Global Interior Car Accessories Market Outlook, 2028

Global Interior Car Accessories Market Outlook, 2028

Interior car accessories are extra components that enhance the vehicle's interior aesthetics and provide an overall entertaining and comfortable riding experience. Since the automotive industry has grown significantly in recent years, car accessories are in high demand all over the world. The interior of a vehicle is made up of cockpit modules, automotive seats, door panels, headliners, and so on. Furthermore, interior trims, upholstery, and other adornments are critical components in providing the car with an aesthetic appearance. Following the economic crisis, the automotive industry has experienced steady growth in recent years. This is due to rising passenger car sales combined with rising pickup truck sales. As a result, it is expected that sales of passenger cars and pickup trucks will increase sales of interior car accessories. As a result of these factors, the global interior car accessories market is expected to grow during the forecast period. In addition, rising consumer demand for a comfortable and entertaining driving experience will fuel demand for interior car accessories. The global market for interior car accessories is gaining traction, thanks to the established popularity of accessories such as seat covers, car mats, stereos and speakers, steering wheel covers, dash kits, navigation systems, cushions, sunshades, and others.

According to the research report, ""Global Interior Car Accessories Market Outlook, 2028,"" published by Bonafide Research, the market is anticipated to reach a size of over USD 352 billion, up from USD 251.14 billion in 2022. The market is projected to grow at 5.96% CAGR by 2023–28. The increase in automation and autonomous vehicles is expected to increase demand for electronics in vehicle interior systems even more. The widespread use of digital platforms in software-defined vehicles is expected to propel the market even further during the forecast period. For example, Qaulcomm Technologies Inc. and Renault SA collaborated in November 2022 to develop high-performance digital platforms for the next generation of Renault vehicles. Qualcomm will supply its Snapdragon digital chassis to support the digital cockpit, connectivity, and Advanced Driver Assistance Systems (ADAS) in the next-generation Renault vehicles, according to the terms of the agreement. As consumer preferences shift towards biodegradable and eco-friendly materials, seat covers will be in high demand in the automotive industry. Furthermore, the introduction of several lightweight and new structural materials, such as polyester, vinyl, and polyurethane, will have an opportunistic impact on industry product demand. Several interior designers are also dedicated to customising car seats and accessories to meet the needs and requirements of their clients.

According to the report, the market is segmented into five major regions, including North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. Among them, the Asia-Pacific region is leading the market with more than 35% market share in 2022. Due to the significant presence of automobile accessory OEMs, high sales of connected cars due to the preference for connectivity features in automobiles by young, affluent vehicle buyers, widespread adoption of smartphones, rising Internet penetration, and growing sales of electric and autonomous vehicles, Asia-Pacific is estimated to be the largest market for automobile accessories. The transition from basic audio systems to touchscreen infotainment systems with multiple features such as navigation, Apple CarPlay, Android Auto, telematics, and so on is driving demand for infotainment systems in countries such as India and China. Previously, the infotainment system in a vehicle was only available on the highest-spec trim. OEMs, on the other hand, are now offering infotainment systems in mid- and entry-level trim levels. Furthermore, as China's road infrastructure develops, navigation has become a must-have feature in almost all vehicles. Nio Inc., for example, launched their ES7 sports utility vehicle in China in June 2022 with an infotainment system that includes a 23-speaker surround-sound configuration. Further, due to their significant automobile ownership, market dominance of connected vehicles, easy availability of the latest connectivity technologies such as IoT and 5G, and growing sales of electric and connected vehicles, North America and Europe are expected to be the following largest markets for interior car accessories. With the growing popularity of smart home technologies, there is a growing demand in South America, the Middle East, and Africa for smart car accessories. Wireless charging pads, dashcams, and GPS trackers are examples of accessories.

