Asia-Pacific Interior Car Accessories Market Outlook, 2028

Asia-Pacific Interior Car Accessories Market Outlook, 2028

Asia Pacific is the largest automotive interior materials market owing to rapid economic growth in the region. The major global automakers are headquartered in the developed countries of Asia Pacific. This region is not only a manufacturing hub, but it also has important R&D facilities. Because of improving economic conditions and a thriving manufacturing sector, the automotive industry in Asia-Pacific developing countries is expected to grow. The history of interior car accessories in the Asia-Pacific region is closely tied to the growth of the automotive industry in the region. In the early days, car interiors in Asia-Pacific were basic, with few features or accessories. However, as car ownership increased, so did the demand for more comfortable and stylish interiors. In the 1960s and 1970s, Japan emerged as a major automotive manufacturing hub, and Japanese automakers began to offer more luxurious car interiors, including advanced audio systems, air conditioning, and power windows. This led to the development of the aftermarket industry for interior car accessories, as consumers looked for ways to upgrade their cars and make them more comfortable and stylish. During the 1980s and 1990s, the popularity of cars continued to grow in the Asia-Pacific region, as did the market for interior car accessories. Automakers began to offer more advanced features such as GPS navigation, rear-view cameras, and smart key systems. This led to a corresponding increase in the aftermarket industry as consumers looked for ways to add these features to their existing cars. In recent years, the market for interior car accessories in the Asia-Pacific region has continued to grow and evolve.

According to the research report, ""Asia-Pacific Interior Car Accessories Market Outlook, 2028,"" published by Bonafide Research, the market was valued at more than USD 90 billion in 2022. Consumers nowadays have access to a wide range of products, from functional items like phone mounts and cup holders to more opulent features like leather seats and high-end audio systems. As cars become more advanced and connected, demand for interior car accessories is expected to remain high in the Asia-Pacific region and globally. It is also worth noting that the Asia-Pacific region serves as a hub for the production and exportation of interior car accessories to other parts of the world. Many major interior car accessory manufacturers are based in China, Japan, India, Australia, and South Korea, and they supply products to markets all over the world. Based on the countries, China is leading the Asia-Pacific market in 2022 and is forecast to continue this dominance by the end of the forecast period.

One of the new trends in the interior car accessories market in China is the increasing demand for high-end and premium accessories. As the middle class in China continues to grow, more consumers are willing to spend money on luxury accessories to enhance their driving experience. Examples of high-end accessories that are gaining popularity in China include premium leather seat covers, advanced sound systems, and high-tech infotainment systems. These accessories offer advanced features and a luxurious feel, catering to consumers who want to create a high-end and personalized driving experience. Another trend in the Chinese interior car accessories market is the growing popularity of smart and connected accessories. Consumers in China are increasingly interested in integrating their cars with smart home systems and other connected devices. This has led to an increase in demand for smart infotainment systems, GPS systems, and other connected accessories that provide real-time information and enable drivers to control various functions of their car remotely. Also, customization and personalization are important trends in the Chinese interior car accessory market. Consumers in China are seeking products that reflect their unique personalities and preferences and are willing to pay for customised accessories that are tailored to their needs. This has led to an increase in demand for custom seat covers, steering wheel covers, and other accessories that can be personalised with logos, graphics, or other designs. In China, the industry is expected to continue growing in the coming years as new products and technologies emerge to meet the needs of Chinese consumers.

Technological advancements and innovation in the automotive industry are likely to open up new opportunities for China's aftermarket companies. Rising sales of hybrid, gas, and electric vehicles are expected to foster automotive demand, thereby sustaining aftermarket requirements, due to increasing customer preferences for energy-efficient vehicles. The adoption of various customizations and digitization in automobiles, followed by the use of Bluetooth devices and a variety of other accessories, is also propelling industry growth. The increasing use of advanced technologies in auto part manufacturing, increased automotive production, and the digitization of automotive component delivery services are all driving up automotive sales in India. The Indian automotive market is still evolving, with regular product upgrades and new product launches, as well as incredible technological advancements in automobiles. While domestic manufacturing has historically met the majority of domestic demand, product localization is influencing both access to and the cost of these high-tech vehicles.

Growth in the automotive interior materials market will be complemented by advancements in automotive design and a constantly changing aesthetic profile. The industry is heavily focused on vehicle light-weighting operations in order to comply with regional standards, improve vehicle efficiency, and reduce pollution. Asia-Pacific is expected to grow the fastest, owing to an increasing number of car accessory manufacturers, particularly in China and India, as well as rising trade across Asia's economies. Furthermore, rising vehicle sales due to a high population and increased per capita disposable incomes, rising consumer inclination towards purchasing internal and external car accessories, and rising demand for higher aesthetics are some of the factors driving the region's growth. Based on the accessory types, the market is segmented into electronics accessories, consoles and organizers, mats, interior covers, central locking systems, armrests, communication systems, dash kits, sunshades, interior lighting, air fresheners, interior chrome accessories, and others. Among them, electronic accessories are projected to dominate the market by 2028, whereas the interior lighting segment is expected to grow at over 10% CAGR.

