AVAS Market

[231 Pages Report] The global AVAS market was valued at USD 1.2 billion in 2024 and is expected to reach USD 1.7 billion by 2030 and grow at a CAGR of 6.4% over the forecast period. The growth of the AVAS market is driven by a rising emphasis on pedestrian and cyclist safety. As electric vehicles are quieter at low speeds they generate low sound at low speeds as compared to ICE vehicles, which pose a threat to commuters. The escalating adoption of electric and hybrid vehicles and the government mandates for the implementation of AVAS in all types of EVs, boost the AVAS market. Further, the rising adoption of electric 2-wheelers fosters the expansion of the AVAS market.

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Market Dynamics:

Driver: Growing adoption of electric 2-wheelers

As the adoption of electric motorcycles, scooters, and bicycles accelerates, especially in urban environments, the need for effective alert systems to enhance pedestrian safety becomes increasingly pressing. Electric 2-wheelers operate much more quietly than their internal combustion engine counterparts. While this characteristic reduces noise pollution, it poses a safety risk for pedestrians and other road users who might not hear these vehicles approaching. Integrating AVAS into electric 2-wheelers addresses this issue by emitting sounds that alert pedestrians to their presence, thereby reducing the risk of accidents. The global market for electric 2-wheelers is expanding rapidly, driven by growing environmental awareness, government incentives, and advancements in battery technology. This growth creates a significant and expanding acoustic vehicle alerting system market. Governments and regulatory bodies are increasingly focusing on the safety implications of silent EVs. In several regions, regulations either already require or are considering mandating AVAS for electric 2-wheelers. This regulatory push supports the widespread adoption of AVAS, as manufacturers must comply with these safety standards.

Advancements in sound technology and sensor integration make it possible to develop AVAS specifically tailored to the unique needs of electric 2-wheelers. These systems can be designed to emit sounds that effectively alert pedestrians while remaining pleasant and non-disruptive. Consumer awareness of the safety benefits of AVAS is growing, which is likely to increase demand for electric 2-wheelers equipped with these systems. As consumers become more safety-conscious, manufacturers will be driven to include AVAS as a standard feature in their electric 2-wheeler models. This shift in consumer preferences can drive the market forward, encouraging innovation and adoption of avas automotive technologies. AVAS providers such as Continental AG, Hella GmbH & Co. KGaA, and THOR AVAS are actively supplying AVAS for electric 2-wheelers. Ola Electric Mobility Pvt Ltd. (India) and Ather Energy (India), among others, are incorporating AVAS technology into their electric 2-wheelers. The Volvo Car Group (Sweden) and Zhejiang Geely Holding's (China) Polestar 2 also feature AVAS technology.

Restrain: Inconsistent speed range regulation

Different countries and regions have their specific requirements for activating an AVAS, which creates a complex landscape for manufacturers. For instance, while the US requires AVAS to function at speeds up to 19 mph (30 km/h), the EU mandates their use up to 12 mph (20 km/h). This disparity means automakers and AVAS manufacturers must design systems that comply with multiple sets of regulations, increasing the complexity and cost of development and production.

This variability can lead to delays in product launches and additional expenses for testing and certification across different markets. It also complicates the integration of AVAS into vehicle designs, as manufacturers must ensure that the systems are adaptable to the various regulatory requirements without compromising performance or reliability. These differences can create confusion among consumers and stakeholders, potentially slowing the adoption of AVAS technologies. Standardizing these regulations globally could help streamline the market, reduce costs, and accelerate the deployment of AVAS, enhancing pedestrian safety worldwide.

Opportunity: Increasing demand for customized solutions

As technology progresses, there is an increasing demand for AVAS that meet regulatory requirements and offer enhanced and tailored sound features. These advanced systems can be programmed with various sounds that are effective in alerting pedestrians and customizable to reflect brand identity or improve the auditory experience. This customization allows manufacturers to differentiate their vehicles in the market, offering a unique selling point that can attract safety-conscious consumers and enhance brand loyalty. Tailored AVAS sounds can be designed to convey different types of information, such as indicating the speed or direction of the vehicles and improving overall pedestrian awareness and safety. The development and adoption of sophisticated AVAS presents avenues for collaborations between automotive companies and audio technology firms, fostering innovation and potentially leading to the creation of new industry standards. Manufacturers can enhance the safety, appeal, and distinctiveness of EVs with advanced customizable AVAS, driving acoustic vehicle alerting systems market growth.

BMW AG (Germany), Mercedes-Benz (Germany), Audi AG (Germany), and Porsche AG (Germany), among others, are incorporating customized sound in their vehicle models. For instance, recognizing the importance of creating a distinctive and brand-specific auditory experience, in 2022 BMW has developed customized AVAS sounds for its EVs. The company enlisted renowned composer Hans Zimmer to produce various sounds for its vehicle models to achieve this.

Challenges: Compliance with sound standardization mandates

Standardizing sounds emitted by AVAS is one of the major challenges automotive OEMs and aftermarket manufacturers face. Some brands count on the sound the car produces after it is started. An entertaining electronic engine sound system can make the EV more appealing to buy and drive. In January 2010, Japan's Ministry of Land, Infrastructure, Transport, and Tourism issued guidelines for hybrid and other near-silent vehicles, indicating that warning sounds similar to traditional engine noises are the most effective countermeasures against accident risks. According to EU rules, AVAS should be a continuous sound that provides information to pedestrians and other road users of vehicles in operation. The sound should be easily indicative of vehicle behavior and similar to a vehicle of the same category equipped with an ICE. Complying with all such mandates to implement AVAS is expected to be a major challenge for automotive OEMs and other aftermarket manufacturers.

