The world’s automotive interior materials market is poised for significant growth over the next decade, due in part to consumer demand for luxury experiences and automakers’ need to set themselves apart from rivals.

London-based market analytics and consulting provider Persistence Market Research projects the niche market to grow 26% to more than $82 billion by 2033, or about a 4% compound annual growth rate.

In addition to consumer desire for premium interiors, automakers are also using more sustainable upholstery and other materials as they try to distinguish their brands, including for the electric-vehicle market, Persistence reported.

More automakers are seeking out recycled fabrics, plant-based leather substitutes and other sustainable materials instead of leather and synthetic materials.

Meanwhile, brands are increasingly sourcing more lightweight materials for fuel efficiency and EV driving ranges, according to the report, which pointed out that advanced composites and engineered polymers cut vehicle weights. The latter category makes up the biggest share of the interior materials market at 38%, though sustainable materials are the fastest-growing.

“This trend is particularly evident in Europe and Asia Pacific, where regulatory requirements and consumer preferences are accelerating the adoption of environmentally responsible automotive materials,” Persistence said.

The mix of premium and sustainable materials, even among mass-market brands, is intended to make vehicles more appealing to consumers, who are looking at cabin quality as a major factor when choosing which models to buy, according to the report.

Some brands are also working to improve cabin air quality. BMW, for example, now has a dedicated “scent lab” to assess materials and overall vehicle interiors for emissions and sensory characteristics “while contributing expertise to international standardization efforts.”

Hyundai and Kia recently announced they’ve developed an ultraviolet light-based cabin air purifier to kill potentially harmful germs, such as E.coli.

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