Thursday 28 January 2021

Rising car customization trend will drive market growth.

Car interior accessories market to see 3.9pc growth

DUBAI, October 11, 2016

The global interior car accessories market is anticipated to expand at a compound annual growth rate (CAGR) of 3.9 per cent from 2016 to 2024, a report said.

Growing consumer preference for comfortable and entertaining driving experience will remain a key factor fuelling the demand for interior car accessories, according to the report from Persistence Market Research, a top business research firm.
With established popularity of accessories, such as seat covers, car mats, stereos and speakers, steering wheel covers, dash kits, navigation systems, cushions, sunshades, and others, the global market for interior car accessories is gaining steady traction.

A wide range of new, innovative accessories are frequently launched, providing an uptick to the demand for interior car accessories globally. An increasing number of car owners are purchasing interior accessories for their cars, in order to enhance the look and aesthetic appeal. Moreover, accessories also add value to the overall driving experience. A trend of customized cars is on the rise since the recent past, and will remain a favourable factor for the market growth during the forecast period.

Following the staggering growth of the global automotive industry, the market is also witnessing an upsurge in the sales of passenger cars and pickup trucks. This will continue to play a vital role in bolstering the demand for a particular set of interior vehicle accessories. Increasing demand for accessories for fast moving cars will also remain a key driver. In developed regions, rising aftermarket e-retailing is a major driver positively influencing the market for car accessories.

Counterfeits operating in the market are however expected to capture a sizeable market share, owing to easily available and cost effective products. In addition, the global market is extremely fragmented. These two factors may collectively hamper the market growth over the forecast period.

Technological innovations and growing applications of car accessories collectively boost a trend of decorative car accessories in the global car interior accessories market. This trend will remain a major driver for the market by 2024 end.

By product type, electronic accessories will remain a major shareholder through to 2024, registering a CAGR of 5.4 per cent. Covers segment is estimated to record the highest CAGR of 6.8 per cent, reaching a value of $ 61.59 billion by 2024 end. Other product segments include knobs, consoles & organizers, car cushions & pillows, fragrance, communication, car mats, central locking system, dash kits, and sunshades.

Based on vehicle type, passenger cars will continue to attract higher sales against pickup trucks. While the former is expected to maintain around 95 per cent of the total market share, the latter will grow significantly over the forecast period.

By distribution channel, OEM segment is projected to grab over 25 per cent of the total market share. However, the aftermarket segment will remain dominant with a CAGR of 5.2 per cent during 2016-2024.

Based on regional analysis, interior car accessories will witness the highest consumption in developing regions of Asia Pacific. APAC is anticipated to account for over 30 per cent of the market revenue share, and record a moderate CAGR of 5.5 per cent over the forecast period. Latin America, the Middle East, and Africa will also register discernible demand for interior car accessories.

Key players competing in the global interior car accessories include Pep Boys, Pioneer Corporation, Garmin Ltd., O’Reilly Auto Parts, U.S. Auto Parts Network Inc., Pecca Group Berhad, Car Mate Mfg, Co., Ltd., Covercraft Industries, LLC, Classic Soft Trim, Lloyd Mats, H.I. Motors, Star Automotive Accessories, and Momo Srl.

Leading companies are focusing on strategic marketing for better product positioning and enhanced market presence. A number of automotive dealers are also working as individual brands, in tandem with their parent OEMs.  – TradeArabia News Service

Tags: Accessories | Passenger cars |

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