Automobile Interior Manufacturing

Business for Sale Industry Economics




Projected CAGR

2003 - 2021


2021 - 2027






Quick Scroll


Automobile seats and interiors, including upholstery, trimming, seat covers, seatbacks, and seat belts, are manufactured by the Automobile Interior Manufacturing industry.

Seats for planes, buses, and trains are also manufactured in this sector. Automakers have traditionally been the primary generators of market demand. Demand for complete vehicles has been largely muted for the majority of the five years leading up to 2021.

Upstream vendors, such as industry car interior makers, saw a drop in demand as a result. Furthermore, as a result of the COVID-19 (coronavirus) pandemic, macroeconomic circumstances deteriorated, and demand for new vehicles plummeted even more.

For the five years to 2021, sector revenue has fallen at an annualized rate of 4.3 percent to $28.8 billion.

However, in 2021, a 5.6 percent increase is expected as operators adapt to pandemic conditions and the economy returns to normalcy.


The Automobile Interior Manufacturing industry is heavily influenced by customer desires and optimism in the United States. When people are confident in their financial prospects, they are more likely to invest more money on luxury things like cars.

Furthermore, as luxury spending increases, consumers are more likely to expect high-end interior features like leather and powered seats, as well as full-stock interior trimming.

These items are mostly sold at higher prices, which helps the industry make money.


The Automobile Interior Manufacturing industry is expected to expand again over the next five years, to 2026. In the coming years, improved customer confidence is expected to persuade manufacturers to return to normal production levels, restoring demand for interior components.

Low-interest rates and perhaps more fiscal spending would certainly aid this increase in demand for new vehicles. Demand for seating, trim, and other high-end interior amenities is expected to rise as macroeconomic conditions improve, resulting in further disposable income.

Furthermore, new car prices are expected to increase over the next five years, which will certainly keep automakers busy. Over the five years to 2026, market revenue is expected to grow at an annualized rate of 2.0 percent to $31.9 billion.

Business for Sale Industry Economics Automobile Interior Manufacturing


Motor vehicle seats and various interior parts, such as trimming, motor vehicle upholstery, seat covers, seat belts, and seat frames, are manufactured by companies in this industry. Aircraft seats are also manufactured by industry operators.


A modest degree of capital intensity characterizes the Automobile Interior Manufacturing business. In 2021, the average industrial operator will likely spend $0.14 on capital equipment for every $1.00 spent on labor.

Large-scale manufacturing in this business necessitates a significant amount of capital expenditure. For research and development, capital is also required.

Wage expenditures, on the other hand, account for 12.8 percent of revenue in 2021, since trained labor is necessary for the production and R&D processes of automotive interiors. In the manufacture of automobile seats, labor input is also critical.


Low to moderate volatility has characterized the Automobile Interior Manufacturing business. Because interior producers rely heavily on demand from automakers, demand for this industry’s products is primarily determined by overall automotive output.

Industry revenue declined for the majority of the five years leading up to 2021, coinciding with dismal macroeconomic conditions and sluggish auto demand at the conclusion of the era. For the most part, the industry was in a downward spiral.

The impact of COVID-19 (coronavirus) on the US economy, on the other hand, has resulted in a significant worsening of macroeconomic conditions. As a result, new automobile sales have slowed, putting pressure on auto manufacturing.

This has resulted in a dramatic drop in demand for industrial goods, with revenue falling 11.1 percent in only 2020.

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