Tuesday, March 16, 2010

Premium automotive audio market to double by 2016

EL SEGUNDO, USA: After a decline in 2009, worldwide shipments of high-end premium audio systems for cars are set to rise by a double-digit percentage in 2010, paving the way for the market to expand by a factor of two by 2016, according to iSuppli Corp.

Global automotive premium audio shipments are projected to rise to 6.7 million units in 2010, up 12.9 percent from 5.9 million in 2009. This follows an 8 percent decline in 2009. By 2016, shipments will rise to 13.7 million units, about twice the 2010 total.

The figure presents iSuppli’s forecast of global shipments by region of premium audio systems in car head units for the period of 2007 through 2016.Source: iSuppli, USA

iSuppli defines premium audio as a system that includes any combination of one or more of these three features: 5.1-channel discrete surround sound, eight or more speakers and power amplification of more than 400 watts.

“Premium audio systems primarily are used in luxury and high-end autos,” Mark Boyadjis is an analyst for automotive electronics at iSuppli. “This is due to the large number of channels, which require many speakers and amplifiers—and sometimes more. Other factors driving up costs include the customization of car interiors to accommodate the large number of speakers and the use of well known brand names for such systems, such as Bose.

“However, premium audio is beginning to trickle down into the middle-market segment and even into some entry-level cars. Sales also are rising as the auto industry as a whole recovers from the 2008-2009 recession.”

Because of the improved audio quality yielded by CDs and digital music devices, demand has risen for premium systems cable of doing justice to these audio sources.

Killer audio
Music long has been the killer application for automotive head units, starting with the introduction of AM radio more than 70 years ago. The only real change in this portion of the in-vehicle infotainment experience is the ever increasing diversity of audio choices in the car.

While radio will continue to be the most important and most widely available feature in car head units, music delivered via removable media will increase in importance. Music on removable media has transitioned from cassette tapes to CDs, and now is moving to devices compatible with the USB interface.

The last five years also have seen the huge impact made by Portable Media Players (PMPs) on the audio head-unit market. To adjust to this trend, auto manufacturers have added interfaces that work with iPods and other PMPs. Furthermore, some audio head-unit suppliers have begun offering “mechless receivers” that include radio receivers, USB interfaces and a dial—but have no CD or cassette slots at all.

North America leading
North America is the largest region for premium audio systems in car head units. OEM premium audio unit shipments in the region are forecasted to grow to 4.6 million units in 2016, up from 3.3 million units in 2007.

Shipments in the Asia-Pacific region are forecasted to grow to more than 4.0 million units in 2016, up from 1.2 million units in 2007.

Source: iSuppli, USA

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