Summary

The synthetic leather surface materials for transportation market was valued at $10.85 billion in 2022, which is expected to grow at a CAGR of 9.76% and reach $26.96 billion by 2032. The growth in the synthetic leather surface materials for transportation market is expected to be driven by growing demand for sustainable and cruelty-free alternatives to genuine leather, as well as cost-effectiveness and advancements in synthetic leather technology, improving quality and performance.

Market Lifecycle Stage

Synthetic leather surface materials for transportation is crucial in the development of sustainable vehicles in the transportation systems as well as for the success of vehicle suppliers and manufacturers. The market lifecycle stage of synthetic leather for the transportation industry can vary by region and specific application within the industry. In North America, synthetic leather for automotive upholstery may be in the maturity or saturation stage of the market lifecycle. Many automakers have adopted synthetic leather as an alternative to genuine leather due to its cost-effectiveness and sustainability. As a result, demand may be stable, with a focus on product quality and innovation. In emerging markets such as parts of Asia and Africa, synthetic leather for automotive upholstery might be in the growth or even introduction stage. As more consumers in these regions are purchasing cars, there is a rising demand for affordable and durable upholstery materials, including synthetic leather. In general, the demand for synthetic leather in automotive and other transportation applications was increasing due to factors such as cost-efficiency, sustainability concerns, and advancements in material technology.

The synthetic leather surface materials for transportation market is in the growth and early maturity phase. The implementation of synthetic leather surface materials for transportation is increasing in automotive vehicles. As a result, the market is expected to flourish in the forecast period.

Impact

The impact of synthetic leather on the transportation market has been significant and multifaceted. Synthetic leather, known for its cost-effectiveness, versatility, and sustainability compared to genuine leather, has played a pivotal role in transforming the automotive and transportation industry. It has enabled automakers to offer attractive and durable interior options at a lower cost, appealing to a wider range of consumers. Furthermore, the use of synthetic leather aligns with sustainability initiatives, reducing the reliance on animal-derived materials. This shift toward synthetic leather has also led to innovations in material technology, driving improvements in quality, durability, and design, ultimately enhancing the overall passenger experience and contributing to the ongoing evolution of the transportation market.

Market Segmentation:

Segmentation 1: by Industry
• Automotive
o Passenger
o Commercial
• Marine
• Aviation
• Rail

The synthetic leather surface materials for transportation market based on the industry type segment is expected to be dominated by the automotive segment throughout the forecast period 2023-2032. The automotive segment is the largest in the synthetic leather transportation industry due to several reasons. Firstly, the sheer volume of vehicles produced annually far surpasses that of the aviation, marine, and rail industries. In particular, millions of cars are produced and sold each year, creating a huge demand for synthetic leather for seats, steering wheel covers, and interior trims. Secondly, synthetic leather is a popular choice in the automotive industry because of its durability, ease of maintenance, and cost-effectiveness. It can withstand the wear and tear of daily use. It is easy to clean and less expensive than genuine leather, which makes it an attractive option for car manufacturers looking to balance quality and cost.

Segmentation 2: by Application
• Upholstery
• Headliner
• Dashboard
• Floor
• Others

Based on application, upholstery tends to occupy the major market share in the application segment of synthetic leather surface materials for transportation market due to several reasons. Firstly, synthetic leather is widely used in upholstery due to its durability, ease of maintenance, and cost-effectiveness. It is resistant to stains and discoloration, which makes it an ideal choice for vehicle interiors that are subject to heavy use and wear. Secondly, synthetic leather offers a wide range of design possibilities. It can be produced in virtually any color or pattern, allowing manufacturers to create customized interiors that meet the specific preferences of their customers. Lastly, the demand for synthetic leather in upholstery is driven by the growing consumer preference for luxury and comfort in vehicle interiors. Synthetic leather provides a luxurious and premium feel that enhances the overall driving experience.

Segmentation 3: by Sales Channel
• OEM
• Aftermarket

Based on sales channel, the original equipment manufacturer (OEM) segment tends to dominate the synthetic leather surface materials for transportation market because of several reasons. OEM synthetic leather manufacturers have direct relationships with vehicle manufacturers, which allows them to incorporate synthetic leather into the initial design and manufacturing process. This ensures a high-quality fit and finish that matches the rest of the vehicle's interior.

Segmentation 4: by Process
• Virgin
• Recycled

Based on process, virgin synthetic leather is expected to dominate the synthetic leather surface materials for transportation market for several reasons. Firstly, virgin synthetic leather tends to have superior quality and durability compared to recycled synthetic leather. This is because it is made from new raw materials, which ensures its strength and longevity. Secondly, virgin synthetic leather offers a wider range of textures, colors, and finishes, which makes it more appealing to consumers. Lastly, while recycled synthetic leather is more environment-friendly, the technology and processes to produce high-quality recycled synthetic leather are still being developed and perfected. Therefore, until these processes become more efficient and cost-effective, virgin synthetic leather is expected to continue dominating the market.

