As per the current market research conducted by the CMI Team, the global Automotive Virtual Engine Sound System (VESS) Market size is expected to record a CAGR of 6.7% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 4.6 billion. By 2032, the valuation is anticipated to reach USD 12.1 billion.
Automotive Virtual Engine Sound System (VESS) Market: Growth Factors and Dynamics
- Vehicle Electrification Trend: The ongoing global trend towards vehicle electrification, including electric and hybrid vehicles, has significantly influenced the demand for Automotive Virtual Engine Sound System (VESS). As these vehicles operate more quietly compared to traditional internal combustion engine (ICE) vehicles, the need for VESS has risen to address safety concerns and provide auditory cues, ensuring pedestrian awareness and road safety.
- Regulatory Requirements: Various regions have introduced stringent regulations mandating the audibility of electric vehicles at low speeds to prevent accidents involving pedestrians, especially those with visual impairments. This has led to the incorporation of VESS as a solution to meet these regulatory requirements and enhance overall road safety.
- Performance Enhancement and Brand Identity: Beyond safety considerations, the automotive industry has witnessed a growing demand for VESS among performance and sports car manufacturers. These systems offer the opportunity to amplify and fine-tune engine sounds, creating a more immersive and engaging driving experience that aligns with the performance-oriented branding of these vehicles.
- Luxury and Premium Segment Demand: Luxury and premium vehicle manufacturers are leveraging VESS to enhance the in-cabin experience for passengers and drivers alike. By carefully engineering engine sounds that convey refinement and power, these manufacturers aim to provide a sensory aspect that complements the opulence associated with their brands.
- Customization Trend: The modern automotive landscape emphasizes individualization, and this trend extends to sound preferences. Aftermarket VESS installations offer vehicle owners the ability to customize their auditory experiences, catering to personal tastes and preferences. This customization aspect adds an extra layer of exclusivity and uniqueness to the driving experience.
- Advancements in Sound Technology: Rapid advancements in sound synthesis and speaker technology have enabled the creation of more sophisticated and authentic engine sound simulations. Manufacturers can now replicate a wide range of engine notes and tones with remarkable accuracy, meeting the demands of diverse consumer preferences while delivering an immersive and authentic driving environment. These advancements contribute to the expanding market for VESS.
Automotive Virtual Engine Sound System (VESS) Market: Partnership and Acquisitions
- Sonos partners with Audi: In 2021, Audi partnered with Sonos, a renowned audio company, to explore innovative in-car audio experiences, including potential collaborations in VESS technology. Sonos joins a long list of audio companies that have made the jump to autos, including Bose, Bowers & Wilkins, and Bang & Olufsen.
- Hyundai Motor Group and SoundHound Inc.: Hyundai Motor Group collaborated with SoundHound Inc. to develop an AI-based in-cabin experiences platform, encompassing VESS technology for enriched auditory interactions within Hyundai and Kia vehicles. Hyundai Motor Collaborates with SoundHound Inc. to develop ‘intelligent personal agent’ voice-control technology.
Report Scope
| Feature of the Report | Details |
| Market Size in 2023 | USD 5.3 Billion |
| Projected Market Size in 2032 | USD 12.1 Billion |
| Market Size in 2022 | USD 4.6 Billion |
| CAGR Growth Rate | 6.7% CAGR |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Key Segment | By Type, Application, Distribution Channel and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends |
| Regional Scope | North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America |
| Buying Options | Request tailored purchasing options to fulfil your requirements for research. |
Automotive Virtual Engine Sound System (VESS) Market: COVID-19 Analysis
The COVID-19 pandemic has had a significant impact on the Automotive Virtual Engine Sound System (VESS) Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:
- Supply Chain Disruptions: The onset of the pandemic disrupted global supply chains, causing manufacturing slowdowns and shortages of crucial components needed for Automotive Virtual Engine Sound System (VESS) installations. These disruptions led to delays in production and hindered the availability of VESS systems.
- Decreased Vehicle Sales: The economic uncertainty brought about by the pandemic led to reduced consumer spending and a decline in vehicle sales. As a result, both manufacturers and consumers deferred non-essential purchases, including VESS installations, affecting the market’s growth.
- Resumption of Manufacturing: With the gradual easing of lockdown measures, manufacturing operations are progressively returning to normalcy. This has helped alleviate supply chain challenges, allowing for a more consistent production of VESS components.
- Shift towards Electric Vehicles: The post-pandemic automotive landscape is witnessing an increased emphasis on electric vehicles (EVs) due to environmental concerns and changing regulations. As EV sales recover, the demand for VESS systems, particularly for pedestrian safety, is expected to grow.
- Innovation in Product Offerings: Companies are focusing on innovation to attract consumers back to the market. This includes developing advanced sound simulation technologies, customizable sound profiles, and integration with other vehicle systems for a more immersive experience.
- Strategic Partnerships and Collaborations: To stimulate market recovery, VESS manufacturers are forming strategic partnerships with automobile manufacturers. By collaborating directly with automakers, VESS providers can ensure seamless integration into new vehicle models, expanding their market reach.
- Marketing and Awareness Campaigns: Intensified marketing efforts, highlighting the benefits of VESS in terms of safety, enhanced driving experience, and compliance with regulations, are being employed to educate consumers and reignite interest in the technology.
In conclusion, the COVID-19 pandemic has had a mixed impact on the Automotive Virtual Engine Sound System (VESS) Market, with some challenges and opportunities arising from the pandemic.
List of the prominent players in the Automotive Virtual Engine Sound System (VESS) Market:
- Continental AG
- Harman International
- Sound Racer AB
- KUFATEC GmbH & Co. KG
- Brüel & Kjær Sound & Vibration Measurement A/S
- Bosch Engineering GmbH
- Symphony Sound LLC
- Active Sound Technology Ltd.
- Mando-Hella Electronics Corp.
- Driveco GmbH
- Others
The Automotive Virtual Engine Sound System (VESS) Market is segmented as follows:
By Type
- Simulated Engine Sounds
- Enhanced Engine Sounds
By Application
- Electric and Hybrid Vehicles
- Performance and Sports Cars
- Luxury and Premium Vehicles
- Commercial and Fleet Vehicles
By Distribution Channel
- Original Equipment Manufacturers (OEMs)
- Automotive Dealerships
- Online Retailers
- Specialty Automotive Stores
- Authorized Service Centres
Regional Coverage:
North America
- U.S.
- Canada
- Mexico
- Rest of North America
Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Rest of Asia Pacific
The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
Latin America
- Brazil
- Argentina
- Rest of Latin America