Automotive Amplifier Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Vehicles, Light Commercial Vehicles, and Heavy Commercial Vehicles), By Sales Channel (OEM and Aftermarket), and Regional Forecast, 2023-2030

The global automotive amplifier market size was valued at USD 3.79 billion in 2022. The market is projected to grow from USD 4 billion in 2023 to USD 6.27 billion by 2030, exhibiting a 6.6% CAGR during the forecast period.

Automotive amplifiers, often called car amplifiers or car audio amplifiers, are electronic devices designed to increase the power of audio signals before they are sent to speakers in a vehicle's audio system. These amplifiers play a crucial role in enhancing the audio system's sound quality and volume in cars, trucks, and other vehicles. These amplifiers are classified based on their circuit designs and efficiency. Common amplifier classes include Class A, Class AB, Class D, and Class H. Class D amplifiers, for example, are known for their high efficiency and commonly used in car audio systems due to their ability to deliver more power with less heat generation.

The demand for high-quality audio and enhanced in-car entertainment systems, including high-quality audio and video experiences can surge the demand for automotive amplifiers. Consumers are increasingly looking for immersive entertainment options during their commute or travel, which can further boost the sales of smart car audio amplifiers.

Technological advancements in amplifier design, such as improved efficiency, smaller form, and better heat management, can contribute to the automotive amplifier market growth. These improvements can lead to better audio quality and more compact vehicle installations. Moreover, the growing popularity of electric and hybrid vehicles presents an opportunity for vehicle amplifier manufacturers to expand their operations. These vehicles often require specialized audio systems, and amplifiers play a crucial role in delivering high-quality sound while considering the unique power constraints of electric vehicles. For instance, in March 2023, Sony expanded its Mobile ES in-car audio series by introducing a new AV receiver. The XAV-9000ES is the first double-DIN model in this lineup and offers compatibility with wireless Apple CarPlay and Android Auto. The increasing demand for advanced vehicle technologies is anticipated to boost the market growth during the forecast period. Also, the growing demand for vehicle audio systems is expected to augment the sales of automotive amplifiers.

COVID 19 IMPACT

COVID-19 Pandemic Negatively Impacted Market Growth due to Supply Chain Disruptions

The COVID-19 pandemic had extensive repercussions across various sectors, including the automotive industry and its related markets such as automotive amplifiers. Economic instability and shifts in consumer behavior likely diminished customers’ interest in purchasing new vehicles, including those featuring premium audio systems and amplifiers. Consumers avoided incurring non-essential expenses, thereby adversely impacting the vehicle and component sales. Changes in consumer spending patterns probably influenced the aftermarket segment of the market, with individuals possibly showing reduced enthusiasm for investing in supplementary audio enhancements during periods of economic uncertainty.

The decline in sales of vehicles due to the lockdowns imposed was also one of the significant factors contributing to the market’s slowdown during the pandemic. According to the insights of the International Organization of Motor Vehicle Manufacturers (OICA), the sales of motor vehicles were down by 14% during the pandemic, adversely affecting the automotive amplifier market outlook. Nevertheless, despite the initial challenges presented by the outbreak, the automotive sector and its supply chains gradually adapted to the new reality. Manufacturers implemented safety measures to resume production and over time, consumer demand began to rebound.

LATEST TRENDS

Increasing Demand for High-end Audio Systems to Propel Market Growth

Integrating advanced audio technologies is a significant trend in the market. This trend involves incorporating cutting-edge audio-based innovations and features into vehicle amplification systems, enhancing the overall in-car audio experience. These amplifiers are designed to integrate advanced audio technologies such as surround sound, noise cancellation, and digital signal processing. This allows for a more immersive and customized in-car audio experience.

Automotive amplifiers use surround sound to create immersive audio-like in a theater. They use technologies, such as Dolby Atmos and DTS:X, to create sounds from all directions. Companies are developing new sound tech to help the market grow. For instance, STMicroelectronics has recently unveiled its newest additions to the Full Digital Amplifier (FDA) series, the FDA803S and FDA903S. These single-channel fully differential 10W Class-D audio power amplifiers are tailored for automotive purposes, serving applications such as e-calls and telematics. They claim to be well-suited for reproducing human voice, music, or alert messages at standard output power levels of up to 10W.

