Acoustic Vehicle Alerting System Market Size, Trends [2031]

Report Description

Acoustic Vehicle Alerting System Market Outlook 2031

The global acoustic vehicle alerting system market size was valued at USD 1.60 Billion in 2022 and is likely to reach USD 27.38 Billion by 2031, expanding at a CAGR of 37.1% during 2023–2031. The market's growth is attributed to the increasing incidence of pedestrian accidents across the world.

Increasing incidence of pedestrian accidents worldwide is expected to boost the demand for acoustic vehicle alerting systems. Acoustic vehicle alerting systems are installed in vehicles to improve the safety of pedestrians and others. These systems generate artificial driving sounds to draw pedestrian's attention to themselves, thereby preventing potential accidents. Therefore, the rising incidence of pedestrian accidents is propelling the market. For instance,

• According to the World Health Organization, more than 270,000 pedestrians lose their lives globally each year accounting for 22% of the total 1.24 million road traffic deaths.

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The demand for acoustic vehicle alerting systems is rapidly rising as they reduce the risk of crosswalks and other roadway accidents by producing an audible warning sound. These systems are widely accepted in battery electric vehicles and hybrid electric vehicles, as they simulate the engine noise of a combustion engine to alert cyclists, children, pedestrians, and other road users.

The COVID-19 pandemic hampered the demand for the acoustic vehicle alerting system. The rise in COVID-19 infection encouraged governments to impose lockdowns and social distancing around the globe, which disrupted the global supply chain of acoustic vehicle alerting systems (AVAS). Moreover, a sharp fall was witnessed in the sales of new electric and hybrid vehicles across the world, which impeded the demand for acoustic vehicle alerting systems as these systems are installed in electric vehicles to generate sound to improve the safety of vulnerable road users. For instance,

• As per the International Energy Agency, electric car sales fell by 16,000 vehicles in February 2020 in China, a decline of 60% from the sales of 2019. Moreover, US electric vehicle sales fell by around 50% in April 2020.

Impact of Artificial Intelligence (AI) on Acoustic Vehicle Alerting System

The increasing adoption of artificial intelligence in automotive and other industries creates an immense opportunity in the market. AI in acoustic vehicle alerting systems can determine patterns and detect potential system failures before they occur. AI helps manufacturers develop improved acoustic vehicle alerting systems that can enhance safety for pedestrians and drivers. It also helps companies test acoustic vehicle alerting systems virtually before making physical prototypes. AI in acoustic vehicle alerting systems can monitor the surrounding area in front of the car, helping to reduce collisions.

Acoustic Vehicle Alerting System Market Dynamics

Major Drivers

Increasing demand for hybrid and electric vehicles is expected to boost the demand for acoustic vehicle alerting systems. Acoustic vehicle alerting systems are installed in electric vehicles to produce an audible warning sound to enhance pedestrian safety and reduce roadway accidents by alerting pedestrians to an oncoming EV. Thus, the rising demand for hybrid and electric vehicles is propelling the market.

• According to the International Energy Agency, 26 million electric cars were present on the road in 2022, 60% up from 2021.

Growing strict regulations to install acoustic vehicle alerting systems in all new electric vehicles are projected to drive the market. Governments all around the world are mandating the installation of acoustic vehicle alerting systems in all EVs to reduce the incidence of pedestrian accidents and improve road safety. For instance,

• European Union mandated the installation of acoustic vehicle alerting systems in all new e-cars from July 1, 2021.

Existing Restraints

Lack of standardized regulation regarding the installation of acoustic vehicle alerting systems in EVs in emerging nations is restricting the market. Moreover, high cost of acoustic vehicle alerting systems, especially in the price-sensitive region is projected to hamper the market. Acoustic vehicle alerting systems are expensive as they include several sensors and complex technologies, which encourages manufacturers to lessen their installation in EVs.

Emerging Opportunities

Increasing adoption of acoustic vehicle alerting systems in new hybrid and electric vehicles by automobile manufacturers creates an immense opportunity in the market. Automotive companies in the market are launching their hybrid vehicles with inbuilt acoustic vehicle alerting systems to warn nearby pedestrians. For instance,

• On July 18, 2023, Maruti Suzuki a manufacturer of passenger vehicles introduced acoustic vehicle alerting systems in its hybrid variant of Grand Vitara. The AVAS system is installed to alert sound to warn nearby pedestrians.

