Global car electronics accessories and communication market is estimated to witness high growth, owing to rising demand for connected cars and growing sales of luxury and premium vehicles
Global car electronics accessories and communication market is estimated to be valued at USD 14.8 Bn in 2024, exhibiting a CAGR of 5.5% over the forecast period (2024-2031). The market can witness growth due to rising demand for connected cars and growing sales of luxury and premium vehicles where incorporation of latest car accessories and infotainment systems is considered as a standard feature. Furthermore, continuous innovation and technological advancements in car accessories by major players can also drive the market growth.
Market Dynamics-
Rising demand for connected cars: Connected car technology allows vehicles to share internet access with other devices and receive real-time information about traffic, road conditions, and vehicle performance. This stimulates incorporation of advanced car accessories and infotainment systems in vehicles. Growing focus of automakers in integrating their vehicles with voice command digital assistants for added convenience can drive the market growth.
Growing sales of luxury and premium vehicles: Luxury and premium vehicles usually incorporate latest car accessories. Therefore, rising sales of luxury and premium vehicles globally can drive the market growth. Moreover, increasing purchasing power of consumers boosts adoption of luxury vehicles where advanced electronics.
Increasing Demand for Connected and Advanced In-Vehicle Infotainment Systems
Global car electronics accessories and communication market growth is driven by increasing demand for connected and advanced in-vehicle infotainment systems. Consumers expect their vehicles to be equipped with the latest infotainment technologies like touchscreens, navigation systems, AI assistants, wireless connectivity and more. Automakers recognizes this demand and rapidly enhances their offerings with connected car solutions. The ability to seamlessly integrate smartphones, play media, get traffic updates and control many vehicle functions from a centralized display is a must-have feature for modern drivers. This rising preference for connectivity and convenience can boost car electronics sales.
Risk of Technological Obsolescence
Global car electronics accessories and communication market growth can be hampered due to risk of technological obsolescence. Car electronics that are few years old can quickly become outdated as suppliers launch new offerings with improved features and specifications. This forces consumers to frequently upgrade older systems in their vehicles to maintain compatibility with the latest connectivity and infotainment standards. While technological progress is inevitable, the short lifespan of in-car devices can negatively impact recurring sales potential over the longer term.
High Research and Development Costs
High research and development investments required to develop cutting-edge automotive technologies can pose challenges for industry players. Integrating the latest communication, navigation and multimedia capabilities seamlessly into vehicles involves extensive prototyping, testing and certification costs. Designing hardware and software solutions that can withstand the unique in-vehicle environment over the product lifespan further increases R&D expenditures. The expenses associated with continuous innovation put pressure on company margins. Significant upfront costs act as a restraint, especially for smaller organizations with constrained budgets
Popularity of Over-The-Air Technology Updates
Global car electronics accessories and communication market can witness growth opportunities due to increasing popularity of over-the-air technology updates. Earlier automotive electronics packages could only be upgraded by physically bringing the vehicle into a service center. Modern vehicles support wireless software and firmware updates delivered directly to the car. This allows automakers to roll out new features, enhancements and security patches remotely. The convenience of Over-The-Air Technology updates improve the ownership experience for drivers and encourages more frequent upgrades. It also opens new revenue streams through post-purchase monetization options like paid map updates or premium connectivity packages. Automakers are capitalizing on this opportunity to provide lifelong services for vehicle infotainment systems.
Key Developments-
In June 2022, Maruti Suzuki, the country's largest 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 Players-
Pioneer Corporation, Sony Corporation, Alpine Electronics, Inc, Bosch, Continental AG, Garmin Ltd., Panasonic Automotive Systems, and Clarion Co., Ltd.
