Passenger Car Accessories Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Passenger Car Accessories Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The passenger car accessories market is expected to exhibit a growth rate of 10.27% during the forecast period 2020-2025.

· Although the production and sales of vehicles have declined in major countries such as India and China in 2018 and 2019 (automotive production fell from 97.3 million units in 2017 to 95.63 million units in 2018), the demand for passenger car accessories is increasing, owing to the growing demand for comfort and luxury due to increase in income levels of customers.

· Smartphone penetration and flawless supply of high-speed internet has increased the connectivity and boosted the demand for infotainment systems. OEMs have started entering mid and small car segments with advanced infotainment system. Growth in the adoption rate of infotainment systems in luxury car segment is also seen in the automotive industry.

· In order to meet the need for creating fuel-efficient and lightweight systems, manufacturers are coming up with lightweight materials to use for manufacturing passenger car accessories, which is driving the market growth. For example, manufacturers are now using lightweight materials such as high strength steel and thermoplastic as main manufacturing materials for car accessories.

A basic infotainment system in a modern vehicle comes equipped with a CD player, a Bluetooth, USB port, lighter port, aux port, video panel, radio, GPS, multiple speakers, and control panels.

The use of infotainment systems in advanced automobiles, such as connected cars and autonomous vehicles, has been continually increasing. The market for infotainment systems may be further strengthened by investments being made by automobile manufacturers and tech companies. In 2017, Samsung Electronics Co, Ltd announced a strategic partnership with TTTech, and it has promised to invest around USD 75 million for the development of autonomous and ADAS technologies, in which the primary components will be infotainment systems.

Additionally, automobile manufacturers are competing to deploy advanced infotainment system in their upcoming vehicle models during the forecast period. In 2018, Mitsubishi Motors Corporation, Nissan Motor Co. Ltd, Groupe Renault, and Nissan Motors decided to adopt Google Inc.’s Android operating system (OS) for their next-generation infotainment systems from 2021. Additionally, in Japan, Toyota Motor Corporation added software applications, like Line, to its T-Connect infotainment system.

The European region is expected to be the largest market for automotive infotainment systems, due to the presence of manufacturing facilities of the premium automobile manufacturers, and the fastest growing market for these systems is anticipated to be the Asia-Pacific region, as the demand for premium vehicles is continually increasing in China and India, being supported by high economic growth rates in these countries, which are also among the largest automotive markets in the world.

The shift from simple audio systems to touchscreen infotainment systems that support multiple features, such as navigation, Apple CarPlay, Android Auto, Telematics, etc. are driving the demand for infotainment systems in countries such as India and China. Earlier, the infotainment system in a vehicle was offered only on the top-spec trim. However, presently, OEMs are offering infotainment systems even in the mid- and entry-level trims. Additionally, the road infrastructure in China is developing, and thus, navigation has become a must-have feature in almost all the vehicles. CHJ Automotive, an electric vehicle manufacturer in China, launched ONE, a smart electric luxury SUV. The vehicle is equipped with a four-screen infotainment system, including a smart voice system.

Governments and administrations in developing and untapped markets are spending a major portion of their wealth on transportation. This will result in the sales growth of vehicles. This calls for improving interiors to suit the needs of upcoming urban customers. Vehicle production in geographies such as Brazil and South Africa has increased by 5.2% and 3.5% in 2018 against the global downfall of 1.1%.

The market for passenger car accessories market is a fragmented one with numerous local aftermarket players. Some of the key players in the passenger car accessories market include Harman International Industries Inc., Faurecia, Denso Corporation, Robert Bosch, and Aptiv PLC, among others.

Some of the players are focusing on expanding their geographical presence by acquiring or merging with the regional and country-level players. Major investments are being made by companies in the foreign markets to cater to increasing demand and expand their business. Expansion and investments are the most preferred growth strategies, followed by mergers and acquisitions.

This industry is seeing customer-friendly innovations. Faurecia has developed an efficient wellness seat that senses drowsiness and stress level of the driver and initiates measures to counter such problems.

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