTED THE FOLLOWING RESEARCH:

In order to locate the top global players in the automotive interior materials market, we began by searching for credible market research reports, Consumer Affairs, and other similar sites addressing the automotive interior materials market. Fortunately, we found 3 market reports from Markets and Market Research, Market Research Reports, and Index Market Research which listed several key players in the market segment, although there was not any market share data provided. We selected the key players in the market as listed by the three sources including Lear Corporation, DK Leather Corporation, Eagle Ottawa, Adient PLC, Toyoda Gosei Co., Ltd., Grupo Antolin, Toyota Boshoku Corporation, Sage Automotive Interiors Inc., BASF, Faurecia S.A., and Borgers A.G.

We then looked through individual company website to ensure that we considered only companies that solely focused their ventures on automotive interior materials i.e. the estimated revenue was to be largely from the manufacturing and sales of automotive interior materials only. Thus, we identified 7 top players which include Sage Automotive Interiors Inc., Lear Corporation, Adient PLC, DK Leather Corporation, Grupo Antolin, Borgers A.G., and Eagle Ottawa.
Next, we began looking for each company’s revenue by checking financial databases like Crunchbase, H&B Hoovers and ZoomInfo. Based on the revenue estimates, we were able to locate the top 5 top in the market as listed in the attached spreadsheet. Using the revenue data as well as the overall market size of the global automotive interior materials industry ($46.63 billion according to Markets and Markets Report), we calculated the market share for each company using the following formula: Market share = estimated revenue / total market size of the industry x 100.

Thus, the calculated market share for each company was:
Lear Corporation (US)
$20.7 billion / 46.63 billion x 100
= 44.39%
Adient PLC (Ireland)
$17.44 billion / 46.63 billion x 100
= 37.4%
Grupo Antolin (Spain)
$4.27 billion / 46.63 billion x 100
= 9.16%
Sage Automotive Interiors Inc. (US)
$750 million / 46.63 billion x 100
= 1.6%
Borgers A.G. (Germany)
$112 million / 46.63 billion x 100
= 0.24%

Part
06
of six
Part
06

Global Automotive Interior Materials: Market Size

The market size of the global automotive interior materials is around $46.63 billion in 2018 with a CAGR of 3.5% in the next 3-5 years. By 2023, the market size is expected to be worth around $55.41 billion.

FINDINGS

Market Size and Growth

  • The global automotive interior materials market is worth approximately $46.63 billion in 2018.
  • This figure is expected to have a growth rate of 3.5% in the next 3-5 years. With this growth rate, the market size is seen to rise to $55.41 billion by the year 2023.
  • The automotive industry boom in developing economies us seen to have a major impact to this growth rate.

GROWTH FACTORS

  • The market's growth can also be attributed to the vendors who are implementing core and non-core strategies to increase their reach in emerging regions such as Brazil, India, Thailand, and China.
  • Globally, Asia Pacific is the leading region in this market based on volume and value. The region is seen to hold this leading status well into 2023 with India as the leading country in the region.
  • The South American market is also seen to experience a marked growth in the industry due to its booming economy.
  • Meanwhile, the European and North American markets are seen to have relatively slower growth rates because of their maturity levels.
  • Among the materials used in the automotive market, polymers are the dominant ones since there is a rise in the need for long-lasting and light interior parts. Some of the interior components made of polymers are the door panels, consoles, dashboards, and others.
  • The use of this material is also driven by the goal of automotive firms to reduce the weight of the vehicles. The lesser the vehicle weighs, the lesser the carbon emissions.
  • In terms of vehicle types, passenger vehicles are the largest recipients of automotive interior materials due to the burgeoning demand in developing countries.
  • Even with a positive growth rate, some factors may impede the pattern. The supply of leather, one of the materials used in the market, might be heavily impacted by wrong practices such as unacceptable effluents' disposal that is harming the environment.

KEY PLAYERS

  • Some of the key players in the industry are the following: "Toyota Boshoku Corporation (Japan), Lear Corporation (US), Toyoda Gosei Co., Ltd. (Japan), Adient PLC (Ireland), Faurecia S.A. (France), Grupo Antolin (Spain), and Sage Automotive Interiors Inc. (US)."
  • These major players are implementing various strategies to increase their market shares. Their growth approach includes "expansions, mergers and acquisitions, partnerships and agreements, and new product developments."

YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGY:

We started our research by looking for directly available data of the global automotive interior materials market size. We also looked for the market's growth rate in the next 3-5 years. We searched for this information in various sources such as in market research sites like MarketsandMarkets, Wise Guy Reports, Grandview Research, Transparency Market Research, IBIS World, Statista, and others; automotive industry sources such as Auto News, Automobile, and others; business-related sources such as Forbes, Business Insider, and others; press release sources such as from PR News Wire, Business Wire, and others; media outlets such as Huffington Post, CNBC, and other relevant sources. Based on this search approach, we were able to find several reports that directly provide the global automotive interior materials market size and its growth rate over the next 3-5years.
Our direct search strategy above also resulted in the discovery of several paywalled reports such as those coming from Market Watch and GM Insights. We have provided the links to these reports for additional reference. Our findings are indicated in the section above.
Sources
Sources

From Part 03
Quotes
  • "Sage Automotive’s roots are 70 years old. It entered the auto industry in 1948. Before it was spun off in 2009, what became Sage Automotive was part of fiber and chemical manufacturer Milliken & Co."