What are the different trends in Automotive Speaker Market to boost its demand?

Globally, automotive speaker market is poised to record an annual remuneration of USD 7 billion by 2027. The aftermarket sales channel is a key growth area, projected to reach a CAGR of 7.5% over the next few years.

People are willing to spend on connected car technology, as the graph of automotive speakers has scaled to an all new level over the past few years. A research by PwC had revealed that customers are readily spending as much as 15% of a car’s list price on connected-car technology and could spend about USD 10,000 for the convenience of an infotainment system.

Such data encourages automakers or electronic majors to undertake significant efforts in developing in-car speakers and speaker technology, complimenting the expanding automotive audio systems business space.

Amazon, a retail pioneer and one of the largest tech giants worldwide, had in 2020 put forth claims of expanding its market for smart speakers in the Asian economies via the launch of new products in the speaker portfolio, Echo Dot, Echo Auto, and Eufy Genie AK-T1241211 Smart Speakers. These products have been specifically designed for in-car experience. They can enable a driver to make use of voice assistant to communicate, in case of any help needed with the entertainment systems or maps.

Developers intend to fuel the changing technological landscape of in-car speakers with introduction of voice command and gesture recognition, offering valuable experience to the customers.

 

How can voice control foster a seamless driving experience?

Today, where everything is on fingertips and digitized, voice control emerges out to be a natural fit for vehicles as it enables the driver a hands-free mode of interaction. Right from answering the calls to switching up the music and navigation, voice command can lift a major load of the driver’s head without him needing to take the eyes off the road, ensuring proper safety. This all can be made possible through smart speakers.

Amazon in early 2021 unveiled its Alexa Custom Assistant service which lets automakers create intelligent assistants customized to their brand personality and consumer needs. In fact, Forbes has reported that Fiat Chrysler could be the first automaker to make use of Amazon’s service to build its own digital assistant for selected premium vehicles. Passenger cars can be assumed to be a leading application area for the technology.

It was estimated that passenger cars held over 70% of the global auto speaker industry share during 2020, indicating the major potential in the segment.

 

Electric vehicles: opportunity to craft innovative products

With nearly 4.2% of the global population preferring to opt for electric vehicles, subject to the rising concerns related to toxic automobile emissions, the EV market is currently witnessing a decent uptick. The revolutionizing EV space is also dramatically scaling and revamping the in-car audio systems, leading to enhanced automotive speakers.

A fun fact associated with EVs and in-car speakers is BMW’s new feature. A report by the company has released claims that BMW’s ‘soon to be launched’ iX electric sports activity vehicle would now allow the drivers to experience an interactive soundscape composed by movie composer- Hans Zimmer.

The sounds, which would respond to the passenger’s actions as well as the car’s exceptional performance and external conditions will be played through 24 speakers inside the automobile. Importantly, some of the speakers would also be embedded into the driver seat to deliver an even more immersive experience.

With the long-road journeys seeming quite boring and monotonous, deployment of automotive speakers is set to reshape the overall vertical of automotive industry in 2021 and beyond. Higher spending on luxury vehicles and a robust adoption of EVs in Asia Pacific region could reinforce the market for automobile audio systems.

Source: Global Market Insights, Inc.