Car Audio Market Size, Share & Industry Analysis, By Component Type (Head Unit, Amplifier, Speaker), By Technology (Non-Voice Recognized Audio System, Voice Recognized Audio System), and Regional Forecast, 2024-2032

The car audio market size was valued at USD 9.68 billion in 2023. The market is expected to grow from USD 10.26 billion in 2024 to USD 17.83 billion by 2032, exhibiting a CAGR of 7.1% during the forecast period.

The sole purpose of automotive speakers is to offer in-vehicle entertainment to occupants in passenger cars. The latest automotive speaker systems are embedded with advanced technological features that enhance the overall passenger in-car entertainment experience. The rising demand for aftermarket sound systems and components propels the growth of the automotive audio market. Key market players are augmenting their aftermarket distribution channels to support the growing demand and capture greater market share.

Changing consumer lifestyles and shifting inclination toward using onboard infotainment systems in ride-sharing services are expected to provide new opportunities for market growth. Consumers preferred using onboard infotainment systems in public transportation to listen to music while travelling, which increases demand for automobile speakers. Product penetration will be aided by the growing acceptability of technologically superior audio-visual systems.

The COVID-19 pandemic disrupted manufacturing, causing supply chain issues and market uncertainty. Post-lockdown, markets recovered, but the car audio sector felt an indirect impact due to decreased automobile sales. As per the Society of Indian Automobile Manufacturers, passenger vehicle sales fell 2.24% from April to March 2021. The global economic downturn from COVID-19 led to labor and material shortages, hindering gadget development and creating a supply-demand gap. Market leaders prioritized backlog servicing for revenue continuity in 2021.

Car Audio Market Trends

Integration of Wireless Connectivity Boosts Market Development

Wireless connectivity removes the necessity for physical cables, simplifying the process of linking devices to the car's audio system for both drivers and passengers. This convenience encourages more frequent usage of the audio system, as users can quickly and effortlessly stream music podcasts or make hands-free calls without the hassle of tangled wires. Wireless connectivity options, such as Bluetooth, WiFi, and NFC, provide broad compatibility with various devices, including smartphones, tablets, and wearable gadgets. This universality allows users to seamlessly integrate their preferred devices with the car audio system, regardless of the brand or operating system. Wireless connectivity facilitates the hands-free operation of the car audio system, promoting safer driving practices by minimizing distractions. Drivers can control music playback, adjust volume levels, send messages, and make calls using voice commands or steering wheel controls without needing to handle their devices directly.

In January 8, 2024, JBL, a renowned name in the audio industry, is poised to captivate both automotive enthusiasts and tech aficionados with the introduction of the JBL Legend 700. Crafted to enhance the in-car entertainment experience, the JBL Legend 700 boasts a sleek 7-inch touchscreen display, presenting users with a contemporary and user-friendly interface. Featuring wireless Apple CarPlay and Android Auto, this innovative system guarantees a seamless and distraction-free connection to any smartphone, ensuring safe and convenient operation while driving.

Car Audio Market Growth Factors 

Driving Habits Fuel Surge in Demand for the Market

Taking into account the key findings from the AAA Foundation for Traffic Safety’s 2022 American Driving Survey (ADS), which assesses the daily driving habits of the U.S. populace in 2022 and compares them to figures from 2021 and 2020, it is revealed that 94.5% of the U.S. residents aged 16 years and above engaged in driving at least occasionally during 2022. On average, drivers reported undertaking 2.44 driving trips, spending 60.2 minutes driving, and covering a distance of 30.1 miles per day throughout the year 2022.

With a significant portion of the populace engaging in driving on a regular basis, there is a higher demand for in-car entertainment systems to enhance the driving experience. Car audio systems play a crucial role in providing entertainment and convenience during daily commutes and long drives, leading to a potential increase in market demand.

