CAR ELECTRONICS ACCESSORIES AND COMMUNICATION MARKET ANALYSIS
The Global Car Electronics Accessories and Communication Market is estimated to be valued at USD 14.8 Bn in 2024 and is expected to reach USD 21.6 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.5% from 2024 to 2031
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The car electronics accessories and communication market is expected to witness positive growth over the forecast period. Rising consumer affluence and preferences for technologically advanced features in vehicles will drive the need for supplemental connectivity and media devices. Manufacturers are responding by enhancing standard vehicle systems and expanding accessory product lines, aiming to strengthen ownership experiences
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Insights, By Product Type- Convenience and Entertainment Dominate Car Electronics LCD
In the terms of product type, LCDs segment is estimated to hold the highest market share of 48.7% in 2024, owing to convenience and entertainment needs of passengers. LCD screens allow passengers to watch movies, play games or check maps and navigation during long drives. The large screen size provides an immersive viewing experience similar to home theatres. LCD screens are also affordable and easily detachable, making them a popular choice. Their versatility to serve both as infotainment displays and rear-view monitors for rear seats drives their widespread adoption.
Insights, By Vehicle Type- Family Mobility Needs Boosts Passenger Car Sales
In the terms of vehicle type, passenger cars segment is estimated to hold the highest market share of 56.8% in 2024, owing to changing family dynamics and mobility needs. Passenger cars offer sufficient cabin space and seating capacity for families. Their compatibility with child seats and storage makes them a preferred family vehicle. Rising women workforce has increased the need for safe private transportation for school runs and commute, thus, boosting passenger car sales.
Insights, By Channel Type: Consumers Demand Diversity and Features from OEM
In the terms of channel type, OEM segment is estimated to hold the highest market share of 48.9% in 2024, as consumers demand a wide variety and latest features. The aftermarket offers products from diverse brands catering to distinct price points, styles and customization needs. It also launches new products more frequently, thus, allowing consumers to periodically upgrade their vehicles.
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Top Strategies Followed by Global Car Electronics Accessories and Communication Market Players
Established Players- R&D Investment
Leading companies in the global car electronics accessories and communication market heavily invest in research and development to introduce innovative products. For example, major players like Bosch, Denso, Panasonic, and ZF invests over 5% of their annual revenues in R&D. This helps them develop cutting-edge technologies such as advanced driver assistance systems, telematics solutions, and infotainment systems featuring the latest connectivity and safety features.
Mid-Level Players- Cost-Effective Solutions
Players in mid-size segment focuses on delivering cost-competitive alternatives to target price-sensitive buyers. These introduce affordable options for accessories like rear-view cameras, Bluetooth adapters, and speakers without compromising on quality. This allows them to expand their customer base and gradually scale up operations. Some players also establish joint ventures with local manufacturers in developing markets to benefit from low production costs.
Small-Scale Players- Niche Specialization
Emerging small companies occupy vacant niche areas in the market. These launch products catering to specific car models or customized requirements that large corporations do not address. Some examples include accessories for classic cars, customizable speaker systems, and phones/tablet holders compatible with a limited number of vehicle designs. This niche focus helps them build brand loyalty.
Emerging Startups in the Global Car Electronics Accessories and Communication Market
Innovative Technologies-
Startups are contributing significantly to innovation. Companies like Anthropic and Optibus are developing cutting-edge AI-based driver assistance solutions to make autonomy a reality. Drivemode focuses on smart sensors and Fleet Complete aids fleet management using IoT. Such technologies are poised to transform commuting experiences and Fleet operations.
Sustainable Solutions-
Growing eco-consciousness drives startups like Reboticon and Looop to discover sustainable alternatives. Reboticon develops robotics from recycled plastic waste. Looop manufactures car parts using vegetation-based bioplastics. Their efforts set examples for a greener industry and lower environmental impact.
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Top Strategies Followed by Global Car Electronics Accessories and Communication Market Players
Established Players- R&D Investment
Leading companies in the global car electronics accessories and communication market heavily invest in research and development to introduce innovative products. For example, major players like Bosch, Denso, Panasonic, and ZF invests over 5% of their annual revenues in R&D. This helps them develop cutting-edge technologies such as advanced driver assistance systems, telematics solutions, and infotainment systems featuring the latest connectivity and safety features.
