Owing to the rising trend of car customisation, the global exterior car accessories market is expected to grow at a healthy CAGR of 7.5% over the forecast period 2016-2024,reaching revenues of US$253.07 billion. The market is already projected to reach US$142.24 billion by the end of 2016.
Consumers are also inclining more toward an enhanced performance experience while driving, which is another important driver pushing the market of high performance exterior accessories.
While staggering growth of the global automotive industry holds a direct positive impact on exterior accessories market, exception growth observed in the automotive sector of BRIC (Brazil, Russia, India and China) nations will especially continue to provide an impetus to the accessories market. In addition, developed nations are expected to witness growing sales of pickup trucks, eventually fueling the demand for accessories.
However, the external car accessories market is extremely fragmented. It has a large number of counterfeit accessory brands, which sell superior quality products at relatively lower prices, which has been a longstanding challenge for key players and the overall market growth.
Several regions have set stringent regulations related to vehicle exterior modification, which may restrict the pace of the market growth during the forecast period. Cost competitiveness will also remain a critical factor hampering the market.
The global market for exterior car accessories has a wide range of product type segments. But body kits will remain a key segment compared to covers, racks, body kits, led lights, alloy wheels, chrome accessories, exhaust mufflers, window films, license plate frames, graphics, and reflectors. With over 121 million units projected for 2024, this segment is estimated to witness moderate volume growth at a CAGR of 3.5% by the end of 2024.
Based on vehicle type, passenger cars will continue to dominate and account for a larger market share of over 76% by end of 2016.
By distribution channel, aftermarket segment will remain a clear dominator over OEM segment. With increasing consumer population purchasing accessories later within the three months of car purchase, the aftermarket segment revenues are estimated to reach US$182.97 billion by 2024. On the other hand, OEM segment is expected to reach US$70.10 billion in revenues by end of 2024.
Europe will remain the largest market for exterior car accessories globally, and is predicted to account for nearly 40% of the total market share in 2016. The European market will reach US$102.19 billion in revenues by 2024, compared to US$56.38 billion revenues expected in 2016. The growth is expected to be robust at a CAGR of 7.7% over the forecast period.
North America is also expected to be a key market, accounting for around 25% of the total market share in 2016. Registering a moderate CAGR of 3.2% in terms of volume, the North American market will witness a healthy CAGR of 7.5% by end of 2024.
Asia Pacific is projected to be an attractive market globally, accounting for over 21% of the market share by the end of 2016. The APAC market for exterior car accessories will register an impressive CAGR of 7.5% throughout the forecast period.
Some of the prominent market players operating in the exterior car accessories sector include Thule Group, Pep Boys, Oakmore Pty Ltd., O’Reilly Auto Parts, US Auto Parts Network, Inc., HELLA KGaA Hueck & Co., CAR MATE MFG CO. LTD., Covercraft Industries, LLC, Classic Soft Trim, Lund International, Inc., Truck Covers USA LLC, Mont Blac Industri AB, F.LLI MENABÒ SRL, H.I. Motors, Star Automotive Accessories, Momo Srl, and Lloyd Mats.