Car Audio Market Size

Car Audio Market Size

The global car audio market was valued at USD 13.7 billion in 2024 and is projected to grow at a CAGR of 6.4% between 2025 and 2034. Increasing consumer need for in-car entertainment coupled with improvement in automotive infotainment systems is driving the market. Additionally, the increased vehicle ownership and travel has led to a higher demand for advanced audio solutions that improves the overall in-car experience. A report issued by Texas A&M Transportation Institute in 2024 reveals that drivers in the U.S. faces an average of 54 hours of extra traffic annually. This shows a strong need for better audio entertainment systems for the vehicles.

Automakers are using technologies which includes better algorithms for spatial audio, sound processing, and even AI powered sound enhancement. The transformation among cars that runs on electricity and has autonomous features is also expanding the horizon for integration of voice controlled, smart audio, and wireless technologies. For instance, in July of 2024 JLR extended their partnership with Meridian, an audio company from Britain for the creation of intricate in-car audio systems targeted towards electric vehicles set to be manufactured in new model range cars.
 

Furthermore, the increased use of streaming services together with selective listening is accelerating the growth of advanced infotainment systems. The rising trend of Over-the-Air (OTA) updates for vehicle infotainment systems enables OEMs to improve the auditory experience with far less supervision and with greater expediency. For example, in December 2024, Mahindra in collaboration with “Gaana” music streaming application was able to integrate Dolby Atmos technology into BE 6e and XEV 9e Electric vehicles in order to enhance the auditory experience in the cabin.