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Car Audio Market Size
Car Audio Market size surpassed USD 10 billion in 2022 and is anticipated to grow at 5% CAGR from 2023 to 2032 driven by the increased introduction of energy-efficient audio systems for EVs.
Car audio or dash stereo provides in-car entertainment and information to vehicle occupants. The product demand is primarily fueled by the rising demand for premium audio systems. A significant element affecting the car audio market growth is the rising traffic congestion brought on by the increased use of automobiles. Furthermore, escalating number of innovations and advancements in wireless audio technology is expected to benefit the sector development.
| Report Attributes | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 10 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 5% |
| 2032 Value Projection: | USD 20 Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 340 |
| Tables, Charts & Figures: | 958 |
| Segments covered: | Sales Channel, Component, Make, Sound Management, Vehicle, and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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The absence of adequate software developments may restrain industry progression
The lack of advanced technology for next-generation cars is a major factor restraining growth of car audio market. Dash stereo acceptance in several industrial verticals is being hampered by the dearth of suitable software improvements to complement new technologies in automotive audio hardware. For example, the introduction of voice recognition technology, a hardware-based innovation, is partially appropriate for current software solutions in use. Nonetheless, the use of in-vehicle infotainment systems in ride sharing facilities is anticipated to evolve rapidly along with consumer lifestyle changes.
Car Audio Market Analysis
In 2022, the industry size from the passenger vehicles sector exceeded USD 15 billion in revenue, propelled by ongoing advancements in passenger car interiors, including a combination of improved safety features with ADAS, integration of premium infotainment systems, and connectivity via WiFi and Bluetooth on smartphones.
The OEM industry is poised to garner more than USD 12 billion in revenue by 2032 due to the increasing number of partnerships between speaker manufacturers and automakers. In December 2022, Bose Corporation, a car audio manufacturer, announced a partnership with Volvo Cars, to provide audio technology to the Volvo EX90 electric car range. Moreover, high-quality sound systems are becoming more popular among luxury car buyers as a result of the growing need for improved aesthetics in these vehicles.
With regards to sound management, the voice recognized type is estimated to amass USD 10 billion by 2032 owing to the surging demand for the productive and remote features provided by advanced voice-controlled assistants. The ease of use and convenience while driving has encouraged car audio system players to incorporate it into their recent vehicle offerings.
The speaker segment captured 45% share of the car audio market in 2022. The growth is accelerated by their extensive capability to separate low and high-range frequencies with discrete tweeter and woofer components for improved sound output, along with the entry of new stereo speaker manufacturers in the market.
The branded/premium audio systems dominated 60% of the car audio market share in 2022. Although branded or high-end automotive audio systems are relatively expensive, the majority of automotive OEMs prefer premium audio systems as they increase the overall viability of their product offerings. OEMs and multinational car audio producers are partnering with well-known audio systems, such as Bose, JBL, and Harman, to develop collaborative solutions for different car models. In January 2023, Harman, an automotive electronics technology firm, partnered with automotive behemoth Ferrari to integrate the in-cabin experience for buyers.
The Asia Pacific car audio market is poised to attain 6% gains through 2032 attributed to the worsening traffic congestion in regional economies leading to the increased amount of time spent in cars, resulting in an upsurge in the usage of audio systems in cars. According to Dutch location technology, TomTom traffic index, out of 390 cities, Bengaluru, India stands as the world’s second most congested city, while Sapporo, Japan stands fourth in line.
Car Audio Market Share
Some of the key participants involved in the competitive landscape are
- Sony Corporation
- Panasonic Corporation
- Pioneer Corporation
- Harman International Inc.
- Premium Sound Solutions
- Bose Corporation
- JVC Kenwood Corporation
These firms are engaging in new product launches, innovating audio technology, and strategic alliances to attain a competitive edge. For instance, in February 2022, Harman International Inc., an audio electronic firm, launched its range of acoustic innovations, Ready Together and Software-enabled Branded Audio, featuring a software platform that upgrades sound quality. The company aims to provide connected technologies & solutions for consumer, automotive and enterprise markets.
Impact of COVID-19 pandemic
The industry witnessed a significant decline in demand due to adverse impacts on the automotive sector during the COVID-19 pandemic. The coronavirus outbreak affected the sales of new vehicles, especially in developing countries such as India, Turkey, and Mexico, among others. In February 2020, China saw a drop in new car sales by 92% meanwhile European countries observed a 7.4% decline in the total vehicle trade. This hampered the integration of car audio systems and hindered business growth. However, the emergence of advanced, statement, and electric vehicles is set to boost the uptake of car audio equipment in the upcoming years, facilitating industry statistics.
This market research report on car audio includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in USD and volume in Thousand Units from 2018 to 2032 for the following segments:
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Market, By Sales channel
- OEM
- Speaker
- Amplifier
- DSP
- Microphones
- Tuners
- Aftermarket
- Speaker
- Amplifier
- DSP
- Microphones
- Tuners
Market, By Component
- Speaker
- 2-way speaker
- Component
- Co-axial
- 3-way speaker
- Component
- Co-axial
- 4-way speaker
- Amplifier
- DSP
- Microphones
- Tuners
Market, By Sound Management
- Voice recognition
- Manual
Market, By Make
- Branded/Premium audio systems
- Non-branded audio systems
Market, By Vehicle
- Passenger vehicle
- Luxury
- Standard
- Commercial vehicle
- Luxury
- Standard
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Latin America
- Mexico
- Brazil
- Middle East & Africa
- UAE
- Saudi Arabia
- South Africa
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