The global car audio market was valued at US$ 43,085.6 million in 2018 and is expected to grow at a CAGR of 3.3% during 2019-2027 to reach US$ 52,397.5 million by 2027.
The automotive industry is evolving and adopting advanced technological developments and innovations, such as voice-enabled audio systems and smartphone-controlled audio systems, along with an increased focus on driver’s comfort and safety.
Further, with the development of ADAS and connected cars technology, the car audio market is experiencing a drastic change with companies focusing on their product development to efficiently compete with their rivals.
The market for both premium and standard audio systems is experiencing growth in terms of volume.
Although the premium audio systems are expensive, it is expected to dominate in the coming years and capture a larger share than generic car audio systems.
Most of the OEMs are opting for premium audio systems even in lower segment of cars resulting in the higher growth rate of premium audio systems than non-branded audio systems.
These OEMs partner with varied car audio manufacturers for their different car models, depending on the technology and cost.
With the rising concerns regarding vehicular emission, major OEMs are shifting their focus toward electric vehicle.
With the increasing demand for electric vehicles, the demand for car audio systems is subsequently expected to increase.
Electric vehicles are available at a premium price across the globe; this increases the chances of integrating a branded audio system into the vehicles.
Additionally, the touch operated is witnessing a higher growth rate than manually operated audio systems owing to increasing penetration of smartphones and the availability of better internet services.
Although, the market for touch-controlled audio system is in its infancy, but it is expected to grow at a higher CAGR due to rising concern for driver safety and ease of use.
APAC accounted for the major share of the global car audio market.
The car audio market in APAC is further segmented into China, India, Japan, Australia, South Korea, and the Rest of APAC. The economy of the region is performing well with numerous technological and infrastructural developments.
The car audio market in APAC is primarily driven by increasing disposable income and changing consumer preferences.
The automotive industry in countries such as India, China, and South Korea is growing owing to the increasing manufacturing of vehicles.
For instance, India produced total 4,516,017 vehicles, of which 3,623,335 were cars in 2019. Also, in 2019, China was the largest vehicle producing country across the world; it produced 25,720,665 vehicles in 2019, of which 21,360,193 were cars.
The presence of a strong automotive sector and the increasing number of passenger car manufacturers are the major factors driving the growth of the car audio market in the region.
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