Automotive Speaker Market size worth over $7bn by 2026
Published Date: May 11, 2020 Authors: Preeti Wadhwani, Prasenjit Saha
Automotive Speaker Market size is set to surpass USD 7 billion by 2026, according to a new research report by Global Market Insights, Inc.
The automotive speaker market growth is primarily driven by technological advancements in the field of high definition & compact audio systems. Automotive manufacturers are focusing on integrating compact audio systems into cars and commercial vehicles, allowing passengers to experience the feel of studio music. The ability of these devices to provide high-quality sound by filtering the background noise in vehicles is expected to propel the market demand.
Growing consumer disposable income in North America and Europe is supporting the high demand for luxury cars in these markets. According to a report by the U.S. Bureau of Economic Analysis, the average consumer disposable income of an American citizen rose by 0.6% in February 2020 as compared to December 2019. Changes in consumer lifestyles and inclination toward purchasing luxury cars are propelling the demand for premium automotive speakers in these regions.
Lack of customer awareness in emerging economies including China, India, Brazil, and Mexico is one of the major factors that may hamper market opportunities. The proliferation of low-cost counterfeit automotive speakers due to lack of product knowledge is also challenging the growth of speakers in these markets. However, companies are leveraging their websites and social media platforms for raising awareness related to purchase of genuine products from authorized dealers to curb the sale of counterfeit goods.
The outbreak of COVID-19 in several countries across the globe is significantly hampering the automotive speaker market. According to industry analysis by the UN Department of Economic and Social Affairs (DESA), the global economy could slow down by up to 1% in 2020 due to spread of coronavirus pandemic. Nationwide lockdowns enforced by several countries including the U.S., China, Italy, the UK, and India are impacting the manufacturing sector in these countries. Additionally, the disruption in supply chain in manufacturing industries will be negatively impacting on the market.
Get more details on this report - Request Free Sample PDF
Increasing demand for compact speaker systems
4-way speakers segment of the market is anticipated to reach USD 2.2 billion by 2026. These speakers are primarily witnessing a high demand in technologically advanced premium audio systems. The growing demand of these product can also be attributed to its several benefits such as simple wiring and compact design. These speakers aid in significantly reducing the space and weight of the sound system, lowering the overall vehicle weight. One extra tweeter in addition to a woofer, a midrange driver, and a tweeter aid in enhancing the high-frequency sounds, providing a positive market outlook.
Companies are making investments in R&D initiatives to develop new technologies to be integrated with 4-way speakers to encourage wide adoption. For instance, Sony Corporation spent approximately USD 4.4 billion on its R&D initiatives in 2018 to develop its Clear Phase technology that corrects the phase characteristics to optimize the stage sound inside a vehicle to provide studio sound experience to all passengers.
Browse key industry insights spread across 280 pages with 487 market data tables & 23 figures & charts from the report, “Automotive Speaker Market Size By Type (2-Way Speaker, 3-Way Speaker, 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, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Growing demand for infotainment systems in commercial vehicles and public transportation facilities
Automotive speakers in commercial vehicles are expected to witness a rapid growth in the market share owing to rise in sale of trucks and buses that are equipped with smart speakers for safety and entertainment applications. Audio systems are integrated with proximity sensors & navigation capabilities that assist in improving driver safety and reducing accidents. Onboard audio systems in public transportation buses inform passengers about forthcoming stops, estimated arrival time, etc. Moreover, the development of technologically advanced commercial vehicles will propel the growth of the market.
Proliferation of low-cost, high-quality aftermarket automotive speakers
The aftermarket segment held around 35% of the market share in 2019 due to more affordable spare parts and services compared to OEMs. Aftermarket distributors supply individual components, such as speakers, amplifiers, sound processors, to cater to a variety of vehicle models. Consumers switch to aftermarket automotive speakers to enhance the performance of their factory-installed sound systems with the integration of high-power speakers.
In response to the market demand, manufacturers are focusing on introducing new aftermarket products with reduced costs to cater the product demand. For instance, in August 2019, Alpine Electronics introduced its aftermarket sound system upgrade PSS-22WRA for Jeep’s Wrangler’s new model. The system features two weather-resistant amplifiers with nine-inch touch screen display for enhanced performance.
Growing presence of automotive speaker manufacturers in North America
The rising adoption of in-vehicle infotainment systems in passenger and commercial vehicles will spur the automotive speaker market growth in North America. The strong presence of established industry players, such as Bose Corporation and Harman International Industries, in the U.S. pose robust growth opportunities for the market. Leading players in the market focus on continuous innovation to launch new products in the industry.
Market players are focusing on strategic collaborations to integrate advanced technologies into their sound systems. For instance, in January 2020, Panasonic announced its partnership with Klipsch, a technology-driven audio company to develop the ‘Klipsch Sound’ and audiophile technology for in-vehicle audio experience. This collaboration assisted the company to offer enhanced sound experience to its customers.
Key players in the market include Bose Corporation, Elettromedia S.r.l, Panasonic Corporation, Sound United, Alpine Electronics, Inc., Sony Corporation, Harman International Industries, Inc, JL Audio, Continental Corporation, JVCKENWOOD Corporation, and Blaupunkt.