Market Trends of Automotive Carpeting Industry
Passenger Cars Segment is Anticipated to Dominate the Market
The passenger cars segment accounted for the largest market share in the automotive carpeting market. It is owing to the increasing demand of consumers to install advanced and eco-friendly carpeting systems in their vehicles due to its noise-reduction capability, among other characteristics. The global new sales of passenger cars in 2022 touched 57.4 million units in 2022, compared to 56.4 million units in 2021, recording a Y-o-Y growth of 1.9% between 2021 and 2022.
On the other hand, the rise in sales of electric vehicles is also aiding the growth of the automotive carpeting market. The spike in sales is the result of an increase in regulatory norms by various organizations and governments to control emission levels and to propagate zero-emission vehicles. As a result, automakers are continually working and focusing on increasing their expenditure on the R&D of electric vehicles, which may fuel the demand for automotive carpets to enhance the interior look of the vehicle.
The global electric vehicles (including battery electric vehicles, fuel cell electric vehicles, and plug-in hybrid vehicles) market observed a tremendous increase in the number of sales registered every year since 2018. This increase was registered in almost all segments of vehicles, which include passenger vehicles and commercial vehicles. For instance-
- In 2022, global sales of battery electric vehicles (BEVs) touched 7.3 million units, compared to 4.6 million units in 2021, representing a 58.7% Y-o-Y growth between 2021 and 2022.
With the consumer's shifting preference toward availing of environmentally friendly modes of private transportation and growth in vehicle parc across the world, there will exist a greater demand for passenger vehicles in the coming years. It, in turn, is expected to contribute to the surging growth of the automotive carpeting market for this segment.
Asia-Pacific Remain to Dominate the Market during the Forecast Period
The Asia-Pacific region dominates the automotive carpeting market. As the majority of the vehicle is manufactured in the Asia-Pacific region, the region accounts for the largest share in terms of demand for automotive carpeting across the globe. Additionally, with rapid urbanization in countries such as India, China, and ASEAN Countries, the demand for and sales of passenger vehicles is continually increasing, in turn boosting the demand for carpeting in the automotive industry.
Coupled with that, the growing commercial vehicle segment in countries such as China and India, owing to the expanding e-commerce industry and rise in construction activity across regions, is also contributing to the increased demand for automotive carpets. It can be readily utilized in this vehicle segment. For instance,
- In 2022, India witnessed sales of 933 thousand units of commercial vehicles, compared to 677 thousand units in 2021, recording a Y-o-Y growth of 37.8% between 2021 and 2022.
- Similarly, new sales of commercial vehicles in Indonesia touched 264 thousand units in 2022, compared to 227 thousand units in 2021, representing a 16.3% Y-o-Y between 2021 and 2022.
Apart from passenger cars, with growing environmental concerns among both consumers and governments in the region, the adoption of electric vehicles increased significantly, especially in China, which is also expected to drive the market for carpeting. With the rising adoption of electric vehicles in the region, there remains a greater need for environmentally friendly advanced materials. It is expected to drive the demand for polypropylene carpets during the forecast period. Further, the growing vehicle parc in the region also assists in the demand for carpet products in the aftermarket, which is expected to fuel the market growth.
