Car Audio Market - Forecast(2023 - 2028)

By Technology, the non-voice recognized audio system segment is analyzed to hold the highest share in 2021 due to the growing demand among people for in-care entertainment systems. Locally implanted spoken conversation systems made their debut in several high-end vehicles by the mid-1990s in their most basic form. These technologies made it possible to use the car's air conditioning, radio, CD player and phone hands-free. A small vocabulary list of about 50–60 commands was all that the technology could recognize. A Push To Talk button on the infotainment system or steering wheel had to be pressed to start the voice command. To know which command to use, the user had to memorize each one or listen to the voice assistance provided by the system. However, as AI and machine learning advance, consumers are gravitating toward voice-recognition audio systems, which could limit the category market's future growth. The growing advantages of voice recognition software, such as its ability to capture speech much more quickly than typing, its ability to spell with the same accuracy as other writing tools and the fact that it aids people with vision problems, are some of the main drivers for its adoption in the automotive industry. This may, in turn, support its market growth in the future. Apart from this, the growing innovations by the key players in this segment are expected to positively influence its market growth. As a part of this, SoundHound teamed up with Hyundai in July 2019 to add their voice AI platform Houndify to the new Hyundai Venue SUV. The Venue has begun shipping to customers in India, making it the country's first voice-enabled, intelligently linked SUV.

The Smartphone Controlled segment holds the highest market share during the forecast period. This is due to the growing autonomous vehicle industry along with the increasing investment by government bodies has increased the demand for smartphone-controlled audio systems which in turn may increase its overall segment growth. The government in the UK invested £2.3 million to boost the development of self-driving vehicles in the country. Apart from this, the recent innovations by the major players in this sector are expected to positively influence its market growth. As a part of this, The XAV-AX7000 Car AV Receiver, which offers a recent version of smartphone connectivity and high-power sound, was introduced by Sony Electronics Inc. in January 2019. The 100W built-in, class-D amplifier would give every track fresh life and emotion, while smartphone connectivity makes it simple and handy to manage your music on the go. The elegant aluminum key terminal of the XAV-AX7000 receiver includes a dedicated voice button and a sealed structure. Its 6.95-inch bezel-free, flush surface display with an anti-glare capacitive touchscreen suits the contemporary automobile interior. However, the manual controlled segment is also analyzed to grow at a higher rate. The growing traffic congestion in various countries is likely to increase the demand for car audio and eventually the manual controlled system which in turn may boost its market growth. According to a Texas A&M Transportation Institute analysis published in August 2019, experts looked at how the average American commuter wastes 54 extra hours per year due to traffic delays. They refer to the additional time spent commuting at slower speeds than free-flowing traffic as "extra hours." However, the demand for smartphone-controlled systems is anticipated to expand with the introduction of connected cars due to their convenience of use, which could limit their market growth in the coming years.

In terms of geography, the Asia Pacific region accounts for the dominant market share during the forecast period owing to the growing demand for electric vehicles coupled with in-cabin infotainment systems are positively affecting the regional markets. According to a report by the IBEF, the Indian EV market is analyzed to grow to $7.09 Billion by 2025. The report also states that the rise in middle-class income and the growing young population are set to drive the growth of the car audio market. Moreover, the growing Foreign Direct Investments in this vertical are analyzed to create new growth opportunities in this vertical. According to a report by the IBEF, the Indian automobile sector received a cumulative FDI inflow of about $30.51Billion between April 2000 and June 2021. However, North America is analyzed to grow at a higher rate owing to the growing EV sales in the region, positively affecting the growth of the car audio market. According to the Global EV Outlook 2021, despite COVID-19 pandemic, the US electric passenger car stock rose to $1.1M in 2020 from $0.9M in 2019. The growing partnership among key players in the region is analyzed to boost the demand for the underlying market. LG Electronics Inc. announced its partnership with Cerence Inc., a US-based automotive voice recognition solution provider, to jointly develop in-car infotainment systems. Additionally, the growing government subsidies are analyzed to boost the adoption of various car audio systems. According to the Country Commercial Guide by the International Trade Administration, the United States-Mexico-Canada Agreement (USMCA), which came into effect from 1st July 2020, is set to provide duty-free trade access to various auto parts among the nations. This agreement is also set to provide growth opportunities for local OEMs and other suppliers in Mexico. Developments like these are boosting the growth of the Car Audio Market in the region.

The growing automotive industry is a major driver of market growth, with rising car sales being a major factor. Sound quality is an important consideration wherever they are, including in the car. Premium audio systems are now standard equipment in high-end luxury vehicles. The ongoing demand for a more personalized and natural in-car audio experience is propelling the development of new artificial intelligence features and speaker configurations. The advancement of in-car audio technology solutions is undergoing a paradigm shift. In-car audio systems that deliver superior audio quality in the form of immersive audio with digital and interactive dashboards to improve infotainment UX, AI voice assistant platforms that provide useful and functional information and vehicle performance, active noise cancellation technology that reduces unwanted in-cabin noise, personalized online streaming content and 5G wireless networks to improve the driver and passenger in-car multimedia experience. Thus, the Car Audio Market is full of growth opportunities. Sennheiser and Continental have collaborated on an immersive sound system with no speakers. The new audio system has no speakers and combines Sennheiser's AMBEO 3D audio technology with Continental's Ac2ated Sound to produce 3D sound. Thus, the growing research and development help in fueling the demand for the Car Audio Market.

In foreign markets, listening to the radio in cars accounts for 30–40% of all radio listening. Even in cars with IP connectivity, radio is still the most popular option. Compared to 24% in the UK, nearly 40% of radio listening in the US occurs while driving. The average automobile trip in the US is three times longer than in the UK, at 29 miles. Also, there is consequently less radio listening at home. Drivers can now listen to a variety of podcasts thanks to features like Apple Carplay and Android Auto. Thus, the sales of automotive audio systems are rising as a result of all these causes.

High ownership and maintenance costs associated with premium automotive speakers are among the factors affecting industry statistics. The high cost of advanced speakers raises the total cost of car ownership. Car audio, which consists of three parts: the host, loudspeaker and amplifier, is a type of auxiliary equipment that is expensive to maintain and consumes more power, posing a threat to market growth. Internal progressive cameras, sensors, amplifiers, speakers, LED touch displays and woofers are all integrated into these systems, raising the overall equipment purchase cost. The market is also being harmed by the availability of counterfeit sound system components and automotive speakers. Therefore, the above-mentioned factors significantly contribute toward a significant challenge for the Car Audio Market during the forecast period.

 Car Audio Market Competitive Landscape

• Alpine Electronics

• Faurecia Clarion Electronics Co. Ltd

• Panasonic Corp

• Pioneer Corporation

• Sony Corp

• Bose Corporation

• Blaupunkt GmbH

• JVCKenwood Corp

• Harman International

• Boss Audio Systems

• In January 2022, Panasonic announced its highest level of in-vehicle audio performance. Introducing ELS STUDIO 3D®, Signature Edition premium audio system.

• In June 2021, Alpine Electronics of America, Inc., a domestic marketing division of Alpine Alpine Co., Ltd., unveiled the third generation of AlpineF#1Status, the first full-featured premium car audio system. It can reproduce Hi-Resolution Audio Playback, bringing the experience of a live performance closer than ever before inside the challenging vehicle interior environment.

• In May 2020, Alpine launched the third model of the well-liked Halo category. The new Alpine Halo Mech-Less (no CD/DVD) iLX-F2611E Audio/Video Receiver has the same "hovering" screen platform as its predecessors but has a larger 11-inch touchscreen with 49% more surface area than the 9-inch mode.