South America Exterior Car Accessories Market Outlook, 2028

South America Exterior Car Accessories Market Outlook, 2028

The history of exterior car accessories in South America can be traced back to the early 20th century, when the first automobiles were introduced in the region. At that time, cars were considered a luxury item, and car ownership was limited to a small elite class of society. However, as car ownership became more widespread in the mid-20th century, the demand for car accessories also grew. During the 1950s and 1960s, the automotive industry in South America experienced a boom period, with many new car models being introduced to the market. This led to the growth of the aftermarket segment, with many companies offering a range of exterior car accessories to customise and enhance the appearance of cars. In the 1970s and 1980s, South American countries experienced political and economic instability, which led to a decline in the automotive industry and the car accessory market. However, as the region stabilised in the 1990s and 2000s, the market for exterior car accessories started to grow again, driven by factors such as rising disposable income, increasing car ownership, and a growing interest in car customization. Today, the market for exterior car accessories in South America is a diverse and dynamic industry, with a wide range of products and services available.

According to the research report, ""South America Exterior Car Accessories Market Outlook, 2028,"" published by Bonafide Research, the market is anticipated to grow at an 8.73% CAGR by 2023–28. The exterior car accessories market in South America is a dynamic and growing industry, driven by factors such as rising disposable income, increasing car ownership, and a growing interest in car customization. Some of the most popular exterior car accessories in South America include alloy wheels, body kits, spoilers, roof racks, and chrome trims, among others. Many of these accessories are sold through automotive retailers and dealerships, as well as online marketplaces and specialty shops. Brazil is the largest market for exterior car accessories in South America, accounting for a significant share of the overall market. Other major markets in the region include Argentina, Chile, Colombia, and Peru, among others. Among the country segments, Brazil is leading the market with more than 60% market share in 2022, which is expected to continue dominating by the end of the forecast period. The exterior car accessories market is constantly evolving, with new products and trends emerging in response to changing consumer preferences and technological advancements.

Colombia is also one of the major players in the regional automotive market and currently ranks as the third-largest automobile assembler in South America (after Brazil and Argentina). In addition, after Brazil, Colombia is the second-largest motorcycle producer in the region. There are eight vehicle assembly plants in Colombia, but the three largest—Sofasa, CCA (Mazda), and Toyota—represent the majority of the country's production and car sales. Colombia’s automotive industry includes the assembly of light vehicles and trucks, buses, and motorcycles, and the manufacturing of parts used in assembly for the original equipment manufacturer (OEM) and replacement markets. However, the industry is not able to meet local demand, and Colombia’s dependence on imported motor vehicles and auto parts is extremely high.

According to the report, the South American market is segmented into body kits (front and rear bumper kits, spoilers, lip kits, front grilles, tuning hoods, etc.), exhaust mufflers, lights, alloy wheels, chrome accessories, window films, graphic stickers and reflectors, racks, and others (crash guards, side beading, window door visors, licence plate frames, exterior covers, side mirror covers, etc.). Among them, body kits are contributing to a higher market share in 2022. where the rack segment is growing with a prominent CAGR by 2028. The expanding automotive industry is one of the major reasons contributing to the market's good outlook. Growth in the market is also being fueled by the increased use of ski and water sport carriers for leisure and recreational activities. There is an increasing preference for sturdy and visually pleasing car racks for additional luggage capacity due to the growing young population and interest in adventure sports. This is helping the market expand, coupled with several product developments, including the creation of fibreglass car racks that offer improved durability.

In South America, LED lighting is becoming increasingly popular as an exterior car accessory. LED lights offer a range of benefits, including improved visibility, energy efficiency, and a longer lifespan compared to traditional lighting systems. LED lights are now available for a variety of applications, including headlights, taillights, and interior lighting. Further, advanced driver assistance systems (ADAS) technologies are becoming more prevalent in new cars, and there is a growing demand for aftermarket ADAS accessories in South America. These accessories can include features such as blind spot detection, lane departure warning, and forward collision warning systems. Customized wraps and decals are becoming more popular in South America as a way to personalise the appearance of car for benefits, including improved visibility, energy efficiency, and a longer lifespan compared to traditional lighting systems. LED lights are now available for a variety of applications, including headlights, taillights, and interior lighting.