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DRIVING FACTORS

Growing Demand for Electric and Connected Vehicles to Boost Market Growth

Electric vehicles focus on energy efficiency to extend driving range. This lets amplifier makers create efficient models that use less power for great sound. EVs' unique power needs have sparked innovation in the amplifier design. New tech and setups are being explored for EV-compatible amps. Electric cars are quieter, so top-notch audio matters without the engine noise. Connected EVs come with advanced entertainment systems. Amps are vital for rich audio and navigation. These systems can team up with devices, such as smartphones, for on-the-go entertainment. Growing sound tech and EV popularity will drive the market growth.

The market share of electric vehicles increased significantly after the COVID-19 pandemic. For instance, as per the statistics by the International Energy Agency (IEA), in 2022, the share of electric vehicles increased by more than three times since 2020, with 14% sales in 2022 compared to 4% in 2020. The exponential increase in sales of electric vehicles is expected to fuel the market growth.

RESTRAINING FACTORS

Increasing Penetration of Counterfeit Amplifiers May Restrain Market Growth

Counterfeit amplifiers are currently impeding the expansion of the market. These fake and substandard products pose a risk to the quality and performance of audio systems in vehicles and undermine consumers’ trust in the market. The rising presence of counterfeit amplifiers has created challenges for manufacturers and consumers as it becomes difficult to ensure their genuineness and reliability. This factor can hamper the market's potential for healthy growth and innovation.

SEGMENTATION

By Vehicle Type Analysis

Passenger Vehicles to Dominate Market Owing to Increasing Demand for Advance Audio Systems

Based on vehicle type, the market is segmented into passenger vehicles, light commercial vehicles, and heavy commercial vehicles.

The passenger vehicles segment dominated the market in 2022. The segment’s growth is due to the rising demand for vehicles with premium and high-end features, such as advanced audio systems. Consumers seeking a superior in-car experience are more likely to invest in high-quality amplifiers to enhance their audio systems. The growth in the sales of passenger vehicles is quite significant in emerging economies. As vehicle ownership increases in these regions, there is potential for a parallel rise in demand for aftermarket amplifier installations.

The growth of the light commercial vehicles and heavy commercial vehicles segments is due to the increasing demand for amplifiers in commercial vehicles such as trucks, buses, and other industrial vehicles. This is attributed to a rising need for enhanced audio systems and vehicle functionality. Commercial vehicles often require effective communication systems for drivers to stay connected with dispatchers, other drivers, and base operations. Amplifiers ensure clear and reliable communication, especially in noisy environments. Additionally, they can enhance the audibility of safety alerts and announcements, contributing to driver awareness and safety. This is anticipated to propel the demand for amplifiers in commercial vehicles.

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By Sales Channel Analysis

Increasing Demand for Advanced Audio Systems in Vehicles to Boost Product Demand across OEMs

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

The OEM segment held the largest automotive amplifier market share in 2022. OEMs represent a significant source of supply for amplifiers in the automotive industry. Many OEMs offer premium audio packages as part of their vehicles' optional or higher trim levels. These packages often include advanced audio systems powered by high-quality amplifiers, catering to consumers seeking an enhanced in-car audio experience. OEMs are increasingly integrating advanced audio technologies and features into their vehicles, such as surround sound, noise cancellation, and connectivity options. Amplifiers are a crucial part of these features, ensuring their effective implementation.

The aftermarket segment is expected to record the highest growth rate during the forecast period. With the growing demand for aftermarket amplifiers for audio systems, there is a corresponding increase in the availability of retrofit solutions. Various manufacturers and suppliers offer aftermarket amplifiers for audio systems designed for retrofitting purposes. This expanding market provides more options and choices for vehicle owners looking to enhance their vehicle audio systems through retrofitting.

