Car Audio Market Share Report - Outlook & Forecast 2027

[Research Report] Car audio market is expected to grow from US$ 47,678.0 Mn in 2018 to US$ 59,383.8 Mn by the year 2027. This represents a CAGR of 3.3% from the year 2019 to 2027.

Analyst Perspective:

The car audio market offers a wide range of options for those seeking high-quality audio systems and entertainment in their vehicles. There are many car radio manufacturers all over the globe to provide the cars with best sound system. From car systems audio, premium car audio brands to aftermarket solutions, numerous choices are available to enhance the audio experience while on the road. Regarding premium car audio brands, names like Bang & Olufsen stand out. Known for their exceptional audio technology, Bang & Olufsen offers top-of-the-line car audio systems that deliver immersive and crystal-clear sound. Aftermarket options provide a diverse range of choices for those looking to upgrade their existing car audio systems. Numerous suppliers cater to car audio hardware, such as car speakers, in car music systems, in car entertainment systems, surround systems, and stereo units.

These suppliers offer a variety of options to suit different budgets and preferences. When considering the best sound systems in cars, luxury vehicles often come to mind. Many high end car audio brands manufacturers partner with renowned audio brands to provide exceptional sound quality. Top car audio brands like Bang & Olufsen, Harman Kardon, Bose, and Burmester (luxury car speakers) collaborate with car manufacturers and car stereo suppliers to create immersive audio experiences. While premium car audio systems can be quite expensive, there are also options for free car speakers. Some car manufacturers may include decent stock speakers as part of the standard equipment in certain models. However, upgrading to aftermarket audio is often recommended for those seeking superior audio quality and car surround sound system. Car audio fitment is an essential aspect when installing new car system audio. It ensures that the audio components are properly integrated into the vehicle without compatibility issues in the new car audio system and focus on cars with good sound systems. Car audio suppliers often provide fitment services to ensure a seamless installation and optimal audio system performance.

Market Overview:

Car audio refers to a technology installed in a car to provide the occupants with information and amusement while driving. With the advancement of technology, dashboard-mounted controls for controlling car music are no longer necessary. Other devices, like steering wheel controls, voice commands, and cellphones, can control automobile music. "car audio" refers to various parts, including the head unit, amplifier, and speakers. Originally designed for music listening, automotive audio is now crucial to telematics, communications, in-vehicle security, hands-free calling, navigation, and standalone diagnostics systems. The same loudspeakers can also be used to amplify engine sounds, such as making a smaller engine sound bigger or to decrease road and engine noise with active noise management. A car amplifier can also be used indoors for automotive audio. Car audio systems in the early days of the automotive industry were simple AM/FM radios. These devices had limited functionality and poor audio quality, and they were mostly used for listening to radio shows while driving. Cassette players, which let you play music tapes, were introduced as technology advanced.

Customize This Report To Suit Your Requirement

You will get customization on any report - free of charge - including parts of this report, or country-level analysis, Excel Data pack, as well as avail great offers and discounts for start-ups & universities

Get FREE CUSTOMIZATION

Car Audio Market: Strategic Insights

• Get Top Key Market Trends of this report.
  This FREE sample will include data analysis, ranging from market trends to estimates and forecasts.

Free Sample PDF

Market Driver:

Increasing Demand for Premium Car Audio Systems to Drive Growth of Car Audio Market

The demand for premium car audio systems has been steadily increasing in recent years, driving significant growth in the market. Several factors contribute to this rising demand and its positive impact on the market. One key driver behind the growing demand for premium car audio systems is the increasing emphasis on enhancing the overall in-car entertainment experience. People spend more time in their vehicles seeking high-quality audio systems that provide immersive sound and deliver a pleasurable driving experience. Car audio systems have evolved from mere accessories to integral components of the overall car entertainment system. Luxury car manufacturers, in particular, have recognized the importance of superior audio quality and have partnered with renowned audio brands to provide exceptional sound systems in their vehicles. These collaborations with premium car audio brands, such as Bang & Olufsen, Harman Kardon, and Bose, have created a sense of exclusivity and added value for customers. As a result, consumers are increasingly keen to invest in luxury vehicles equipped with top-of-the-line audio systems, further driving market growth. Furthermore, the aftermarket car audio/sound systems segment significantly meets the demand for premium audio systems. Car audio suppliers offering aftermarket solutions provide various options for different preferences and budgets. This accessibility to high-quality audio components, such as car speakers, surround systems, and stereo units, allows car owners to upgrade their existing audio systems to achieve a superior sound experience. Another factor contributing to the market growth is the constant technological advancements in the car audio industry. Manufacturers continually innovate and present new features and technologies to enhance audio performance and also provide car audio information. These advancements include integrating advanced digital signal processing, improved speaker materials, wireless connectivity options, and enhanced sound tuning capabilities. Such technological advancements further fuel the demand for premium car audio systems as consumers seek their vehicles' latest and most advanced audio solutions.

