Market Trends of Passenger Car Accessories Industry
This section covers the major market trends shaping the Passenger Car Accessories Market according to our research experts:
Infotainment System Dominates the Interiors Accessories Market
A basic infotainment system in a modern vehicle comes equipped with a CD player, Bluetooth, USB port, lighter port, aux port, video panel, radio, GPS, multiple speakers, and control panels.
The use of infotainment systems in advanced automobiles, such as connected cars and autonomous vehicles, has been continually increasing due to the preference of car buyers for the connectivity features of an automobile over its mechanical specifications. The market for infotainment systems may be further strengthened by investments made by automobile manufacturers and tech companies, as well as joint ventures between automobile component manufacturers and tech companies. For instance,
- In October 2022, Hyundai Mobis and Luxoft announced a new deal to promote their newly developed In-vehicle Infotainment (IVI) platform for sale to third-party automobile manufacturers. The two companies jointly developed 'The IVI platform, named Mobis Infotainment System (MIS), which can fully control six displays -- a digital cluster, an augmented reality heads-up display, a center stack display, and three displays for passenger seats. It was unveiled at International Suppliers Fair held in Germany in October 2022.
The rising usage of IoT, navigation systems, and growing internet penetration further accelerate the sales of automobile infotainment systems. Many manufacturers are launching their new vehicles equipped with touchscreen-based infotainment systems as a standard feature that will further propel the market for automotive infotainment systems. For instance,
- In June 2022, Maruti Suzuki, the largest passenger vehicle manufacturer in India, launched the new generation of its sub 4m SUV Maruti Suzuki Brezza with a 9-inch touchscreen infotainment system named SMART PLAY PRO+.
The increase in automation and autonomous driving vehicles is expected to increase further the demand for electronics in the interior systems of vehicles. The extensive use of digital platforms in software-defined vehicles is expected to further drive the market during the forecast period. For instance
- In November 2022, Qaulcomm Technologies Inc. and Renault SA teamed to develop high-performance digital platforms for the next generation of Renault vehicles. According to this agreement, Qualcomm will supply its Snapdragon digital chassis to support digital cockpit, connectivity, and Advanced Driver Assistance Systems (ADAS) in the next-generation Renault vehicles.
Thus the aforementioned factors are anticipated to maintain infotainment systems' dominance of the passenger interior accessories markets.
Asia Pacific to exhibit the largest growth rate
Asia-Pacific is estimated to be the largest market for automobile accessories because of the significant presence of automobile accessories OEMs, high sales of connected cars due to preference for connectivity features in automobiles by young, affluent vehicles buyers, widespread adoption of smartphones, and rising Internet penetration and growing sales of electric and autonomous vehicles.
The shift from simple audio systems to touchscreen infotainment systems that support multiple features, such as navigation, Apple CarPlay, Android Auto, Telematics, etc., is driving the demand for infotainment systems in countries such as India and China. Earlier, the infotainment system in a vehicle was offered only on the top-spec trim. However, OEMs are presently offering infotainment systems even in mid- and entry-level trims. Additionally, the road infrastructure in China is developing; thus, navigation has become a must-have feature in almost all vehicles. For instance
- In June 2022, Nio Inc. launched their ES7 sports utility vehicle in China, featuring an infotainment system that includes a 23-speaker surround-sound configuration.
North America and Europe are forecasted to be the following largest markets for passenger car accessories due to the significant automobile ownership, market dominance of connected vehicles, easy availability of the latest connectivity technologies like IoT and 5G, and growing sales of electric and connected vehicles.
