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The automotive premium audio system market size is estimated to grow by USD 8.62 billion at a CAGR of 6.58% between 2022 and 2027. Improved sound quality and control are important factors for consumers, especially in the highly competitive automotive market. Virtual tuning, which allows for customization of audio settings to suit individual preferences, enhances customer satisfaction and adds value to audio systems. The high popularity of SUV cars, which often come equipped with premium audio systems as standard or optional features, is also driving market growth as consumers increasingly prioritize audio quality and entertainment options in their vehicles.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2022.
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This market report extensively covers market segmentation by application (luxury cars and mid-segment cars), type (speaker, amplifier, and others), and geography (Europe, APAC, North America, South America, and Middle East and Africa).
The market is experiencing robust growth, fueled by the increasing demand for connected cars and connected vehicles. These vehicles are equipped with advanced audio entertainment systems that offer features such as Bluetooth connectivity, Amazon Alexa, Apple CarPlay, and Google Assistant integration. Consumers are also seeking customized playlists and audiobooks for a personalized in-car entertainment experience. Favorable government policies and growing consumer awareness about the benefits of aftermarket upgrades are driving the market's growth trajectory. Additionally, advancements in audio system software and firmware are enhancing the overall in-car audio system and hands-free calling capabilities. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Improved sound quality and control is one of the key drivers driving the market growth. These systems are designed to deliver superior sound quality and performance, which are highly appealing to customers. Unlike regular systems, these systems include multiple speakers, tweeters, and sound amplifiers to achieve optimal sound quality. These systems are also engineered to evenly distribute sound throughout the vehicle, ensuring that both the driver and passengers can enjoy the sound experience. This feature is particularly valuable in connected cars and vehicles, as it enhances the integration of technologies like Apple CarPlay, Bluetooth connectivity, and audio system software, offering a wide range of audio entertainment options, including audiobooks. Some of these systems even feature noise cancellation technology, which helps block out unwanted external noise and vibrations, creating a theater-like experience. Compared to standalone sound systems, these systems offer superior sound output.
These systems are integrated into the car's infotainment system, providing additional features such as built-in navigation and connectivity with Android/Apple mobile phones. By being part of the infotainment system, these systems enhance driving focus by localizing sound and enabling multitasking through sound separation. They also offer greater control for fine-tuning music sounds. Luxury car manufacturers are increasingly including these systems as standard features in their models and are collaborating with suppliers to customize the systems for each model. This trend aligns with efforts to enhance the in-car audio system and the overall in-car entertainment experience, promoting customer loyalty through features like customized playlists. Additionally, favorable government policies may support the integration of advanced technologies in vehicles. With a growing demand for improved sound quality, the market for these systems is expected to grow significantly in the forecast period.
The development of 34-speaker premium audio systems is the key trend in the market. Automotive systems consist of more than eight audio speakers, which are fitted in the vehicle at various locations to create a superior sound environment. Bose has developed the Bose Panaray audio system for the Cadillac CT6 model, which has 34 speakers positioned at 19 locations inside the car. These speakers are controlled by the Cadillac User Experience infotainment interface. The objective of numerous speakers is to create a live music performance experience for the occupants, which seems like the music is coming from outside the vehicle. Bose adopted the strategy of numerous small speakers instead of a few large speakers to get the coverage needed for hearing the full range of frequencies by every occupant. In addition to the number of speakers, the quality of amplification, speakers, and digital signal processing plays an important role in routing the correct frequencies to the right location for good sound quality. These developments in the system are boosting the growth of the market.
The high cost associated with premium audio systems is hindering the market growth. Most of the premium sound systems feature 3D surround sound with a 5.1 channel configuration to deliver the best in-car sound experience. To deliver such an advanced experience, these sound systems involve high-tech electronics and technology, which increases the cost of development. The high cost of these systems is one of the major challenges for the market. Automotive manufacturers have to either keep their profit margins low or shift the pressure onto consumers because of the high manufacturing costs. However, in the current price-sensitive market, customers look for products that offer the greatest value for money, and it has, therefore, become difficult for manufacturers to shift the pressure of costs onto their customers. These systems are priced between USD 1,500 and USD 7,000. The high price of the system acts as a barrier to its adoption in more vehicle segments and may hamper the growth of the market in focus during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bang and Olufsen Group - The company offers automotive premium audio system such as Alpine Status.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the luxury cars segment will be significant during the forecast period. The growing disposable income in prominent emerging economies and the high net worth of senior citizens of developed countries are the prime factors driving the adoption of luxury cars. Most of these luxury cars are offered as a standard fitment, and their increased production and resulting sales are directly contributing to the market revenue. In addition, advancements and improvements in premium audio systems offered in luxury vehicles are leading to an increase in the cost of the development of such systems. This is further helping in driving the market revenue. The market in the luxury cars segment will continue to grow during the forecast period because of the innovation and convenience demands in this segment.
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The luxury cars segment shows a gradual increase in the market share of USD 17.52 billion in 2017. The segment is witnessing crucial developments in the form of audio systems that recreate the original musical performance throughout the cabin. Speaker-less automotive audio systems are also under development that will effectively reduce vehicle weight. The launch of luxury cars is expected to boost the demand, which will drive market growth during the forecast period.
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APAC is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth of the market in APAC is expected to increase because of the growing demand for luxury cars from emerging markets, such as India, China, Thailand, and Indonesia. The shift in consumer preference from mileage to aesthetics and advanced features is also expected to drive the adoption in the region during the forecast period. Improvement in the economic conditions of countries such as China and India has led to a rise in the disposable income of consumers leading to an increase in the ownership of cars.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing rapid growth due to the increasing demand for excellent audio experiences and high-end audio systems in vehicles. Factors such as the rising popularity of music streaming and podcasts and the integration of alternative audio sources like Android Auto and Apple CarPlay are driving market expansion. Technological advancements in digital signal processing (DSP) and multi-channel amplifiers are enhancing audio quality, further fueling market growth. However, challenges such as supply chain disruptions and regulatory uncertainties may hinder market progress. Overall, the market is poised for significant growth, especially with the increasing adoption of electric vehicles (EVs) and smart automobiles.
The market is experiencing significant growth driven by the increasing integration of Advanced Driver Assistance Systems (ADAS) and the demand for enhanced audio features in vehicles. Factors such as the evolution of car design to accommodate these products, the advancement of car speakers and car stereo technology, and the inclusion of Blu-ray/DVD drives in entertainment systems are shaping the market landscape. Connectivity options and the rise of in-car infotainment systems are further propelling market expansion. While cost reduction efforts are underway, the market still faces challenges such as high initial investment and lack of awareness. However, with the increasing focus on environmental awareness and the development of sustainable and eco-friendly products, the market is poised for substantial growth in the future.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2022 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.58% |
Market growth 2023-2027 |
USD 8.62 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.14 |
Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bang and Olufsen Group, Bose Corp., Boston Acoustics Inc., Bowers and Wilkins, Burmester Audiosysteme GmbH, Cerwin Vega, Dirac Research AB, Goertek Inc., JL Audio Inc., JVCKENWOOD Corp., Koninklijke Philips NV, Meridian Audio Ltd., Nimble Holdings Co. Ltd., Panasonic Holdings Corp., Pioneer Corp., Samsung Electronics Co. Ltd., Sony Group Corp., Stellantis NV, Stillwater Designs and Audio Inc., and Alps Alpine Co. Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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