Mid-Level Players- Cost-Effective Solutions
Players in mid-size segment focuses on delivering cost-competitive alternatives to target price-sensitive buyers. These introduce affordable options for accessories like rear-view cameras, Bluetooth adapters, and speakers without compromising on quality. This allows them to expand their customer base and gradually scale up operations. Some players also establish joint ventures with local manufacturers in developing markets to benefit from low production costs.
Small-Scale Players- Niche Specialization
Emerging small companies occupy vacant niche areas in the market. These launch products catering to specific car models or customized requirements that large corporations do not address. Some examples include accessories for classic cars, customizable speaker systems, and phones/tablet holders compatible with a limited number of vehicle designs. This niche focus helps them build brand loyalty.
Emerging Startups in the Global Car Electronics Accessories and Communication Market
Innovative Technologies-
Startups are contributing significantly to innovation. Companies like Anthropic and Optibus are developing cutting-edge AI-based driver assistance solutions to make autonomy a reality. Drivemode focuses on smart sensors and Fleet Complete aids fleet management using IoT. Such technologies are poised to transform commuting experiences and Fleet operations.
Sustainable Solutions-
Growing eco-consciousness drives startups like Reboticon and Looop to discover sustainable alternatives. Reboticon develops robotics from recycled plastic waste. Looop manufactures car parts using vegetation-based bioplastics. Their efforts set examples for a greener industry and lower environmental impact.
In September 2020, Continental AG announced an extension of its Transformation 2019-2029 structural program to incorporate further cost-reduction initiatives. This expanded plan is expected to achieve annual savings of up to USD 1 billion starting in 2023. Additionally, the strategy aims to decrease the workforce at Continental AG by 30,000 by 2029, including 13,000 job cuts in Germany.
In June 2022, Maruti Suzuki, India largest country passenger vehicle manufacturer, launched a new generation of its sub-4 m SUV the Maruti Suzuki Brezza with a 9-inch touchscreen infotainment system, called SMART PLAY PRO+
Key Takeaways from Analyst
Global car electronics accessories and communication market growth is driven by growing consumer demand for connected car technologies and infotainment systems. As vehicle connectivity and autonomy become more prevalent, there will be huge need for advanced electronics and communication capabilities. Safety features like rear-view cameras and sensors are also gaining popularity.
Asia Pacific will likely emerge as the fastest growing regional market, owing to rising vehicle production and sales in major countries like China and India. Higher disposable incomes enable more consumers in Asia to afford upgraded car accessories.
Car Electronics Accessories and Communication Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 14.8 Bn |
| Historical Data for: | 2019 to 2023 | Forecast Period: | 2024 to 2031 |
| Forecast Period 2024 to 2031 CAGR: | 5.5% | 2031 Value Projection: | US$ 21.6 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Pioneer Corporation, Sony Corporation, Alpine Electronics, Inc, Bosch, Continental AG, Garmin Ltd., Panasonic Automotive Systems, and Clarion Co., Ltd. |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Driver - Increasing demand for connectivity and entertainment features
With each passing year, cars are becoming more technologically advanced. Consumers now expect their vehicles to keep pace with their lifestyle needs just like their smartphones and other electronic devices. There has been huge demand for always being connected while on the move. For instance, in June 2022, Maruti Suzuki, a passenger vehicle manufacturer, launched a new generation of its sub-4 m SUV the Maruti Suzuki Brezza with a 9-inch touchscreen infotainment system- called SMART PLAY PRO+.
Market Challenge - High cost of innovative products
As automakers continuously focus on introducing new technologies and features in vehicles to provide enhanced driving experience and convenience to customers, the cost of such technologically advanced products remains high. Developing cutting-edge electronics requires heavy investment in R&D. Manufacturers have to recover their costs by selling products at a premium.
Market Opportunity- Growth of Electric Vehicles
Increasing focus on electric vehicles provides a massive opportunity for car electronics accessories and communication market. As more automakers introduce electric vehicles in their product portfolio and policies promote cleaner mobility, there will be huge demand for EVs. Electronics play a critical role in electric vehicles, from battery management and powertrain control systems to connectivity and infotainment solutions. The complex electronic architecture in EVs means these require more advanced automotive electronics and communication components compared to conventional vehicles.
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About Author
Gautam Mahajan is a Research Consultant with 5+ years of experience in market research and consulting. He excels in analyzing market engineering, market trends, competitive landscapes, and technological developments. He specializes in both primary and secondary research, as well as strategic consulting across diverse sectors.
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