Developing Regions Hold the Potential to Forestall Decline of Automotive Chrome Accessories Market; Fact.MR Predicts Below 3% CAGR over 2017-2022
Published : 25 Sep 2018 Industry: Automotive
Vehicle aesthetics have been of paramount importance among drivers based in developed economies over the years. Developing economies, which are the automotive production and sales hubs, are also witnessing significant vehicle premiumization and growing demand for automotive luxury in recent years. Supported by a rapidly trending wave of vehicle customization, the demand for external and internal automotive accessories is expected to observe a steady growth trajectory in the years ahead. However, chrome-plated accessories will possibly witness sluggish progress during the next five years, according to a new study published by Fact.MR.
The report intelligence on global automotive chrome accessories reveals that during the course of assessment i.e. 2017-2022, the global automotive chrome accessories market revenue will see passive growth at below 3% CAGR. The roughly US$ 8 Bn automotive chrome accessories market is poised to face a longstanding challenging scenario through 2022 and ahead, prominently owing to scarce chrome ore supply and health concerns regarding the use of hexavalent chromium in plating.
A majority of automakers and players competing in the global automotive chrome accessories are thus strategizing a shift towards a wide range of available alternatives to chrome plating such as plating with nickel and nickel alloys, media-blasting, bare metal and powder coating, ABS plastic, and decorative plating. However, some leading automobile manufacturers are still innovating the use of automotive chrome accessories in their recent and upcoming launches - the latest example of this innovation includes Mahindra’s Marazzo.
Sustained sales of performance-enhancing car accessories and steadily thriving demand for pickup trucks are pushing the sales of automotive chrome accessories markets in developed regions – especially the US and UK. On the other side, a slew of favoring factors are likely to fillip the automotive chrome accessories markets in emerging economies. Steadily growing passenger car and two-wheeler production in emerging Asian markets will play a pivotal role in forestalling the declining curve of the automotive chrome accessories market. Moreover, relatively affordable product replacement rates, and better installation and sales margins will contribute a decent share in the growth of the automotive chrome accessories market in Asian economies. The report forecasts that China, India, Malaysia, and Thailand will remain prominent performers in the APEJ market for automotive chrome accessories, exhibiting around 3% CAGR over 2017-2022.
As indicated by the global automotive chrome accessories market report by Fact.MR, automotive chrome accessories will remain a preferred choice for plating among passenger vehicle manufacturers over the forecast period. Although the growth of automotive chrome accessories sales is poised to not exceed the CAGR 2.5% over 2017-2022 in premium as well as mid-sized passenger cars (PCs), it is anticipated that compact and luxury PCs will demonstrate relatively higher CAGR values of over 3% through 2022. Product type assessment concludes that body side moldings, door handle covers, and grille covers will remain the top-selling automotive chrome accessories in the market towards the 2022 end. Door handle cover sales are poised to witness relatively faster expansion at a CAGR of over 3.5% during 2017-2022.
The Fact.MR forecast further elaborates on the performance of the automotive chrome accessories market in two key types of sales channels, viz. OEM and aftermarket. While aftermarket sales - predominantly driven by online retail - will reach the valuation in excess of US$ 5.5 Bn by 2022 end, OEMs are foreseen to witness a higher CAGR during the course of the assessment. Endorsement of chrome-plated vehicle embellishments by some of the luxury automakers such as Audi, BMW, and Bentley is expected to remain an impactful factor uplifting the automotive chrome accessories market.
For further interesting insights on the multiple facets of the global automotive chrome accessories market, write to the team of expert research analysts at Fact.MR.