Automotive Original Equipment Manufacturer (OEM) Premium Audio Market 2024-2028
The Automotive Original Equipment Manufacturer (OEM) Premium Audio Market size is forecast to increase by USD 4.71 billion, at a CAGR of 6.3% between 2023 and 2028. The growth of the market depends on several factors such as superior surround sound experience driving its penetration, growing demand for differentiated in-car experiences and virtual tuning to enhance customer satisfaction.
The report includes a comprehensive outlook on the Automotive OEM Premium Audio Market offering forecasts for the industry segmented by Application, which comprises luxury vehicles and mid-size vehicles. Additionally, it categorizes Type into the speaker, amplifier, and others and covers Region, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
What will be the Size of the Automotive OEM Premium Audio Market During the Forecast Period?
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Automotive OEM Premium Audio Market: Key Drivers, Trends and Challenges
Our researchers analyzed the data with 2023 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.
Key Automotive OEM Premium Audio Market Driver
Virtual tuning to enhance customer satisfaction is notably driving market growth. This technology is designed to enhance the in-vehicle listening experience by reducing unwanted external noise, thereby improving the overall audio quality for passengers.Several automotive OEMs have adopted ANC technology in their premium audio systems to provide a more immersive and enjoyable driving experience. For example, luxury car manufacturers such as BMW, Mercedes-Benz, and Audi have integrated ANC technology into their premium audio systems to deliver superior sound quality while minimizing road, engine, and wind noise within the vehicle cabin.
Additionally, this software offers the option to integrate acoustic, mechanical, and electrical effects throughout the system. The company has also created a library of validated models and known solutions that give performance predictions of a wide variety of loudspeaker configurations. Thus, such factors are expected to drive the growth of the global automotive OEM premium audio market during the forecast period.
Key Automotive OEM Premium Audio Market Trends
Integration of ANC technology in premium audio systems is an emerging trend shaping the market growth. This technology is designed to enhance the in-vehicle listening experience by reducing unwanted external noise, thereby improving the overall audio quality for passengers. Several automotive OEMs have adopted ANC technology in their premium audio systems to provide a more immersive and enjoyable driving experience. In the competitive landscape of the automotive original equipment manufacturer premium audio market, the incorporation of ANC technology has not only improved sound quality but has also contributed to enhancing the perception of luxury and sophistication associated with premium vehicle models.
As a result, automotive OEMs are continuously investing in research and development to further advance ANC technology and integrate it seamlessly into their premium audio systems. Thus, such factors are expected to increase the demand for automotive OEM premium audio, which will propel the growth of the global automotive OEM premium audio market during the forecast period.
Major Automotive OEM Premium Audio Market Challenge
Automotive audio systems increasing driver distraction is a significant challenge hindering the market growth. Most of the modern automotive infotainment systems offer voice-activated functions as high-tech safety options, but the use of these while driving is considered as dangerous as using hand-held devices. This is because these systems are innovative and new but complex to operate compared with using hand-held devices. The advancement of automotive audio systems to make sound quality superior has led to the adoption of premium audio systems that use numerous speakers, sub-woofers, and tweeters.
Furthermore, as more vehicles are expected to adopt premium audio systems, the chances of accidents owing to distracted driving are also expected to increase, which may impede the growth of the global automotive OEM premium audio market during the market forecast period.
Automotive OEM Premium Audio Market Customer Landscape
The market research 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 market analysis and report also include key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Global Automotive OEM Premium Audio Market Customer Landscape
Who are the Major Automotive OEM Premium Audio Market Companies?
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.
Alps Alpine Co. Ltd. - The company offers automotive OEM premium audio such as Alps Alpine sound technology which provides high-quality sound for automotive cabins.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
- Aurelius Group
- Bang and Olufsen Group
- Bose Corp.
- Bowers and Wilkins
- Burmester Audiosysteme GmbH
- Canton Elektronik GmbH Co. KG
- Clarion Co. Ltd.
- Dynaudio AS
- Fender Musical Instruments Corp.
- FOCAL JMLAB
- JVCKENWOOD Corp.
- Masimo Corp.
- McIntosh Laboratory Inc.
- Meridian Audio Ltd.
- Panasonic Holdings Corp.
