The global car accessories market is mainly driven by the increasing inclination toward vehicle customizations, increasing demand for cars, and growing sales of pickup trucks in developed markets. Leading players in the car accessories market are increasingly focusing on implementing new technologies like biometric access, lighting technology, and active window displays. Such technological advancements are anticipated to set better growth opportunities in the coming future. Moreover, leading firms are investing in technology, product innovation, and are maintaining quality standards to retain their dominance in the auto accessories manufacturing space.
Let’s take a look at some of the significant factors curtailing the growth of the global car accessories market:
- Cost factor: One of the major factors restraining the market growth for auto accessories is the cost of high-quality car accessories. This is attributed to the costs associated with the implementation of advanced technologies. Such factors have compelled several players in this sector to manufacture low-quality car parts, resulting in poor market growth, which, in turn, has decreased the revenue share of organized players.
- Strict regulations: Governments across economies are imposing regulations regarding the external and internal modification of automobiles. This proves to be another significant factor for restricting the growth of the car accessories market.
- A new era of personal transportation: Though connected and intelligent cars have just started making inroads into the auto industry, they have already impacted the way manufacturers of car accessories are adjusting themselves at an organizational level. The technology required to make such intelligent cars such as web networking, sensors, and software is leading to the rise in the presence of technology firms in the auto accessories industry.[spacer height=”20px”]
The combined impact of these three factors, which have taken center stage in the global auto accessories industry is not easily managed or blunted. As a player in the auto accessories manufacturing space, you may be familiar with the urgent need to confront each of the unavoidable aspects that are impacting your business. Although you may yet not have a plan do so, it is best recommended to consider implementing solutions such as market opportunity as it will assist in defining your future growth opportunities.
The Business Challenge:
- The client- Car accessories supplier to major car manufacturers worldwide
The client, a leading car accessories supplier, wanted to evaluate the current market trends and develop an effective route-to-market strategy to market their products and services. The client wanted to leverage the use of Infiniti’s market opportunity solution to better understand their penetration levels in different geographic segments. The client also wanted a detailed report on the entry barriers, new opportunities, risks, and competition in the auto accessories market space.
- Results- Devised an effective routes-to-market (RTM) methodology to evaluate current market trends and drive profitability. Also, identified future growth areas for the car accessories supplier drawing conclusions on customer preferences and market opportunities.[spacer height=”20px”]
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The market opportunity experts at Infiniti carried out extensive research comprising of interviews and discussions with leading stakeholders across the automotive accessories market space to help the client improve business efficiency. The experts at Infiniti further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the client understand the competitive scenario.[spacer height=”20px”]
The Solution and the Business Impact:
Implementing a market opportunity engagement helped the client identify potential areas to advertise and market their products. This engagement also helped the car accessories supplier in breaking down their revenue and product trends into geographic components to evaluate their market saturation and penetration levels. Moreover, this helped them in identifying a scalable approach to discover new growth opportunities and to assess market trends for every single route-to-revenue. It also enabled the client to use RTM, to market their products and services in a productive manner.[spacer height=”20px”]
Along with changes in lifestyle, there is a growing demand for car accessories across emerging economies. People are increasingly inclined towards the use of electronic gadgets and accessories in their vehicles. This has resulted in a rise in the use of technology for manufacturing auto accessories, making technology firms play a pivotal role in this sector. Moreover, future opportunities in the car accessories market space are set to outweigh their challenges, driving significant changes in this sector. Therefore, those who carefully anticipate and access future challenges and opportunities to address them proactively, will be better positioned to succeed in this sophisticated market space.[spacer height=”20px”]