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.
Interior car accessories are additional components that augment the interior aesthetics of the vehicle and provide overall entertaining and comfortable riding experience. Since the automotive sector has expanded significantly in the recent past, with car accessories witnessing significant demand across the globe. A vehicle’s interior is comprised of cockpit modules, automotive seats, door panels, headliners, etc. Furthermore, interior trims, upholstery, and other adornments are crucial components in providing aesthetic appearance to the car. The global interior car accessories market focuses on five regions North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.
The global Interior Car Accessories Market was accounted for US$ 202,938.9 Mn in terms of value and 803,8563.5 Thousand Units in 2019 and is expected to grow at CAGR of 5.6% for the period 2020-2027.
Market Dynamics- Drivers
- High growth in automotive industry is expected to drive growth of the global interior car accessories market during the forecast period
The automotive industry has witnessed stable growth in the recent past following the economic crisis. According to Coherent Market Insights’ analysis, the global automotive industry is expected to be valued at US$ 87.5 billion by 2020. This is owing to increasing sales of passenger cars combined with rising sales of pickup trucks. Hence, sales of passenger cars and pickup trucks are expected to boost sales of interior car accessories. Thus, these factors are expected to drive growth of the global interior car accessories market during the forecast period.
- Rapid growth automotive aftermarket e-retailing in developed countries is expected to propel the global interior car accessories market growth over the forecast period
The automotive aftermarket e-retailing is expanding, especially in developed regions such as Europe and North America. A wide array of automotive parts and accessories are being sold via automotive aftermarket e-retailers such as AutoZone, Pep Boys, and Carid.com. Thus, rising sales of automotive parts through e-retailers is expected to propel the global interior car accessories market growth in the near future.
Europe held dominant position in the global Interior Car Accessories market in 2019, accounting for 34.2% share in terms of value, followed by Europe and Asia Pacific, respectively
Figure 1: Global Interior Car Accessories Market Share (%) in terms of Value, By Region, 2019
Interior Car Accessories Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 Pandemic have adversely affected the economies of various countries around the globe. According to the International Monetary fund Analysis, the global economy is expected to shrink down by 3% percent in the year 2020 compared to year 2019. These economic slowdown expected to affect various sectors such as Automotive.
Moreover, According to Coherent Market Insight Analysis, Asia Pacific region constitutes world’s 60% population and higher population demands higher mobility. According to same analysis, the Asia Pacific region have largest Automotive industry by revenue but due to COVID-19 pandemic countries such as China and India declared lockdown in some areas of country. Due to the lockdown many car accessories manufactures had to shutdown their plants. Owing to mentioned reasons, COVID-19 is expected to restrain the growth of the market during the year 2020.
Market Dynamics- Restraints
- Presence of low-quality interior car accessories is expected to restrain growth of the global interior car accessories market during the forecast period
There is a massive number of suppliers present in the market providing interior car accessories with low quality. These products are offered at competitive prices as compared to branded interior car accessories. Regardless of inferior quality offered and promising look as branded interior accessories, consumers are purchasing the low-quality accessories. This low awareness among consumers regarding genuine accessories is expected to restrain growth of the global interior car accessories market during the forecast period.
- Cost competitiveness due to fragmented market is expected to hinder the global interior car accessories market growth over the forecast period
The global interior car accessories market is highly fragmented with presence of both local and global market players. The unorganized players hold dominant positions in the market, owing to which the organized players face sheer competition in terms of pricing resulting in a decline of profit margin. Most of the interior car accessories in the unorganized market are imported from countries such as China, Taiwan, Korea, and Thailand. Thus, these factors are expected to hinder the market growth in the near future.
Interior Car Accessories Market Report Coverage
||Market Size in 2019:
||USD 202,938.9 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||USD 314,579.4 Mn
|Geographies covered (27):
- 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: South Africa, North Africa, Central Africa
- By Product Type: Dash Kits, Covers, Electronic Accessories, Consoles & Organizers, Sunshades, Communication, Car Cushions & Pillows, Car Mats, Knobs, Central Locking System and Fragrance
- By Vehicle Type: Passenger Cars (Compact PC, Mid-size PC, Premium PC, Luxury PC) and Pickup Trucks
- By Channel Type: OEM and Aftermarket
Momo Srl, Pioneer Corporation, Star Automotive Accessories, Garmin Ltd., H.I. Motors, Pecca Group Berhad, U.S. Auto Parts Network, Inc., Covercraft Industries, LLC, O'Reilly Auto Parts, Lloyd Mats, CAR MATE MFG. CO., Ltd., and Classic Soft Trim.
