Passenger Car Accessories Market Size

Passenger Car Accessories Market Analysis

Currently, the Passenger Car Accessories Market is valued at USD 170 billion and is expected to reach USD 300 billion, growing at a CAGR of over 10% over the next five years.

The Covid-19 pandemic had a negative impact on the market owing to the global lockdown and social distancing norms implemented. This reduced the need to travel and also eliminated the chances of market growth in the aftermarket segment, forcing a significant economic slowdown of the market. As automotive manufacturers have resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast.

Automotive sales in major markets like the United States, China, and India increased due to the demand generated by the post-COVID-19 economic recovery. For instance, in 2021, 14.9 million light vehicles were sold in the United States, a growth of 2.5% over 2020. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry. For instance

• In September 2020, Continental AG announced the expansion of its structural program Transformation 2019-2029 by including additional measures for cost reduction. The expanded program is anticipated to deliver cost savings of up to USD 1 billion per year from 2023 onwards to Continental AG. The plan aims to reduce the headcount at Continental AG by 30000 till 2029, including 13000 redundancies in Germany.

Over the long term, rising sales of automotive infotainment systems due to growing smartphone penetration and increasing adoption of high-speed internet, rising preference for connectivity features over mechanical specification of the cars in the minds of young vehicle buyers, increasing application of IoT in the vehicles, rising preference for improving the aesthetic appeal of automobiles and growing sales of connected, electric and autonomous vehicles are anticipated to produce strong growth in the passenger cars accessories market during the forecast period.

Geographically, Asia Pacific is predicted to be the largest market for passenger car accessories due to the presence of major automobile accessories OEMs, higher penetration of connected vehicles in markets like China, Japan, and South Korea, as well as rapidly expanding internet connectivity in Asia-Pacific.

Key players are forming new partnerships with automobile OEMs which is further expected to expand the market for passenger car accessories market. For instance

• In November 2022, Harman International, a Samsung Electronics company, announced a partnership with Renault SA to supply Renault Austral with new custom-designed, high-performance Harman Kardon loudspeakers.

Thus the aforementioned factors are projected to grow the passenger cars market during the forecast period.