Growth Opportunities in the North American Automotive Audio Sector, 2023 2030

Revenue forecast

The revenue estimate for the base year 2023 is $3.33 billion, with a CAGR of 4.1% for the study period 2023–2030

The Impact of the Top 3 Strategic Imperatives on the Automotive Audio Industry

Transformative Megatrends

Why

• The influence of CASE technologies in the automotive industry is revolutionizing multiple areas on the original equipment manufacturer (OEM) and customer ends.
• Audio technology plays a role in the user journey, and the shift in audio applications across connected vehicles, electric vehicles (EVs), shared mobility, and autonomous vehicles will redefine the future of in-vehicle audio technology.

Frost Perspective

• With vehicles shifting from a driver to assist mode, the consumers will need something to do or divert their attention, making audio a main parameter for the customer journey experience.
• Therefore, OEMs must transform audio applications and use cases to meet the Mega Trends of CASE and improve the consumer experience.

Industry Convergence

Why

• Hardware speaker capability and amplifiers influence in-vehicle audio technology.
• However, the expanding innovation in digital signal processing has started to lead to audio advancements in applications, such as 3D spatial sound and sonic reproduction, that function on software audio optimization, converging hardware-driven speaker technology with a software audio module.

Frost Perspective

• The vehicle architecture transition will drive the modernization of audio software in the automotive industry during the next 5-7 years.
• Companies such as Harman, Blackberry QNX, and DSP Concepts will lead the way.

Innovative Business Models

Why

• Software-defined vehicles significantly influence many automotive areas, including audio technology.
• Upcoming software-driven acoustic platforms will accommodate advanced tuning tools and creative signal processing over the air (OTA), creating new revenue streams for upgradable applications.

Frost Perspective

• An entirely software-driven audio foundation will allow OEMs to explore new audio-based service collaborations.
• Innovative tier providers or multimedia content providers will offer value-added features, such as upgrading branded audio or directional navigation alerts, and create new revenue streams by offering an on-demand or subscription service.

Scope of Analysis

• The analysis focuses on tier suppliers and start-up sound solutions revolutionizing in-cabin audio.
• The forecast reflects the penetration of basic OEM-fitted audio and the impact of upcoming software-driven upgrade opportunities on it, further reflecting growing demand of advanced audio technologies such as surround sound and 3D audio with OEMs promoting in-cabin consumer entertainment.
• The analysis encompasses major sound technologies in the North American automotive market, from the availability of basic and premium speaker technology to the capability of surround sound and 3D spatial audio. It examines future use cases of audio applications and showcases the impact of transforming sound technology to allow connected cars, connected living, and shared mobility.
• There will be a revolution in automotive sound technology, with opportunities for OEMs to monetize SDVs and features on demand (FoD).

Segmentation

Automotive Audio Technology

Basic Audio

• Basic audio refers to a factory-fitted audio speaker system in the vehicle, which the OEM can upgrade.
• Basic audio technology represents unbranded and branded audio speakers.
• Depending on the automaker market, the audio system might vary across vehicles regarding speaker count and audio supplier brand.

Surround Sound

• Surround sound is a technique for enhancing sound reproduction. It uses multiple audio channels from speakers surrounding a listener, creating a multidimensional sound environment.
• The technology falls into the 5.1 or 7.1 category, showcasing a mix of 6 or 8 audio channels relying on a combination of speakers.

3D Audio

• 3D audio is a spatial format that uses multiple speakers to create a feeling of three-dimensional audio atmosphere.
• Speaker placements can be the same as surround sound or increased such as above, below, by the side, behind, and/or in front of the listener in addition to software acoustic tuning, creating a depth in sound space around the listener.

Competitive Environment

Key Competitors

Basic Audio

• HARMAN KARDON
• JBL
• BANG & OLAFSEN
• BURMESTER
• BOWERS & WILKINS
• BOSE
• ALPS ALPINE
• KRELL
• FENDER
• MARK LEVINSON
• BEATS AUDIO

Surround Sound

• HARMAN KARDON
• BURMESTER
• BOSE
• PANASONIC
• ALPS ALPINE
• SONY

3D Sound

• BOWERS & WILKINS
• BURMESTER
• PANASONIC
• SONY

OEM

• AUDI
• BMW
• CHEVROLET
• FORD
• HONDA
• HYUNDAI
• JEEP
• LEXUS
• MERCEDES-BENZ
• NISSAN
• TESLA
• TOYOTA
• VOLKSWAGEN
• VOLVO