Vehicle Seating & Interior Trim Procurement Category Market Research Report from IBISWorld has Been Updated

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Market concentration is high for the vehicle seating and interior trim market, 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 achieve reduced prices. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Vehicle Seating & Interior Trim in its growing collection of procurement category market research reports.

IBISWorld procurement market research
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

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.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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