EXTERIOR CAR ACCESSORIES MARKET ANALYSIS

The high production cost of premium exterior car accessories can hamper the global exterior car accessories market growth. Manufacturing high-quality premium accessories require advanced technologies and techniques, which involves significant research and development expenditure. Premium materials like aluminum, fine quality plastics and carbon fiber are used in premium accessories, which makes their production costlier compared to regular accessories.

For example, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), the average cost of manufacturing an aluminum alloy wheel ranges between US$ 300 to US$ 700 depending on its size, design and quality, while a regular steel wheel costs around US$ 50-US$ 150. Similarly, premium rear spoilers made of carbon fiber composites require specialized composite manufacturing processes and cost around US$ 500- US$1,000 per unit compared to US$ 100- US$200 for a fiberglass spoiler. The high initial manufacturing outlay incurred in development and production of such premium accessories is passed on to the customers in terms of their higher retail prices.

This makes premium exterior car accessories less affordable for the average car owner and narrows down their target customer base. While many customers prefer high-quality premium styling upgrades for their vehicles, this high price prevents many potential buyers and limits the scale of demand. Thus, manufacturers find it difficult to achieve higher volumes and sales figures needed to leverage economies of scale and recover investments in technology and R&D.

Market Opportunities: Developing aftermarket for used vehicles

Growing market for used vehicles can offer promising opportunity for global exterior car accessories market.  As more drivers look to customize and personalize their pre-owned automobiles, there will be huge demand for aftermarket add-ons and enhancements.

Economic pressures caused by high inflation and interest rates have pushed new cars out of financial reach for many consumers. At the same time, modern vehicles are engineered to last longer with better build quality and reliability. This allows pre-owned automobiles to remain a viable option even with escalating mileage.

Growing do-it-yourself ethic also offer market growth opportunity. Online tutorials and accessories marketplaces have vastly simplified the installation process, empowering car owners to personalize their vehicles independently. From spoilers to window visors to lighting upgrades, a whole range of exterior accessories are now within reach of amateur enthusiasts.

With people holding on to their automobiles for longer periods, aftermarket customization allows drivers to derive continued value and enjoyment from their vehicles throughout the ownership cycle.