The Game-Changing Future of OEM Audio and Video: Growth Strategies and Indian Market Opportunities in 2025

The Future of OEM Audio and Video Companies in 2025: Growth Potential and Winning Strategies

The Original Equipment Manufacturer (OEM) audio and video industry is entering an exciting phase of growth, driven by technological advancements and rising consumer demand for high-quality audiovisual solutions. With the convergence of innovation, strategic partnerships, and market expansion, the opportunities for OEM companies in this sector are vast. This blog explores the growth potential of OEM audio and video companies in 2025, focusing on strategies to maximize business impact and insights into the booming Indian market.

Global Market Outlook

The global OEM audio and video product market is expected to grow robustly. In 2024, the global car audio market was valued at USD 13.7 billion and is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.4% between 2025 and 2034. Similarly, the automotive OEM premium audio market is expected to expand by USD 3.92 billion from 2021 to 2025, progressing at a steady CAGR of over 2%. These numbers reflect the increasing integration of high-quality audio and video systems into vehicles and other devices, spurred by consumer demand for immersive experiences.

Key Growth Drivers

1. Technological Advancements: The development of cutting-edge technologies such as wireless audio systems, voice-controlled interfaces, and AI-powered sound enhancements are reshaping the OEM audio and video landscape. For instance, the India wireless audio market is anticipated to register a CAGR of approximately 17.22%, driven by smartphone penetration and rapid technological progress.
2. Rising Disposable Incomes: With an increase in disposable incomes globally, consumers are more willing to invest in premium audio and video experiences. This trend is particularly strong in emerging economies like India.
3. Expanding Consumer Base: The growing middle class in developing countries and increased digitalization worldwide are broadening the customer base for audio and video solutions.

Strategies for Business Growth

To thrive in 2025, OEM audio and video companies must adopt targeted strategies that align with market demands and leverage technological innovation. Here are some key tactics:

1. Investing in Innovation

• Companies should focus on developing products that integrate seamlessly with modern lifestyles, such as wireless audio systems, smart home integration, and AI-enabled features.
• Offering customizable solutions that allow users to tailor their experience can significantly boost customer satisfaction and loyalty.

2. Forging Strategic Partnerships

• Collaborations with automotive manufacturers, tech giants, and content providers can create a synergy that enhances product offerings and expands market reach. For example, partnerships between OEMs and streaming platforms can deliver pre-integrated content services in vehicles and home systems.

3. Market Diversification

• Diversifying product portfolios to serve various segments, including automotive, home entertainment, and professional audio systems, can open up new revenue streams.
• Exploring opportunities in both B2B and B2C segments ensures a more comprehensive market presence.

4. Enhancing Customer Experience

• Providing user-friendly designs, quick setup processes, and robust after-sales support can significantly enhance the customer journey.
• Leveraging data analytics to understand consumer preferences and optimize offerings can result in better-targeted solutions.

The Indian Market: A Land of Opportunity

India presents a substantial growth opportunity for OEM audio and video companies, fueled by rapid urbanization, increasing digital penetration, and supportive government policies.

Booming Demand

• The Indian television OEM market reached approximately 20 million sets in the financial year 2022, up from 16 million the previous year. This growth highlights the increasing appetite for advanced audio and video solutions.

Government Support

• Policies promoting domestic manufacturing, such as higher tariffs on imports and financial incentives for local production, create a favourable environment for OEMs.

Expanding Economy

• India is the third-largest professional audiovisual (pro-AV) market in the Asia-Pacific region. With a rapidly growing economy, the potential for premium audio and video solutions is immense.

Technological Adaptation

• India’s growing adoption of wireless audio systems and smart home devices makes it a key target market for innovation-focused OEMs. Increased smartphone penetration and demand for connected ecosystems are further accelerating market growth.

Conclusion

OEM audio and video companies are well-positioned to experience significant growth in 2025, driven by innovation and rising consumer expectations. By focusing on technological advancements, forming strategic alliances, diversifying their product lines, and delivering exceptional customer experiences, these companies can capitalize on emerging opportunities, particularly in the Indian market. As digital adoption accelerates globally, the future looks bright for OEMs aiming to redefine the audiovisual experience.