Car Accessories Market Trends

Growth Drivers

• Growing Integration of IoT in Automotive-The demand for IoT in automotive is surging significantly with the growing customer expectation for enhanced technology in their vehicles. As a result, huge investments have been made in IoT for automobiles across the world. For instance, by 2025, approximately USD 739 billion is predicted to be invested in automotive IoT. Further, this integration of IoT is set to be influenced by the growing need for smart infrastructure to not only improve the appearance but also to protect the vehicle from accidents. However, along with preventing accidents, IoT also enables in-vehicle infotainment systems, which allow drivers and passengers to stream music, navigate, make hand-free calls, and more throughout the journey. Hence, with the growing demand for IoT, the car accessories market is estimated to rise over the coming years. These automotive IoT components refer to cloud-connected IoT devices, including cameras, GPS trackers, sensors, and telematics solutions, which are deployed in automobiles to collect real-time data and further offer a smarter driving experience.

• Rising Demand for Electric Vehicles-The growing adoption of electric vehicles is predicted to pose an opportunity to boost the growth of the car accessories market. This is because electric vehicles require a number of accessories. These accessories include an EV charger, lighting, a thermal cooling system, and other components that are installed as per the demand of owners of electric vehicles.
• Surging Need to Secure a Car-The prevalence of car theft is growing around the world. This has further boosted the need for safety features in automobiles. However, economic or low-variant compact cars, which are still the most preferred vehicles among the middle-class population, consist of manual locking systems, which is why the prevalence of theft has increased. Therefore, to safeguard cars from theft, owners of automobiles are adopting anti-theft locking systems in the cars. Consequently, this is expected to boost the growth of the car accessories market during the forecast period.

Challenges

• Lack of High-Quality Interior Products-There are a number of suppliers in the market who offer car accessories of low quality. In contrast to the branded car accessories, these low-quality accessories are offered at competitive prices. Hence, even though brands are providing inferior-quality accessories with a promising look, consumers are still preferring the low-quality accessories. As a result, this lack of awareness regarding genuine accessories among consumers is projected to hinder the growth of the car accessories market during the coming years.
• Competitiveness in Price
• Growing Economic Uncertainty