REGIONAL INSIGHTS

Asia Pacific to Hold Largest Market Share Owing to Increase in Vehicle Production and Sales

Based on region, the market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.

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Asia Pacific will hold the largest market share during the projected timeframe. This region has witnessed rapid expansion in automotive sales, marked by a substantial surge in vehicle ownership in recent years. The notable upswing in vehicle sales, particularly prominent in China and India, has catalyzed the wider adoption of cutting-edge audio systems. As an increasing number of vehicles enter the market, there has been a major surge in the demand for advanced audio technologies, especially amplifiers. Furthermore, Asia Pacific is one of the world’s biggest and swiftly growing automotive markets. This escalating trend in vehicle production and sales will augment the adoption of automotive components such as amplifiers.

Europe is expected to hold the second-highest market share after Asia Pacific. The region boasts a robust presence of premium and luxury vehicle manufacturers, who frequently equip their vehicles with state-of-the-art audio systems, prominently featuring high-caliber amplifiers to provide unparalleled in-car audio experiences.

Concurrently, the North America market depicts Original Equipment Manufacturers (OEMs) progressively incorporating amplifiers into their vehicle portfolios. This strategic move stems from their recognition of the surging demand for advanced audio functionalities, prompting them to introduce either standard or optional amplifiers to distinguish their vehicle lineup. This intense competition within the OEM space will further propel the demand for amplifiers across the region. The market is also anticipated to grow in North America as well as the Rest of the World owing to increasing vehicle fleet and rising interest in hotrod vehicles.

KEY INDUSTRY PLAYERS

Advancements in Research & Development to Make Panasonic Corporation Leading Market Player

Panasonic Corporation's leadership in the automotive amplifier sector results from its technological excellence, collaborative OEM relationships, global presence, commitment to quality, and strong focus on innovation. These factors have collectively positioned Panasonic as the top player in the market, contributing to its enduring success and influence within the industry.

LIST OF KEY COMPANIES PROFILED:

• Panasonic Corporation (Japan)


• STMicroelectronics (Switzerland)


• Texas Instruments (U.S.)


• NXP Semiconductors (Netherlands)


• Analog Devices (U.S.)


• Infineon Technologies (Germany)


• Sony Group Corporation (Japan)


• ELETTROMEDIA S.R.L (Italy)


• JLAudio (U.S.)


• Stillwater Designs (U.S.)


• Soundstream Technologies (U.S.)


• Rockford Corp (U.S.)

KEY INDUSTRY DEVELOPMENTS

• In March 2023, STMicroelectronics launched an automotive-grade micro-power op amp designed to withstand extreme temperatures ranging from -40°C to 150°C and extended missions. Classified as a Class 0 device, this new op-amp claims to demonstrate high endurance, capable of continuous operation at 65°C for over 25 years. In comparison, the Class 1 devices are rated for eight years before any potential failures occur.


• In January 2023, Panasonic, a leading electronics expert, launched various cutting-edge technologies at CES 2023. These innovations span various areas, including more energy-efficient sound systems tailored for battery-electric vehicles and enhancements to its SkipGen eCockpit in-vehicle infotainment system. Among its highlights, Panasonic showcased an advanced high-end audio system that emulated the company's premium ELS audio system. 


• In April 2022, STMicroelectronics introduced the TDA7901 automotive amplifier, which claimed to seamlessly integrate a buck controller for class-G power switching. This integration was paired with support for high-definition audio, creating a distinct offering in the market. The unique combination claims to not only ensure superior listening quality but also delivers great efficiency during operation.


• In January 2022, during CES 2022, Panasonic launched the ELS STUDIO 3D | Signature Edition premium audio system, available exclusively on the 2022 MDX Type S performance SUV flagship by Acura. The product represented the company’s ELS STUDIO line.


• In January 2021, Panasonic and Klipsch partnered to unveil a proof-of-concept in-car audio system capable of delivering Dolby's immersive audio format. Panasonic developed this collaborative in-car system in partnership with Klipsch and Dolby.

REPORT COVERAGE

The 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 industry trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market's growth in recent years.

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