An addon domain is a fully functional domain that can be created from within your control panel. Everyone should knows that there is no domain without hosting. Domain is nothing without hosting. So you can say that hosting and a primary domain together is called a full package. That means every hosting package comes with a primary domain. The difference is that you need purchase these services individually.
Now just think you have already purchased a domain such as "yourdomain.com" with hosting and you want to buy another domain such as "yournewdomain.com" without hosting. As it mentioned before that a domain is nothing without hosting, so what you will do with your new domain? Also you do not want to buy a new hosting package. What is the solution for that?
Don't worry, there is a solution. You can use the new domain as an addon domain which you need to add using your current hosting package by logging into the cPanel account. Yes, you can use a fully new domain along with the primary domain but the only difference is that the files share the same control panel and server.
[NB] You need to purchase a new domain to use as addon domain using same control panel and server.