Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Car electronics accessories are devices in cars that improve the overall experience of vehicle owners in regards to connectivity and entertainment. There is a wide range of electronics accessories and communication systems include car audio, chargers, cup holders, mobile holders, Bluetooth accessories, GPS trackers, LCD screen, inflator, reverse parking system, car lock alarms & systems, compressor, etc. These accessories differ on the basis of vehicle types such as pickup cars, passenger cars.
The global car electronics accessories & communication market is estimated to be valued at US$ 85,289.9 million in 2021 and is expected to exhibit a CAGR of 5.8 % over the forecast period (2021-2028).
In June 2021, Elektrobit (EB), an industry-leading supplier of automotive software introduced comprehensive solutions offering for intelligent automotive digital cockpits.
In February 2020, California based embedded safety and security provider Green Hills Software entered into partnership with information technology solutions vendor Tata Elxsi to build software-driven solutions for automotive cockpits.
In December 2019, BlackBerry Limited collaborated with MARELLI, a global Tier 1 automotive supplier, to integrate QNX Platform for Digital Cockpits in MARELLI's eCockpit and Digital Cluster solution.
Figure 1. Global Car Electronics Accessories & Communication Market Value (US$ Mn), by Region, 2020
Asia Pacific held dominant position in the global car electronics accessories & communication market in 2020, accounting for 33.2% share in terms of volume, followed by Europe and North America, respectively. Rapid adoption of the car is driving the global car electronics accessories & communication market.
Global Car Electronics Accessories & Communication Market: Drivers
Increasing automotive sales worldwide is expected to drive growth of the global car electronics accessories & communication market during the forecast period
Following the economic crisis, the automobile industry has regained its stability. There has been an increase in sales of passenger cars in the recent past, which in turn, has increased the demand for car electronics accessories. According to Coherent Market Insights’ analysis, North America witnessed sales of 20.6 Mn unit cars in 2015, and it is anticipated to increase further by the end of the forecast period. Furthermore, the automotive industry has increased massive growth in BRICS (Brazil, Russia, China, India, and South Africa) nations and is expected to continue its growth in the near future. Thus, these factors are expected to drive growth of the market during the forecast period.
Growing consumer preference for in-car entertainment and communication accessories is expected to propel the global car electronics accessories & communication market growth over the forecast period
Vehicles owners across the globe are increasingly preferring enhanced driving experience. For this, consumers are adopting various in-car entertainment accessories such as music and radio accessories, LCDs, and more. These car accessories help in enhancing the overall driving experience as well as car ambiance for consumers. According to a white paper by Impetus Automotive the electronic car accessories such as LCDs, music accessories, etc. accounted for 21.5 % market share in 2014, market share in the global car accessories market. Thus, these factors are expected to propel the market growth over the forecast period.
Global Car Electronics Accessories & Communication Market: Opportunities
Adoption of online car accessories configuration tools can present lucrative growth opportunities
In order to improve the in-dealership car accessory sales, the car dealerships are using online car accessory configuration tools rather than using the traditional print catalog. The online tool provides the right price information, better inventory, and better customer satisfaction. For instance, AddOnAuto is a company which is dedicated to increasing the revenues and profit of car dealerships. The company offers in-dealership car accessory sales technology that helps streamlined communication between accessories suppliers and dealerships. The online tool also allows the customers to choose the exact model of vehicle the consumer wants to purchase and accessorize it with thousands of accessories available in the tools with real-time visualization experience. Moreover, the tool allows the customers to see the suppliers' pricing, discounts, and other pricing options available.
Car Electronics Accessories & Communication Market Report Coverage
||Market Size in 2021:
||US$ 85,289.9 Mn
|Historical Data for:
||2017 to 2020
||2021 to 2028
|Forecast Period 2021 to 2028 CAGR:
||2028 Value Projection:
||US$ 126,086.5 Mn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
- Middle East and Africa: GCC, South Africa, North Africa, Central Africa
- By Product Type: Communication, Music System, Mobile Chargers, LCDs, Cigarette Lighters
- By Vehicle Type: Passenger Cars, Pickup Trucks
- By Channel Type: OEM, Aftermarket
Pioneer Corporation, Lighterking Enterprise Co. Ltd., Garmin Ltd., Blaupunkt, Sony Corporation, JVC Kenwood Corporation, Alpine Electronics, Inc., TomTom International, and Delphi Automotive
- Increasing automotive sales worldwide
- Growing consumer preference for in-car entertainment and communication accessories
|Restraints & Challenges:
- Presence of low-quality car accessories
- Complexities in design of communication accessories
Reduction in taxes in Argentina can provide major business opportunities
In December 2015, the newly formed Argentinian government decided to cut down excise tax on new cars in an attempt to propel domestic automotive production, which in turn has resulted in the recovery of the sales dip caused in automotive sales in 2015. Argentina’s vehicle fleet on road is dominated by the passenger car segment, thus the recovery in automotive sales will bolster car electronic accessories and communication market in the country.
