South & Central America Automotive Fabric Market

The South & Central America automotive fabric market was valued at US$ 1,494.39 million in 2022 and is expected to reach US$ 2,009.56 million by 2030; it is estimated to grow at a CAGR of 3.8% from 2022 to 2030.

Innovative Technological Developments in Automotive Fabric Industry Fuel South & Central America Automotive Fabric Market

Many manufacturers are involved in product innovations related to automotive fabrics. To manage the rise in demand and supply capabilities, manufacturers are incorporating various legal and consumer requirements to launch environment-friendly, technologically advanced, and legally approved fabric materials. Development of coatings that provide resistance to stains, water and UV radiations, help in maintaining the appearance and durability of automotive fabric. The continuous research into developing fabrics that can accommodate airbags while ensuring customer safety, thereby prompting development of tear-resistant materials and seamless integration. Moreover, the significant use of knitted and woven fabrics, owing to their improved flexibility, comfort, stretchability, and better visual quality, promotes the demand for such fabrics. The manufacturers prefer lightweight composite material, which possesses minimal moisture content and is integrated with advanced adhesive technology to regulate sealing, vibration, and harshness in vehicles. Also, the use of fabrics in floor covering to absorb noise and vibration enhances the overall customer experience. Thus, a rise in innovative technological developments in the automotive fabric industry is likely to generate several growth opportunities for the market in the coming years.

South & Central America Automotive Fabric Market Overview

The significant presence of automotive companies in Brazil and Argentina is propelling the sales of automotive components and materials in South & Central America. According to the report by the Brazilian Association of Automotive Vehicle Manufacturers, the production of automobiles in Brazil grew by 11.4%, and the sales were boosted by 10.9% from February to March 2022. Major market players in the automotive sector have strategized the development and expansion of their operational capacities in South & Central America to benefit from the lucrative automotive market. In 2022, Audi AG invested US$ 19.2 million to restart production activities at the company's plant in Parana, Brazil, registering a capacity of 4,000 vehicles per year. The growth of passenger car sales is driven by its pricing as well as credit availability in the country. In 2022, Kavak invested US$ 500 million in its auto reconditioning space in Brazil to purchase and sell secondhand cars. The company already has 40 logistics centers and vehicle reconditioning spaces in Latin America. Such investments in the used car industry are expected to drive the maintenance and reconditioning operations in the region. End users in the automotive fabric include automotive companies, original equipment manufacturers and car care service providers. Thus, the growth in the automotive industry is expected to create opportunities for players operating in the automotive fabric market over the coming years.

South & Central America Automotive Fabric Market Revenue and Forecast to 2030 (US$ Million)

South & Central America Automotive Fabric Market Segmentation

The South & Central America automotive fabric market is segmented based on component, material, and country. Based on component, the South & Central America automotive fabric market is segmented into carpet, headliner, hood liner, insulation, seat covering material, and others. The carpet segment held the largest market share in 2022.

In terms of material, the South & Central America automotive fabric market is segmented into textiles, artificial leather, genuine leather, and artificial suede. The textiles segment held the largest market share in 2022.

Based on country, the South & Central America automotive fabric market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the South & Central America automotive fabric market share in 2022.

Lear Corp, Bader GmbH & Co KG, BOXMARK Leather GmbH & Co KG, AUNDE Group SE, Grupo Empresarial Copo SA, and Seiren Co Ltd are some of the leading companies operating in the South & Central America automotive fabric market.