The global car audio market is anticipated to register significant expansion during 2022-2030, owing to the rising consumer awareness about sound technologies. The ongoing transition of customers from premium OEMs to aftermarket sound systems due to their easy availability and affordability has encouraged manufacturers to deliver advanced sound solutions based on emerging customer requirements at competitive prices.
For instance, in October 2021, Harman expanded their range of aftermarket car audio products with the launch of a single din stereo system, Alpha 100, and an award-winning amplifier REF7005A in the Indian market. The Alpha 100 features a host of connectivity options such as Bluetooth, Aux, USB, FM Radio, and SD Card, while the REF7005A comes with low and high-level inputs, variable electronic crossovers, bass boost control, and the latest amplifier topology. The products may attract all car owners looking for an immersive audio experience in their vehicles.
The car audio market is fragmented in terms of component type, sound management, make type, vehicle type, sales channel, and region.
Based on component type, the others segment is set to surpass USD 3 billion by 2030. The segment growth can be credited to the increasing leisure expenditure on car acoustics and the subsequent deployment of car audio receivers, subwoofers, MP3 players, etc. The integration of these products adds clarity and base to the stereo’s sound. These allow smaller speakers to produce sound over a more comfortable frequency range, thus fostering their adoption over the forthcoming years.
Regarding sound management, the manual segment is anticipated to record a noteworthy target valuation by 2030. The manual sound management systems have gained traction due to the emerging requirement to create a personalized in-vehicle acoustic experience. Besides, the availability of these products at affordable prices and their rapid deployment across low and mid-range vehicles will create new growth prospects for the car audio industry in the forthcoming years.
The non-branded audio system segment is expected to emerge as a significant revenue contributor during the analysis period. The segmental expansion can be credited to the escalating efforts by notable market participants to develop technologically advanced products at affordable prices to meet the growing customer requirement. The increasing middle-class population and rising mid-range vehicle sales will fuel the deployment of non-branded audio systems, supporting the car audio market growth.
The commercial vehicle segment is expected to grow substantially from 2022 to 2030 and account for an appreciable market share by 2030. The segment growth is driven by the rising concerns about maintaining vehicle safety requirements and the subsequent rise in the deployment of advanced safety gear, including ADAS systems, in commercial vehicles. In addition, the emerging demand for advanced sound systems among vehicle owners will fuel the segment expansion.
The aftermarket segment is anticipated to generate considerable revenues and exhibit a notable CAGR during the analysis period. The increasing popularity of these car audio systems due to their low-cost benefits and easy availability across various sales channels will push their adoption over the forthcoming years. Additionally, the increasing focus of leading manufacturers on introducing state-of-the-art features at competitive costs will strengthen the market outlook.
Regionally, the Latin America Car Audio Market is speculated to expand at over 5.5% CAGR between 2022 and 2030. The regional industry is fueled by the availability of a wide range of cost-effective car audio systems in the automotive aftermarket and the increasing popularity of low-cost amplifiers, speakers, DSPs, etc., across all income groups. In addition, the ongoing advancements in car acoustic technologies will aid the regional landscape.