Segmental Analysis:

Based on component, the car audio market is segmented into:

1. Head Unit
2. Speaker
3. Amplifier

The head unit segment held the largest share of the market in 2018 and is anticipated to register the highest CAGR in the market during the forecast period. The head unit segment is the largest and most dominant segment in the car audio market. This is primarily due to its essential functionality as the central control unit for the car audio system. The widespread usage of head units across all types of vehicles contributes to its significant market share. Technological advancements have enhanced the features and capabilities of head units, including compatibility with various audio sources, advanced connectivity options, touchscreen displays, and smart features. The aftermarket availability of head units allows for easy customization and upgrades. The increasing demand for connectivity and integration with smartphones further drives the growth of this segment. Overall, the head unit segment's market presence is fueled by its indispensability, technological advancements, and ability to meet consumers' evolving audio preferences and needs.

Regional Analysis:

The Asia Pacific region has emerged as the dominant force in the car audio market, holding a significant share. Several factors contribute to the region's strong market presence and ability to lead in this industry. One key driver of the Asia Pacific region's dominance is its large population and increasing disposable income levels. As more people in countries like China, India, Japan, and South Korea become financially capable of owning cars, the demand for car audio systems experiences substantial growth. The region's growing middle class seeks to enhance their driving experiences by installing high-quality audio systems, contributing to the market's expansion. Furthermore, the Asia Pacific region is home to several prominent automobile manufacturers, both domestic and international. These manufacturers recognize the importance of incorporating advanced audio systems in their vehicles to attract customers. Collaborations with premium car audio brands and integration of cutting-edge audio technologies in their vehicles give them a competitive edge. As a result, the region witnesses a higher adoption rate of premium car audio systems, further boosting the market's growth. Moreover, technological advancements and innovations in the Asia Pacific region significantly contribute to its market dominance. Countries like Japan and South Korea have a strong presence in the consumer electronics industry and are renowned for their technological prowess. This expertise extends to the car audio sector as well.

Asian manufacturers are at the forefront of developing and implementing advanced audio technologies, such as digital signal processing, active noise cancellation, and immersive sound systems. These innovations appeal to consumers seeking the latest audio advancements, leading to the region's dominance—additionally, the Asia Pacific market benefits from a well-established aftermarket sector. Car audio suppliers and retailers provide options catering to various budgets and preferences. This accessibility to aftermarket solutions ensures that consumers have ample choices to upgrade their existing audio systems, further driving the market's growth.

The North American region plays a significant role in the car audio market, with several distinct characteristics and trends shaping its dynamics. Understanding the regional insights of North America helps to comprehend its market landscape and the factors driving its growth. North America, comprising the United States and Canada, is known for its strong consumer demand and advanced automotive industry. The region has a high affinity for premium car audio systems, with many consumers seeking high-quality sound experiences in their vehicles. Luxury car brands like Harman Kardon are highly sought-after in North America. These premium audio brands have established partnerships with luxury vehicle manufacturers, offering exclusive and high-performance sound systems as optional or standard features in their vehicles. This collaboration between luxury car manufacturers and top-tier audio brands contributes to the region's robust market growth.

The North American market has a thriving aftermarket sector that caters to car audio enthusiasts and consumers looking to upgrade their audio systems. Car audio suppliers and retailers provide various options, including speakers, surround systems, head units, and other audio hardware. This availability of aftermarket solutions enables consumers to customize and enhance their car audio systems to suit their preferences and audio requirements. Technological advancements in North America also play a significant role in shaping the car audio market. The region is at the forefront of innovation in audio technology, focusing on integrating connectivity options and smart features into car audio systems. Bluetooth connectivity, smartphone integration, voice control, and advanced digital signal processing are among the key technological advancements consumers in North America embrace. Furthermore, North America hosts some of the largest automotive trade shows and exhibitions, where car audio manufacturers and suppliers showcase their latest products and innovations. These events, such as CES (Consumer Electronics Show) and SEMA (Specialty Equipment Market Association) Show, serve as platforms for industry professionals to connect, collaborate, and introduce new technologies to the market.

Key Player Analysis:

The car audio market analysis consists of the players such as Alpine Electronics, Inc.; Continental AG; Clarion Co., Ltd.; Harman International; Panasonic Corporation; Pioneer Corporation; Sony Corporation; Visteon Corporation; Hyundai Mobis; and Denso Ten. Among the players in the car audio Harman International and Hyundai Mobis are the top two players owing to the diversified product portfolio offered.

Car Audio Market Regional Insights

The regional trends and factors influencing the Car Audio Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Car Audio Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Car Audio Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Car Audio Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Car Audio Market are:

1. Alpine Electronics, Inc.
2. Continental AG
3. Clarion Co., Ltd.
4. Harman International
5. Panasonic Corporation

Disclaimer: The companies listed above are not ranked in any particular order.

Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the car audio market. A few recent key market developments are listed below:

• In January 2022: Denso developed Global Safety Package 3, an active safety system designed to improve the safety of vehicles by giving them high sensing capability of their surroundings. It uses the combined performance of a millimeter-wave radar sensor and vision sensor to assist the driver in controlling the vehicle safely. This product is used in the Hino Ranger, the Lexus NX, and the Toyota Noah and Voxy.
• In October 2021, Harman expanded their range of aftermarket caraudio products with the launch of a single din #stereo system, Alpha 100, and an award-winning amplifier REF7005A in the Indian market.