Automobile Accessories

Automobile Accessories

Automobile accessories are enhancements that are mostly used either for the upgradation of new cars or to improve the style or capabilities of old ones. Accessories can be essential or nonessential, where some accessories are used solely for styling but some are used to enhance the performance of the vehicle or overall comfort and convenience of the vehicle.

The automobile accessories market is expected to grow at a significant CAGR of around 6% during the forecast period owing to the rising demand for personal vehicles. Furthermore, with growing interest of car owners in modifying the aesthetics of their cars, and upgrading their cars with the latest high-end technological accessories is increasing the demand for car accessories in the market, and companies who are actively working in this segment are also preparing them to cater to this demand. For instance, on December 2021, Roll-up e-commerce startup UpScalio invested in Autofurnish, which operates four online-first auto-accessories brands—Autofurnish, Destorm, Urban Lifestylers, and MotoTrance.

• Based on vehicle type, the market is bifurcated into passenger vehicle and commercial vehicle. Out of both, passenger vehicles have the larger market share of two due to increased demand for small and mid-sized vehicles with increasing mobility requirements as more young population and women are entering the workforce, also after COVID-19 people prefer to own some type of personal vehicle rather than use public modes of transportation. Additionally, increasing consumer adoption of EVs is also boosting the growth of this market. For instance, on January 2023, as per EV Universe, 530,577 new battery electric vehicles (BEVs) were sold in the first nine months of 2022. This puts the US at 57% growth year-over-year for BEVs.
• Based on type, the market is bifurcated into interior accessories and exterior accessories. Among the two, interior accessories hold a significant market share. The market is mainly driven by the fact that some interior car accessories are a necessity like seat covers and mats, and other accessories customers prefer in order to make their car more luxurious, comfortable, and clean. Additionally, the entertainment segment holds a significant place in terms of preference in this market with wide range of product offerings to its customers.
• Based on product type, the market is segmented into body accessories, lights, tires, utilities, audio & electronics, and others. Amongst all, majority of consumers spending goes towards body accessories and audio & electronics. The market is mainly driven by the fact that auto accessories are important for preventing wear and tear, and protecting vehicles from extreme weather conditions and outside traffic threats which is fulfilled by the body accessories. Moreover, the demand for audio & electronic accessories are also significant for enhancing comfort, convenience, and safety proposition of the overall vehicle.
• Based on sales channel, the market is bifurcated into OEMs and Aftermarket. The aftermarket sales channel holds the significant market share simply because of the fact that, OEM manufacturers charges much higher prices for basic asseccories which car owners gets more easily at much lower prices at the aftermarkets. Furthermore, with increasing online presence of the auto accessories players, is increasing their reach and the scope of services that they can offer which is further enhancing their sales and profit.
• For a better understanding of the market adoption of automobile accessories, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The automobile accessories market in the Asia Pacific region held the largest market share and is expected to maintain its growth throughout the forecast period. Owing to the rising per capita GDP of the countries in the Asia Pacific hence improving the standard of living and increasing discretionary income of people driving the overall consumption of the countries which can be seen in the sales data posted by the companies in these regions as well. Additionally, Asia Pacific is one of the biggest markets for the automobile industry, with high demand for lower and mid-range vehicles which come with basic features and car accessories becoming a kind of pre-requisite for them, and looking at this demand manufacturers are also increasing their investments. For instance, on August 2022, Uno Minda announced that Minda Kosei Aluminum Wheel, a subsidiary of Uno Minda will expand its four-wheeler alloy wheel capacity by 60,000 wheels per month to 240,000 wheels/per month at its plant in Bawal, Haryana, and will do USD 25 million of additional capital expenditure for this expansion.

Some of the major players operating in the market include Robert Bosch GmbH; EXIDE INDUSTRIES LTD.; Honda Motor Co., Ltd.; Pioneer India Electronics Pvt. Ltd; HARMAN International.; Covercraft Industries LLC; Husky Liners, Inc; NR Auto; CURT Manufacturing LLC; MacNeil IP LLC