Acoustic Vehicle Alerting System Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Acoustic Vehicle Alerting System Market Trends & Drivers

Consolidation and Joint Venture Among Key Players Are Key Market Trends

• The market is witnessing consolidation and joint ventures among major electric vehicle manufacturers, globally.
• Companies are also collaborating and aiming at synergies to share technical knowledge with each other.
• For instance, BYD is in collaboration with local distributors to increase electric vehicle sales in Southeast Asia.
• Volkswagen, together with SAIC Motor, is also working toward the development of electric cars.
• These collaborations will lead to extensive research and development (R&D) of newer and more efficient products.

Government Support for Electric Vehicle Adoption Drives the Market

• Governments are actively taking steps to support the adoption of electric vehicles, which, in turn, is driving the growth of the AVAS market.
• Some of the supportive initiatives from the government include tax-free, purchase rebates, and financial incentives for consumers of EVs.
• For instance, according to the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022, the total tax exemption given on all EVs registered in the state will be 100%. This is expected to skyrocket the sales of electric vehicles.
• In addition, governments are introducing new planes to make policies. For instance, the Government of India has introduced the National Electric Mobility Mission Plan (NEMMP). The objective of this mission is to enhance the usage of EVs in the country and make the country a global leader in EV technology.
• According to the International Energy Agency, it is expected that by 2030, EVs represent more than 60% of vehicles sold globally.
• Thus, with such massive growth expected for electric vehicle sales, the demand for their components, such as AVASs, is also expected to increase.

Acoustic Vehicle Alerting System Industry Outlook

High Initial Cost of Electric Vehicles

• The cost of an electric vehicle is quite high, compared to the conventional gasoline-based variant. This is particularly due to the high battery cost, which accounts for 35–50% of the total vehicle cost, depending on battery technology.
• Though the prices of Li-ion batteries fell by more than 14% between 2022 and 2023, the cost of electric vehicles is still high as compared to conventional vehicles.
• Also, due to very costly components, the overall cost of electric vehicles is much higher with respect to traditional vehicles.
• For instance, the cost of the Nissan Leaf is high, whereas the price of the Honda Civic, which includes similar luxurious features and performance ratings, is low.
• Further, the price of the Tesla Model X is much higher than a similar conventional car model, the Porsche Cayenne.
• Thus, the high cost is hindering the demand for electric vehicles among consumers, which acts as a restraint for the global AVAS market.

Vehicle Type Insights

• The four-wheeler category, within the vehicle segment, is expected to display faster growth of 12.4% between 2024 and 2030.
• This can be due to the fast adoption of light-duty trucks and electric cars, primarily on account of the continuous innovations, reduced prices, and availability of several models with automakers.
• In the coming years, in the developed economies in Europe, as well as the U.S., the acoustic vehicle alerting system market will be dominated by the four-wheeler category, whereas in emerging economies, such as India and China, the market will be led by the two-wheeler category.

The following vehicle types are covered in the report:

• Two-Wheeler
• Four-Wheeler (Larger and Faster-Growing Category)

Distribution Channel

• The OEM category, under the distribution channel segment of the market for AVASs, generated higher revenue in 2023.
• This is due to the increasing installation of AVAS components in EVs, as per the mandatory norms of governments.
• Whereas, the aftermarket category is projected to witness a higher CAGR of 12.6% in the near future.
• This can be primarily on account of the natural wear and tear and end-of-life of AVAS components and the government regulations in leading markets for such systems and EVs. For instance, the U.S. has mandated the retrofitting of AVASs in old EVs since 2021.

Further, distribution channel categories are:

• Original Equipment Manufacturer (OEM) (Larger and Faster-Growing Category)
• Aftermarket

Mounting Insights

• The integrated category is expected to exhibit faster growth in the AVAS industry in the near future. This can be due to the increasing integration of AVASs in four-wheelers, where these components form a major part.
• Moreover, the spurring production and sales of electric passenger cars and light-duty trucks will support the growth of the market in this category.

Mounting segment is divided into two categories:

• Integrated (Larger and Faster-Growing Category)
• Separated

Propulsion Insight

• Various governments are implementing regulations for original equipment manufacturers (OEMs) and aftermarket entities to install AVASs in battery electric vehicles (BEVs) in a stipulated time.
• Owing to this factor, the BEV category is expected to hold the dominant position within the propulsion segment of the market till 2030.
• Government support, in the form of financial incentives, for the development and purchase of BEVs and enhancements in battery technology will also accelerate the adoption of such automobiles in the future, which will likely make up for 70% of the plug-in EVs sold by 2030.

The following propulsion categories are covered in the report:

• Battery Electric Vehicle (BEV) (Largest and Fastest-Growing Category)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)

Regional Insights

• Geographically, APAC accounted for the largest share of the market and is expected to remain the largest throughout the forecast period as well.
• This is due to the soaring demand for EVs in developing countries, including India and China. These economies view EVs as a viable mode of future mobility and energy security, as these nations are highly dependent on oil imports for their energy requirements.
• The leading share of electric two-wheelers and rising demand for such vehicles will boost AVAS sales in APAC. Additionally, this region is home to various global EV and component manufacturers.
• Furthermore, the top position of APAC in the EV market, led by China, is a vital factor behind the regional market’s growth. Besides, the growing focus of Chinese automakers on electric variants will act as a growth driver for the market.
• At present, the European market is in its nascent phase and thriving on the government regulations that obligate the inclusion of AVAS components in hybrid and electric vehicles.
• The European Union (EU) plans to phase out internal combustion (ICE) vehicles to reduce greenhouse gas emissions and oil import dependence. Many countries also individually aim to ban ICE vehicle sales between 2030 and 2040.
• Owing to these factors, the regional market is projected to record the fastest growth in the acoustic vehicle alerting system market in the coming years.
• It is estimated that by 2030, nearly 30% of all the vehicles sold in Europe will be electric, on account of the regulatory push in several countries and rapidly improving economies of EVs.
• As the installation of AVAS components is directly proportional to EV sales, this region is expected to provide ample opportunities to key players in the market for AVASs.

Further, these regions and countries were analyzed for this report:

• North America
  • U.S. (Larger Country)
  • Canada (Faster-Growing Country Market)
• Europe (Fastest-Growing Regional Market)
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (Largest Regional Market)
  • China (Largest Country Market)
  • Japan (Fastest-Growing Country Market)
  • India
  • South Korea
  • Australia
  • Rest of APAC
• Latin America
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Competitive Analysis

Acoustic vehicle alerting system market is fragmented in nature with the presence of several players include HL Klemove, DENSO CORPORATION, Honda Motor Co. Ltd., Tesla Inc., Continental Engineering Services, Novosim, Toyota Motor Corporation, Volkswagen AG, Renault Group, Samsung Electronics Co. Ltd., Tata Motors Limited, BorgWarner Inc. and others. The company is focusing in frequent product launch to capture as much as market share.

Acoustic Vehicle Alerting System Industry News

• In January 2024, ROHM Group company LAPIS Technology launched the first speech synthesis ICs – ML22120xx series – designed for acoustic vehicle alerting systems in EVs.
• In July 2021, Nissan Motor Corporation announced sales of its fully electric LEAF model year 2021. LEAF MY21 will come with a new Acoustic Vehicle Alerting System named 'Canto' by Nissan.