Acoustic Vehicle Alerting System Market - Growth, Trends, and Forecasts (2022 - 2027)

The Acoustic Vehicle Alerting System Market was valued at USD 417.82 Million in 2021 and is projected to grow to USD 874.50 Million by 2027, registering a CAGR of 13.1% in terms of revenue during the forecast period.

The impact of COVID-19 on the market was inevitable as it affected almost every other industry in the market. However, the electric vehicle is witnessing substantial growth owing to the swiftly escalating year-on-year adoption rate of mild-hybrid electric vehicles, favored electric vehicle policies, and improved government initiatives across the globe. In addition, compared to other segments, electric vehicle demand was less affected during the Covid-19 pandemic.

Over the medium term. E-mobility has sparked interest in several countries for a variety of reasons. Traffic congestion and pollution have become synonymous which has prompted countries to implement green and sustainable policies, including the usage of electric vehicles.

In Several countries, the government has mandated the acoustic vehicle alerting system in the electric vehicle which in turn is likely to witness major growth in the market. For instance, In 2022, The government of India mandated a sound alert system in vehicles traveling at a speed of 20 Kmph to warn pedestrians. Electric vehicles produce less noise compared to cars powered by combustion engines which can be a risk to pedestrians in traffic. To overcome these, demand for vehicle alert systems for electric vehicles is rising which in turn is likely to witness major growth for the market.

The government regulations for the implementation of acoustic vehicle alerting system for safety concerns is propelling demand in the market. For instance, as laid out in*EU Regulation by 1 July 2021 all new vehicles sold in or imported to the EU, regardless of their type, must be equipped with an AVAS. The United States has mandated the acoustic vehicle alert system in all hybrid and electric vehicle production with effect from September 2020.

Key Market Trends

Hybrid Electric Vehicle is dominating the market growth

Based on the propulsion, Hybrid electric vehicles hold a significant market share in terms of revenue in 2021 and are projected to grow during the forecast period. Electric mobility is swiftly growing around the world, owing to which goods transportation companies are also converting their existing fleet into electric propulsion-based vehicles. Such an increase in demand for electric vehicles is likely to increase the demand for acoustic vehicle alert systems across the globe.

The growing consumer preference for fuel-efficient electric vehicles (EVs), self-driving cars, and vehicle-to-vehicle communication technology are expected to boost market growth over the forecast period. Key automakers with robust infrastructure layouts and manufacturing capabilities have laid electric vehicle transition historically, thus enabling the strong potential for growth of hybrid and battery electric vehicles during the forecast period. For instance,

• In July 2020, Hella developed an Acoustic Vehicle Alerting System (AVAS) for hybrid and battery electric vehicles. The system produces the sound of an internal combustion engine, thereby alerting pedestrian.

The government of India has undertaken multiple initiatives to promote the manufacturing and adoption of electric vehicles in India to reduce emissions pertaining to international conventions and develop e-mobility in the wake of rapid urbanization. The National Electric Mobility Mission Plan (NEMMP) and Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India (FAME I and II) helped create the initial interest and exposure for electric mobility. For instance, in phase two of FAME, the government announced an outlay of USD 1.4 billion through 2022.

Stringent government emission norms and the recent rise in crude oil prices will compel to increase the penetration of the hybrid electric vehicle. Consumers of many regions including South Asia and Africa are more concerned about the infrastructure and vehicle range and still hesitate the transition over the pure electric vehicle, this gap is likely to bridge by the hybrid electric vehicle in the coming year.

Asia-Pacific is Expected to be the Largest Market

The Asia-Pacific region is expected to be the largest market for acoustic vehicle alerting system market. The demand is driven by the high adaption rate of electric vehicles in the region. There is a high demand for vehicles in the region because of the population size of the region and their growing income levels.

The growing consumer demand for improved vehicle performance, enhanced economy, and better driving experience have led to tremendous changes and developments in the electric vehicle industry. Heavy investments in R&D activities from automotive companies and suppliers to improve vehicle performance, etc., are the major factors accelerating the growth of electric vehicle sales across the Asia-Pacific.

The rise in the sale of electric vehicles across China is likely to witness major growth in the market. By 2025, China would contribute 50% of the electric vehicle market. The major presence of electric vehicle manufacturers across the country is anticipated to boost the market. Followed to China, India also dominates the electric vehicle market in terms of sales and production. Several vehicle manufacturers are investing in India to build electric vehicle. For instance,

• In August 2022, India's largest automaker Maruti Suzuki confirmed that it shall soon introduce the first electric vehicle latest by 2025 end. In addition, Its parent firm, Suzuki Motor Corporation, is looking forward to investing Rs 10,400 crore in Gujarat to build a manufacturing plant to produce electric vehicles. The company told that it will not only manufacture EVs in the country but also start production of lithium-ion batteries, which are currently imported from other countries by several OEMs.
• In August 2022, Toyota motors announced that it is going to invest Rs. 3,600 crores for manufacturing a hybrid vehicle facility in Karnataka at Bidai facility. Moreover, the investment plan came out after the State government provided a green signal to start production of hybrid vehicles.

Considering these strong developments and ongoing initiatives by automakers and the government, across the region is expected to portray a strong growth rate during the forecast period.

Competitive Landscape

The Acoustic Vehicle Alerting System Market is highly fragmented, with several players accounting for a smaller portion of the market share. Some of the prominent companies in the Acoustic Vehicle Alerting System Market are Hella Gmbh & Co. KGaA, Harman, Brigade Electronics, Continental AG, Mercedes-Benz Group AG, and others. These players are investing heavily in research and development of vehicle alerting systems. For instance,

• In November 2021, Volta Trucks selected Vodafone Automotive to provide Acoustic Vehicle Alerting systems (AVAS) and alarm systems.

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