Car audios, also known as automotive speakers, are entertainment systems installed in cars. With expanding industrialization and a population that increasingly prefers infotainment systems, automotive speakers have become an essential element of vehicles. The upgrading lifestyle of consumers and their desire to enjoy music while traveling have fueled the growth of this industry. Over the years, audio systems have evolved from basic AM receivers to advanced voice-recognizing systems.
According to recent research, car audio companies are extensively utilizing the Internet of Things (IoT) for fleet management and maintenance. Fortune Business Insights™ predicts that the car audio market will grow from USD 8.82 billion in 2021 to USD 13.52 billion in 2028, with a CAGR of 6.3% during the forecast period. Listening to music while traveling has become a luxury status symbol, leading to increased demand for cars with music systems. Automotive speaker manufacturers are also adopting advanced technologies to stay ahead of their competitors.
COVID-19 Impact: Social Distancing and Lockdowns Pose Challenges
The COVID-19 outbreak has disrupted numerous industries worldwide. Stringent mandates such as lockdowns and social distancing measures have caused imbalances in supply chain management. Strict regulations on travel have negatively affected the growth of the car audio market. While other sectors, such as education, technology, and government, transitioned to online operations, there was no equivalent option for manufacturing and supplying automotive speakers. These factors have hindered the market’s growth.
The automotive audio market heavily relies on the automotive industry, as audio systems are installed in vehicles. Disruptions in the supply chain and decreased demand for cars and car audio have limited market growth. Precautions and lockdowns have suppressed the industry’s manufacturing and product development. Shortages of workforce and raw materials have created multiple obstacles. However, as lockdowns are lifted in most countries, the market is gradually recovering.
As an example, Harman expanded its partnership with Iptor in January 2021 to enhance its market presence. Through this collaboration, the companies aim to develop technology and offer a superior user experience with Huemen, Harman’s design division located in New York (U.S.). This partnership has the potential to make a significant impact when the companies develop their next Iptor DC1 v12.
Top 5 Car Audio Companies
Here are the top 5 car audio companies, according to Fortune Business Insights™:
Harman is an American audio electronics company headquartered in Connecticut, U.S. It operates in the Americas, Asia, and Europe, selling products under multiple brands such as BSS Audio, Crown, DBX, DigiTech, JBL, Lexicon, Mark Levinson, Revel, Martin, Soundcraft, AKG, Arcam, AMX, and Studer.
In October 2021, Harman received approval as a 3rd Party Lab (3PL) for Android Auto Projection certification at its facility in Lodz, Poland. This approval streamlines the certification process for head units developed by Harman’s automaker customers, enabling efficient product development and deployment across Europe.
2. Alpine Electronics Inc.
Alpine Electronics Inc. is a Japanese subsidiary of Alps Electric, a manufacturer of consumer electronics components. It is a major player in the automotive audio market, focusing on in-car audio and navigation systems. Alpine serves markets in Brazil, Hungary, Mexico, China, and Thailand, with engineering headquarters located in Iwaki, Fukushima, Prefecture, Japan.
In June 2021, Alpine launched the F#1 status, becoming the first in the industry to achieve the highest specifications for a car audio system, including 384kHz/32bit high-resolution audio playback.
3. Sony Corporation
Sony is a prominent player in electronic products manufacturing, with its headquarters in Tokyo, Japan. In July 2020, it was considered one of the largest companies in terms of capitalization and operating profit, valued over USD 90 billion.
In May 2021, Sony Electronics Inc. launched the Mobile ES car audio and subwoofer line-up, including XS-160ES, XS-690ES, XS-680ES, XS-162ES, and XS-W104ES. These products set a new standard for superior in-car entertainment, allowing customers to enjoy their favorite music and create a pleasant environment inside the car.
4. JL Audio
JL Audio is a renowned producer of consumer audio products, headquartered in Florida, U.S. The company was founded in 1975 by James Birch and Lucio Proni, and it was named after their initials, ‘JL.’ JL Audio is known for its subwoofers used in home, marine, and automotive audio systems.
In October 2021, JL Audio announced its collaboration with BRP to develop an audio system. The system includes four 6.5-inch speakers, a 10-inch subwoofer, and two amplifiers. These units come with cup holders, accent lighting, and USB ports.
5. Pioneer Corporation
Pioneer is a Japan-based multinational corporation founded by Nozomu Matsumoto in 1938, with its headquarters in Tokyo. It specializes in digital entertainment products and has played a crucial role in developing various automotive audio technologies, such as the first detachable face car stereo, the first automotive compact disc player, DVD, and Supertuner technology.
In June 2021, Voxx International announced a licensing agreement with Pioneer and its Elite brands, excluding China, as part of its acquisition of Onkyo.
High-end Car Audio Systems: A Status Symbol for the New Generation
As people’s interest in music continues to rise, the market share for car audio systems is expected to increase in the coming years. Technological advancements, such as voice-recognition audio systems, have contributed to the growing sales of automotive audios. The demand for a superior driving experience, combined with high living standards, will positively impact the market.
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[CAGR]: Compound Annual Growth Rate
[USD]: United States Dollar