Persistence Market Research recently conducted a study which revealed that the market for interior car accessories market is poised to grow at a steady rate of about 3.6% CAGR in the period from 2016 to 2024. This growth in demand will be driven mainly by the users of passenger cars who desire a comfortable and entertaining driving experience.
Car accessories like steering wheel covers, seat covers, stereos and speakers, car mats, navigation systems and sunshades are now considered to be more of a necessities rather than as add-ons. New, innovative accessories are being launched on a regular basis and this has given a fillip to the demand in this segment at the global level. Accessories not only add to the look and feel of a car but also enhance the overall driving experience. Customers are also increasingly leaning towards customization and this factor is also expected to lead to a spike in demand during the period mentioned in the report.
In absolute terms, there has been a significant increase in the sales of passenger cars and pickup trucks at the global level and this will also bolster the demand for a interior vehicle accessories. In developed markets like the United States and Europe, online availability of aftermarket car accessories is expected to make a significant impact in the sale of accessories.
Pointing out negative factors that could affect the market, the report mentions that fake accessories might garner a sizable market share due to their low cost and easy availability. The global market is also extremely fragmented and these two factors could slow down growth in the 2016-2024 period.
Meanwhile technology is growing at a rapid pace and the launch of new products based on technological innovations could boost the market for car accessories.
When differentiated by product type, electronic accessories will account for the major share of the market right up to 2024, registering a CAGR of 5.4%, while the covers segment is estimated to record the highest CAGR of 6.8%, reaching a value of USD 61.59 Bn by 2024 end. Other product categories include car cushions and pillows, communication and entertainment systems, fragrance, knobs, consoles & organizers, dash kits, car mats, central locking system, and sunshades.
When analyzed on the basis of vehicle type, while passenger cars are expected to dominate the market with 95% of the total market share during the period from 2016 to 2024, the pickup segment is also expected to grow significantly over the forecast period.
When it comes to the distribution channel for accessories, while the OEM segment will reach over 25% of the total market share, the aftermarket segment will continue to dominate with a CAGR of 5.2% during 2016-2024.
From a regional perspective, the interior car accessories segment is expected to witness the highest growth (5.5%) in the developing markets of Asia Pacific which will account for over 30% of the market revenue share. Latin America, the Middle East, and Africa will also witness significant demand for interior car accessories.
The major players in the global interior car accessories include Garmin Ltd, Pep Boys, Pioneer Corporation, Lloyd Mats, O’Reilly Auto Parts, Classic Soft Trim, U.S. Auto Parts Network Inc., Pecca Group Berhad, Car Mate Mfg, Co., Ltd., Covercraft Industries, LLC, H.I. Motors, Star Automotive Accessories, and Momo Srl.
Hamid Moaref has always been fascinated by cars and the automotive industry. His family has a longstanding association with the industry and has been in the tire business for the past 35 years. Raised in Dubai, Hamid attended Capilano University in Vancouver where he graduated with a BBA in marketing before attending an intensive course in magazine publishing in 2005. He has been the publisher and chief editor of Tires & Parts magazine for the past ten years.
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