[Harman]
Industry overview
Harman competes in the automotive and lifestyle audio industries. As consumers want cutting-edge technologies for automotive components (digital cockpit, telematics, car audio, etc.), car makers demand latest technologies in areas such as car sharing and autonomous driving. As a result, competition is particularly fierce in the connectivity and entertainment solution markets between dominant players (e.g., Alpine, Aptiv, Continental, Mitsubishi, and Panasonic). Harman provides not only system solutions but also audio components (including speakers and amplifiers), and it is another segment where fierce competition between several major players (e.g., Bose, Pioneer, and Panasonic) is expected to drive technological advances as each firm introduces unique sound-management solutions. Competition is expected to remain intense. Lifestyle audio business has two segments: consumer audio and professional audio solutions. Consumer audio (portable speakers, headphones, connected audio solutions, etc.) is fragmented and a handful of companies (Amazon, Beats, Bose, Ultimate Ears, etc.) are showing early signs of dominance. We expect competition to remain intense as new players try to make inroads, given the saturated market for connected homes and smart speakers. In particular, for True Wireless headphones, for which smartphone manufacturers dominate market share, is expected to grow explosively. The professional audio solution industry (commercial audio, audio for large venues, etc., special lighting, video control solutions, etc.), led by QSC and Yamaha, is segmented by product and has seen the entrance of numerous companies offering Samsung Electronics Business Report 49 / 413 a wide range of products and applications.