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Car Audio Market revenue to cross $20 Bn by 2032
- Published Date: March 17, 2023
Car Audio Market size is expected to exceed USD 20 billion by 2032, according to the latest research report by Global Market Insights Inc.
The growing popularity of voice-assistant-enabled automotive audio systems is shaping the industry scenario. Moreover, the sales of aftermarket automotive audio systems have increased dramatically due to the e-commerce boom. Comparatively lower online expenses than traditional retail establishments are forcing a reduction in deals and prices. This has also bolstered the overall convenience of smartphone shopping, which is projected to present prominent growth opportunities for the automotive audio aftermarket. These factors are likely to supplement overall business expansion by 2032.
Strong consumer inclination toward aftermarket sales to shape the industry landscape
The car audio market from the aftermarket sales channel segment is anticipated to reach USD 7 billion by 2032 owing to the ease of installation services and customer support provided by retailers and distributors. Customers can choose the best match for their car model by browsing models of automotive audio speakers and sound systems, which is foreseen to spur segment growth. As per the JD Power 2022 U.S. ASI study, vehicle owners prefer dealing with aftermarket merchants compared to franchised dealers for a variety of services.
Benefits for sound quality after over-amplification to complement DSP sector expansion
The DSP component type is foreseen to grow at 5% CAGR from 2023 to 2032 attributed to the production of vehicle parts and surveillance equipment that are needed by location-based service providers. High-quality DSP offers the processing power necessary for active noise cancellation, surround sound, voice recognition and high-quality sound effects. Car manufacturers rely on DSPs as they improve bass, are much louder without any distortion, and protect the audio system from damage caused by over-amplification.
Soaring demand for passenger vehicles to propel non-branded audio system segment development
The non-branded car audio market surpassed USD 4 billion in revenue in 2022. Growing worldwide sales of economy passenger cars, particularly in developing nations viz. Brazil, India, and China, have contributed to the progression of the non-branded segment in recent years. According to the European Automobile Manufacturer Association, the Asia Pacific region constituted over 48% of the total passenger vehicle registrations in 2021. In addition, upgrading an existing car audio system with non-branded solutions is less expensive, thereby highly preferred by aftermarket suppliers.
Browse key industry insights spread across 340 pages with 915 market data tables & 43 figures & charts from the report, “Car Audio Market Size By Sales Channel (OEM, Aftermarket), By Component (Speaker, Amplifier, DSP, Microphone, Tuner), By Sound Management (Voice Recognized, Manual), By Vehicle (Passenger Cars, Commercial Vehicle), By Make, Forecast 2023 – 2032” in detail along with the table of contents:
Affordability and pre-existing use in old cars to amplify demand for manual car audio
With respect to sound management, the manual segment held over 55% market share of the car audio in 2022 as a result of affordability and dominance in pre-existing cars. The elderly population is still dependent on manual gearshifts and dash audio due to their easy accessibility, understanding, and no technological complexity. Moreover, a low risk of data thefts in comparison to IoT-connected audio boxes is proliferating industry outlook.
Growing number of sales to augment commercial vehicles market
The car audio market from the commercial vehicles type exceeded a valuation of USD 2 billion in 2022 propelled by the mounting sales of contemporary commercial vehicles in Asia Pacific and Latin America. As per Truck Sales Data, a total of 66,945 units of commercial vehicles were sold in December 2022 compared to 60,491 units in December 2021, accounting for a 10.67% hike in sales across India. Furthermore, commercial cargo trucks in the U.S. and Europe are equipped with ADAS and assisted by auditory devices that warn the driver of potential road hazards, which is boosting the need for automotive speakers in these vehicles.
Introduction of ADAS applications in automobiles to energize Europe industry
The Europe car audio market is expected to capture for over 25% of the overall business revenue by 2032. The region may emerge as a major hub for this industry due to rising innovations and ADAS applications in the domestic automotive sector. Recently, in September 2022, Intel’s Mobileye, an autonomous driving technologies systems developer, launched over 50 autonomous Robo-taxis with fully integrated LiDAR and radar sensors in Germany and Israel. These inbuilt safety sensors use microphones, power amplifiers, and output actuators to send alerts, promoting the use of audio solutions.
Launch of innovative amplifiers to accelerate strategic growth
Some of the key players profiled in the car audio market industry scenario include Sony Corporation, Panasonic Corporation, Pioneer Corporation, Harman International Inc., Premium Sound Solutions, Bose Corporation, and JVC Kenwood Corporation, among others. These firms majorly focus on product portfolio diversification to improve their industry standing. For instance, in July 2022, Sony Corporation, a Japanese electronics firm, unveiled its newest amplifiers, the mobile ES series which includes various models such as XM-4ES, XM-5ES, and XM-1ES. These models offer several speaker configurations, high-quality & seamless installation, and combined channels in either stereo or mono modes.