Passenger Car Accessories Market

The passenger car accessories global market, which registered a valuation of US$487.7 billion in 2022, is poised to witness substantial growth, reaching USD 829.2 billion by 2032. The market is projected to exhibit a robust compound annual growth rate (CAGR) of 5.5% during the forecast period.

Market Overview

The global passenger car accessories market is accelerating due to multiple reasons. Key industry players are actively acquiring and partnering with local and regional companies to provide customers with superior and highly functional accessories. In addition, the demand for car passenger accessories has also increased because of the growing investments in improving vehicles' technical and safety features.

Automated passenger car accessories are crucial in the car driving and riding experience. They offer unmatched protection and safety to car passengers when driving on new paths. For example, a booster cable is a life-saving option when the battery of the vehicle finishes and you are stranded on an unfamiliar road. Other features like a mirror dash camera, central lock system, chrome accessories, and traction control provide better safety and enhance the vehicle's performance. However, the market faces challenges that must be addressed to ensure sustained market growth and success.  

Key Report Findings

• The global market for passenger car accessories was valued at 487.7 billion US dollars in 2022
• The market growth is driven by increasing demand for light-weight vehicles with cutting-edge car accessories like infotainment and safety features.
• The market provides opportunities for players focused on vehicle customization.
• The lack of policies and high cost are the two main challenges that can hamper market growth if left unaddressed.

Market Drivers

Increase in Disposable Income

The passenger car accessories market surge is owed to the rise in the disposable income of people. According to the US BEA (Bureau of Economic Analysis), the disposable income of people grew to 120.4 billion in 2022, showing a 7 percent increase. This discretionary income growth has increased the vehicle purchasing power of people, helping them buy feature-rich and fuel-efficient automobiles with value-adding passenger car accessories.

Growing Number of Car Theft Cases

Another factor driving the market growth is the prolific increase in car theft cases. This has led to the demand for highly advanced security features to lower the risk. Studies show that nearly 815,000 vehicles were stolen in 2020- 92,000 more cars compared to 723,000 car theft incidents recorded in 2019.

Demand for Infotainment Systems

Modern-day car drivers want cutting-edge infotainment systems in their new vehicles like Bluetooth, lighter ports, video panels, GPS, control panels, aux ports, and USB ports. This requirement has led the OEMs to integrate infotainment systems in not just luxury but small and mid-size cars too.

Market Opportunities

Improvement in the Lifestyle Status of Buyers

Industry players have massive opportunities to grow and boost their sales in the Asia Pacific countries like China. In 2022, Shanghai earned the first position in the ranking index for lifestyle. An increase in lifestyle status is directly associated with the people's increasing expenditure tendency, fueling the demand for luxury vehicles in China.

Demand of Vehicle Customization

Young car buyers like the millennials want more customized features in their vehicles. This presents a great opportunity for manufacturers focused on providing customized services and features to their customers as per their needs and requirements.

Increase in Passenger Car Registrations

Though sales for light vehicles decreased in the US by seven percent in 2017, countries like Russia, Europe, Brazil, Japan, China, and India witnessed a sharp increase in passenger car registrations. In fact, the car market in India and Russia expanded quickly, marking a double-digit growth rate. Ever since, the sales have been increasing, providing numerous opportunities for passenger car accessories industry players to grow and boost their profits. For example, thermoplastic and high-strength steel are the primary raw materials used for manufacturing car accessories for light vehicles. The industry players can supply the necessary raw material to car manufacturers to meet the growing demand for light vehicles globally.

Market Challenges

High Cost

One of the biggest challenges the industry players face is the high cost of car accessories. As these accessories are not produced in masses, the cost factor remains high, which is then passed down to the end customers. Indeed, the cost factor poses a big challenge to meet the demand and supply gap.

Industry Regulations

Besides the high cost, another market challenge is the lack of policies and standards. There are no proper or well-defined global industry standards that players must adhere to.

Regional Coverage

The passenger car accessories market is geographically segmented into the following regions:

North America:

• Canada
• United States

Europe:

• United Kingdom
• Spain
• Italy
• Germany
• France
• Hungary
• Belgium
• Netherlands
• Ireland
• Poland
• Austria

Asia Pacific:

• Australia
• China
• India
• Japan
• South Korea

Latin America:

• Mexico
• Argentina
• Colombia
• Brazil

Middle East and Africa:

• Egypt
• Nigeria
• Saudi Arabia
• South Africa
• United Arab Emirates
• Qatar
• Kuwait
• Oman

Company Recent Development

Major players operating in the passenger car accessories market are:

• Robert Bosch GmbH
• Pioneer Corporation
• Denso Corporation
• Covercraft Industries, LLC
• Delphi Technologies
• Continental AG
• Mont Blanc Group AB
• Lear Corporation
• Classic Soft Trim
• Magna International Inc.
• Qaulcomm Technologies Inc.
• Alpine North America Inc.
• Lloyd Mats
• Hyundai Mobis
• Harman International

Over the years, the global passenger car accessories market has witnessed numerous expansion and acquisition activities to meet the rising consumer demand. Industry-leading manufacturers provide a wide variety of high-quality and customized passenger vehicle accessories.

Some major industry developments worth highlighting are the partnership between Lxuoft and Hyundai Mobis. The companies announced a huge deal focused on promoting customized and newly development IVI (in-vehicle infotainment) systems for sale to automobile manufacturers. These two companies developed the IVI system jointly and named it MIS (Mobis Infotainment System). This platform can seamlessly control 6 displays, including but not limited to the AR heads-up display, a smooth digital cluster, 3 passenger seat displays, and a stack display in the center. The system was available to the industry players in October after its launch at the ISF (International Suppliers Fair) in 2022 in Germany.

Another key development was the partnership between Renault SA and Qaulcomm Technologies Inc. These two industry giants teamed up to create a highly-functional digital platform promoting autonomous and automated driving systems in passenger vehicles. The venture was focused on integrating these systems into Renault's next-generation vehicles. The venture is underway where Qaulcomm Technologies Inc. has agreed to supply Renault SA with Snapdragon DC (digital chassis) for supporting digital connectivity and ADAS (Advanced Driver Assistance Systems). This partnership will be a massive success as customers are now actively looking for customized and highly functional features that can take the driving experience to a whole new level.