The acoustic vehicle alerting system market value is estimated to grow at a CAGR of 11.9% during the projection period. This growth of the market can be credited to the severe release standards and government backing, in the form of subsidies, tax rebates and grants, and other non-financial advantages, to encourage electric vehicle (EVs) acceptance. Because of the quickening need for EVs, a total of 24.7 million acoustic vehicle alerting systems were connected in electric two-wheelers and passenger cars in recent years.

Numerous governments are executing guidelines for original equipment manufacturers (OEMs) and aftermarket things to install acoustic vehicle alerting systems in BEVs in a

specified time. Credited to such reasons, the BEV category is projected to grip the leading position within the propulsion segment of the industry during the projection period.

Government backing, in the form of monetary incentives, for the growth and acquisition of BEVs and improvements in the battery tech will also quicken the acceptance of these vehicles in the future, which will probably make up for 70% of the plug-in EVs sold by 2030.

The anticipated rapid growth in the vehicle segment during the projection period is expected to be driven primarily by the four-wheeler category. This surge can be attributed to the widespread adoption of light-duty trucks and electric cars, fueled by ongoing innovations, decreasing prices, and a diverse range of models offered by automakers.

In the developed economies of Europe and the U.S., the acoustic vehicle alerting system market is projected to be predominantly influenced by the four-wheeler category in the upcoming years. Conversely, in emerging economies like India and China, the two-wheeler category is poised to take the lead in this market.

In recent years, the OEM category, on the basis of the distribution channel category of the industry for acoustic vehicle alerting systems, produced advanced revenue because of the growing installation of acoustic vehicle alerting system components in EVs, as per the compulsory standards of governments. While, the aftermarket category is estimated to experience quicker development in the future, mainly because of the natural wear and tear and end-of-life of AVAS components and the government rules in dominating markets for these systems and EVs. For example, the U.S. has instructed the retrofitting of AVASs in old EVs by 2022.

Currently, the European market is in its early stages and is buoyed by government regulations mandating the incorporation of AVAS components in hybrid and electric vehicles. The European Union (EU) aims to gradually eliminate internal combustion (ICE) vehicles as part of its strategy to decrease greenhouse gas emissions and reduce dependence on oil imports.