Distribution Channel Consolidation
The most recent trends adopted in the car interior accessories in developed markets such as North America is the distribution channel consolidation. The aftermarket and retailers hold a major chunk in the North America car accessories market. The manufacturers and suppliers are increasing consolidation in their distribution networks with the large distributors and retailers in the aftermarket. The distributors require large suppliers with product expertise, supply chain services and global footprint. The suppliers provide opportunities to the distributors to streamline their supply base of vendors in the supplier’s products by virtue of supplier or manufacturers’ product expertise and broad offering for mutual benefits.
Constantly evolving Russian automotive aftermarket
The Eastern European automotive aftermarket, specifically the Russia automotive aftermarket is expected to grow at an annual rate of 5 %- 15 %. The competitive intensity of the Eastern European market is moderate with lot of potential. The Eastern European market will be the sweet spot for car accessories manufacturers, with better distribution networks and sales. The Russian automotive market has seen declining trend in car sales in the past two years 2014 and 2015 due to the deteriorating macroeconomic situation. However, the car sales is anticipated to regain its pace by the end of 2017 and flourish by 2021, which in turn will witness demand for car accessories in the region.
Figure 2. Global Car Electronics Accessories & Communication Market Share, By Vehicle Type, 2020
Key Takeaways of the Graph:
- Among Vehicle Type, the Passenger Cars held dominant position in the market and accounted for 92.7% share in the global car electronics accessories & communication market in 2020. The segment is expected to reach US$ 116,933.90 million in 2028. This owing rapid adoption of automotive vehicles in the Asia Pacific region.
- Among Distribution Channel, the Aftermarket held dominant position in the market and accounted for 73.0% share in the global car electronics accessories & communication market in 2020. The segment is expected to reach US$ 91,982.73 million in 2028. This is owing to growing consumer preference for in-car entertainment and communication accessories
Global Car Electronics Accessories & Communication Market: Restraints
Presence of low-quality car accessories are expected to restrain growth of the global car electronics accessories & communication market during the forecast period
Since the global car electronics & communication market is highly fragmented, which has led to the production of low-quality accessories. Numerous manufacturers are offering products at a relatively competitive price as compared to the branded car electronic accessories and communication systems. Irrespective of the substandard quality offered, the consumers opt for buying the counterfeit accessories due to price competitiveness. Therefore, these factors are expected to restrain growth of the global car electronics accessories & communication market during the forecast period.
Complexities in design of communication accessories are expected to hamper the global car electronics accessories & communication market growth over the forecast period
Manufacturers of car infotainment systems are aggressively trying to integrate numerous applications and functions system to enhance the driver’s experience. To achieve such breakthroughs, the design complexity of accessories has multiplied which has ultimately increased the production cost of car communication systems with a minimum performance guarantee. Hence, these factors are expected to hamper the market growth in the near future.
Global Car Electronics Accessories & Communication Market: Competitive Landscape
Key players operating in the global car electronics accessories & communication market are Pioneer Corporation, Lighterking Enterprise Co. Ltd., Garmin Ltd., Blaupunkt, Sony Corporation, JVC Kenwood Corporation, Alpine Electronics, Inc., TomTom International, and Delphi Automotive.
Key players in the market are focused on product launches, in order to expand product portfolio. For instance, in February 2020, Pioneer India, a subsidiary of Pioneer Corporation, introduced a new subwoofer TS-WX3000T.
Major market players are involved in product development, in order to enhance the market presence. For instance, in July 2018, Blaupunkt introduced first Apple CarPlay and Android Auto Car Infotainment Systems.