Acoustic Vehicle Alert System Market Size, Share & COVID-19 Impact Analysis, By Propulsion Type (BEV and PHEV), By Vehicle Type (Two Wheelers, Passenger Vehicles, and Commercial Vehicles), By Sales Channel (OEM and Aftermarket), and Regional Forecasts, 2023-2030

The global acoustic vehicle alert system market size was USD 1.61 billion in 2022 and is projected to grow from USD 2.18 billion in 2023 to USD 20.15 billion by 2030, exhibiting a CAGR of 37.4% during the forecast period.

Acoustic Vehicle Alerting System (AVAS) is a safety feature designed for electric and hybrid vehicles to make pedestrians and cyclists aware of the presence of the vehicles. Since electric vehicles run quietly at low speeds, they might not be as noticeable as traditional internal combustion engines with engine noises.

The market is anticipated to grow due to the rising demand for advanced vehicles with high-end safety features. The AVAS regulation requires electric and hybrid vehicles to emit a sound while operating at low speeds, usually up to 30 km/h, to alert pedestrians and other road users about the  presence  of vehicles. This safety measure is implemented to mitigate potential risks associated with the quietness of these vehicles, improving overall pedestrian awareness and road safety. The main objective of this regulation is to enhance safety for visually impaired individuals and other vulnerable road users who may be unable to hear the vehicles approaching. The popularity and adoption of Electric Vehicles (EVs) have fueled the need for acoustic vehicle alert system technology. EVs are inherently quieter than traditional internal combustion engine vehicles, making them less noticeable to pedestrians, especially in urban environments.

Many countries and regions have implemented regulations mandating acoustic vehicle alert systems in electric and hybrid vehicles to ensure pedestrian safety. The NHTSA (National Highway Traffic Safety Administration) has made this system mandatory in the U.S. for all new hybrid and electric vehicles sold since September 2020. Similar regulations were implemented in Europe in July 2019, making such systems mandatory in all new electric and hybrid vehicles from July 2021. These regulations have driven the demand for global acoustic vehicle alerting systems in the automotive industry. Advancements in automation and sensor technologies have significantly improved electric vehicle reliability, performance, and functionality. Sound generation and directionality technology improvements have enhanced this systems' effectiveness and made them more appealing to automakers. The overall growth of the automotive industry also contributes to the expansion of the market as automakers integrate these systems into their new electric and hybrid vehicle models.

COVID 19 IMPACT

Pandemic Impacted the Market Positively Due to Increased EV Sales

The first half of 2020 witnessed a global decline in electric car sales, with a 15% decrease compared to 2019. However, Europe stood out as a notable exception, experiencing a remarkable 55% increase in electric car sales during this period, largely due to existing policy support schemes in the region. In the second half of 2020, the global automotive market started to recover as lockdowns were lifted or relaxed in some regions. This recovery had a significant impact on electric car sales, with monthly sales surpassing those recorded between July and December 2019 in all major markets, including China, the European Union, India, Korea, the U.K., and the U.S., despite facing second waves of the pandemic.

The overall result for 2020 was substantial growth in European electric car sales, more than doubling the levels seen in 2019. As EV sales increased, the market size was positively impacted in 2020. Several large European markets, such as France, Italy, Germany, and the U.K., consistently reported significantly higher electric car sales throughout almost every month of 2020 than the previous year. On the positive side, the pandemic highlighted the importance of vehicle safety features. As people became more cautious about health and safety, there was an increased emphasis on safety technologies, including acoustic vehicle alert systems, to prevent accidents and enhance pedestrian safety.

LATEST TRENDS

Advancement in EV Sound Technology and Increasing Government Regulations Regarding Road Safety

Acoustic vehicle alert system technology has evolved to become more sophisticated and effective. Manufacturers have been focusing on developing sound generation systems compliant with regulations and more appealing to pedestrians and drivers. Sound directionality and customization options have been introduced to ensure these alerts are noticeable without being excessively intrusive. Some systems have been integrated with vehicle infotainment systems, giving drivers more control over the sounds emitted by their vehicles. This integration allows for customization and personalization of the alert, creating a unique auditory signature for each vehicle. These systems were initially developed for electric vehicles. Still, there has been an interest in exploring their application in other vehicle types, such as hybrid vehicles or even certain internal combustion engine vehicles. The goal is to enhance overall road safety by alerting pedestrians to the presence of vehicles that produce less audible noise.

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DRIVING FACTORS

Increasing Penetration of Electric Vehicles to Boost the Market Growth

The growth of electric vehicles has been gaining momentum due to various factors, including rising concerns about environmental pollution and the need to reduce greenhouse gas emissions. Governments and policymakers in many countries have been actively promoting the adoption of electric vehicles through incentives, subsidies, and stricter emissions regulations. As electric vehicle penetration is increasing, there is a huge concern regarding road safety as these vehicles do not emit the sound of conventional ICE vehicles. Many countries have started mandating the use of acoustic sounds in electric and hybrid vehicles to cater the safety concern. These systems are specifically designed to emit warning sounds, alerting pedestrians and other vulnerable road users to the presence of an approaching electric vehicle. By addressing the quiet nature of these vehicles, the system helps reduce the risk of vehicle collisions and enhances overall road safety.

