Car electronics and communication systems additional accessories in cars that augment the overall driving experience of the vehicle. These accessories include adaptive cruise control (ACC), blind-spot detection, park assist, mobile chargers, LCDs, cigarette lighters, music systems, communication systems, LCD screen, Bluetooth connection, etc. These accessories differ on the basis of vehicle types such as pickup cars, passenger cars.
The global car electronics accessories & communication market is expected to surpass US$ 126,086.5 Mn in terms of value by the end of 2028.
Global Car Electronics Accessories & Communication Market: Drivers
Technological advancements and product innovations are expected to boost the global car electronics accessories & communication market growth over the forecast period
Constant research and development activities by car manufacturers have allowed them to provide car interior equipped with various car accessories that provide the consumer with luxurious driving experience. With every new technological advancement, the electronic accessories & communication system manufacturers develop new accessories that create the demand among the consumers. According to the white paper published by Impetus Automotive, the electronic car accessories accounted for 21.5 % market share in 2014, market share in the global car accessories market. Furthermore, the demand for electronic car accessories with multi-purpose functionalities such as navigation and system integrated stereos has increased. Hence, these factors are expected to drive growth of the market during the forecast period.
Global Car Electronics Accessories & Communication Market: Opportunities
Constant mergers and acquisition activities can present lucrative growth opportunities
Key players operating in the market are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in December 2015, Delphi Automotive acquired HellermannTyton Group PLC, a leading manufacturer of cable management solutions, which is expected to strengthen the company’s position in the electrical architecture market. Moreover, in January 2016, Sony Corporations acquired Altair-Israeli, an innovator of LTE modem chip technology. In April 2016, JVC Kenwood merged with subsidiary JKOC, which is engaged in optical pickup business and optics accessories.
Global Car Electronics Accessories & Communication Market: Recent Developments
- In August 2021, Global auto group Stellantis and Taiwanese electronics giant Foxconn unveiled a joint venture to make a "smart cockpit" for cars that will feature navigation, voice assistance and payment services.
- In January 2021, U.S. tech giant Qualcomm Technologies, Inc., introduced its next generation of digital cockpit solutions with the 4th Generation Qualcomm Snapdragon Automotive Cockpit Platforms.
- In January 2019, Visteon Corporation, a leading global cockpit electronics supplier collaborated with China internet technology leader, Tencent to develop autonomous driving and intelligent cockpit solutions for Guangzhou Automobile Group (GAC) R&D Center in China.
Global Car Electronics Accessories & Communication Market: Restraints
Cost competitiveness due to fragmented market is expected to hinder the global car electronics accessories & communication market growth over the forecast period
The global car electronic accessories and communication market is a fragmented market that constitutes a large number of unorganized players and a few organized players in the market. The unorganized players dominate the market, due to which the organized players face sheer competition in terms of pricing resulting in a decline of profit margin. Most of the car electronic accessories and communication systems in the unorganized market are imported from countries like China, Taiwan, Korea, and Thailand. Accessories imported from these countries are sold nearly at half the price of electronic accessories offered by the organized players in the local market, which in turn increases the pressure on organized players to reduce the price of these accessories in order to compete with the unorganized car accessories market. Thus, these factors are expected to hinder the market growth in the near future.
Global Car Electronics Accessories & Communication Market - Impact of Coronavirus (Covid-19) Pandemic
Globally, as of 5:06pm CEST, 22 September 2021, there have been 229,373,963 confirmed cases of COVID-19, including 4,705,111 deaths, reported to WHO. As of 20 September 2021, a total of 5,776,127,976 vaccine doses have been administered. The automotive sector has shown significant recovery compared to initial period when the Covid-19 pandemic was in early stage. The market has witnessed year-over-year growth in new-vehicle sales over the last few months across China, Europe, and the US. However, sales in Europe and the US will not rebound to pre-COVID levels until 2023 at the earliest.
- The global car electronics accessories & communication market was valued at US$ 85,289.9 Mn in 2020 and is forecast to reach a value of US$ 126,086.5 Mn by 2028 at a CAGR of 5.8% between 2021 and 2028.
- The Music System segment was valued US$ 26,784.20 Mn in 2020 and is expected to witness a CAGR of 5.5% over the forecast period.
Formation of joint ventures among regional market players
The Japanese automotive sector is highly influenced by the various macroeconomic factors such as the global economy and currency fluctuations along with geographical factors such as natural catastrophes. The car accessories manufacturers are establishing their manufacturing units overseas by creating joint ventures or as wholly-owned subsidiaries in the countries like US, Europe, Southeast Asia, and China. For instance, Car Mate Mfg. Co., Ltd., a Japanese manufacturer of various car electronic accessories has established its subsidiaries in China, India, and the U.S. mitigating the above-mentioned risks along with tapping the market opportunities in the respective regions.
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Policies for domestic production of cars in Nigeria
In 2013, Nigeria introduced the National Automotive Policy in order to promote the domestic production of cars. As per the estimates of Standard Bank, the African middle-class population has tripled in the last 14 years and it is expected that around 25 Mn households will become middle class by the end of the forecast period. Out of the eleven countries in the African continent, Nigeria will witness the highest number of the middle-class population. With a booming economy and domestic production of cars in Nigeria, the car electronic accessories and communication market will offer tremendous opportunities for manufacturers, suppliers, and retailers in the region.
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.