Car Audio Industry Analysis: Expected to Reach $14.3 Billion by 2028

Published Date: 2023-01-19
Car audio is a sound recording and playback device set up to relieve the boring feeling of drivers and passengers during travel. The earliest use was the car AM radio, and later the AM FM radio, tape player, and developed to the CD player and compatible with DCC and DAT digital audio. Nowadays, car audio has reached a high standard in terms of timbre, operation and anti-vibration. It can cope with the bumps of the car on rough roads, ensuring stable performance and perfect sound quality.

The operating environment of the car is very harsh, including vibration, high temperature, noise, electromagnetic waves, etc., which will interfere with the normal operation of the electronic equipment in the car. And it's expensive, and in this sense, high-performance car audio is actually the top of the line in today's audio world.

The most basic condition for a sound system to be called a sound system is that it has the function of playing back sound. An audio system must contain at least the following points to qualify as an audio system. This is true for any audio system, and car audio is no exception. Car audio mainly includes three parts: host, speaker, and power amplifier. The head unit is the most important part of car audio, just like the human brain, what kind of sound to make must be controlled by the brain. Popular hosts include RADIO hosts with only broadcast receiving functions, RADIO plus MP3 hosts, CD hosts, MP3 plus CD disc boxes, CD plus navigation hosts, and CD/DVD/vehicle MP5 hosts. MP5 hosts have replaced general car CD audio systems. Massive hard disk capacity has replaced traditional discs. Car MP5 has become the mainstream today.

The car audio market is mainly divided into two parts: one is the original factory supporting market, which refers to the OEM (OEM production) of a certain brand as the standard configuration of its car audio during the production process of the car; the other is the retail supporting market , refers to the terminal retail market facing consumers, mainly car audio stores, of which the original factory equipment accounts for most of the market share. The rapid increase in automobile production and sales and the upgrading of car audio systems have rapidly increased the overall market size. Among them, the mid-to-high-end car audio market has become the main force driving market growth.

In recent years, people have higher and higher requirements for car audio. 68% of consumers who modified the original car audio did so because the original car audio was of a lower grade and could not meet their individual requirements. 7%, 20% of people replaced the original audio due to damage, and only 5% of people used the audio products configured in the original car.

The car audio market is diverse, and the Sound of Berlin, Dynaudio, British Treasure, Harman Kardon, BOSE, etc. are all well-known. They cooperate with major car manufacturers to bring users a better car experience. An ordinary car becomes a mobile concert hall.

With the rapid development of my country's automobile industry, the auto parts and parts industry has also grown rapidly. At present, 90% of my country's car audio market is occupied by foreign brands. From 2012 to 2017, China's car audio industry as a whole maintained an upward trend. In 2017, the output value of China's car audio reached 1.387 billion yuan, a record high. Car audio will maintain a low-speed growth. In 2018, the output value of China's car audio will reach about 1.442 billion yuan.

The continuous increase in domestic demand has brought huge profits to foreign brands. In addition to product expansion, among them, Alpine and Panasonic have even set up factories in China. Car audio has developed from home audio, from AM radio to AM/FM radio, tape radio, and now it has developed to CD players, MD players, TV sets, and DVD players. In short, with the development of home audio, car audio has developed to be multi-functional, digital, high-performance, and high-power, and it is getting closer to the effect of home audio.

In recent years, China's economy has continued to develop at a high speed, the demand for automobiles has grown rapidly, and the development of car audio has also ushered in new opportunities. With the car owners' pursuit of audio-visual quality and personalized needs, its development potential is huge. At present, less than 10% of private car owners have replaced audio-visual equipment. The after-sales scale in developed countries has reached more than 70%.

It can be said that China's car audio-visual market is still in its infancy. With the improvement of Chinese residents' income and the change of consumption concept, the increase of domestic automobile consumption demand, people's pursuit of high-quality audio-visual products, the market is constantly expanding. It is foreseeable that in the future The proportion of China's automotive audio-visual aftermarket continues to increase, and domestic brands will usher in a period of rapid development. Under such circumstances, major domestic car audio companies are paying more and more attention to the analysis and research of the industry market, especially the in-depth research on the current market environment and changes in customer demand trends, in order to occupy the market in advance and gain a first-mover advantage. Because of this, a large number of excellent brands have risen rapidly and gradually become leaders in the industry.

However, with the rise of domestic new energy manufacturers, they will have more funds and stronger technical teams to carry out technical research. In the future, we may see a large number of domestic high-end audio applications.

In terms of car navigation hosts, the emergence of large-screen navigation has also made the market more and more "big". However, the trend of the car audio market is going in the opposite direction. Consumers welcome. Although in the eyes of many audiophiles, compact products often cannot achieve the audiophile quality they are after, but for most consumers, lightweight equipment can indeed strike a balance between playback quality and space occupation, which can It is foreseen that in the design of future car audio products, more attention will be paid to volume control.