Is the Car Audio Industry Dying?
Or Just Misunderstood?
Walk into a modern vehicle today, and you’ll hear something better than what came in a factory car 20 years ago. But better isn’t great. And for those of us who lived through the golden era of car audio—from late-night installs in the garage to demo sessions in the parking lot—it feels like something is missing.
The car audio industry isn’t just slowing down—it’s bleeding from within.
📉 What the Numbers Show (Pre vs. Post-COVID)
Between 2015 and 2019, car audio saw a resurgence, with global aftermarket car audio sales growing steadily at 4–5% CAGR. Specialty retailers were thriving on higher-end installs, and customers sought personalized sound systems.
Post-COVID, the disruption changed everything:
Online sales via Amazon, Crutchfield, and eBay surged by over 30% from 2020 to 2022.
Brick-and-mortar dealers saw a 25–40% drop in product margins due to pricing pressure.
Labor shortages, rising installation complexity, and factory integration systems led to a wave of skilled installers leaving the industry.
⚠️ Why Is the Car Audio Industry Dying?
1. The Manufacturers Forgot the Magic
Manufacturers are chasing volume through online resellers—Amazon and Crutchfield don’t install product. They don’t troubleshoot, don’t educate, and they don’t sit in a customer’s car listening to Pink Floyd for final tuning.
Meanwhile, dealers—the ones who make the product come alive—are forced to buy through distributors who cut into their margins. The best installers are walking away. Why master a craft that barely pays?
And here’s the kicker: smaller, low-quality dealers are dying, but so are the elite ones.
Many small shops with average installs, generic product, and minimal tuning are fading out.
Their average ticket? Around $1,200.
On the other end, high-craftsmanship dealers are averaging $7,000 per car, often with fully active systems, tuned DSPs, proper wiring, and sound treatment done right.
But even they are struggling to keep up.
And now, larger systems—built properly with high-end components, vehicle integration, custom fabrication, and DSP tuning—can easily exceed $15,000, including product, parts, and labor. These are not “big box” installs. These are rolling pieces of art.
To survive, the best shops have expanded beyond their local territory, selling plug-and-play kits, DSP presets, and repeatable upgrade solutions online—to DIYers and other shops nationwide. This proves the value of great sound and great tuning is scalable, but it needs to be supported—not undercut—by manufacturers.
2. Modern Cars Aren’t Friendly
New vehicles are technical beasts—CAN networks, active noise canceling, factory DSPs, touchscreens, and poor-quality aftermarket dash kits. Most car owners have no idea how much harder it is today to do a clean install compared to 20 years ago.
3. Streaming Killed the Audio Star
Back in the day, a CD played on a basic Alpine system sounded alive. You didn’t need a DSP to get emotional over a favorite track—it just worked. Today, low-bitrate streaming audio, underpowered factory amps, and poor speaker placement are the norm and YES factory BASS roll off is real…a real problem to lose enthusiasm for music in your car and bring more podcasts and streaming books…
The result? No dynamics. No emotion. No goosebumps.
4. The Race to the Bottom Is Real
Cheap gear that "sorta works" kills the industry:
Bad sound = No emotional impact
No emotional impact = No word-of-mouth
No word-of-mouth = No growth
Great sound spreads. Bad sound disappears.
❤️ Why There’s Still Hope
Because music still matters.
It connects people. It creates memories. And it gives us an escape in traffic that doesn’t involve scrolling through a screen.
A finely tuned car audio system—done right with time alignment, EQ, subwoofer integration, and a proper DSP—is a personal concert on wheels.
🔧 How to Bring the Industry Back
1. Manufacturers: Reinvest in Your Dealers
Support dealers who install, tune, and educate customers.
Protect MAP pricing and prevent bulk online blowouts.
Provide better integration kits, vehicle-specific DSP harnesses, and real-world install guidance.
Invest in your support reps—because great reps who understand real installs and actively help their dealers are the ones who bring the magic to life.
The reps who show up, share knowledge, and understand what high-level dealers need are the backbone of every strong brand. They help grow long-term, loyal, and profitable dealer networks.
2. Stop Chasing Boxes. Start Building Legacy.
The relationship starts with the dealer. They demo. They build trust. They turn a one-time customer into a lifelong one. You don’t get that from a shipping label.
3. Educate, Don’t Just Advertise
Most customers don’t know what good sound is anymore. But when they hear it, it changes everything. Equip your dealers to tell the story—and show it.
4. Guide the DIY Crowd
They’re passionate—but they often get it wrong. Help them get better, or help them find a dealer who can finish the job right.
You don’t have to choose sides.
5. Reward the Craft
Reward the installers who make magic happen. They are your brand ambassadors. Without them, you’re just a box with a logo.
🎶 Final Thoughts: The Love of Music Will Save Us
This industry was built by music lovers. It’ll be saved by them too.
Let’s stop pretending that volume is value. Let’s chase the goosebumps again. And let’s make car audio something that inspires people every time they get behind the wheel.