Premium audio systems for automobiles will enjoy double-digit sales growth worldwide in 2011 and in the years ahead, according to IHS iSuppli Automotive Research. Experts also expect portable media players to influence the growth of these systems.

Global sales of premium audio systems will reach 7.9 million units in 2011, up 14% from 6.9 million units last year, hitting 13.3 million units by 2015. This year’s sales will yield worldwide revenue of $7.3 billion, up 11% from $6.6 billion in 2010. And, unit sale will expand 12% to 18% over the next three years.

IHS iSuppli defines premium audio systems as products with features like surroundsound, eight or more speakers, and 400 W or more. These systems also include branded audio systems in speaker grates, amplifiers, and head units.

Car manufacturers also are adding interfaces for portable media players. The auxiliary input is the least expensive interface, and nearly all premium audio systems sold in the United States include it.

The Apple iPod interface also is becoming more common, as it’s available in 91% of U.S. 2011 cars and 61% of cars worldwide. But the USB and SecureDigital interfaces among others will see growing dominance over the next two years, according to IHS.

Satellite radio and digital radio are available as well. While Sirius XM Radio Corp. isn’t seeing any more unit sales increases for its satellite radio, the company is increasing location-based services and other premium content. HD Radio also continues to grow with considerable uptake.

“While many automotive infotainment functions are migrating out of built-in car electronic systems and into portable devices like smart phones, music remains a basic feature that all vehicles must have,” said Mark Boyadjis, senior analyst and regional manager for automotive electronics research at IHS.

“This means that audio systems that can produce high-quality sound will continue to be in demand,” he said. “Furthermore, while premium audio previously was restricted to luxury and high-end cars, its usage is now broadening to include mid-range automobiles as well. This will steadily grow the market size for premium audio systems.”

Bose and Harman/Kardon are the leading premium audio system suppliers, focusing on surroundsound systems with six or eight audio channels. Other premium suppliers include Alpine, D&M Holdings for Boston Acoustics, Bowers & Wilkins, Burmester, Clarion, Hyundai Mobis for Dimension, Sony, Panasonic for ELS Surround and Fender, and Pioneer.

Driven by the increasing availability of matrix systems that synthesize surroundsound from stereo, surroundsound with 5.1 and 7.1 surround formats is growing in popularity. Speaker count is another differentiator, with high-end cars featuring as many as 14. Average premium wattage for 2011 ranges from 507 W for cars in the U.S. to 565 W in Japan and 592 W in Germany.

The use of class D amplifiers with lower power requirements that fit with multichannel audio also is growing in premium audio systems, as efficiency ratings that top 90% translate to improved output and less power lost to heat. Along with speaker technologies and other elements that go into low-energy audio systems, class D amps can be optimized for small cars or for hybrids and electric vehicles as well.

For more about IHS iSuppi and its report, “Premium Audio: Music to Everyone’s Ears,” go to www.isuppli.com/Automotive-Infotainment-and-Telematics/Pages/Premium-Audio-Music-to-Everyone-s-Ears-Q4-2010.aspx.

IHS iSuppli
www.isuppli.com