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Scope of the Acoustic Vehicle Alerting System Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Vehicle Type Segment Analysis

Based on vehicle type, the acoustic vehicle alerting system market is categorized into passenger vehicles, two-wheelers, and commercial vehicles. The passenger vehicles segment dominated the market in 2022 due to ongoing advancements in battery technology and charging infrastructure. Several organizations are adopting EVs into their fleet for commutation within the city limits. This enhances the demand for passenger vehicles. Moreover, key companies in the market are launching passenger cars with acoustic vehicle alerting systems, which is estimated to propel the market. For instance,

• On April 14, 2022, Honda a global automotive company announced the launch of New City e-HEV. The new HEV city is equipped with an acoustic vehicle alerting system (AVAS).

The commercial vehicle segment is projected to grow at a rapid pace during the projected period owing to the growing e-commerce sector and rising logistic services. Acoustic vehicle alerting systems are installed in commercial vehicles to ensure the safety of other commuters on the roads. Moreover, the increasing trend of green energy is encouraging several countries to replace their existing fuel-based bus fleet with electric buses, which increases the demand for acoustic vehicle alerting systems.

Propulsion Segment Analysis

In terms of propulsion, the global market is segregated into battery electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles. The battery-electric vehicles segment held a large share of the market in 2022 due to increasing demand for sustainable transportation. BEVs don't emit tailpipe emissions, meaning they don't contribute to air pollution or greenhouse gas emissions. BEVs also have low operating costs compared to other combustion engine vehicles, as they do not require oil changes or other fluids like engine oil, which increases their demand.

The plug-in hybrid electric vehicles segment is anticipated to grow at a robust pace during the forecast period owing to the implementation of stringent emission standards. PHEVs have bigger batteries that offer less charging time compared to BEVs, which encourages consumers to purchase PHEVs. Moreover, plug-in hybrid electric vehicles are able to boost their charge through regenerative braking, which helps to recharge the battery for further electric power. This enhances its adoption over BEVs.

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Sales Channel Segment Analysis

Based on sales channels, the acoustic vehicle alerting system market is bifurcated into OEM and aftermarket. The OEM segment registered significant growth in 2022 due to technological advancement in the automotive sector and rising concern amongst customers regarding vehicle safety. OEM AVAS are preferred by consumers over other aftermarket AVAS, as they offer improved quality, compatibility, performance, and safety. Moreover, OEM acoustic vehicle alerting systems have a longer lifespan than aftermarket OEM, which enhances its adoption.

The aftermarket segment is expected to grow at a robust pace during the assessment period owing to its ability to offer lower-cost parts compared to OEM. Aftermarket acoustic vehicle alerting systems are widely available and offer a greater variety of options than OEM AVAS, which encourages consumers to go for aftermarket AVAS. Aftermarket AVAS can be purchased from online retailers, auto parts stores, and independent mechanics, which is projected to increase its demand.

Regional Outlook

In terms of region, the acoustic vehicle alerting system market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific accounted for a major share of the market in 2022 due to the growing automotive industry and rising adoption of electric vehicles. Moreover, governments in the region are mandating the installation of acoustic vehicle alerting systems in electric cars, buses, and trucks, which is estimated to propel the market. For instance,

• In July 2022, the Ministry of Road Transport and Highways, a department of the government of India mandated the installation of an acoustic vehicle alerting system (AVAS) in all new electric cars, buses, and trucks to warn pedestrians.

The market in North America is expected to expand at a high CAGR in the coming years owing to increasing demand for electric vehicles and the presence of established market players, such as BorgWarner Inc., Fisker, Inc., and Texas Instruments Incorporated. Moreover, the government in the region is mandating the installation of acoustic vehicle alert systems in all hybrid and electric vehicles to reduce pedestrian accidents is estimated to boost the demand for acoustic vehicle alerting systems. For instance,

• On July 13, 2022, the National Highway Traffic Safety Administration an agency of the U.S. federal government mandated the installation of an alert sound system in all new hybrid electric vehicles.

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