Based on the report, 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, nearly half of the market is occupied by electronics accessories, which include car audio, car video, car chargers, mobile holders, car vacuum cleaners, inflators and compressors, car Bluetooth accessories, car GPS tracker and navigation, reverse parking systems, etc. The use of infotainment systems in advanced automobiles, such as connected cars and autonomous vehicles, has been steadily increasing due to car buyers' preference for an automobile's connectivity features over its mechanical specifications. Investments by automobile manufacturers and technology companies, as well as joint ventures between automobile component manufacturers and technology companies, may further strengthen the market for infotainment systems. In October 2022, Hyundai Mobis and Luxoft, for example, announced a new partnership to promote their newly developed In-vehicle Infotainment (IVI) platform for sale to third-party automobile manufacturers. The two companies collaborated to create the Mobis Infotainment System (MIS), which can fully control six displays: a digital cluster, an augmented reality heads-up display, a centre stack display, and three passenger seat displays. It was unveiled in October 2022 at the International Suppliers Fair in Germany. However, the interior lighting segment is growing with a higher CAGR for 2023–28.

The increasing use of IoT, navigation systems, and internet penetration are driving up sales of automobile infotainment systems. Many automakers are launching new vehicles with touchscreen-based infotainment systems as standard features, which will drive the market for automotive infotainment systems even further. For example, Maruti Suzuki, India's largest passenger vehicle manufacturer, launched the new generation of its sub-4-meter SUV Maruti Suzuki Brezza with a 9-inch touchscreen infotainment system called SMART PLAY PRO+ in June 2022. The ""easy-return seat"" function has emerged as a major trend in the automotive interiors market. To maintain their market position, major players in the automotive interiors market are introducing new products. Toyota Boshoku Corporation, a Japanese automotive component manufacturer, for example, developed a driver's easy return seat function in February 2020 that enables a comfortable ride for petite passengers. This allows them to easily adjust the seat position as they enter and exit the seat. This seat function is available in Toyota's new model, the Yaris. Lear Corporation, a US-based manufacturer of automotive seating and automotive electrical systems, paid an undisclosed sum to acquire M & N Plastics Company in March 2021. This acquisition is expected to exceed customer expectations by producing complex electrical distribution parts such as high-voltage wire harnesses and power electronics. M & N Plastics Company is a manufacturer of custom plastic injection-moulded products as well as engineered plastic components for automotive electrical distribution applications based in the United States.

In recent years, rising disposable income combined with improving economic conditions has increased the potential for vehicle upgrades in both developed and developing countries. Furthermore, growing e-commerce platforms for automotive parts and accessories, owing to convenient buying and trading options at low prices, will drive automotive seat cover market demand. To gain a competitive advantage, OEMs, workshop chains, and distributors are significantly increasing their online participation and introducing new platforms. Market demand will be hampered by fluctuating raw material prices as well as strict regulations on the extraction and production of several raw materials, such as animal hide leather. Compliance with various environmental regulations regarding waste disposal and chemical discharge may also limit revenue generation. Nonetheless, increasing digitization of channels and interfaces for enhanced service programmes such as repair and replacement services will support the expansion of the automotive seat covers industry. Based on the distribution channel segmentation, the aftermarket will dominate the overall market in 2022.

There are major government regulations on interior car accessories to promote safety and protect consumers. These regulations aim to ensure that the accessories installed in a car meet certain safety standards and do not pose a risk to the driver or passengers. By regulating interior car accessories, governments aim to promote road safety and reduce the risk of accidents caused by faulty or poorly designed accessories. They also help ensure that consumers are protected from fraudulent or deceptive practises by manufacturers or sellers of these products. For instance, interior car accessories must meet safety standards to protect passengers in the event of an accident. For example, seat covers must not interfere with airbag deployment, and steering wheel covers must not impede the driver's ability to control the vehicle. Some interior car accessories, such as air fresheners or other scented products, may release chemicals or particles that can be harmful to human health. Therefore, they may need to comply with emissions regulations. Interior car accessories that include electrical or electronic components, such as audio systems or navigation systems, must comply with regulations governing electromagnetic interference (EMI) and electromagnetic compatibility (EMC). Some regions have regulations on the size and placement of interior car accessories, such as sun shades, to ensure they do not obstruct the driver's view or impair the functioning of the vehicle. Interior car accessories that contain hazardous materials, such as cleaning agents, must be properly labelled and packaged to comply with regulations for the safe transport and disposal of hazardous materials.

