The global automotive electric seats market was valued at USD 62 billion in 2022 and is expected to reach USD 85.62 billion by 2028, growing at a CAGR of 5.53%. The market is witnessing dynamic expansion and is expected to grow significantly during the forecast period due to several factors, such as the increasing number of passenger and commercial production vehicles and increasing disposable income. Automobile electric seats have many functions, such as seat adjustment and headrests, among many others. Several types of automotive electric seats are used in various vehicles, depending on their functionality. The automotive industry is experiencing continuous innovations in design and technology. Globally, for the security of automobiles, huge investments have been made in research and development (R&D) and improving vehicle aerodynamics, which increases the demand for enhanced vehicular parts and provides opportunities for vendors of automotive electric seats. During the last couple of years, the rapid urbanization in various economies has led to a significant increase in per capita income, increasing personal vehicle demand, thereby driving the automotive electric seats market.
MARKET TRENDS & DRIVERS
Rising Demand for Eco-friendly Products
The automotive industry is slowly but steadily moving towards the electric vehicle segment as it is a renewable energy source. However, there are still debates as there has been an increase in mining activities, again depleting non-renewable resources. Furthermore, automobile manufacturers have started using eco-friendly and recycled raw materials to manufacture their products. For instance, companies such as Magna and Volvo have set targets to ensure that the products used in manufacturing their seats and seat systems do not cause harm to the environment and will gradually shift towards more eco-friendly products. These products include recycled plastic, synthetic leather, or recycled metal. The demand for eco-friendly products has increased due to extreme climate change and predicted weather changes are propelling the brands to shift towards eco-friendly products.
Expenditure on Improving the Aesthetics of the Vehicle
Automotive seats are another prominent feature in car design that customers look for. However, the importance of automotive seats has been overshadowed. Multiple attempts have been made to improve the variety and aesthetics of seat systems. The quickest and easiest way to upgrade the car is by changing the seats' seating systems and aesthetics. These trends indicate that the demand for good aesthetics and variety in automotive seats will increase as the volume of automobile sales continues to increase.
INSIGHTS BY DISTRIBUTION CHANNELS
The original equipment manufacturer distribution channel holds the most prominent share of the global automotive electric seats market. The original equipment manufacturer distribution method is perhaps one of the oldest methods of selling, introducing, and marketing products to potential customers. Compared to the aftermarket distribution method, this distribution mode also allows the customers to get a demo of the products and use them before they make the actual purchase. This channel also allows them to check for the quality, colors offered, size, etc. Hence, such factors will likely drive the sales of automotive electric seats in the market during the forecasted period. Further, one of the prime modes of equipment sales globally is through dealers and distributors. They play a significant role in offering products to potential customers. These dealers and distributors sell automotive electric seat products from original equipment manufacturers.
INSIGHTS BY VEHICLE TYPE
The global automotive electric seats market vehicle type is segmented into passenger vehicles, light vehicles, and heavy vehicles. The passenger vehicles segment is expected to be valued for the largest share of the global market in 2022. The huge market share of this segment is ascribed to the extreme demand for transportation and logistics services, the increasing demand for low-emission commuting, the surging need to manage fossil fuel-based vehicles, and governments supporting zero-emission transportation for commercial electric vehicles are expected to drive the segment growth. Further, a significant number of measures are taken by the governments of various countries, such as subsidies & grants, tax rebates, and other non-financial benefits in car registration and access to carpool lanes, which are anticipated to boost the sale of electric vehicles in the coming years. These electric vehicles currently come under modern cars and have modern accessories and equipment. Hence, such vehicles are mainly fitted with electric seats. Hence, such reasons are propelling the growth of the electric passenger vehicle segment, directly propelling the growth of the global automotive electric seats market during the forecasted period.
INSIGHTS BY TECHNOLOGY
The global automotive electric seats market by technology is segmented into standard powered, heating & ventilated, heating, ventilated & message, heating, ventilated, massage & memory, and others. The standard electric seats segment holds the most prominent share of the market in 2022. Since the beginning of the 21st century, there has been a rapid improvement in living standards, with automobiles becoming the daily means of transport, be it humans or goods. The quality of the vehicles has drastically improved as the introduction of new technology and innovation has helped make the vehicles safer and smoother. The vehicles now have various technologies such as power steering, automatic window rolling systems, GPS systems, automatic drive integration, powered seats, and stellar interiors, among many others. Powered seats were one of the technological innovations integrated into all types of vehicles, including passenger and commercial vehicles. The standard powered seats run on a motor that draws power from the vehicle's electrical architecture. Most of the standard power seats are controlled with a High-end Automotive Electric Seat BLDC Motor Solution.
INSIGHTS BY SEAT TYPE
The driver seat dominated the global automotive electric seats market under the seat type segment. The driver’s seat is one of the most important parts of an automotive vehicle, as the person sitting on this seat is responsible for driving the vehicle. Many seats in the vehicle are integrated with electronic and other technologies such as ventilation, heating, massage, and memory. The dual seats hold the second highest market share as these seats are the next in line to be upgraded, followed by the driver seats. In Europe and North America, driver and dual seats are the most common types of electric seats in the market. In the region of APAC, the driver seats are the most common electric seats.
The global automotive electric seats market includes many companies that operate in major parts of the world. APAC is the largest market for automotive electric seats as the automotive sector is increasing significantly due to continuous industrialization, low-cost labor, and availability of raw materials, fueling the demand for automotive electric seats in the region. Therefore, the region is expected to dominate the global automotive electric seats market during the forecast period. The region is home to various developing countries, such as India, China, South Korea, and Indonesia. Governments of these developing countries introduced policies that attract foreign investment to promote industrial development. In addition, governments also offered subsidies and incentives under FDI policies.
APAC is a dominant market globally, but many other countries with a high scope of development in automotive electric seats will challenge its dominance. Regions, such as North America and Europe established some stringent emission regulations that affected the automotive industry but are projected to drive the automotive market in these regions. In addition, North America and Europe are the home to many major automotive manufacturers, such as Ford (U.S.), Audi (Germany), BMW (Germany), Fiat (U.K.), Renault (France), and GM (U.S.). Therefore, the development in the automotive sector is expected to drive the automotive electric seats market in these regions. Countries such as the U.S., the U.K., Germany, Spain, and France are some developed countries that drive the automotive electric seats market due to the availability of skilled labor.
The global automotive electric seats market is characterized by high market concentration, with high competition among the players. The present scenario drives vendors to alter and refine their unique value proposition to achieve a strong market presence. The global automotive electric seats market is moderately fragmented and dominated by vendors like Lear Corporation, Forvia, and Adient Plc. The competition among players is quite intense. The rapidly changing technology and environmental regulations could adversely affect companies. Customers also expect continual innovations and upgrades in automotive door handle products. The present scenario forces companies to refine their unique value proposition to achieve a strong market presence. Parameters on which companies are competing in the automotive electric seat market include product portfolio, quality of the product, geographical presence, brand image, cost differentiation, and others. The competition in the market will increase further due to technological advances and increased product lines.