Car Audio Market to Reach USD 20.22 Billion by 2030, Driven by Demand for In-Car Entertainment and Connectivity Features - Mordor Intelligence

Mordor Intelligence has published a new report on the Car Audio Market offering a comprehensive analysis of trends, growth drivers, and future projections.
Introduction

According to a 2025 report on the car audio market by Mordor Intelligence, the car audio market is estimated at USD 12.24 billion in 2025 and is projected to reach USD 20.22 billion by 2030, registering a CAGR of 10.56% during the forecast period.

The car audio market [https://www.mordorintelligence.com/industry-reports/car-audio-market?utm_source=abnewswire] is witnessing growing demand for integrated audio systems and infotainment solutions, especially in passenger vehicles, supported by rising vehicle production and consumer preference for enhanced in-car experiences.

Key Market Trends in the Car Audio Market

Rising Demand for In-Vehicle Infotainment Systems : Consumers are increasingly expecting advanced infotainment features as standard in vehicles. Car audio systems are now part of broader infotainment units that integrate music playback, navigation, smartphone connectivity, and voice assistants. This trend is especially strong in passenger vehicles and is influencing both OEM offerings and aftermarket demand.

Integration with Smartphones and Voice Assistants : The adoption of smartphone integration platforms such as Apple CarPlay and Android Auto has become a key selling point. These platforms allow seamless control of music, calls, messages, and apps through the vehicle's audio system. Voice assistant support, including Amazon Alexa and Google Assistant, is also gaining traction for safer, hands-free operations.

Growing Popularity of Premium Sound Systems in Mid-Range Vehicles : Previously limited to luxury models, premium branded audio systems are now being offered in mid-range cars. Automakers are partnering with audio brands like JBL, Harman Kardon, and Bose to deliver enhanced in-car audio experiences, driving competition and innovation in this space.

Customization and Aftermarket Upgrades : Consumers continue to upgrade factory-installed systems with higher quality speakers, amplifiers, and subwoofers in the aftermarket. This is driven by demand for personalized audio experiences and higher fidelity sound. The aftermarket segment remains significant, especially in developing markets.

Market Segmentation

By Component Type

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Speakers continue to dominate the market, driven by increasing consumer expectations for high-fidelity sound in both OEM-installed and aftermarket systems.

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Amplifiers enhance signal strength and sound quality, particularly in premium setups that include subwoofers and multiple speaker zones.

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Head Units / DSP (Digital Signal Processors) serve as the control center for car audio, increasingly integrated with touchscreen displays and infotainment systems.

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Microphones and ANC Controllers play a growing role in voice command recognition and Active Noise Cancellation (ANC), contributing to both entertainment and cabin comfort.

By Vehicle Type

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Hatchbacks often feature compact systems but are increasingly equipped with basic infotainment setups even in entry-level models.

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Sedans offer more space for advanced audio system layouts, making them popular for OEM-installed premium systems.

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SUVs are a major growth segment, with ample cabin space allowing for surround-sound configurations and subwoofer installations.

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MPVs (Multi-Purpose Vehicles) serve family and commercial use cases, where demand for passenger entertainment features is growing steadily.

By Sound-Management Mode

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Manual sound management still exists in basic models but is being replaced by more intuitive controls.

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Voice Recognition capabilities are becoming essential, allowing drivers to operate hands-free audio functions.

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AI-Driven Personalization is an emerging trend, where systems adapt volume, balance, and sound profiles based on user preferences and environmental conditions.

By Sales Channel

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OEM-Installed systems represent a large share of the market, driven by partnerships between automakers and leading audio brands to deliver factory-integrated solutions.

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After-market upgrades remain significant, especially in regions where consumers seek to enhance or customize basic factory systems with better components and features.

By Connectivity Technology

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Wired Technologies (MOST, A2B) offers high bandwidth and reliability, commonly used in OEM settings where consistent performance is critical.

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Wireless Technologies (Bluetooth, Wi-Fi, UWB) enable seamless streaming and hands-free control, meeting consumer expectations for convenience and compatibility with mobile devices.

By Geography

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North America: This region has a strong demand for advanced in-car entertainment systems, driven by high consumer expectations and widespread adoption of connected vehicle technologies. Partnerships between automakers and premium audio brands are common, especially in the United States and Canada.

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South America: The market in this region is gradually expanding, with increasing demand for affordable aftermarket audio upgrades. Brazil and Argentina are the key contributors, where urbanization and rising car ownership support growth.

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Europe: European automotive manufacturers are known for integrating high-quality audio systems in both luxury and mid-range vehicles. Countries such as Germany, the United Kingdom, and France are leading in terms of adoption, with a growing focus on audio personalization and integration with safety systems.

Major Players

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Bose Corporation : Known for its premium sound quality and noise-cancellation technology, Bose supplies customized audio systems to major automakers, enhancing in-car entertainment in both luxury and mid-range vehicles.

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Panasonic Holdings Corporation : Panasonic offers integrated infotainment and audio solutions, focusing on high-performance systems with energy efficiency, especially suited for electric and hybrid vehicles.

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Harman International Industries Inc : A subsidiary of Samsung, Harman is a global leader offering branded audio systems such as JBL, Harman Kardon, and Bang & Olufsen, commonly featured in high-end automotive interiors.

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Continental AG : Continental provides audio and infotainment systems that blend seamlessly with safety and driver-assist technologies, supporting the shift toward connected and software-defined vehicles.

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Hyundai Mobis Co. Ltd : As part of Hyundai Motor Group, Hyundai Mobis develops in-house audio systems tailored for Hyundai and Kia vehicles, focusing on integration, reliability, and affordability.

Conclusion

The car audio market is evolving rapidly, supported by the growing demand for enhanced in-vehicle entertainment, increasing vehicle production, and rising consumer focus on connectivity and convenience. With automakers and audio system manufacturers working closely to deliver integrated solutions, the industry is expected to witness sustained growth through 2030.

: https://www.mordorintelligence.com/ja/industry-reports/car-audio-market?utm_source=abnewswire

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Get More Insights: https://www.mordorintelligence.com/industry-reports/global-wireless-audio-device-market-industry?utm_source=abnewswire

In-Vehicle Infotainment System Market: [https://www.mordorintelligence.com/industry-reports/in-car-infotainment-system-market?utm_source=abnewswire] The In-Vehicle Infotainment System Market report is segmented by component (audio unit, display unit, navigation unit, communication unit), by operating system (Android, Linux, QNX, and others), by installation type (in-dash infotainment and rear-seat infotainment), by vehicle type (passenger cars, light commercial vehicles, and medium & heavy commercial vehicles), and by geography. Market forecasts are provided in terms of value (USD).

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