Automotive Aftermarket Accessories: Unearthing Revenue Trends and Potentials amidst COVID Challenges

How has COVID-19 Impacted the Automotive Aftermarket Accessories Segment?

While industries worldwide have been buffeted by the COVID-19 pandemic, the automotive aftermarket accessories sector is among those that have faced considerable turbulence. Consumer behaviours altered dramatically, with lockdowns, work-from-home practices, and travel limitations causing reduced vehicle usage. This resulted in a temporary slump, particularly in maintenance-related purchases. Yet, the industry demonstrated resilience, with eCommerce swiftly filling the gap left by the temporarily shuttered physical stores.

Are there Hidden Revenue Potentials?

Interestingly, as vehicle use decreases, consumers have been seen to invest more in vehicle personalization and upgrades, catalysing a potential revenue surge in this segment. There has been an identifiable shift towards accessorising vehicles for improved comfort, aesthete, and efficiency, turning vehicles into personalized comfort zones. The trend has resulted in an increased demand for leisure, luxury, and technologically advanced items such as vehicle infotainment systems, interior and exterior styling accessories, and performance parts. Hence, these categories have promising revenue prospects.

What does the Future hold for this Market Segment?

The dual impact of both the pandemic’s end and tech evolution suggests an optimistic outlook for the automotive aftermarket accessories segment. As the world strives for normalcy, car usage will eventually rise, leading to a rebound in the maintenance-related segment. Concurrently, the continued increase in consumer spending on personalization and upgrade accessories shows no signs of slowing. Manufacturers embracing digital transformations and using data-drive solutions are poised for significant growth ahead.