The implementation of regulations requiring acoustic vehicle alert system installation in electric vehicles and the rising adoption of EVs was expected to drive the market's growth. Automotive manufacturers and suppliers also invested in research and development to improve such technologies, making them more effective and better integrated into electric vehicle designs. As the demand outlook for electric vehicles is increasing, the adoption of such systems is also growing.

RESTRAINING FACTORS

Lack of Standardization Regarding Regulations in Many Regions May Restrain the Market Growth

Countries and regions may be varying regulations regarding fake sound system installation in electric vehicles. The lack of standardized regulations could lead to complexities for automakers and potentially hamper market growth. Also, the cost of implementing acoustic vehicle alert system systems in electric vehicles might be a consideration for automakers, especially in price-sensitive markets. Reducing production costs while maintaining the system's effectiveness could be a challenge. The automotive industry typically experiences a slow transition when implementing new technologies. The introduction of AVAS requires changes in vehicle design, manufacturing processes, and supply chains, which can take time to integrate fully.

SEGMENTATION

By Propulsion Type Analysis

Robust Demand for BEVs is Anticipated to Boost the Segment Growth

By propulsion type, the market is fragmented into the BEV and PHEV.

This market, is predominantly dominated by the Battery Electric Vehicle (BEV) segment, primarily due to the U.S. witnessing a remarkable 55% increase compared to the previous year, with Battery Electric Vehicles (BEVs) leading the charge. BEV sales surged by an impressive 70%, reaching nearly 800,000 units and marking a second consecutive year of robust growth following a dip in 2019-2020. As the adoption of BEVs continues to grow, the demand for technology has risen accordingly. The quiet nature of electric vehicles at low speeds makes this technology a crucial safety feature to alert pedestrians and cyclists, driving the uptake of AVAS in BEVs. This trend is expected to persist as governments and consumers worldwide increasingly embrace electric vehicles for their environmental benefits and improved sustainability. As a result, the BEV segment remains at the forefront of the market.

The PHEV segment is also gaining momentum during the forecast period. PHEVs combine an ICE with a battery pack and an electric motor, offering a dual powertrain system allowing all-electric driving for a certain range before the internal combustion engine kicks in. The increasing penetration of the PHEV and increasing government regulation regarding road safety is predicted to propel the segment growth in the future.

By Vehicle Type Analysis

Growing Demand for Electric Passenger Vehicles Propelled the Market for Acoustic Vehicle Alerting Systems

This market is segmented based on vehicle type into two-wheelers, passenger vehicles, and commercial vehicles.

The passenger vehicles segment dominated the market in 2022 due to growing ongoing improvements in battery technology, charging infrastructure, and electric drivetrains for achieving longer driving ranges, faster chargsing times, and better overall performance of electric passenger vehicles. Many corporations and fleet operators have been adopting EVs as part of their sustainability initiatives, contributing to the overall growth of the electric passenger vehicle market. As the demand for electric passenger vehicles increases, so as the demand for this technology.

The demand for the commercial vehicles and two-wheelers is also increasing. Adopting electric trucks and buses for commercial purposes is propelling the market growth. Also, introducing new electric two-wheelers is gaining traction in the market.

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By Sales Channel Analysis

OEM Segment Led in 2022 due to Strict Government Regulations Regarding Road Safety

Based on sales channels, the market is divided into OEM and aftermarket.

The OEM segment held the dominant part in the acoustic vehicle alert system market share in 2022. The OEM segment is anticipated to grow significantly as many countries have made such technology a standard in all-electric vehicles. For instance, as per the National Road Safety Action Plan 2023-25, The Australian Government has committed to mandating an Acoustic Vehicle Alert System (AVAS) for electric vehicles, pending the results of an impact analysis process. Under this commitment, we have prepared the following Consultation Impact Analysis to gather input from all stakeholders on the potential requirement of AVAS in Australia. Such government regulations are propelling the OEM segment.

The aftermarket is anticipated to grow at a healthy CAGR during the forecast period. The aftermarket segment is also gaining traction as retrofitting aftermarket systems onto existing vehicles was often a more cost-effective solution for owners than purchasing new fake sound-equipped vehicles. As regulations requiring acoustic sound in electric and hybrid vehicles were implemented in various regions, owners of older electric and hybrid vehicles sought to comply with the new requirements by retrofitting their vehicles with aftermarket systems.

REGIONAL ANALYSIS

Asia Pacific holds the Highest Market Share Owing to the High Penetration of Electric Vehicles

This market is categorized into geographies, including North America, Europe, Asia Pacific, and the rest of the world.

