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From leather steering wheels to high-tech entertainment systems, the evolution of interior car accessories has led the market to grow at around 6% CAGR by 2023–28. – Actual Market Research
Feb, 28
2023

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From leather steering wheels to high-tech entertainment systems, the evolution of interior car accessories has led the market to grow at around 6% CAGR by 2023–28. – Actual Market Research

 

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Interior car accessories are products that can be added to the inside of a vehicle to enhance its comfort, functionality, and aesthetics. These accessories can range from practical items like floor mats and seat covers to decorative items like customized steering wheel covers and dashboard decals. Some interior car accessories may also incorporate the latest technology, such as smartphone mounts, Bluetooth audio adapters, and navigation systems. The demand for interior car accessories has increased in recent years as car owners look for ways to personalize and improve their driving experience. The demands of interior car accessories can vary based on the needs and preferences of individual car owners. Car owners seek accessories that enhance the comfort of their driving experience, such as seat covers, neck pillows, and heated or ventilated seat cushions. They look for accessories that make their daily routines more efficient, such as phone mounts, cup holders, and organizers. Further, consumers want accessories that add a personal touch to their vehicle's interior, such as customized floor mats, steering wheel covers, and decorative decals. They also seek accessories that help protect their vehicle's interior from wear and tear, such as floor mats, seat covers, and cargo liners. Accessories that enhance the safety of the driving experience, such as blind spot mirrors, dash cams, and emergency roadside kits are also emerging at a higher pace.

According to the research report, "Global Interior Car Accessories Market Research Report, 2028," published by Actual Market Research, the market is anticipated to reach a size of over USD 352 billion, up from USD 251.14 billion in 2022. The market is projected to grow at around 6% CAGR by 2023–28. As car ownership becomes more common around the world, many consumers are looking for ways to personalize their vehicles to reflect their unique styles and personalities. Interior car accessories provide a way to achieve this customization. Many drivers spend significant amounts of time in their cars, and as such, are looking for ways to enhance the comfort and convenience of their driving experience. Interior car accessories can help meet these demands by providing features such as seat cushions, cup holders, and phone mounts. As technology continues to advance, there is an increasing number of car accessories that incorporate the latest innovations, such as wireless charging pads and smart assistants. These products are becoming more popular as drivers seek to integrate technology into their driving experience. Also, car owners are becoming more aware of the importance of maintaining their vehicles in good condition. Interior car accessories such as floor mats and cargo liners help protect the interior of the car from wear and tear, making them a popular choice for many consumers.

According to the report, the market is segmented into five major regions including North America, Europe, Asia-Pacific, South America and Middle East & Africa. Among them, Asia-Pacific region is leading the market with more than 35% of market share. In order to meet the need for creating fuel-efficient and lightweight systems, manufacturers are coming up with a lightweight material to use in the automotive interiors, which is driving the Asia-Pacific automotive interior market. For example, manufacturers are now using lightweight materials such as high strength steel and thermoplastic to manufacture automotive parts such as reinforced glass and heat insulation systems. Due to rising customer expectations and fierce competition, a large number of car manufacturers are offering infotainment systems even in entry-level cars. This, in turn, may boost the infotainment market and as a result, the infotainment systems subcategory is expected to be the fastest growing. Currently, vehicles are equipped with advanced gadgets, such as an entertainment system, hands-free connectivity, and global position system (GPS), to enhance the driving experience. Further, the market is segmented into two types of distribution channels, including OEM and aftersales. Among them, the aftersales segment is leading the market.

Based on the report, the market is segmented into electronics accessories, consoles and organizers, mats, interior covers, central locking systems, armrests, communication systems, dash kits, sunshades, interior lighting, air fresheners, interior chrome accessories, and others. Among them, nearly half of the market is occupied by electronics accessories, which include car audio, car video, car chargers, mobile holders, car vacuum cleaners, inflators and compressors, car Bluetooth accessories, car GPS tracker and navigation, reverse parking systems, etc. The use of infotainment systems in advanced automobiles, such as connected cars and autonomous vehicles, has been steadily increasing due to car buyers' preference for an automobile's connectivity features over its mechanical specifications. Investments by automobile manufacturers and technology companies, as well as joint ventures between automobile component manufacturers and technology companies, may further strengthen the market for infotainment systems. In October 2022, Hyundai Mobis and Luxoft, for example, announced a new partnership to promote their newly developed In-vehicle Infotainment (IVI) platform for sale to third-party automobile manufacturers. The two companies collaborated to create the Mobis Infotainment System (MIS), which can fully control six displays: a digital cluster, an augmented reality heads-up display, a centre stack display, and three passenger seat displays. It was unveiled in October 2022 at the International Suppliers Fair in Germany. However, the interior lighting segment is growing with a higher CAGR for 2023–28.

