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Where is the car audio industry going in the next 8 years?

Where is the car audio industry going in the next 8 years?

The car audio industry is shifting gears, accelerating towards a future filled with innovation and growth. As we look ahead to 2032, let's explore the trends, technologies, and market forces that are shaping the soundtrack of our future drives.

Let's start with some numbers:

Current market size

2023- $9.68 billion


Projected market size

2024- $10.26 billion

2032- $25.62 billion

 

The rising demand for aftermarket sound systems and components is driving the growth of the automobile audio market.  

As car prices have increased, consumers' expectations around car audio have increased as well.  

In the past, some consumers didn’t seek out quality sound systems, but now there is an expectation that the quality of the audio should match the quality of the car.

Which car audio market segment will be the largest in the future?

Speakers are expected to witness the highest growth over the forecast period (2024-2032) due to their rising application in vehicles for better safety features and high-quality entertainment systems with smartphone-controlled Wi-Fi and Bluetooth technologies.  

In 2022, speakers captured over 74% market share for in-car entertainment offerings.

Based on sales channels, the OEM segment held the largest share in 2022, accounting for more than two-thirds of the global in-car audio system market, and would dominate the market in terms of revenue through 2031. The aftermarket segment, however, is estimated to witness the fastest growth of 13.6% during the next 8 years.

Driver Safety has evolved with features such as voice command functionality, intuitive controls, and integration with driver-assistance technologies.  These advanced features promote safer driving and meet the demand for enhanced convenience by allowing drivers to control audio settings without distractions.

The shift towards using in-car infotainment systems for accessing detailed traffic information while traveling in public transport is anticipated to significantly impact the global automotive industry. 

This trend underscores the growing preference among consumers for convenient and integrated solutions that enhance their overall commuting experience. 

With the increasing adoption of technologies such as FM radio, Bluetooth speakers, and advanced car speaker applications, the global car audio market is poised for substantial growth.

The integration of smart connectivity features into automobiles serves as a primary driver propelling the expansion of the automotive speaker market. 

Research shows that high-volume speakers, including factory speakers that sound loud due to inferior components, have severe impacts on hearing loss in prolonged users.  

International ranking of car audio’s largest markets:

  1. The Asia Pacific automotive audio market is the world’s largest market at $5.44 billion.  Specifically, China and India have the biggest demand due to their high population and overall sales of cars.  
  2. Europe is the world’s second-largest market, as it is the home to luxury car brands BMW, Mercedes, Audi, and others.  The need for premium car audio systems is high so drivers can experience luxury throughout their automobile.  Customers in Europe typically place an elevated value on aesthetics and vehicle design.    
  3. North America is the market’s third-largest market, but it is predicted to have the fastest growth in the next 8 years.  The reason is due to the US being home to major automobile stereo companies.  Customers in North America frequently value high-end audio systems that provide enveloping experiences and outstanding sound.

One of the key drivers of increasing auto sales is the strengthening of the global economy.  The rise in ownership has been fueled by technological advancements- cars are safer, more fuel efficient, and more luxurious than ever before.  

Consumers have been investing in their cars, knowing that they will last longer and provide a better driving experience. This increase in demand has also boosted the need for high-quality car audio systems.

What do customers want?  Technological innovations

Advanced sound processing and top-of-the-line audio components are driving the in-car audio system market.  These innovations enhance the driving experience with immersive surround sound, crystal-clear music, and precise sound staging.  

The demand for audio in cars isn’t limited to high-end luxury cars.  Budget car owners now have advanced audio systems sold by aftermarket companies.  This is attributed to the fact that consumers are becoming increasingly aware of the importance of audio quality, and they are willing to pay extra for a car that offers superior audio quality.  

In addition to in-car infotainment systems and music streaming services, the demand for audio in cars is driven by the growing popularity of podcasts and audiobooks.  

As vehicles become more technologically advanced, there is a heightened demand for audio systems capable of supporting various features, including hands-free calling, voice assistants, audio connectivity, and music streaming. 

Consumers are increasingly seeking immersive in-car experiences that offer seamless connectivity and entertainment options, thereby driving the demand for smart speakers tailored to automotive environments.

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