Interior car accessories market is estimated to witness high growth, owing to increasing demand for customization and rising disposable income
Interior car accessories market is estimated to be valued at US$ 304.31 Bn in 2024, exhibiting a CAGR of 5.6% over the forecast period (2024-2031). Rising demand for customized and styled interiors among consumers can drive the market growth.
Market Dynamics:
Global interior car accessories market growth is driven by increasing demand for customization and rising disposable income of individuals. Growing desire of customers to modify and enhance the looks of their vehicles according to their personal tastes and preferences boosts demand for interior car accessories. Rising disposable income has allowed customers to spend more on enhancing the visual appeal and driving experience of their vehicles. Customers want their cars to look unique and customized as per the latest trends, and this boosts sales of various interior accessories such as floor mats, LED lights, seats cover, and others. Key manufacturers are also focusing on developing innovative and advanced accessories to capture more customers. However, availability of counterfeit products may hinder the market growth over the forecast period.
Driver: Increasing affordability of interior accessories
Global interior car accessories market growth is driven by rising disposable incomes and spending power of consumers globally. As people are able to afford more luxurious features for their vehicles, there has been huge demand for interior accessories that enhance the look, feel and functionality of the vehicle interior. Major manufacturers are developing affordable product lines that allow a wider consumer base to upgrade and customize their vehicle interiors without burning a hole in their pocket. The prices of many interior accessories like mats, organizers, lights and electronics have come down significantly due to mass production and availability of low-cost alternatives, making them viable options for many potential customers.
Driver: Emphasis on customization and personalization
Global interior car accessories market growth is driven by rising preference of people to personalize and customize their vehicles. This has boosted demand for a variety of accessories that enable owners to tailor the look and features of the vehicle interior as per their evolving styles and needs. Companies catering to this trend are witnessing strong sales growth by offering comprehensive lines of compatible accessories that facilitate custom designs and combinations. The customization trend is boosting repeat purchases and creating opportunities for upsells and cross-sells.
Restraint: Changing preferences and technology obsolescence
Rapidly changing consumer tastes and technology upgradation can hamper the market growth. Similarly, Preferences of people differ significantly based on demographics, lifestyles and geographical regions. Catering to such diversified and fickle demand patterns within a short product lifecycle makes forecasting and planning quite tricky for manufacturers. There is also the risk of large unsold inventories of items that go rapidly out of fashion.
Restraint: Unorganized competition offering cheap alternatives
Global interior car accessories market growth can be hampered by intense price competition from a thriving unorganized aftermarket. In many price-sensitive regions, a proliferation of cheap and lower-quality knockoffs from unreliable dealers continues to eat into the margins and sales volumes of established branded players. While such inexpensive alternatives may satisfy some cost-conscious buyers in the short-run, issues around sub-par functionality, durability and reliability cause reputation damages in the longer term. This unlawful competition poses regulatory and compliance challenges while undercutting formal industry growth. Managing this restraint through branding, proprietary technologies and product differentiation remains a priority.
Opportunity: Connected and autonomous vehicles
With self-driving technologies progressing at an incredible pace, tomorrow's vehicles will have sophisticated interiors integrated with advanced connectivity and automation features. This offers massive opportunities for accessories that complement and add functionality to such intelligent interfaces, controls, displays and infotainment systems. As cars transform into mobile devices on wheels, their internal habitats will demand a whole new paradigm of compatible products. Leading this evolution through innovative IoT-enabled solutions presents a big growth avenue for far-sighted car accessory vendors.
Opportunity: Multi-functionality and "experiential" accessories
today expect more utility, convenience and satisfying in-cabin experiences from their vehicles than mere aesthetic embellishments. Manufacturers noticing this rising demand are focusing on designing multi-purpose accessories that merge looks with superior practical benefits. Products enhancing comfort, storage, infotainment, safety, reliability and wellness are gaining popularity. There is potential in car accessories enabling new "experiential" features like aromatherapy, massage, ambient lighting moods, and others. Those addressing current lifestyle trends through multi-functional and experience-oriented solutions will have an edge in this competitive market.
Link: https://www.coherentmarketinsights.com/market-insight/interior-car-accessories-market-3904
Key Developments:
- In November 2022, Qualcomm Technologies Inc. and Renault SA partnered to develop high-performance digital platforms for Renault's future vehicle lineup. As part of this partnership, Qualcomm will supply its Snapdragon digital chassis technology to power the digital cockpit, connectivity, and Advanced Driver Assistance Systems (ADAS) features in Renault's upcoming vehicle models.
- In November 2022, Harman International, a subsidiary of Samsung Electronics, announced a collaboration with Renault SA to equip the new Renault Austral model with custom-engineered, high-performance Harman Kardon loudspeakers
- In October 2022, Hyundai Mobis, a leading global automobile supplier, and Luxoft, a software engineering firm, jointly developed a next-generation in-vehicle infotainment (IVI) platform called the Mobis Infotainment System (MIS). The MIS platform is capable of integrating and controlling up to six displays within a vehicle, including a digital instrument cluster, augmented reality heads-up display, center stack display, and three passenger displays.
- In June 2022, Nio Inc. launched its ES7 sports utility vehicle in China, featuring an advanced infotainment system with a remarkable 23-speaker surround-sound setup. This premium audio configuration delivers an exceptionally immersive listening experience for passengers traveling in the Nio ES7.
Key Players:
Car Mate Mfg Co., Ltd., Classic Soft Trim, Inc., Continental AG, Covercraft Direct LLC, Covercraft Industries LLC, Denso Corporation, Faurecia, Garmin Ltd., Grupo Antolin, Harman International Industries, Incorporated, Lloyd Mats, MOMO Srl, O'Reilly Auto Parts, Pecca Group Berhad, Robert Bosch
