SOUTHFIELD, Mich.--(BUSINESS WIRE)--Branded audio system volumes in new vehicles are expected to grow from just under 11 million units globally in 2016 to 14 million units in 2023, according to new vehicle production forecasts for these systems from IHS Markit. The research findings come from business information provider IHS Markit (NASDAQ: INFO).
A recent IHS Markit survey of consumers from five key regions confirms consumer demand for these systems remains high, with more than half of respondents indicating preferences to have a brand name car audio system in their next new vehicle. Among these, 81 percent indicated that a brand name audio system would influence their vehicle purchase decision. In addition, 53 percent of those respondents wanted a branded audio system to be standard on their vehicle.
Responses from more than 5,000 vehicle owners intending to purchase a new vehicle within the next 36 months were analyzed and reviewed in the 2017 Automotive Premium Audio Consumer Analysis, representing five key automotive markets – the U.S., Canada, China, Germany and the United Kingdom. This is the fifth annual survey of its kind from IHS Markit and identified key attributes for consumers, providing insight into preferences, desires and future interest as new vehicle intenders return to market. A number of subjects were covered.
Brand Preferences Matter; Bose, Sony and Alpine Lead
Bose is the most ‘influential’ audio brand among all countries surveyed, excluding China, with Sony coming in at number two. In China, Sony is the most influential brand. Bose has a large lead in this area in almost every region, meaning that among consumers who are looking for a premium audio experience, Bose is the name that carries the most weight. Sony and Panasonic had the highest level of brand awareness across the nations surveyed. However, when respondents were asked how they recognize the brand – whether for car audio, home audio or other sources – Alpine emerged as the most recognized car audio brand.
Sony, Bose and Pioneer were identified as the top three brands owned or previously owned by respondents across the globe, according to the survey.
Brand Loyalty, Reputation and Quality Influences Respondents
Respondents in all countries predominantly indicated they would choose the same brand again, with more than 95 percent of previous owners of vehicles with Bose systems saying they would buy a vehicle with the same audio brand again.
“Brand is an incredibly important aspect of the premium audio experience," said Brad Gottschalk, analyst, automotive infotainment systems at IHS Markit. "For some consumers, brand is identified as the mark of quality when it comes to audio systems,” he said.
When respondents in China were asked why they chose Sony, they indicated it ranked highest due to the good reputation of the brand, followed by good quality/sound, and recommendation/word of mouth. When respondents from other countries were asked why they chose Bose, good quality/sound was the highest followed by the good reputation of the brand.
Overall, consumers were attracted to 3D sound as the most desired feature. Brand followed closely behind, and other technical features (such as wattage and amplifiers) fell near the bottom of consumers’ wish lists.
“For many consumers, brand is much more important than specific features like wattage or number of speakers,” Gottschalk said. “There isn’t any specific combination of features that consumers define as a ‘premium’ audio experience.”
Consumers Willing to Pay for Premium Audio
Overall, consumers across the five countries surveyed generally prefer a premium car audio system.
From a price perspective, respondents in the US, UK and Germany indicated a willingness to spend the most when considering a new vehicle with a premium audio system. US consumers were willing to pay an average of $573. Canadian respondents were the least interested in branded audio systems, noting their willingness to pay capped out at just $333 USD. Chinese respondents fell just below the UK in terms of price, coming in at $475 USD.
About IHS Markit (www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is the automotive industry’s leading source for market-wide insight, expertise and advanced planning solutions. With a reputation of enabling better decisions and better results for nearly a century, the world’s leading OEMs, suppliers and their transportation partners rely on IHS Markit to power growth, improve efficiency and drive a sustainable competitive advantage.
Automotive offerings and expertise at IHS Markit span every major market and the entire automotive value chain -- from product planning to marketing, sales and the aftermarket. Headquartered in London, the automotive team is part of the IHS Markit information and analytics powerhouse that includes 12,300+ colleagues in 150 countries, covering energy, chemical, aerospace and defense, maritime, financial, technology, media and telecommunications. For additional information, please visit www.ihsmarkit.com or email email@example.com.
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