Global exterior car accessories market is estimated to witness high growth, owing to rising demand for customization and emerging aftermarket opportunities
Global exterior car accessories market is estimated to be valued at US$ 50.12 Bn in 2024, exhibiting a CAGR of 7.3% over the forecast period 2024-2031. The market growth is driven by high demand for product customization and rising trend of vehicle customization especially among the millennial population. Furthermore, growth of aftermarket sales channels can offer opportunities for the market growth over the forecast period.
Market Dynamics:
Rising demand for customization: Growing demand for vehicle customization according to individual tastes and preferences can drive the exterior car accessories market growth. Customers want their vehicles to stand out and reflect their personalities. This has encouraged aftermarket spending on products such as spoilers, sunroofs, lights, and chrome accessories that enhance the exterior appearance of vehicles.
Emerging aftermarket opportunities: Establishment of specialized aftermarket outlets and online sales platforms dedicated to automotive accessories has made products easily accessible to customers. This has boosted impulse purchases of small exterior accessory items such as mats, decals, protective gear, and others. Furthermore, third party e-commerce sites offer a wider choice and competitive pricing, thus, attracting more consumer spending.
ingrowth in Aftermarket Spending Boosts Demand for Exterior Car Accessories
Global exterior car accessories market growth is driven by growth in aftermarket spending on accessories. Consumers are increasingly looking to customize and personalize their vehicles. This boosts demand for products like spoilers, alloy wheels, lighting, body kits and others that allow owners to express their individual style. The aftermarket provides a huge selection of these accessories at competitive prices as compared to getting them installed at the time of purchase. Many consumers also want to periodically upgrade certain parts of their vehicle's exterior without buying an entirely new car. This recurring spending on newer and trendier accessories can drive the market growth.
Rising Disposable Incomes Increase Willingness to Spend on Non-Essential Customizations
Rising disposable incomes globally, especially in developing economies, can drive the market growth. As people have more spending power, these are willing to allocate more of their budgets towards customizing and enhancing the look of their vehicles beyond just utilitarian requirements. Luxury and premium vehicles already come with many exterior features as standard. Higher incomes mean consumers can justify spending on personalized accessories that purely serve an aesthetic purpose rather than functional needs. This growing willingness to spend on non-essential customizations can drive the market growth.
Counterfeit Products Erode Brand Loyalty and Sales
Global exterior car accessories market growth can be hampered by proliferation of counterfeit products. The aftermarket witness massive sales of replica parts and accessories that copy designs from top brands but are of inferior quality and sold at much lower prices. While this expands the potential customer base in price-sensitive markets, it severely damages the brand image and integrity of established manufacturers. Customers who use fake accessories one time and face reliability or performance issues will be reluctant to purchase genuine products in the future. The easy availability of fake products online also reduces the chances of repeat and referral business for authentic brands.
Slow Fleet Renewal Rates Limit Replacement Demand
Slowing down of fleet renewal rates globally due to economic uncertainties and higher vehicle costs can hamper the market growth. As consumers keep their existing cars for longer time instead of upgrading to newer models, it severely restricts the replacement demand in the market. Since exterior accessories require periodic changing to suit the latest styles or as the original ones get worn out, long replacement cycles discourage new accessory purchases. Slow turnover of vehicles in the overall fleet means car owners have lesser motivation to customize or update the externals during the lifetime of their current vehicles.
E-Commerce Expands Addressable Market Reach
Rising popularity of e-commerce platforms can offer opportunities for exterior car accessories manufacturers. Traditional distribution through brick-and-mortar stores limits product discoverability and restricts sellers to customers within physical proximity. However, online channels provide a global marketplace without geographical barriers. This exposure helps brands penetrate newer regions and demographics more efficiently. The virtual shopping experience combined with extensive product reviews and comparisons prompts more impulse buys and consideraton of niche accessories.
Customization Trends Foster Ongoing Demand Cycles
Evolving customization trends drive persistent demand cycles, presenting a promising growth opportunity for the bicycle market. Consumers regularly seek to upgrade their bicycles to match the latest fashionable designs, as exterior modifications tend to follow fads that quickly lose appeal to be replaced by novel trends. This cyclical demand, fueled by ever-changing preferences, ensures repeat and upgrade spending from customers. As early adopters' needs are met, new potential buyers emerge, wanting to follow the latest trends. This favorable dynamic works in the industry's favor, driving long-term revenue growth.
Link: https://www.coherentmarketinsights.com/market-insight/exterior-car-accessories-market-1868
Key Developments:
- In November 2022, HARMAN International, a global leader in connected technologies for the automotive, consumer, and enterprise markets, announced an expanded partnership with Renault Group to equip the new Renault Austral compact SUV with custom-designed, high-performance Harman Kardon premium audio systems in the top trim levels
- In November 2022, Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated that develops cutting-edge semiconductors and software for wireless technologies, announced an expanded strategic collaboration with Renault Group, a leading France-based multinational automobile manufacturer. The two companies plan to co-develop a centralized, software-defined vehicle (SDV) platform architecture to power Renault's upcoming lineup of electric vehicles.
- In October 2022, Hyundai Mobis, a automobile parts supplier headquartered in South Korea, announced a strategic collaboration with Luxoft, a global software engineering firm and a subsidiary of DXC Technology, to jointly develop an advanced next-generation in-vehicle infotainment (IVI) platform called the Mobis Infotainment System (MIS). The cutting-edge MIS platform is capable of simultaneously controlling up to six high-resolution displays in the vehicle, including a digital instrument cluster, augmented reality heads-up display, center stack display, and three rear passenger entertainment screens. Hyundai Mobis and Luxoft showcased the innovative MIS at the International Suppliers Fair hosted by Volkswagen in Germany in October 2022, highlighting their combined expertise in automotive software and electronics.
- In June 2022, Continental AG, a leading Germany-based multinational automobile technology company focused on developing pioneering solutions for safe, efficient, intelligent and affordable mobility, announced a strategic investment in Motovis Intelligent Technologies. As part of this agreement, the two companies will collaborate to jointly develop autonomous driving technologies spanning Levels 2 to 4, enabling vehicles to handle an increasing number of driving tasks with reduced human intervention.
Key Players:
Car Mate Manufacturing Co Ltd, Cie Automotive S.A., Covercraft Industries LLC, Faurecia SE, Hayashi Telempu Corporation, Kasai Kogyo Co., Ltd., Lund International, Inc., Magna International Inc., Mont Blanc Group AB, Oakmoore Pty Ltd., Samvardhana Motherson, Thule Group, Toyodo Gosei Co Ltd., Truck Covers USA LLC, Yakima, Inc.
