Automotive headliner is made from different types of fabrics affixed to the inside of the roof panel of automobiles, which improves the appearance and aesthetics of the cabin. The parent market for automotive headliner is the automobile sector, which is dominating the GDP in several economies. Sales in the automotive headliner are likely to increase at a rapid pace with the increasing number of vehicles in the market.
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The global automotive headliner market is highly fragmented. Several international and domestic players are operating in the automotive headliner market. Prominent manufacturers have been extensively investing in manufacturing operations in developing economies, such as India & China. The automotive headliner market is fragmented due to the high demand for a luxurious appearance of vehicles, which is influencing the growth of the automotive headliner market. Increasing production and sales of premium cars are inducing the need for designing luxurious interiors, propelling the automotive headliner market growth. Modern designs of automotive headliner add to the lavish and deluxe appearance of premium cars, meeting the consumer demand for luscious features in such automobile segments. Increasing disposable income is leading to higher sales of passenger cars, subsequently benefiting the automotive headliner market.
For instance, in the year 2018, Grupo Antolin, an automotive interior product manufacturer, changed the design for lighted automotive headliner with a new fabric design. The design is laser engraved, with an opaque surface that generates a luminous effect for more attractive interiors of a vehicle and is comfortable for passengers.
Furthermore, increments in the number of commercial vehicles is likely to enhance the demand for automotive headliner in the global market. Consumers’ preference for OEM’s automotive headliner have increased considerably. Another market driver for automotive headliner is the availability of the product from different sales channels. Growth in the aftermarket sales channels is likely to give an impetus to the global automotive headliner market. All the above mentioned major influencing factors are highly expected to drive the global automotive headliner market in the forecast period.
Globalization of Manufacturing Processes to Provide Impetus to the Automotive Headliner Market
Moving to the global platform can certainly benefit automotive headliner manufacturers as it can reduce overall manufacturing costs without evaluating the quality of products. Faster production and quicker responses involved in the globalization of manufacturing directly reflects on the expansion of the market, as manufacturers can maintain production costs and cheaper selling prices. Manufacturers of automotive headliners are expected to benefit from taking their production and manufacturing operations on the global level with regards to technology. Exchange of new and advanced technologies through collaborations can help automotive headliner manufacturers exploit new market opportunities. Apart from the improved cost efficiency and technological advantages, the auto industry’s globalization can also help manufacturers to move their operations on the global platform and optimize the production to meet consumer demand.
Innovations and Technological Advancements in Headliner Designs Foster the Growth of the Automotive Headliner Market
Due to increasing disposable earnings and improved standards of living, demand for premium car technologies has risen significantly. Considering the enthusiasm of buyers to pay more for luxurious features in cars, manufacturers are improving the design of automotive headliner. Also, to meet consumer needs for better connectivity, manufacturers are executing wireless internet connectivity solutions to add technological specialties to car headliners. Manufacturers are also integrating multimedia consoles to automotive headliners, which is expected to increase the value of the automobiles and attract more consumers. To add eco-friendly features to the headliner, manufacturers are concentrating on developing environmentally sustainable automotive headliner comprising of a renewable content. By integrating advanced technologies, manufacturers are producing automotive headliners to meet smart, autonomous, and hybrid car requirements.
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Automotive Headliner Working as an Interior NVH Insulation Solution
Noise, vibration, and harsh characteristics of a car can be uncomfortable for people sitting in the car cabin. Vibration between various components in the car interiors may cause undesirable noise, which requires NVH engineering techniques. For underpinning the increasing demand for NVH cancellation in automobiles, leading automotive headliner manufacturers are making use of superior grade materials in headliners having better noise absorption characteristics. By making use of materials with better physical and mechanical properties, better NVH characteristics of automobiles can be achieved more quickly. Majority of manufacturers in the world are expected to capture opportunities in the auto industry by enhancing NVH insulation properties of automotive headliners in coming years.
