AUTOMOTIVE PREMIUM AUDIO SYSTEM MARKET ANALYSIS

Market Challenges And Opportunities

Automotive Premium Audio System Market Drivers:

The increasing number of hours spent in cars due to traffic congestion.

The increased modernization and urbanization in the developed regions affected the traffic routines in such regions. For instance, in 2022, London drivers spend a whopping 325 hours (nearly 13.5 days) a year stuck in rush hour traffic. The city has been ranked as the most congested in the world, in the TomTom Traffic Index Ranking 2022. As a result, consumers are seeking high-quality audio systems to enhance their driving experience and make their time in the car more enjoyable.

Technological advancements in premium audio systems

Although most cars come with Bluetooth connectivity as standard equipment, consumers are now looking for more sophisticated connectivity options like Apple CarPlay and Android Auto. With the help of these features, drivers can seamlessly connect their smartphones to their automobiles, making it simpler for them to make calls, send messages, and access their preferred music and entertainment apps. Consequently, during the forecast period, it is anticipated that the sum of all these factors will create new opportunities for the growth of the global automotive premium audio system market. The market is growing as a result of increasing investments from major players and a surge in innovations for premium audio systems for automobiles.

For instance, in January 2023 HARMAN, an automotive technology company and subsidiary of Samsung Electronics Co., Ltd. focused on designing consumer experiences at automotive grade, unveiled HARMAN Ready on Demand, a software platform for delivering branded audio value, feature enhancement, upgrades, and monetization opportunities in an easy to-use app.

For instance, in September 2021, with the introduction of the JBL Club 605 CSQ car speaker system and JBL Celebrity 100 Bluetooth-enabled car multimedia player in India, Harman increased the scope of its aftermarket automotive solutions. At a special introductory price of INR 5,490, this entertainment system is offered by a number of automobile retailer locations throughout India.

Automotive Premium Audio System Market Opportunities:

Integration of Internet of Things (IoT) and advanced driver assistance systems (ADAS)

The integration of the Internet of Things (IoT) into on-board systems has resulted in smart, connected vehicles that offer a wide range of advanced functions and services to drivers and passengers. IoT-enabled audio systems in cars can offer many benefits to drivers and passengers. The most important advantage is that it can connect to various audio streaming services such as Spotify, Apple Music and Tidal. By connecting the vehicle's audio system to the Internet, users can access an unlimited library of music, podcasts and audiobooks.

Advanced Driver Assistance Systems (ADAS) are also a set of technologies designed to improve driving safety and comfort. ADAS systems use sensors and cameras to monitor the vehicle's surroundings and provide real-time feedback to the driver to perform tasks such as parking, changing lanes and avoiding collisions. One of the main drivers of IoT car audio is the growing demand for connected cars. Combined with IoT, connected cars can communicate with other vehicles, infrastructure and devices. These vehicles also offer a wide range of features such as real-time traffic updates, remote control and automatic emergency assistance. As demand for these features increases, automakers are focusing on integrating IoT technology into vehicles, driving the adoption of intelligent voice assistants, IoT, and ADAS in car audio systems.

Automotive Premium Audio System Market Restraints:

Absence of adequate Software Developments

The lack of advanced technology for next-generation cars is a major factor restraining growth of car audio market. The lack of suitable software advancements to support new technologies in automotive audio hardware is impeding dash stereo acceptance in a number of industrial verticals. For example, the introduction of voice recognition technology, a hardware based innovation, is partially appropriate for current software solutions in use. But as consumer lifestyles change, it's expected that the use of in-car infotainment systems in ride-sharing facilities will advance quickly.

High cost of ownership and maintenance:

Major factors including high cost of ownership and maintenance associated with premium car speakers and increasing availability of alternative products will restrain the market growth to some extent during the forecast period. Additionally, these vehicle systems are believed to have the potential to distract drivers, which could lead to road accidents. This is expected to further limit revenue growth.