Due to the burgeoning requirement for electric vehicles (EVs), falling costs of acoustic vehicle alerting system (AVAS) components, and implementation of mandatory regulatory compliances in several countries, the global acoustic vehicle alerting system market revenue is predicted to rise to $10,578.8 million by 2030. Furthermore, the market will advance at a CAGR of 11.9% from 2020 to 2030 (forecast period), as per the estimates of the market research company, P&S Intelligence.
The surging sales of electric vehicles is a major growth driver for the market. In 2019, the size of the worldwide electric car fleet surpassed 7.1 million units, recording an increment of over 2 million from the number of cars that were in operation in 2018. and it is predicted to rise above 130 million by 2030. The mushrooming adoption of electric vehicles is attributed to the growing public awareness about the rapid environmental degradation caused due to the extensive usage of gas and oil-powered vehicles and the increasing government support being provided for the development and procurement of these vehicles in many countries.
Due to the falling cost of these components, the overall price of AVASs will decline, which will subsequently fuel their sales and production in the coming years. Depending on propulsion, the acoustic vehicle alerting system market is classified into plug-in hybrid electric vehicle (PHEV), fuel cell electric vehicle (FCEV), and battery electric vehicle (BEV). Out of these, the BEV category is predicted to hold the largest share in the market during the forecast period.
This is credited to the rising government support being provided for the manufacturing of these vehicles, due to their eco-friendliness. Furthermore, the falling price of batteries, increasing demand for these vehicles in China, which is the largest EV industry in the world, and less mechanical complexities associated with these vehicles, are also driving the expansion of this category in the market. Globally, Asia-Pacific is expected to dominate the acoustic vehicle alerting system market till 2030. This will be because of the soaring sales of electric vehicles, especially in China.
Hence, it is safe to say that the demand for acoustic vehicle alerting systems will boom in the coming years, mainly because of the declining prices of the AVAS components and the surging adoption of EVs all over the world.