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Automotive Speaker Market revenue worth $7 Bn by 2027
- Published Date: February 26, 2021
Automotive Speakers Market size is set to surpass USD 7 billion by 2027, according to a new research report by Global Market Insights Inc.
Increasing demand for high-end luxury vehicles due to rising disposable income is one of major factors augmenting the automotive speaker industry growth. According to the data published by the U.S. Bureau of Economic Analysis, the average disposable income per U.S. citizen increased by 0.6% in December 2020 compared to November 2020.
The rising consumer demand for in-vehicle entertainment in commercial and private vehicles will offer lucrative market opportunities. Increasing focus of automobile OEMs on providing technologically advanced sound systems in their lower-segment vehicle models to enhance the passenger and driver experience will support the automotive speaker demand.
One of the key factors hindering the automotive speaker market growth is the availability of counterfeit products at low cost. Over the last few years, numerous lookalike products have been introduced in the market, grabbing the market share of prominent vendors. The availability of low-cost, forged automotive components including speakers, tweeters, and amplifiers is posing threats to automotive speaker manufacturers.
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Analyst view: “Increasing demand for high-end luxury vehicles in the MEA region along with proliferation of several automobile manufacturers in the global market will fuel the demand.”
The sales of automotive speakers have witnessed a decline in 2020 owing to the rapid spread of COVID-19 pandemic in many countries globally. OEMs in this segment have tackled numerous challenges including suspension of manufacturing operations and lack of raw materials. Rising financial insecurity and reduction in the demand for new vehicles are impacting the market representation of automotive speakers. The automotive speaker market is expected to experience a slow progress post the containment of the virus.
Demand for 3-way speaker will propel during the forecast timeline
The 3-way speaker segment is estimated to achieve more than 7% growth rate through 2027. These speakers have the ability to generate enhanced sound quality and are designed to balance the frequency slope, thereby boosting the market size through 2027.
The demand for 3-way coaxial speakers will observe significant growth on account of their easy installation, compact design, and low cost. The 3-way coaxial speakers consist of a mid-range tweeter and woofer in a single system. These systems are mainly designed for consumers that are seeking enhanced in-vehicle sound quality at lower cost compared to the 3-way component and 4-way speakers. The growing adoption of these speakers will augment the market revenues.
Browse key industry insights spread across 400 pages with 750 market data tables & 38 figures & charts from the report, “Automotive Speaker Market Size By Type (2-Way Speaker [Component, Coaxial], 3-Way Speaker [Component, Coaxial], 4-Way Speaker), By Vehicle Type (Passenger Car [2-Way Speaker, 3-Way Speaker, 4-Way Speaker], Commercial Vehicle [2-Way Speaker, 3-Way Speaker, 4-Way Speaker]), By Sales Channel (OEM, Aftermarket), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Increasing sales of commercial vehicles will spur the market demand
The commercial vehicle segment valued at more than USD 1 billion in 2020 driven by the rise in sales of commercial vehicles across the globe. As per the data published by Organisation Internationale des Constructeurs d'Automobiles (OICA), Brazil recorded a total sale of over 525,000 commercial vehicles in 2019 compared to about 464,000 units in 2018. Commercial vehicles, such as buses and trucks, are being integrated with smart speakers for entertainment and safety applications.
Proliferation of aftermarket vendors will drive the automotive speaker market growth
The aftermarket segment is projected to grow at around 7.5% CAGR from 2021 to 2027 impelled by more reasonably priced services and spare parts compared to other OEMs. The aftermarket component suppliers provide several individual components, including amplifiers, sound processors, and speakers, to cater to variations in several vehicle models. Value added services, such as system integration and tuning, offered by aftermarket vendors will further enhance the market revenue through 2027.
Proliferation of manufacturers in North America will fuel the market growth
The North America automotive speaker market is likely to witness steady growth of above 6.5% CAGR through 2027 driven by the presence of established manufacturers in the U.S. and Canada. Market leaders are focusing on developing customized car audio speakers and establishing long-term partnerships with OEMs.
Companies are focusing on new partnerships and collaborations to gain a competitive edge. For instance, in October 2019, Harman International Industries partnered with Volkswagen Group to develop connected technologies and speakers for automotive, consumer, and enterprise markets. The partnership assisted the company to enhance its long-standing partnerships with automobile OEMs and maintain a steady stream of market revenues.
The key players operating in the automotive speaker market include Pioneer Corporation Alpine Electronics, Inc., Bowers & Wilkins, Bose Corporation, Blaupunkt, Harman International Industries Inc., Clarion Co., Ltd, Panasonic Corporation, Kenwood Corporation, and Sony Corporation.