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The automotive audio speakers market size is forecast to increase by USD 7.68 billion at a CAGR of 7.2% between 2022 and 2027. The market's growth hinges on various factors, such as the accessibility of economical aftermarket speakers, rising consumer demand for unique in-car experiences, and heightened research and development efforts aimed at producing superior products. These elements collectively drive innovation and competitiveness within the automotive audio industry, fueling market expansion and fostering enhanced customer satisfaction.
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The market thrives on driver’s comfort and safety, integrating voice-enabled audio and smartphone-controlled audio systems for enhanced experiences. Amid rising traffic congestion, in-car audio systems play a pivotal role, supported by initiatives from the Society of Indian Automobile Manufacturers. To meet demand, audio system manufacturers focus on innovation, countering challenges like counterfeit products. Market growth aligns with vehicle production & sales and disposable incomes, fostering the popularity of aftermarket sound systems. Integration of IoT (Internet of Things) and AI (Artificial Intelligence) by industry giants like Dolby enhances functionalities. WiFi and Bluetooth connectivity ensure seamless audio streaming, while high volume speakers cater to diverse needs, considering concerns like partial or complete hearing loss. Speakers and tweeters are indispensable components in modern passenger cars and vehicles, driven by automakers striving for innovation in the era of 5G connectivity.
The availability of cost-effective aftermarket speakers are notably driving the market growth, although factors such as the design complexities and high costs of advanced automotive audio systems may impede the market growth. 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.
The availability of cost-effective speakers in the automotive aftermarket is one of the key drivers fueling the market growth. Generally, automotive OEMs refrain from offering audio speakers in low-priced commercial vehicles to reduce manufacturing costs. Such vehicles, therefore, use aftermarket speakers. The demand for aftermarket automotive products and services is growing amid rising consumer preference for better features and sound quality as they spend more time in their vehicles.
The scope of providing aftermarket products with additional features and increasing consumer expectations have led to the growth of aftermarket automotive audio speakers. As aftermarket speakers are low-priced, there is strong demand for the aftermarket replacement of speakers or entire sound systems. Thus, the growing demand for aftermarket audio systems is expected to drive the market during the forecast period.
The emergence of IoT-enabled smart speakers is one of the key market trends propelling market growth. The dawn of the millennium has seen automotive entertainment systems evolving significantly to include the latest features and rapid processing power for delivering a personalized experience in vehicles. As automobile infotainment systems are differentiated in terms of their capabilities, manufacturers are collaborating with technology providers to integrate advanced features in more segments of their product portfolio.
Amazon is in collaboration with several car manufacturers to integrate Alexa, its intuitive, artificial intelligence-based voice assistant, into mainstream automotive infotainment systems. Automakers, including BMW, Ford, Toyota/Lexus, and Audi, have announced plans to integrate Alexa into their vehicles' infotainment systems. Thus, the emergence of IoT-enabled smart speakers will drive the growth of the market during the forecast period.
Design complexities and high costs of advanced automotive audio systems are one of the factors limiting the market's growth. OEM-fitted premium audio systems in modern luxury and premium cars include numerous speakers, amplifiers, and tweeters. These systems come bundled with advanced touchscreen systems, making them a complete infotainment package. Germany-based Burmester Audiosysteme offers premium sound systems to automakers such as Daimler and Porsche, among others.
The company offers a 3D sound experience through a specially crafted sound system, which is priced at more than USD 5,000. The company's 3D surround sound system in Mercedes-Benz's C-Class vehicle costs more than USD 2,000. Thus, the high prices of such advanced audio systems make them unaffordable to many prospective consumers and can hinder the growth of the market 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.
Aurelius Group: The company offers automotive audio speakers such as Tx 65c, Tx 652, ICX series Icx 542 under the brand Blaupunkt GmbH.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market is revolutionizing with smartphone-controlled audio systems, enhanced audio experiences, and premium branded audio systems. As commuters navigate daily work commutes in personal vehicles or trucks, they seek superior sound quality, propelled by advancements like sound amplifiers and high-volume speakers. Onboard entertainment and seamless music streaming elevate journeys, while smart connectivity features such as hands-free calling and voice assistants offer convenience. In the passenger car segment, in-car entertainment systems and aftermarket infotainment systems flourish, driven by innovations from institutions like the Texas A&M Transportation Institute. With Wi-Fi/Bluetooth signals ensuring connectivity and technologies like Siri and Cortana enhancing user experience, industry leaders like Alpine Electronics and Alps Electric shape the future of automotive audio. This market report extensively covers market segmentation by distribution channel (OEM and aftermarket), application (passenger vehicles and commercial vehicles), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the OEM segment will be significant during the forecast period. OEM stands for original equipment manufacturer. OEM auto parts are the same parts used to build vehicles, as the OEM is the original producer of the vehicle's components. For OEM parts, car manufacturers typically guarantee compatibility with the vehicle.
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The OEM segment was valued at USD 11.97 billion in 2017 and continued to grow by 2021. As original suppliers of auto parts, OEMs often sell their products through branded auto dealers and can order directly from automakers. OEM products are recommended by automakers and are often significantly more expensive than aftermarket parts. This may slow down the growth of the segment in the future. However, new technologies such as 3D printing can transform the OEM supply chain, which, in turn, will result in significant growth of the OEM segment in the market during the forecast period.
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APAC is estimated to contribute 53% 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 rapid economic growth of China, Indonesia, and India and growing consumer awareness about in-vehicle entertainment and information systems are supporting the market penetration of the human-machine interface (HMI). Globalization and the concept of connected cars have also paved the way for the use of advanced in-vehicle entertainment and information systems. Intense competition and the saturation of developed markets such as the US and Europe have compelled OEMs to shift their focus to emerging markets for growth.
It encompasses components like the mid-range cone, responsible for reproducing crucial mid-frequency sounds, and considerations such as the radiating cone area, which impacts overall sound quality. Specific products like the Punch P1462 are renowned for their powerful sound delivery. Features like the flex fit basket offer easier installation options. Luxury cars often boast advanced audio systems, emphasizing the importance of the quality of material used in construction. These systems find application in both Light Commercial Vehicles (LCVs) and Heavy Commercial Vehicles (HCVs), where sound clarity matters amid various road conditions and cargo loads. Considering the influence of personal income, consumers seek high-volume speakers capable of overcoming traffic delays with clear sound reproduction. Moreover, the integration of wireless technology further enhances convenience and flexibility in automotive audio systems
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.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.2% |
Market growth 2023-2027 |
USD 7.68 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.8 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 53% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alps Alpine Co. Ltd., Aurelius Group, Bang and Olufsen Group, BASSOHOLIC, Bose Corp., Burmester Audiosysteme GmbH, Continental AG, DENSO Corp., Fender Musical Instruments Corp., Goertek Inc., JL Audio Inc., JVCKENWOOD Corp., Masimo Corp., McIntosh Group, Meridian Audio Ltd., Pioneer Corp., Samsung Electronics Co. Ltd., Sony Group Corp., VerVent Audio Group, and Panasonic Holdings Corp. |
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 research and growth report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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