Rising Costs of Raw Materials Creating Challenging Conditions for Key Market Players
Even though the automotive industry is witnessing a considerable boom, fluctuating costs of raw materials may create major hurdles in the near future. Similarly, increasing price of raw materials such as leather, foam, plastic, and rubber among others, which are used to manufacture automotive headliner, is likely to have a negative impact on the market in the projected future. Rising prices of commodities in various countries are directly influencing the manufacturing cost of automotive headliners. This is expected to create challenges for auto manufacturers in maintaining competitive prices of automotive headliner. As raw materials account for a large share in the input cost, continual hike in their prices may impede the growth of the automotive headliner market.
Asia Pacific Region Will Continue to Dominate the Automotive Headliner Market in the Upcoming Years
An increase in demand for premium vehicles and rapid expansion of OEMs in China, India, and South Korea are fueling the demand for automotive headliner market in the forecast period. Rising environmental awareness and government support are expected to drive the Asia Pacific electric car market. Over the last decade, the global automotive industry has undergone the greatest transformation it has experienced in its history. Although, North America and European regions are still having the largest market globally, Asia is taking on an increasing share of global vehicle sales and is the only major market expected to witness strong, medium and long term growth. Fast GDP growth and highly aspirational Asian consumers have been the two main growth drivers for the emerging automotive headliner market. Demand for vehicles in Asia is expected to continue in the short and medium term, with passenger car production in China and India increasing by ~44% and ~22% respectively by the end of 2030. In Latin America, Mexico is expected to increase by ~25% in the forecast period. In the current situation, slowdown in the Indian automobile industry growth has been witnessed due to ongoing slump triggered by the variety of factors including low customer sentiment and non-availability of liquidity.
Expansion of the Automotive Interior Industry to Support the North America Automotive Headliner Market Growth
North America is known for quickly adopting new technologies, owing to the rapidly increasing GDP and high employment rate. This region has witnessed significant growth in the demand for electric vehicles in the past few years. In North America, since 2014, the sale of electric cars has doubled, which implies that the need for electric vehicles has risen at a rapid pace. This demand for electric vehicles will drive the growth of automotive headliner market across the US and Canada.
In addition to the global vehicle trend, preferences for newer technologies are drivers of growth as well. The trend towards crossovers and SUVs in the United States is driving growth since larger vehicles require more upholstery.
Innovations in the automotive industry are claiming the center stage in the global automotive industry, primarily in areas such as convenience, environmental compatibility, appearance, and reduction in weight of automotive parts. Against this background, auto manufacturers are paying attention to the superior grade materials for producing automotive headliner. By employing a variety of materials to produce headliner, manufacturers are improving characteristics of light weight, low release of stench and harmful chemicals, durability, recyclability, and high sound absorption. By adding a variety of specifications to automotive headliner with the help of high-quality material types, leading manufacturers are making efforts to gain a competitive edge in the global market.
A comprehensive view of the automotive headliner market has led our analysts to conclude that, the market is growing at a considerable rate, with East Asia, Europe, and South Asia holding a significant share in the global demand for the automotive headliner market. The rising expansion in automotive industries and increasing traffic densities in developing countries such as India and China are also spurring automotive headliner demand. Owing to the need for compact and luxury cars among young generation and different choices for advance interior design, hardtop type automotive headliner will remain dominant over the soft-top automotive headliner. Effective integration of design and workflow by various automotive headliner manufacturers will also give impetus to the global industrial automotive headliner market.
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Technological advancement and aesthetically pleasing interiors, preference of customers towards lucrative and noiseless interior, and additional features such as, augmented technology, 3D- laminated glass, and sensors will enable the major automotive manufacturers to adopt latest automotive headliner technology thereby increasing profit margins for market players. Companies with R&D capabilities and technological prowess will gather momentum and profitability in the automotive headliner market. Leading manufacturers and several aftermarket service players who are leveraging technology will continue to grow exponentially and have a considerable market revenue share. However, automotive headliner produced from slab stock foam suffers from the problem of requiring many productions steps resulting from the production of comparatively large amounts of piece foam, which can be challenging to discard. These are several determinants, which are impeding the growth of the automotive headliner market across the globe.
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