RESTRAINING FACTORS

Health and Safety Issues Concerning Prolonged Use Of Audio Devices Can Restrain Market Growth

Researchs shows that the high volume speakers has severe impacts on the hearing abilities such as partial or complete hearing loss in prolonged users. The users in age group 10 to 30 are key sufferers of such long-term impact. Moreover, continuous exposure to WiFi/Bluetooth signals furthers boosts the damaging effects by inducing sleep cycle disturbance in such users. Moreover, the car audio blocks the outside noise such as sounds of horns of approaching vehicles which my lead to fatal road accidents.

Technological Challenges in Wireless Hi-Fi Systems May Restrain Market Growth

Although the wireless technologies such as WiFi, Bluetooth offers superior convenience of listening the audio remotely, using such technologies efficiently in a moving vehicle creates a lot of quality issues. Providing high-quality and realtime synchronization in wireless audio devices is technically challenging, mainly due to bandwidth constraints, coding issues, bit erros while transferring the audio among others.

Car Audio Market Segmentation Analysis

By Component Type Analysis

Speaker Segment Dominates The Market Due To Its High Demand

The speaker segment is expected to exhibit the highest CAGR during the forecast period. The speaker plays a crucial role in car stereo systems. The market for car speakers is increasing due to technological breakthroughs and upgrades in passenger vehicle interiors, such as better safety features with ADAS. Increased use of high-quality entertainment systems smartphone-controlled via WiFi and Bluetooth technologies will increase the car audio market revenue.

A head unit is the CPU of your car's sound system. It refers to various devices, including CD players, radio tuners, auxiliary inputs, and built-in components such as amplifiers and equalizers. The head unit interfaces the user for the vehicle's information and entertainment media components such as satellite radio, DVDs, USB MP3, dashcams, GPS navigation, Bluetooth, WiFi, and sometimes vehicle systems status. Moreover, it controls audio functions, including volume, band, frequency, speaker balance, speaker fade, bass, treble, and equalization. With the emergence of dashcams, GPS navigation, head units with video screens are widely available, integrating voice control and gesture recognition. Hence, head unit segment is anticipated to grow substantially during the forecast period.

Amplifiers use electronics to convert a weak musical signal into a more robust electrical output for driving loudspeakers. They can also be used to power a whole speaker system and replace original amplifiers and add subwoofers. Amplifiers allow speakers to be operated at larger volumes and with considerably improved sound quality. Advancement in technology is driving the market growth.

By Technology Analysis

Voice Recognized Audio System Segment Is Expected To Hold The Largest Market Share

Based on technology, the market is segmented into voice-recognized audio systems and non-voice recognized audio systems.

The voice-recognized audio system segment is expected to exhibit the highest CAGR during the forecast period. The factor contributing to the segment's growth is increasing demand for a superior driving experience with advanced voice-controlled assistants. Car stereo system manufacturers see a voice-recognized audio system as the most productive feature to add to the car stereo system throughout the forecast period. Currently, the non-voice segment holds the significant share, and the voice recognized audio system would lead during the forecast period.

The non-voice recognized audio system is expected to project a negative CAGR during the forecast period. It is installed in the car to provide in-car entertainment for the vehicle occupants. Since 1990s, modifications in the automotive audio system have included FM radio, 8-track tape players, record players, CD players, DVD players, Blu-ray players, navigation systems, Bluetooth telephone integration, and smartphone controllers such as CarPlay and Android Auto. However, with customers’ inclination toward superior driving experience, the non-voice recognized audio system is anticipated to witness negative growth.

REGIONAL INSIGHTS

In 2023, the Asia Pacific automotive audio market was worth USD 5.44 billion. It presently has the market's largest market share. China & India witness huge demand for such products mainly due to high population & sales of passenger cars. This expansion is attributable to increased urbanisation and rising disposable income, which has resulted in changing individual preferences. The automotive sector in India, South Korea, and China is expanding mostly due to increased vehicle manufacture. In 2023, According to OICA (International Organization of Motor Vehicle Manufacturers), around 46.6 million vehicles were registered in the Asia Pacific region, out of which China recorded the largest share, with 26.1 million vehicle registrations in 2023. The inclusion of a competitive automotive sector, as well as an expanding range of car manufacturers, are the key reasons driving the region's car audio market growth.

