Boston - Automakers could increase their margins on premium OEM sound systems by aligning themselves with popular speaker brands, a Strategy Analytics report concluded.
Aligning with popular speaker suppliers "can drive profit margins and enhance brand image" while attracting consumers "to pay a premium for better audio systems," the report said.
"OEMs and suppliers need to address a problem of name recognition," said Chris Schreiner, director of the Strategy Analytics automotive consumer insights practice. "Sony, Pioneer and Panasonic have already extended their greater consumer electronics reputations into the automotive market. Others, such as Harman and Bose, are not well-known in the automotive realm or have blind spots in specific regions."
The report also forecast that the premium OEM audio system market will double worldwide to 18.8 million units by 2018.
As part of the study, Strategy Analytics surveyed 2,400 vehicle owners in the U.S. and Europe.