Segmentation 5: by Material Type
• Polyurethane
• Polyvinyl Chloride (PVC)
• Polyester
• Others

Based on material type, polyurethane (PU) is expected to dominate the synthetic leather surface materials for transportation market in the next few years because it is a durable, water-resistant, flexible, and cost-effective material that is also recyclable and environment-friendly. PU is used in a variety of transportation applications, such as car seats, dashboards, headliners, and door panels because it provides good cushioning, sound insulation, and resistance to fading and cracking.

Segmentation 6: by Region
• North America
• Europe
• U.K.
• China
• Asia-Pacific and Japan
• Rest-of-the-World

China is expected to dominate the synthetic leather surface materials for transportation market due to several factors. These regions have a high concentration of automobile manufacturers, which increases the demand for synthetic leather. Secondly, the growing middle-class population in China is driving the demand for more luxurious and comfortable vehicles, which often feature synthetic leather interiors. Also, environmental regulations in these regions are becoming stricter, encouraging the use of synthetic leather over traditional leather due to its lower environmental impact.

Recent Developments in the Global Synthetic Leather Surface Materials for Transportation Market

• In March 2023, Mayur Uniquoters Limited commenced operations at its polyurethane artificial leather manufacturing facility in Sitapur.
• In October 2022, General Sillicones Co. Ltd. launched its silicone synthetic leather for industrial applications such as automotive and marine.
• In October 2022, Toray Industries, Inc. developed a new type of Ultrasuede nu, a non-woven material that looks like leather. The new material is partially made from 100% plant-based polyester. All Nippon Airways (ANA) will use the new material for the headrest covers in its ANA Green Jet, a special aircraft that will launch in November 2023.
• In November 2020, Nan Ya Microplastic's microfiber synthetic leather business was acquired by San Fang Chemical Industry.

Demand – Drivers and Limitations

Following are the demand drivers for synthetic leather surface materials for transportation market:

• Increasing Demand for Sustainable Materials
• Growing Demand for Lightweight Materials
• Improved Durability and Performance
• Lower Cost of Synthetic Leather

The market is expected to face some limitations as well due to the following challenges:

• Limited Availability of Synthetic Materials
• Numerous Environmental Regulations
• Complex Process of Manufacturing Synthetic Leather

How can this report add value to an organization?

Product/Innovation Strategy: The product segment helps the reader to understand the different applications of synthetic leather surface materials for transportation services available based on process type (virgin and recycled), application (upholstery, headliner, dashboard, floor, and others), industry (automotive, rail, marine, and aviation), material type (polyurethane, polyvinyl chloride, polyester, and others), and sales channel (OEM and aftermarket). Increasing demand for environment-friendly leather is pushing the consumption of synthetic leather surface materials for transportation. Therefore, the synthetic leather surface materials for transportation business is a high-investment and high-revenue generating model.

Growth/Marketing Strategy: The synthetic leather surface materials for transportation market is an exponentially growing market holding enormous opportunities for the market players. Some strategies covered in this segment are product developments, market developments, partnerships and collaborations, business expansions, and investments. The companies' preferred strategy has been product development, partnerships, and collaborations to strengthen their positions in the global synthetic leather surface materials for transportation market.

Competitive Strategy: Key players in the global synthetic leather surface materials for transportation market analyzed and profiled in the study involve synthetic leather surface materials for transportation manufacturers. Moreover, a detailed competitive benchmarking of the players operating in the global synthetic leather surface materials for transportation market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.

Key Market Players and Competition Synopsis

The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.

The competitive landscape of synthetic leather surface materials for transportation market includes different strategies undertaken by service providers to gain market presence. Some strategies adopted by them include new product launch and development activities, market development activities, partnerships, collaborations, joint ventures, and mergers and acquisitions. Among all the strategies adopted, product development activities have dominated the competitive landscape and are the most widely adopted strategies among service providers.

Key Companies Profiled:

• Ultrafabrics LLC
• Alfatex Italia Srl
• Covestro AG
• Yarwood Leather Ltd.
• Autostop Aviation
• BASF SE
• ANANAS ANAM LTD.
• Kuraray Co. Ltd.
• Toyota Motor Corporation
• Toray Industries, Inc.
• Teijin Limited
• Mayur Uniquoters Limited
• General Sillicones Co. Ltd
• Nan Ya Plastics Corporation
• ZHEJIANG HEXIN SCIENCE AND TECHNOLOGY CO.,LTD.

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