The Global Market for Automotive Entertainment Systems for OEM and the Aftermarket is Projected to Reach US$10.3 Billion and US$7.6 Billion Respectively by 2022

Stable Auto Production & Rising Car Density Drive the Global Market for Automotive Entertainment Systems, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Automotive Entertainment Systems market. The global market for Automotive Entertainment Systems for OEM and the Aftermarket is projected to reach US$10.3 billion and US$7.6 billion respectively by 2022, driven by stable automobile production, rising passenger car density and rise of extreme commuting.

Automobiles, over the years, have become the everyday way of life for a large portion of the global population. Rapid urbanization and unchecked urban sprawl have resulted in people travelling long distances and spending more time travelling to work and back. Modern commuters on an average spend substantial amount of time on the road, thus making entertainment vital and indispensable. Drivers and passengers demand cars to be more than a mode of transportation and lay strong emphasis on being informed and entertained when in the vehicle, thus creating strong business case for automotive entertainment systems such as audio players, DVD players, and satellite radio systems among others.

Audio players such as MP3 and CD players with USB ports allow drivers/commuters to listen to music and audio books in the car, thus making productive use of time in the traffic and leveraging commute time for indulging in personal hobbies like music and reading. Also, with research studies demonstrating the impact of music in alleviating stress experienced during traffic congestion, a growing number of vehicle owners are turning to their favorite music player over their in-car stereo decks, thus benefiting demand for car audio systems. Audio books help commuters catch up on their favorite reading, while satellite radio enables them to keep in tune with the latest news and events. This increased reliance on entertainment system is also encouraging upgrades to more technologically feature rich systems and decks, thus benefiting opportunities in the aftermarket. Growing passenger car density worldwide is also helping expand the addressable opportunity for automotive entertainment systems in the aftermarket. Key factors driving passenger car density, especially in developing countries, include growing GDP, strong employment rates, increase in disposable income, rapid urbanization, upgrading lifestyles and increased spending on consumer durables such as automobiles. The growing global base of vehicle fleet generates a steady flow of upgrades in the aftermarket. 

Opportunities for automotive technologies in the OEM market on the other hand are largely reliant upon the overall health of the automobile industry.  Stable production outlook for cars despite slowing growth in auto sales, therefore is helping sustain demand prospects for automotive entertainment systems in the OEM market.  Renaissance of automotive production in the United States and the United Kingdom, political support for the automotive industry in Germany, Spain and Italy as it represents the key engine of economic growth, and emergence of new production zones in Southeast Asia and Africa are all helping sustain growth in auto production. In Japan, the aggressive economic policy is keeping the domestic automotive industry ticking. Mexican production is showing strong gains as the country emerges into a production hub for the United States. In conclusion, the projected global growth in volume serial production of automobiles and increased penetration of automotive electronics and software will provide balanced growth opportunities for entertainment systems, especially robust, affordable cost-effective entertainment systems.  Also, automotive OEMs are constantly looking for opportunities to improve their sales by introducing novel vehicle models with add-on features to better meet the needs of customers, thereby creating opportunities for advanced automotive entertainment systems.

As stated by the new market research report on Automotive Entertainment Systems, Asia-Pacific represents the largest as well as the fastest growing market for automotive entertainment systems with sales to the OEM and aftermarket segments waxing at a CAGR of 3.0% and 3.6% respectively over the analysis period 2015-2022. Huge population, increasing income levels, growing car ownership and robust demand for small affordable workday cars will generate strong demand for basic entertainment systems such as audio players, DVD players and radios. By segment, DVD Players represents the fastest growing product market in the OEM and aftermarket segments.

Major players in the market include Alpine Electronics of America, Inc., Bose Corporation, Blaupunkt GmbH, Clarion Corporation of America, Continental Automotive GmbH, Harman International, JVCKENWOOD USA Corporation, Kenwood USA Corporation, KVH Industries, Inc., LG Electronics Inc, Magnadyne Corporation, Mitsubishi Electric Automotive America, Inc., Myron & Davis, Panasonic Automotive Systems Company of America, Pioneer Electronics (USA) Inc., Sony Corporation, Visteon Corporation, and VOXX International Corporation, among others.

The research report titled “Automotive Entertainment Systems: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of major companies worldwide. The report provides market estimates and projections for all major geographic markets including the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China and Rest of Asia-Pacific), Latin America (Brazil and Rest of Latin America) and Rest of World. DVD Players, Audio Players, Satellite Radio, and Other Entertainment Systems are the key product markets analyzed in the report, across the OEM and Aftermarket segments.

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