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Harman Dominates In-vehicle Branded Audio, but Consumers are Unimpressed
Premium audio system global market will double to 18.8 million units by 2018
Boston, MA - March 19, 2012 - According to the Strategy Analytics Automotive Practice report, “Premium Audio: Market Share and Market Perception,” OEMs could likely achieve higher margins by seeking out the audio brands that most highly resonate with consumers.
Strategy Analytics surveyed 2400 vehicle owners across the US and Europe on over 25 suppliers of in-vehicle audio systems. According to Chris Schreiner, Director of the Strategy Analytics Automotive Consumer Insights practice, “OEMs and suppliers need to address a problem of name recognition. Sony, Pioneer, and Panasonic have already extended their greater consumer electronics reputations into the automotive market. Others, such as Harman and Bose, are not well-known in the automotive realm or have blind spots in specific regions.”
“Higher brand market share does not necessarily indicate consumer brand preference, but instead is more closely correlated with strong OEM supplier relationships, since vehicle purchases are driven by more than audio system concerns,” says John Canali, Senior Analyst with Strategy Analytics. “However, the offering of premium audio systems can drive profit margins and enhance brand image. This Strategy Analytics research shows that realigning with more popular speaker suppliers could attract consumers to pay a premium for better audio systems.”
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