The expansion of the luxury vehicle market is assisting in the expansion of this market, as the interiors of luxury vehicles are extremely important. Increased demand for personalization and comfort, as well as the use of smart interior fabrics to meet that demand, are expected to drive the growth of the automotive interior materials market during the forecast period. Furthermore, an increase in individual income levels and a reduction in vehicle overall weight to improve fuel efficiency are the two major drivers that will cushion the market's growth rate. Rising demand for low-emission materials, particularly from emerging economies, and stringent fuel economy regulations are driving the growth of the automobile interior materials market. However, demand from emerging markets is expected to grow significantly due to improved geopolitics and domestic income. Seating segment growth is expected to remain strong in the application segment, owing to increased sales of high-capacity SUVs and crossovers. SUVs and crossovers account for a significant portion of Asia-Pacific automotive sales. These vehicles have larger seats, which provide greater comfort and seating real estate while consuming more upholstery material.

The coronavirus outbreak at the beginning of 2020 is causing further decline in the Asian automotive industry due to production halts by players such as Hyundai, Nissan, and others. This halt, however, is expected to last only a short time, and major players have begun to employ collaborative strategies. As the middle-class population purchases more vehicles, lucrative opportunities for players in the automotive interior industry emerge. Government initiatives in South Asia-Pacific, such as subsidies and tax breaks, are enticing automotive OEMs to locate their manufacturing plants in the region. The region's market is being driven by the growing demand for premium interiors, comfort, and new and innovative features such as head-up displays and navigation systems, as well as the growing emphasis on meeting safety standards.
Further, the market is segmented into two major distribution channels, including OEM and aftersales. In 2022, the aftersales segment will lead the market, with increased involvement of original equipment manufacturers in aftermarket activities, as well as consolidation of parts distributors, pointing to a bright future for this business. Vehicle sales are increasing as the middle-class population grows and their purchasing power rises, creating opportunities for aftermarket parts manufacturers and supply chain providers. Revenue will rise further as vehicle fleets age and demand for replacement parts rises. Rising automotive production and utilisation in India, China, Japan, South Korea, and Australia will boost market demand even further.

Key Developments:
• In 2021, Panasonic, a Japanese electronics company, announced the development of a new automotive display system that uses augmented reality (AR) technology to provide drivers with real-time information. The system is designed to improve safety and convenience by providing information such as navigation instructions and hazard warnings directly on the windshield.
• Autoliv, a Swedish-American company that produces automotive safety systems, announced the development of a new airbag that can be integrated into the car's ceiling. This design reduces the size and weight of the airbag while providing better protection for passengers in the event of a collision.
• Aisin Seiki, a Japanese automotive components manufacturer, announced the development of a new electric parking brake system that can be integrated into the car's center console. The new design eliminates the need for a traditional handbrake lever, creating more space and improving interior design.
• Harman, an American audio and infotainment company, announced the development of a new sound system that uses active road noise cancellation technology to reduce noise inside the car. The system is designed to improve comfort and reduce driver fatigue on long trips.
• Air International Thermal Systems, an Australian company that produces automotive climate control systems, announced the development of a new integrated heating and cooling system for electric vehicles. The system uses a heat pump and a refrigerant circuit to provide efficient heating and cooling without draining the car's battery.

Major Companies present in the market:
Continental AG, Grupo Antolin, HYUNDAI MOBIS, IAC Group., Truck Hero, Inc., Car Mate Mfg.Co.,Ltd., Ficosa International SA., Pioneer, Garmin Ltd. , Pecca Group Berhad., H.I MOTORS, Momo Srl., Harman International., Hayashi Telempu Corporation, WeatherTech

Considered in this report
• Geography: Asia-Pacific
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Asia-Pacific Interior Car Accessories market with its value and forecast along with its segments
• Country-wise Interior Car Accessories market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• China
• Japan
• India
• Australia
• South Korea

By Accessories Type:
• Electronics Accessories (Car Audio, Car Video, Car Chargers, Mobile Holders, Car Vacuum Cleaners, Inflator and compressor, Car Bluetooth Accessories, Car GPS Tracker & Navigation, Reverse Parking System, etc.)
• consoles and organizers
• Mats
• Interior Covers
• Central Locking Systems
• Armrest
• Communication System
• Dash Kits
• Sunshades
• Interior Lighting
• Air Freshener
• Interior Chrome Accessories
• Others (Seat Neck Cushion, Gear Knobs, etc.)

By Distribution Channel:
• OEM
• Aftermarket

By Vehicle Type
• Small-sized Cars
• Mid-sized Cars
• SUVs
• MPVs
• Luxury
• Pickup Trucks (Toyota Tacoma, Ford Ranger, Jeep Gladiator, Chevrolet Colorado, GMC Canyon, Hyundai Santa Cruz)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Interior Car Accessories industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.