Europe is home to several luxury automotive brands, such as BMW, Mercedes, Audi, and others, which generate the need for premium car audio systems, enhancing the driving and travel experience. Thus, the development of advanced features equipped with car audio systems integrated with in-car infotainment systems drives the market growth in Europe.

North America is the market's third-largest region, but it is predicted to have the fastest-growing CAGR throughout the projection period. Because major automobile stereo producers are located in the United States, it ranks at number 1 in this region. At the moment, the fleet market in the United States runs in a low-inflation and low-interest climate that fulfils the country's economic norms, necessitating significant OEM investment. In the country, non-voice recognised audio systems are more often used. Although it is less expensive, it is on the cusp of being supplanted by voice-recognized audio systems. The region's market expansion is being fueled by increased globalisation.

Latin America, the Middle East, and Africa make up the remainder of the world. The Middle East is expected to make a substantial contribution to global market growth.

List of Key Companies in Car Audio Market

Alpine Electronics Focuses On New Product Launches To Enhance The Market Share

Alpine Electronics is primarily focusing on new product launches to enhance its market representation. Alpine Electronics, Inc. the consumer electronics business Japan’s Alps Electric that specializing in-vehicle audio and navigation systems. The company has production units in Brazil, Mexico, Hungary, Thailand, and China. Additionally, Alpine’s engineering headquarters are in Iwaki, Fukushima Prefecture, Japan.

In January 2024, Alpine unveiled Tesla's complete sound system upgrade in a 2023 Model 3, offering 1200W RMS power without modifying factory speakers. It features 10 High-Resolution speakers, a 10” subwoofer, a 12-channel digital sound processor with an amplifier, and an ultra-efficient amplifier consuming less than one mile of range per hour at full volume. More options will cover Tesla's premium Model 3 systems with 13 speakers.

LIST OF KEY COMPANIES PROFILED:

• Alpine Electronics Inc. (Tokyo, Japan)


• Harman International (Connecticut, U.S.)


• Sony Corporation (Tokyo, Japan)


• Bose Corporation (Massachusetts, U.S.)


• Pioneer Corporation (Tokyo, Japan)


• Blaupunkt GmbH (Hildesheim ,Germany)


• Panasonic Corporation (Osaka, Japan)


• JL Audio (Florida, U.S.)


• JVC Kenwood Corporation (Kanagawa, Japan)


• Clarion Co., Ltd. (Saitama, Japan)

KEY INDUSTRY DEVELOPMENTS:

• December 2023 - BdSound partnered with DSP Concepts to tackle automotive audio complexities, delivering BdSound's speech processing tech via DSP Concepts' Audio Weaver platform for streamlined deployment by OEMs and integrators.


• October 2023 - BLAUPUNKT, renowned for automotive audio innovation, unveiled the launch of its 2023/2024 Car Audio lineup at the SEMA Show, Las Vegas, held from October 31st to November 3rd, 2023. The product lineup featured cutting-edge sound solutions, seamless connectivity, timeless design, user-friendly interfaces, and dedicated support.


• January 2023 - At CES 2023, Panasonic Automotive Systems Company of America unveiled a modular audio system tailored for electric vehicles (EVs), offering high-quality sound, reduced energy consumption, and lighter weight for enhanced efficiency. Panasonic's EV Audio features sustainable design, reducing power draw and utilizing simplified materials to promote vehicle efficiency. This innovation aims to drive a shift towards more efficient EV component design.


• December 2022 - Asahi Kasei Microdevices Corporation (AKM) unveiled AK7018 and AK7017 audio DSPs with dual and single HiFi 4 CPUs, enhancing in-car audio and voice experience. AK701x devices offer flexibility in advanced automotive infotainment systems. AK7018's dual HiFi 4 DSP configuration allows simultaneous high-resolution audio and voice processing. Flexible clocking options and rich I/O support cater to complex audio systems, while AK7017 provides a scalable solution for simpler setups.

REPORT COVERAGE

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

Report Scope & Segmentation