Further, advanced driver assistance systems (ADAS) technologies are becoming more prevalent in new cars, and there is a growing demand for aftermarket ADAS accessories in South America. These accessories can include features such as blind spot detection, lane departure warning, and forward collision warning systems. Customized wraps and decals are becoming more popular in South America as a way to personalise the appearance of cars. These accessories allow car owners to add unique designs and colours to their vehicles without the need for expensive paint jobs. As sustainability becomes a more important consideration for consumers, there is a growing demand for exterior car accessories made from sustainable materials. For example, some companies are now offering carbon fibre parts made from recycled materials. Based on distribution channel, the aftersales segment will dominate the market in 2022. Alloy wheels, body kits, spoilers, roof racks, grille guards, bull bars, led lighting, window tinting, exhaust systems, fender flares, and chrome trim are some of the most popular aftermarket exterior car accessories in South America.

There is a growing trend in the region towards personalization and customization of cars, with many car owners looking to differentiate their vehicles from others on the road. Exterior car accessories are a popular way to accomplish this, and there are numerous options available to suit a variety of preferences and styles. In addition to enhancing a car's appearance, exterior car accessories can also provide practical benefits such as improved performance, increased cargo capacity, and better visibility. This makes them a popular choice among car enthusiasts and those who use their cars for specific purposes, such as outdoor activities. Many countries require that exterior car accessories be certified by a government agency or a recognised third-party organisation before they can be sold. This certification process ensures that the accessory meets certain safety and performance standards. In some countries, there are limits on the size and weight of exterior car accessories such as roof racks or body kits. These limits are designed to ensure that the accessory does not negatively impact the vehicle's handling or safety. Many countries have regulations around the use of exterior lighting on cars. For example, it may be required that headlights and taillights meet certain standards for brightness and colors or that the use of certain types of lighting, such as underbody neon lights, is prohibited. Some countries have regulations around the noise level of exterior car accessories such as exhaust systems or air horns. These regulations are designed to ensure that the accessory does not create excessive noise that could disturb the peace or pose a risk to public safety.

Exterior car accessories are applied to a wide variety of cars in South America, and the specific types of accessories that are popular can vary depending on factors such as the country, the local automotive culture, and the type of vehicle. For instance, pickup trucks are very popular in South America, particularly in countries with rural areas where they are used for work and transportation. These vehicles are often customized with accessories such as bull bars, grille guards, bed liners, and toolboxes. Sports cars are also popular in South America, particularly among automotive enthusiasts. These vehicles are often customised with performance-oriented accessories such as aftermarket exhaust systems, air intakes, and suspension upgrades, as well as aesthetic accessories such as body kits and alloy wheels. On the other hand, SUVs are becoming increasingly popular in South America, particularly among urban drivers who appreciate their versatility and practicality. These vehicles are often customised with accessories such as roof racks, bike carriers, and running boards, as well as aesthetic accessories such as chrome trim and body cladding. This segment will lead the market in 2022. However, compact cars are very popular in South America due to their affordability and fuel efficiency. These vehicles are often customised with accessories such as alloy wheels, spoilers, and window tinting, as well as practical accessories such as mud flaps and floor mats.

Start-ups Scenario in South America:
• Agibank Auto is a Brazilian start-up that offers a range of financing solutions for car accessories and customizations. The company aims to make it easier for consumers to access the latest car accessories and technology, regardless of their financial situation.
• Clubauto is a Chilean start-up that offers a subscription-based service for car maintenance and customization. The company's services include regular maintenance, repairs, and customizations, and are designed to make car ownership more affordable and convenient.
• Grupo Yago is a Colombian start-up that offers a range of automotive services, including car detailing, window tinting, and vinyl wrapping. The company aims to provide high-quality services at competitive prices, and has quickly established itself as a leading player in the market.
• The Tuning Shop is an Argentine start-up that specializes in aftermarket car parts and accessories. The company offers a wide range of products, including body kits, spoilers, and alloy wheels, and aims to provide customers with the latest trends and styles in the market.
• Vulcanet is a Brazilian start-up that offers a range of car cleaning and detailing products. The company's flagship product is a cleaning cloth that can remove dirt, grime, and even tar from car surfaces without the need for water. Vulcanet aims to provide a more sustainable and convenient way to clean cars, while also reducing water waste.

Major Companies present in the market:
Thule Group, Faurecia Se, Momo Srl., Toyodo Gosei Co Ltd., Magna International Inc., Cie Automotive S.A., Novares, Samvardhana Motherson, Yakima, Inc.

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

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

Countries covered in the report:
• Brazil
• Argentina
• Colombia

By Accessories Type:
• Body Kits (Front and Rear Bumper Kits, Spoilers, Lip Kit, Front Grille, Tuning Hoods, etc)
• Exhaust Muffler
• Lights
• Alloy Wheels
• Chrome Accessories
• Window Films
• Graphic Stickers & Reflectors
• Racks
• Others (Crash Guards, Side Beading, Window Door Visors, License Plate Frames, Exterior Covers, Side Mirror Covers, 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 Exterior 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.