Vehicle audio systems are one of the most popular upgrades to a vehicle among modification enthusiasts and end-users, just after tires and wheels. While showing negative sales growth in 2009, unit sales of vehicle audio systems are expected to increase in 2010, with the North American economy showing slow signs of improvement.
According to Frost & Sullivan research, vehicle modification activities have dropped more than 38 percent in 2009 compared to 2007 as a direct result of the economy. Also, the marketplace witnessed a dramatic reduction of new model lineups and introductions in the North American aftermarket. New product development and introduction has regained momentum in the industry, and market participants have shown trends of re-commencing research, development and introduction of new products.
For 2010, the key word for vehicle audio systems is connectivity. With increasing consumer demands that audio systems interact with mobile phones, MP3 players, GPS and USB sticks, audio system manufacturers have concentrated their efforts on releasing new models that can connect with various components either via Bluetooth, USB cable or iPod cable.
Another major trend is the increasing integration of infotainment systems and telematics. The current product portfolios of market participants show Bluetooth interactivity and iPod connectivity as the most popular options.
Bluetooth connectivity not only offers a hands-free option, but it allows the transfer of data between the phone and the system. Current legislative actions on mobile phone usage during driving also has aided in the increased demand for such systems.
Furthermore, increased usage of HDD-based systems (audio systems with built-in memory space to store music and data) has triggered the connectivity trend. USB ports, mainly used to transfer data between an MP3 player and the HDD system, can also be used as “USB memory stick” slots to play audio files directly.
Traditionally, the vehicle audio systems market was driven by the demand of better sound in cars. But like most consumer electronic products, more and more features are introduced to enhance the consumer experience. The improvement of stock sound systems is also a factor that restrains aftermarket audio system sales.
Modern consumers are not only looking for better sound, but increased functionality to import audio from external devices to ease daily life. System manufacturers are expected to meet these consumer needs to maintain sales performance.
