CAR ELECTRONICS ACCESSORIES AND COMMUNICATION MARKET ANALYSIS

Market Challenges And Opportunities

Global Car Electronics Accessories & Communication Market: Drivers

Increasing automotive sales worldwide is expected to drive growth of the global car electronics accessories & communication market during the forecast period

Following the economic crisis, the automobile industry has regained its stability. There has been an increase in sales of passenger cars in the recent past, which in turn, has increased the demand for car electronics accessories. According to Coherent Market Insights’ analysis, North America witnessed sales of 20.6 Mn unit cars in 2015, and it is anticipated to increase further by the end of the forecast period. Furthermore, the automotive industry has increased massive growth in BRICS (Brazil, Russia, China, India, and South Africa) nations and is expected to continue its growth in the near future. Thus, these factors are expected to drive growth of the market during the forecast period.

Growing consumer preference for in-car entertainment and communication accessories is expected to propel the global car electronics accessories & communication market growth over the forecast period 

Vehicles owners across the globe are increasingly preferring enhanced driving experience. For this, consumers are adopting various in-car entertainment accessories such as music and radio accessories, LCDs, and more. These car accessories help in enhancing the overall driving experience as well as car ambiance for consumers. According to a white paper by Impetus Automotive the electronic car accessories such as LCDs, music accessories, etc. accounted for 21.5 % market share in 2014, market share in the global car accessories market. Thus, these factors are expected to propel the market growth over the forecast period.

Global Car Electronics Accessories & Communication Market: Opportunities

Adoption of online car accessories configuration tools can present lucrative growth opportunities

In order to improve the in-dealership car accessory sales, the car dealerships are using online car accessory configuration tools rather than using the traditional print catalog. The online tool provides the right price information, better inventory, and better customer satisfaction. For instance, AddOnAuto is a company which is dedicated to increasing the revenues and profit of car dealerships. The company offers in-dealership car accessory sales technology that helps streamlined communication between accessories suppliers and dealerships. The online tool also allows the customers to choose the exact model of vehicle the consumer wants to purchase and accessorize it with thousands of accessories available in the tools with real-time visualization experience. Moreover, the tool allows the customers to see the suppliers' pricing, discounts, and other pricing options available.

Reduction in taxes in Argentina can provide major business opportunities

In December 2015, the newly formed Argentinian government decided to cut down excise tax on new cars in an attempt to propel domestic automotive production, which in turn has resulted in the recovery of the sales dip caused in automotive sales in 2015. Argentina’s vehicle fleet on road is dominated by the passenger car segment, thus the recovery in automotive sales will bolster car electronic accessories and communication market in the country.

Global Car Electronics Accessories & Communication Market: Restraints

Presence of low-quality car accessories are expected to restrain growth of the global car electronics accessories & communication market during the forecast period

Since the global car electronics & communication market is highly fragmented, which has led to the production of low-quality accessories. Numerous manufacturers are offering products at a relatively competitive price as compared to the branded car electronic accessories and communication systems. Irrespective of the substandard quality offered, the consumers opt for buying the counterfeit accessories due to price competitiveness. Therefore, these factors are expected to restrain growth of the global car electronics accessories & communication market during the forecast period.

Complexities in design of communication accessories are expected to hamper the global car electronics accessories & communication market growth over the forecast period

Manufacturers of car infotainment systems are aggressively trying to integrate numerous applications and functions system to enhance the driver’s experience. To achieve such breakthroughs, the design complexity of accessories has multiplied which has ultimately increased the production cost of car communication systems with a minimum performance guarantee. Hence, these factors are expected to hamper the market growth in the near future.