- High growth in automotive industry
- Rapid growth automotive aftermarket e-retailing in developed countries
|Restraints & Challenges:
- Presence of low-quality interior car accessories
- Rising demand for customized vehicles among younger population can present lucrative growth opportunities
Vehicle ownership among young age group is increasing rapidly worldwide with an intent to invest more on customizing and accessorizing their vehicles. This is done in order to increase the performance of their cars and offer more sporty aesthetics. Therefore, rising demand for car accessories among young population for customization activities is expected to provide major business opportunities for market players in the near future.
- High demand for car security accessories can offer major business opportunities
Most of the economic or low variant compact cars have a manual locking system, they don’t have pre-fitted central locking systems, which increases the risks of car theft. In order to avoid the cars from theft, car owners are preferring to install anti-theft locking systems in the car from the automotive aftermarket. This, in turn, is expected to boost the demand for car security accessories worldwide. Major companies in the market can capitalize on the opportunities and gain a competitive advantage in the market.
Figure 2: Global Interior Car Accessories Market Value (US$ Mn), 2017 - 2027
The global Interior Car Accessories market was valued at US$ 202,938.9 Mn in 2019 and is forecast to reach a value of US$ 314,579.4 Mn by 2027 at a CAGR of 5.6% between 2020 and 2027.
- North America Trends
Distribution channel consolidation
Distribution channel consolidation is the latest trend in the North America interior car accessories and aftermarket. The aftermarket and retailers hold a dominant position in the North America. Manufacturers and suppliers in the market are focused on consolidation in their distribution networks with large retailers and distributors. The distributors require large suppliers with product expertise, supply chain services, and a global footprint.
Growing preference for two-color and perforated seat covers
Consumers are gradually preferring multicolor seat covers for their cars with contrasting stitching and piping in bright colors. Furthermore, consumers are focused on purchasing creative seat cover patterns such as perforated seat covers that allow airflow through perforations. This, in turn, offers comfort to the passengers during the hot weather.
- Europe Trends
Expansion of production plants of major car manufacturers in Slovakia
Major passenger car manufacturers such as PSA, KIA Motors, and Volkswagen are focused on expanding their production facilities in Slovakia since 2011. Thus, the prevailing trend in the country will offer lucrative opportunities for the interior car accessories market in the country.
Higher prevalence of car customization among consumers in Spain and the Netherlands
The customization of cars, which is commonly termed as “tuning” among the consumers in Spain is increasing significantly, this increase is highly influenced by the trend followed in the US. Thus, the rising affinity of people towards car customization in Spain will be the sweet spot for interior car accessories manufacturers across the Western Europe region. The most commonly preferred interior car accessories in the region include seat covers, floor mats, and electronic accessories.
Value Chain Analysis
- The key participants in the value chain of global interior accessories market include, manufacturers, suppliers, distributors, OEMs, dealers and the aftermarket. The profit margin percentage across the value chain varies depending on the flow of supply.
- Manufacturers directly supply the accessories to the suppliers, the suppliers are the main point of contact for aftermarket and distributors, the distributors further distribute products to various OEMs, vehicle dealers/showrooms and aftermarket, where direct contact between suppliers and aftermarket doesn’t exist
Major companies operating in the global interior car accessories market are Momo Srl, Pioneer Corporation, Star Automotive Accessories, Garmin Ltd., H.I. Motors, Pecca Group Berhad, U.S. Auto Parts Network, Inc., Covercraft Industries, LLC, O'Reilly Auto Parts, Lloyd Mats, CAR MATE MFG. CO., Ltd., and Classic Soft Trim.
- Key players in the market are involved in mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in August 2018, Covercraft Industries, LLC acquired Marathon Seat Covers, a provider of premium-quality seat covers.
- Major market players are focused on partnerships and collaborations, in order to enhance the market presence. For instance, in December 2019, Pioneer Corporation partnered with Nain Inc., a startup in UI solution business.