Market Ecosystem

The passenger car vehicle segment is estimated to hold the largest share of the AVAS market during the forecast period.

The passenger car segment is expected to represent a significant opportunity for EVs in the automotive industry, which consist of sedans, SUVs, hatchbacks among others. Currently it is the largest vehicle segment and is poised for massive expansion in the near future. The section’s growth mainly driven by the availability of different vehicle models, use of advanced technologies in vehicles, the rising consumer awareness and government incentives such as subsidies as well as rebates on taxes.

As people are opting for EVs, the demand for passenger vehicles has been increased. EVs have shorter wait times compared to traditional gasoline cars in countries such as China. Due to stringent environmental regulations, European countries aim at reducing transport emissions by quite a margin between 2030 and 2035.  Further, the US and China aims to electrify 50% of their vehicle fleets by 2030. The quick growth of EV charging stations is also playing a big role in boosting the EV passenger car market. However, due to the silent operation of these vehicles, pedestrians on the road fail to realize the presence of EVs approaching them. Also, as there is no engine noise even at higher RPMs, it becomes difficult to perceive or realize the speed of the moving EV. Many economies, such as Europe and the US, have started mandating AVAS in every EV to counter such situations.

PHEV segment is estimated to hold a significant share of the AVAS market during the forecast period.

PHEVs use rechargeable batteries that can becharged by plugging into external power sources. They have characteristics of both EV and traditional ICE vehicles. They also have a longer electric range than HEVs and they don not cause range anxiety as BEVs often do. PHEVs can be divided into two main categories including series and parallel. The ICE generates electricity for the motor in a series PHEVs, while only the electric motor drives the wheels. While in parallel PHEVs an electric motor and ICE are both connected to the powertrain. An AVAS must be installed in a PHEV due to their silent operation at low speeds while running on battery electric power mode. The AVAS system gets automatically turned off when the ICE engine is running.

Major PHEV manufacturers include BYD, Li Auto, Toyota, BMW, Volkswagen, Mitsubishi (Japan), Honda (Japan), and Mercedes Benz. They have launched several PHEVs that are in high demand in the market. PHEV models such as the Honda Accord and Honda Clarity are equipped with AVAS. The increasing number of charging stations in countries such as China and the US is expected to increase the demand for PHEVs. The demand for PHEVs is also expected to rise due to tax benefits and incentives provided by various governments. However, the demand for PHEVs in Europe is expected to decrease due to stringent BEV targets, while North America and Asia Pacific have supported the growth of PHEVs through vehicle ownership tax reductions, state incentives, charging-based incentives, and a high fuel price difference.

“Asia Pacific is estimated to be the largest market during the forecast period.”

The rapid adoption of EVs in the Asia Pacific countries will require necessary safety measures to avoid accidents caused by the lack of noise emanating from electric and hybrid vehicles. EV manufacturers such as BYD and Zhidou have already installed AVAS to enhance vehicle and pedestrian safety. Also, countries such as China, Japan, India, and South Korea are potential markets for electric scooters that are expected to be equipped with pedestrian warning systems in the future. India is taking concrete steps to adopt EVs with the co-existence of ICE vehicles. The government aims to increase the number of EVs by coming up with initiatives such as the National Electric Mobility Mission Plan (NEMMP) and Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME). The Japanese government also aims to develop their EV infrastructure with many OEMs within the country producing BEVs, PHEVs, & FCEVs. South Korea also intends to increase the adoption of EVs in the country, with OEMs such as Hyundai and Kia trying to introduce high-performance EVs in the market.  Top automakers from Europe and the US are increasingly supplying EVs to the Asian market. This growing presence is expected to boost EV sales in the Asia Pacific region, which will, in turn, drive the demand for the AVAS market.

Key Market Players

The AVAS market is dominated by major players, including Continental AG (Germany), Hella GMBH & CO. KGAA (Germany), Kendrion N. V. (Netherlands), Harman International (US), and Denso Corporation (Japan). These companies offer AVAS to major OEMs and have strong distribution networks at the global level. These companies have adopted extensive expansion strategies and undertaken collaborations, partnerships, and mergers & acquisitions to gain traction in the AVAS market.

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Scope of the Report

This research report categorizes the AVAS market based on propulsion type, vehicle type, electric 2-wheeler, sales channel, mounting position and region.

Based on Propulsion Type:

• BEV
• PHEV
• FCEV

Based on Vehicle Type:

• Passenger Cars
• Commercial Vehicles

Based on Electric 2-wheeler:

• E-scooter/Moped
• E-motorcycle

Based on Sales Channel:

• OEM
• Aftermarket

Based on Mounting Position:

• Integrated
• Separated

Based on the Region:

• Asia Pacific (APAC)
  • China
  • India
  • Japan
  • South Korea
• North America (NA)
  • US
  • Canada
• Europe (EU)
  • Austria
  • Denmark
  • France
  • Germany
  • Netherlands
  • Norway
  • Spain
  • Sweden
  • Switzerland
  • UK

Recent Developments

• In December 2020, Ford Motor Company partnered with Harman International for its Mustang Mach-E 1400. The vehicle is equipped with Harman's HALOsonic eESS technology, alongside Harman's AVAS speakers.
• In April 2020, Volvo Car Group and Zhejiang Geely Holding collaborated with Harman International for the Polestar 2 car's AVAS technology. It was the Group's first car to feature AVAS technology.
• In February 2020, Hyundai Motor Company and Harman International partnered on the world's first road noise cancellation system. RANC system reduces unwanted noise by up to 50%. It is powered by Harman's HALOsonic suite of noise cancellation technologies.

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