Market Trends of Acoustic Vehicle Alerting System Industry
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.