- Pioneer Corp.
- Samsung Electronics Co. Ltd.
- Sony Group Corp.
- VOXX International Corp.
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.
What is the Largest-Growing Segments in the Automotive OEM Premium Audio Market?
The luxury vehicles segment is estimated to witness significant growth during the forecast period. The luxury vehicles segment holds a significant portion of the automotive original equipment manufacturer premium audio market, offering an unparalleled audio experience to discerning consumers. Luxury vehicle manufacturers have made substantial investments in integrating advanced audio technologies, setting new industry standards, and raising consumer expectations.
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The luxury vehicles segment was the largest and was valued at USD 9.60 billion in 2018. The luxury vehicles segment's commitment to premium audio extends to catering to diverse consumer preferences and lifestyle demands. Customization options, including bespoke audio configurations and upgraded sound systems, are often offered, allowing consumers to tailor their in-car audio experience to their exact specifications. For instance, the Burmester high-end 3D surround sound system available in select Mercedes-Benz models exemplifies the usage of luxury and audio engineering, epitomizing the bespoke audio experiences that luxury vehicle buyers seek. Thus, the above-mentioned advantages are expected to increase the demand for automotive OEM premium audio in the luxury vehicle segment, which will propel the growth of the luxury vehicle segment in the global automotive OEM premium audio market during the forecast period.
Which are the Key Regions for the Automotive OEM Premium Audio Market?
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Europe is estimated to contribute 32% 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 automotive OEM premium audio market during the forecast period. The high production and sales of luxury cars in Western European economies are contributing to the market growth and trends of the regional automotive OEM premium audio market. The penetration rate of advanced automotive systems is high in Western European countries, owing to which the demand for advanced infotainment systems is high. This, in turn, increases the value proposition of these cars. Luxury cars are witnessing rapid market growth and forecasting in sales in Europe, which can propel the growth of the regional automotive original equipment manufacturer (OEM) premium audio market.
Additionally, the mid-size luxury car segment is dominated by Audi, BMW, and Mercedes, though there is increasing pressure from other luxury OEMs such as Alfa Romeo, Infiniti, Jaguar, and PSA Group's brand DS in the region. The top-selling mid-size luxury cars include Audi A4, BMW 3 series, Mercedes C Class, Volvo V60, BMW 4-series Gran Coupe, and Jaguar XE. Europe has a high market share in the luxury car segment, with the presence of all major luxury OEMs, such as Mercedes-Benz, Audi, BMW, Porsche, Alfa Romeo, and Mini. Hence, the regional market is estimated to witness gradual growth during the forecast period.
Segment Overview
The automotive OEM premium audio market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market trends and analysis and market research and growth opportunities from 2018 to 2028.
- Application Outlook
- Luxury vehicles
- Mid-size vehicles
- Type Outlook
- Speaker
- Amplifier
- Others
- Region Outlook
- North America
- The U.S.
- Canada
- South America
- Chile
- Brazil
- Argentina
- Europe
- The U.K.
- Germany
- France
- Rest of Europe
- APAC
- China
- India
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- North America
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Automotive OEM Premium Audio Market Scope |
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Report Coverage |
Details |
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Page number |
170 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Market forecasting period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.3% |
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Market Growth 2024-2028 |
USD 4.71 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.93 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 32% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alps Alpine Co. Ltd., Aurelius Group, Bang and Olufsen Group, Bose Corp., Bowers and Wilkins, Burmester Audiosysteme GmbH, Canton Elektronik GmbH Co. KG, Clarion Co. Ltd., Dynaudio AS, Fender Musical Instruments Corp., FOCAL JMLAB, JVCKENWOOD Corp., Masimo Corp., McIntosh Laboratory Inc., Meridian Audio Ltd., Panasonic Holdings Corp., Pioneer Corp., Samsung Electronics Co. Ltd., Sony Group Corp., and VOXX International Corp. |
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Market dynamics |
Parent market analysis, 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 the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this Automotive OEM Premium Audio Market Research Report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the growth of the market between 2024 and 2028
- Precise estimation of the market size and its contribution of the market in focus to the parent market
- Accurate predictions about upcoming trends and changes in consumer behavior
- Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
- A thorough analysis of the market’s competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the growth of market companies
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