In Europe, the factor which is likely to fuel the demand of the automotive interiors industry in Europe is the growing production of electric vehicles. Leading automotive OEMs and interiors manufacturers are spending of huge amount on research and development of interiors for future vehicles. For instance, in January 2020, Grupo Antolin and Eyesight Technologies have entered into a collaboration agreement to offer innovative solutions for the future electric, connected and autonomous vehicles, by applying the full technological potential of driver and passenger monitoring systems inside the vehicle. In another instance, Mercedes-Benz autonomous vehicle which it has introduced at the Tokyo motor show has, no front or back interiors in place of that there is an oval-shaped couch. Also, there are wraparound LED screens behind the passengers, and displays from the infotainment system will be displayed as 3-D holograms. Germany is among the leading automobile producer in the world. Germany has the largest and most industrious economy in Europe. In addition, the Country is also a leader in producing passenger cars amongst all member countries in the European Union.

North America, particularly the United States, will continue to play an important role that cannot be overlooked. Any changes from the United States could have an impact on the development trend of Interior Car Accessories. North America's market is expected to expand significantly during the forecast period. The region's high adoption of advanced technology, as well as the presence of large players, is likely to provide ample growth opportunities for the market. The factor which is likely to fuel the demand of the automotive interiors industry in North America is the growing popularity and acceptance of electric vehicles. Leading vehicle companies and interiors manufacturers are spending of huge amount on research and development of interiors for future vehicles. In 2020, Visteon Corporation launched its SmartCore domain controller in collaboration with GAC and Tencent. Designed for GAC’s EV platform this intelligent cockpit is integrated with the Tencent Auto Intelligence (TAI) system for user interaction and control based on voice recognition, and with the third-generation Snapdragon automotive cockpit platform. In addition to that Tesla is also making its interior different from other cars by making basic changes in the design of vehicles such as Model 3 steering wheel features interesting scrolls to control apps, adjust the side mirrors, and many other features. The United States is among the leading automobile producer in the world. The country has the largest and most industrious economy in North America. In 2022, the USA and China together contributed for more than 30% market share.

The South America interior car accessories market is expected to thrive on the back of growing automotive industry across the globe. Increasing sales of vehicles and increased spending of consumers on vehicles ornament are likely to be the key drivers behind the growth of market during the forecast period. The prime factors driving the growth in the sales and demand for passenger cars were lower interest rates and improving consumer confidence. The passenger car market in South America witnessed considerable numbers in 2022 despite the pandemic. Electric vehicles (EVs) have grown in popularity in the South American region over the last few years due to the necessity to meet future energy and emission demands. The electric vehicle market is growing as an important part of the South American automotive industry, and it promises a path to increased energy efficiency while lowering pollution and other greenhouse gas emissions. These factors are projected to boost the demands for interior car accessories across the region. On the other hand, the market for interior car accessories in the Middle East and Africa is diverse and dynamic. Consumers have access to a wide range of products, from practical items such as phone mounts and cup holders to more luxurious features such as leather seats and high-end audio systems. With the growth in disposable incomes, consumers in the MEA region are increasingly looking for premium and luxury car accessories. This has led to a growth in demand for high-end car accessories such as leather seat covers, customised floor mats, and dashboard covers.

A growing consumer inclination towards an entertaining driving experience, increasing demand for fast-moving car accessories, and rising vehicle customization among a young population are the key drivers expected to fuel growth of the global interior car accessories market over the forecast period. The expansion of the global automotive industry, as well as the subsequent increase in sales of passenger cars and pickup trucks, is expected to boost the global market for interior car accessories. Based on the car types, the global market is segmented into small-sized cars, mid-sized cars, SUVs, MPVS, luxury cars, and pickup trucks such as the Toyota Tacoma, Ford Ranger, Jeep Gladiator, Chevrolet Colorado, GMC Canyon, and Hyundai Santa Cruz. Among them, SUVs are projected to lead the market by the end of the forecast period.

Covid-19 Impacts:
The COVID-19 pandemic has had a significant impact on the global economy, and the interior car accessories market is no exception. While the market for certain interior car accessories has seen a decline, others have experienced growth due to changes in consumer behaviour and preferences. One of the most significant impacts of the pandemic on the interior car accessories market has been a decrease in demand for products related to entertainment and comfort. For example, sales of car DVD players and other in-car entertainment systems have declined as people are not travelling as much, and those who are may be less likely to engage in activities like watching movies while on the road. On the other hand, there has been an increase in demand for products that promote health and safety, such as air purifiers, sanitizers, and seat covers. This trend has been driven by consumer concerns about the spread of the virus and a desire to take precautions to protect themselves and their passengers. Additionally, there has been a shift towards online purchasing, as people are avoiding physical stores due to health concerns and restrictions on mobility. As a result, e-commerce channels have become increasingly important for interior car accessories market players to reach their customers. Overall, the COVID-19 pandemic has had a mixed impact on the interior car accessories market, with some segments experiencing growth, while others have seen a decline in demand.