A wide range of new, innovative accessories are frequently launched, increasing global demand for interior car accessories. An increasing number of car owners are purchasing interior accessories to improve the look and aesthetic appeal of their vehicles. Furthermore, accessories enhance the overall driving experience. Customized cars have been on the rise in recent years and will continue to be a positive factor for market growth during the forecast period. Following the staggering growth of the global automotive industry, the market is seeing an increase in passenger car and pickup truck sales. This will continue to play an important role in increasing demand for a specific set of interior vehicle accessories. Increasing demand for fast-moving car accessories will also remain a key driver. Based on the car types, the global market is segmented into small-sized cars, mid-sized cars, SUVs, MPVS, luxury cars, and pickup trucks such as the Toyota Tacoma, Ford Ranger, Jeep Gladiator, Chevrolet Colorado, GMC Canyon, and Hyundai Santa Cruz. Among them, SUVs are projected to lead the market by the end of the forecast period.

Recent Developments
• In August 2022, Bosch India and PTV Group signed an agreement to develop vehicle connectivity solutions in India.
• In June 2022, Continental AG invested in Motovis Intelligent Technologies and signed an agreement to develop autonomous mobility solutions from Level 2 to Level 4 vehicle autonomy.
• In February 2022, Harman International, a Samsung Electronics company, and Microsoft announced a collaboration to integrate Microsoft Azure Private Multi-access Edge Compute (PMEC) with the products from the Digital Transformation Solutions (DTS) business of Harman International.
• In November 2022, Continental AG announced the expansion of its automotive display plant at Timisoara, Romania. Continental AG will invest EUR 40 million (USD 41.2 million) to manufacture innovative user experience solutions like displays at the plant. The investment will see the plant expand from 7000 square metres to 18000 square meters.
• In October 2022, Denso Corp. and NTT Com collaborated to build the Security Operation Center for Vehicles (VSOC1) to respond to the threat of increasingly sophisticated cyber-attacks against vehicles.
• In September 2022, Harman International, a Samsung Electronics company, launched Ready Care, which is a set of solutions focused on cognitive distraction, stress-free routing, and personalised comfort technologies that can work together or independently to improve vehicle safety and reduce driver stress.
• In September 2022, Harman International, a Samsung Electronics company, acquired Israel-based CAARESYS, which develops vehicle passenger monitoring systems powered by contactless, low-emission radar. This acquisition is expected to make Harman International a leading player in the passenger in-cabin safety and well-being market.
• In February 2022, Bosch Mobility Solutions agreed to acquire Atlatec GmbH, one of the leading providers of high-resolution digital maps for driver assistance and autonomous driving. This acquisition will help Bosch offer a complete ecosystem for automated driving, from sensors and actuators to software and maps for the manufacturers of autonomous vehicles. This acquisition is expected to enable Bosch to develop its SAE Level 4 automated driving capabilities.

Covid-19 Impacts:
The global pandemic has had an impact on the market for vehicle interior materials due to disruptions in the global supply chain. The refinery and petrochemical, metal, chemical, and other types of power generation industries are critical to the global market's operation. Because China is a vital market for exports and industrial production, the implementation of strict lockdowns in the country's important provinces had an impact on industrial activities. The first quarter of 2020 saw a sharp drop in the previously brisk demand for industrial equipment, owing primarily to the COVID-19 outbreak, which was followed by the imposition of restrictions and a lockdown. However, by the first quarter of 2021, the market had regained its momentum, and due to increasing adoption, the global market is projected to witness high market growth.

Major Companies present in the market:
Continental AG, Grupo Antolin, HYUNDAI MOBIS, IAC Group., Visteon Corporation. , Truck Hero, Inc., Car Mate Mfg.Co.,Ltd., Ficosa International SA., Pioneer, Garmin Ltd. , Pecca Group Berhad., Covercraft Industries, Llc, Classic Soft Trim, Inc., O’Reilly Automotive, Inc., H.I MOTORS, Momo Srl., Katzkin Leather, Inc, Harman International., Hayashi Telempu Corporation, WeatherTech

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

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

Regions & Countries covered in the report:
• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

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.

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