Demand for automobile components is forecast to remain high, but the key drivers of interior trim and seating prices will slacken as pent-up demand from the recession tapers out
Los Angeles, CA (PRWEB) December 30, 2014
Vehicle seating and interior trim has a buyer power score of 3.4 out of 5, indicating that buyers have the upper hand in negotiations. Interior trim and seating prices have grown from 2011 to 2014, which contrasts the soaring growth trends that have characterized many automotive markets during this postrecession period. These stable prices are influenced by demand from automobile manufacturers, motorcycle manufacturers and auto repair shops. “Although demand has been increasing rapidly, the volume of sales has yet to return to prerecession levels, stifling any potential price escalation and keeping buyer power intact during the period,” according to IBISWorld business research analyst Scott Winters.
Market concentration is high, with a handful of large manufacturers competing for the business of major automakers and generating the majority of the market's revenue. However, buyers can take advantage of competition among the multitude of smaller suppliers to get reduced prices.
Key inputs such as synthetic fiber, urethane foam and steel also dictate prices. In the three years to 2017, prices for these inputs are anticipated to be stable, allowing interior trim and seating prices to increase. “Market prices are historically stable and unlikely to spike, which allows buyers to better plan and budget for their vehicle component purchases,” says Winters.
Interior products tend to be specialized, sometimes forcing buyers to locate an original part or have one custom fabricated. This specialization effectively lowers the number of potential suppliers and reduces buyer power. Low profit margins in the market put a limit on the discounts available to buyers. But buyers still have a number of negotiating opportunities, such as bulk pricing and discounts on related products. Major vendors include Faurecia SA, International Automotive Components Group North America, Johnson Controls Inc. and Magna International Inc. For more information, visit IBISWorld’s Vehicle Seating & Interior Trim procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of vehicle seating components, including seat frames, cushions, seat covers, power seating systems and heated and cooled seats. This report also includes interior trim components such as consoles, door panels, headliners, sun visors, instrument clusters and pedals. The report also covers repairs performed on the mentioned components. Seating and trim components for boats and motorcycles are included, but aircraft seating, seating systems and interior components are excluded from the report. The suppliers in this market are aftermarket vehicle parts manufacturers or major automakers that manufacture replacement parts for their vehicles.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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