Leather for Automotive Seats Market Size Expected to Reach USD 69.12 Bn 2031, Growing at CAGR of 5.3%, Booming Automotive Industry Fuels Growth | The Insight Partners

NEW YORK, June 30, 2025 /PRNewswire/ -- As per a new comprehensive report from The Insight Partners, the global leather for automotive seats market is observing significant growth owing to the rising demand for luxury vehicles and a growing adoption of electric vehicles.

The leather for automotive seats market is expected to reach US$ 69.12 billion by 2031 from US$ 48.93 billion in 2024. The market is estimated to register a CAGR of 5.3% during the forecast period. The leather used in automotive seat applications is made from either genuine or artificial leather. Genuine leather, also known as natural leather, is derived from the hides of animals such as cattle, goats, buffalo, or others, which are a byproduct of the meat processing industry. Artificial leather, also known as synthetic leather, is made using polyvinyl chloride or polyurethane to mimic the properties and texture of natural leather.

The report runs an in-depth analysis of market trends, key players, and future opportunities. The leather for automotive seats market analysis focuses on automotive applications that are expected to determine the market strength in the coming years.

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Overview of Report Findings

1. Rising Demand for Luxury Vehicles: Luxury vehicles encompass superior comfort with high-end materials to enhance their interior. Leather seats are perceived as a hallmark of premium interiors in luxury vehicles. Leather seats significantly improve the overall aesthetics of the vehicle interior, contributing to a refined and elegant ambiance. Luxury consumers often seek visually appealing interiors crafted from premium materials, with leather playing a central role. Consumers typically associate leather automotive seats with sophistication and exclusivity, which aligns with the luxury vehicle image. This preference stems from the growing demand for comfortable, stylish, high-quality automotive interiors. In September 2023, Aston Martin, a British luxury automotive manufacturer, announced plans to expand its geographical footprint in India by inaugurating a new dealership. It also launched the sports car DB12 with leather seats to meet its growing demand. Thus, the rising number of luxury vehicles fuels the global demand for leather for automotive seats.
2. Growing Adoption of Electric Vehicles: The rise in fuel prices and the environmental impact of conventional gasoline vehicles have paved the way for alternative fuel vehicles across the globe. Buyers are gradually getting inclined to use battery-powered or hybrid automobiles, which is anticipated to boost the demand for electric vehicles in emerging and developing countries. According to the International Energy Agency's annual Global Electric Vehicle Outlook, China registered 6.4 million electric vehicles in 2024, an increase from 5.4 million in 2023. As the automotive industry witnesses a transformative shift toward electric vehicles (EVs), the demand for leather for automotive seat applications increases.
3. Geographical Insights: Asia Pacific led the market with a substantial revenue share in 2024, followed by North America and Europe. Further, Asia Pacific is expected to register the highest CAGR during the forecast period due to a booming automotive industry.

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Market Segmentation

• In terms of type, the leather for automotive seats market is bifurcated into genuine leather and artificial leather. The genuine leather segment held a larger share of the market in 2024.
• By vehicle type, the leather for automotive seats market is segregated into passenger cars, light commercial vehicles, heavy commercial vehicles, and others. The passenger cars segment dominated the market in 2024.
• The leather for automotive seats market is segmented into five major regions: North America, Europe, APAC, Middle East and Africa, and South and Central America.

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Competitive Strategy and Development

• Key Players: San Fang Chemical Industrial Co Ltd; Mayur Uniquoters Limited; Nan Ya Plastics Corp; FILWEL Co., Ltd.; Kolon Industries Inc; BASF SE; Kuraray Co Ltd; Teijin Ltd; Toray Industries Inc; Covestro AG; Wollsdorf Leder Schmidt & Co Ges.m.b.H.; Curtidos Treviño S.A. de C.V.; Wickett-Craig; Super Tannery Ltd.; and Elmo Sweden AB are among the leading companies operating in the leather for automotive seats market.
• Trending Topics: Vegan leather for automotive seats, electric vehicles, luxury vehicles, lightweight leather, synthetic leather

Global Headlines on Leather for Automotive Seats

- Bentley Motors became the first automotive member of Leather Naturally, the global voice of the sustainable leather industry.
- Kuraray announced to increase the prices of its man-made leather CLARINO  
- Danish company Beyond Leather Materials collaborated with German materials manufacturer Covestro

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Conclusion

The growth in the global automotive industry, especially luxury vehicles, propels the demand for leather for automotive seats. The increase in population, rise in disposable income, and easy availability of credit and financing are the key factors boosting luxury vehicle sales. The increasing sales in the automotive industry are fueling the consumption of leather for automotive seats. Further, the increasing investment in electric vehicles is driving the leather for automotive seats market substantially. The rise in fuel prices and the environmental impact of conventional gasoline vehicles have paved the way for alternative fuel vehicles across the globe. Buyers are gradually getting inclined to use battery-powered or hybrid automobiles, which is anticipated to boost the demand for electric vehicles. Therefore, the demand for leather for automotive seats in electric vehicles is expected to increase significantly in the coming years.

The report from The Insight Partners, therefore, provides several stakeholders—including raw material suppliers, manufacturers, distributors, and others—with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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