Asia Pacific holds the major global market share and is estimated to propel over the forecast period further. This dominance is attributed to the rapid commercialization of electric vehicles, especially in China, India, and Japan. This region's leading manufacturers increasingly adopt electric vehicle sound generators. Moreover, the government has strongly supported adopting electric vehicles in the automotive and transportation industry in recent years, stimulating the demand for sound generator devices for passenger cars. The countries like Japan and China are expected to be the world's largest electric vehicle manufacturers and are estimated to be the largest shareholders of the global market. The Asia-Pacific region has become a global electric vehicle manufacturing center.

Europe is anticipated to be the second-largest dominating market during the forecast period. The government's imposition of strict emission norms in this area is expected to ensure its continued market dominance. For example, as per this regulation, starting from July 1st, 2019, and no later than July 1st, 2021, all new licensed electric and hybrid vehicles that do not meet the minimum required sound level must be integrated with sound alert devices. These devices are designed to replicate the same sound level as a vehicle with a conventional internal combustion engine, ensuring the safety of pedestrians and other road users by alerting them to the presence of otherwise quiet electric and hybrid vehicles. This is anticipated to propel the Europe market.

The supportive government initiatives to support the electric vehicle penetration across North America are expected to drive the acoustic vehicle alert system market growth. As electric vehicles become more popular, public awareness of their potential risks to pedestrians and other road users has grown. Acoustic vehicle alert system has received significant attention in the media and from safety advocates, further driving demand for this technology.

KEY INDUSTRY PLAYERS

Innovative Product Development is the Key Strategy Adopted by the Leading Market Players to Gain Competitive Advantage

The companies operating in this market a continiusly emphasizing on the development advance acoustic vehicle alert system for the electric and hybrid vehicles. In June 2020, Hella has unveiled an Acoustic Vehicle Alerting System (AVAS) designed for hybrid and electric vehicles, enhancing safety for pedestrians and fellow road users. This system generates the sound of a traditional internal combustion engine, effectively signaling its presence to those nearby. 

LIST OF KEY COMPANIES PROFILED:

• HELLA GmbH & Co. KGaA (Germany)


• CONTINENTAL AG (Germany)


• Siemens (U.S.)


• STMicroelectronics (China)


• THOR (Dubai)


• Brigade Electronics Group Plc (U.K.)


• SEGER (Türkiye)


• Kendrion N.V. (Netherlands)


• Texas Instruments Incorporated (U.S.)


• American Honda Motor Co., Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS

• In July 2023, Maruti Suzuki India Limited recently introduced the 'Acoustic Vehicle Alerting System' for the Intelligent Electric Hybrid models of its premium SUV, the Grand Vitara. This advanced technology aims to enhance safety for drivers and pedestrians by providing timely alerts about the vehicle's presence. With this system, Maruti Suzuki is committed to innovative solutions that promote road safety and sustainable mobility.


• In September 2022, BlackBerry Limited and Shanghai Dayin Technology Co., Ltd. announced their collaboration on developing the "Yin" 2.0 app, which will be integrated into the intelligent cockpit of Great Wall Motors. The app will utilize BlackBerry QNX acoustics technology, specifically the Software-Defined Audio Architecture (SDAA), to deliver a range of distinctive sound application features. These features include an acoustic vehicle alert system, engine sound enhancements, and dynamic chimes, all designed to enhance the overall auditory experience for both the occupants of the vehicle and those in its vicinity.


• In May 2021, Transports Metropolitans de Barcelona (TMB), the urban operator, awarded a contract to supply 30 Urbino 12 hybrid buses to the CAF Group subsidiary. The addition of these buses aims to expand the vehicle fleet operating in the Metropolitan Area of Barcelona, managed by AMB (Metropolitan Area of Barcelona). Moreover, the newly supplied vehicles will be equipped with the Acoustic Warning Alert System (AVAS) in the Arrive & Go mode. This system emits warning sounds to alert pedestrians about the presence of nearby electric vehicles, enhancing safety for both pedestrians and electric buses.


• In May 2021, Volvo Trucks introduced a specialized acoustic alert system featuring distinctive sounds designed exclusively for electric truck models. This Volvo-developed alert system aims to enhance safety by alerting pedestrians, cyclists, and other road users to the approach of electric trucks, which would otherwise operate quietly. The unique sounds help mitigate potential risks by increasing awareness of the vehicle's presence on the road.


• In July 2020, ECCO, an appliance, electrical, and electronics manufacturing company, is launching the Electric Vehicle Alert System® (EVAS) to assist manufacturers in meeting federal regulations in a stylish manner. Going beyond the standard requirements, EVAS offers a diverse range of custom tones, ensuring pedestrian safety while enabling automakers to create a unique and recognizable audible identity for their electric vehicles.

REPORT COVERAGE

The market report provides detailed market analysis and focuses on key aspects such as leading companies, services, and product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth over recent years.

An Infographic Representation of Acoustic Vehicle Alert System Market

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