India Automotive Acoustic Engineering Services Market By Vehicle Type (Passenger Cars, Commercial Vehicle), By Propulsion Type (ICE, Electric), By Application (Drivetrain, Powertrain, Body & Structure, Interior, Others), By Process (Designing, Development, and Testing), By Region, Competition, Opportunities & Forecast, 2021-2031F

Market Overview:

India Automotive Acoustic Engineering Services Market was valued at USD 329.23 Million in 2025 and is expected to reach USD 507.54 Million by 2031 with a CAGR of 7.48% during the forecast period. The India Automotive Acoustic Engineering Services market is witnessing steady growth driven by rising demand for noise, vibration, and harshness (NVH) optimization in vehicles. As consumers prioritize in-cabin comfort and acoustic quality, automakers are investing in advanced engineering services to reduce engine noise, road noise, and wind turbulence. The growing shift toward electric and hybrid vehicles is further contributing to this demand, as the absence of engine noise in EVs magnifies other unwanted sounds, making acoustic treatment more critical. Expanding GDP and rising disposable incomes are encouraging greater demand for premium and mid-range vehicles with superior comfort features, accelerating the need for high-quality acoustic solutions. For instance, India’s GDP expanded by 6.7% year-on-year in the first quarter of fiscal 2025 (Q2 CY2024), supported by early signs of rural consumption recovery despite mixed overall private consumption trends.

Market Drivers

Increasing Electric Vehicle Demand

The rapid growth of electric vehicles is significantly influencing the need for advanced acoustic engineering services in the automotive sector. Unlike internal combustion engines, electric drivetrains operate with minimal mechanical noise, which causes other ambient sounds like tire-road interaction, wind turbulence, and cabin vibrations to become more noticeable to occupants. This shift is leading manufacturers to focus more on sound quality and acoustic treatment to maintain a premium in-cabin experience. As the EV market expands, automakers are turning to acoustic simulation tools, active noise cancellation systems, and new materials to mitigate these unwanted noises. The silent nature of EVs also introduces the requirement for artificial sound design to alert pedestrians, especially in urban areas, necessitating specialized acoustic engineering inputs. With rising EV adoption across passenger and commercial segments, companies offering acoustic engineering services are seeing a surge in demand for modeling, prototyping, and testing of low-noise vehicle systems. For instance, In 2024, India's electric vehicle (EV) industry achieved a significant milestone, with sales increasing by 26.5% year-on-year to 1.94 million units, according to Vahan data from the Ministry of Road Transport and Highways. This growth elevated the country's EV penetration to 7.46%, up from 6.39% in 2023. Despite this progress, traditional petrol vehicles remain dominant, comprising 73.69% of the 26.04 million vehicles sold in 2024. The average number of petrol, diesel, CNG, or hybrid vehicles sold per EV improved to 12.43, compared to 15.67 in 2023 and 21.05 in 2022.

Rising Vehicle Production

The continuous increase in vehicle production volumes is driving the demand for automotive acoustic engineering services. As manufacturers scale up operations to meet growing consumer needs, there is a stronger emphasis on reducing development time without compromising on in-cabin sound quality. High-volume production models must meet rigorous NVH standards across all units, which calls for extensive simulation, testing, and validation support from acoustic service providers. The surge in production spans both internal combustion engine vehicles and electric models, all of which require tailored acoustic engineering solutions to meet regulatory and consumer expectations. With the introduction of new models across various vehicle segments, including SUVs, sedans, hatchbacks, and commercial vehicles, automakers are integrating acoustic performance into early stages of design to avoid costly revisions at later stages. This is further supported by modular vehicle platforms that demand scalable acoustic engineering input across multiple model variants. For instance, in FY’25, India’s auto retail market grew by 6.46%, driven by 4.87% growth in Passenger Vehicles (PV) and 7.71% in Two-Wheelers (2W), while Commercial Vehicles (CV) remained flat at -0.17%. Rural markets outpaced urban across segments, with 2W growing 8.39% vs. 6.77% in cities, PV at 7.93% vs. 3.07%, and 3W at 8.70% vs. 0.28%. March’25 saw a -0.7% YoY dip but a 12% MoM rise due to festive demand. PV and CV grew YoY by 6% and 2.6%, while 2W, 3W, and tractors declined. Dealers raised concerns over high OEM targets, inventory pressure, weak bookings, and cautious financing. FY’26 outlook is cautiously optimistic, with 2W expected to see mid-to-high single-digit growth and PV/CV in low single digits, supported by new models, EV adoption, and improving rural income.

Increasing Disposable Income

Higher disposable income levels are boosting consumer expectations for comfort, refinement, and a quiet driving experience, which is increasing the demand for advanced acoustic engineering services. As more individuals upgrade to mid-range and premium vehicles, the desire for a noise-free cabin becomes an essential purchase criterion. Automakers are responding by focusing on NVH enhancements, requiring the support of engineering firms to simulate, analyze, and mitigate noise and vibration issues across different driving conditions. Higher spending capacity has also fueled demand for vehicles equipped with features such as high-performance audio systems and luxury interiors, which further necessitate acoustic calibration for optimal performance. For instance, India’s per capita disposable income is set to hit ₹2.14 lakh ($2,570) in 2023‑24, an 8 % jump after a GDP‑data revision and that rising spending power underpins a consumer market forecast to expand 46 % to $4.3 trillion by 2030 (up from $2.4 trillion in 2024). With a median age of 28, a projected one‑billion‑strong working‑age population 20 % of the world totaland a dependency ratio expected to drop from 47 % in 2023 to 31 % by 2031, demographic momentum is firmly on India’s side. Women’s labour‑force participation has leapt from 23 % in 2018 to 42 % in 2024, boosting dual‑income households and fuelling discretionary consumption that will power this market surge.

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Key Market Challenges

High Cost of Advanced Testing Infrastructure

One of the major challenges facing the automotive acoustic engineering services industry is the high cost of advanced testing and simulation infrastructure. Setting up facilities equipped with anechoic chambers, vibration analysis tools, and 3D acoustic simulation software requires significant capital investment, which can be a barrier for small and mid-sized service providers. These facilities must replicate a wide range of environmental and mechanical conditions to assess NVH characteristics accurately, and maintaining such precision equipment adds recurring expenses. The increasing complexity of modern vehicles, including hybrid powertrains, connected components, and lightweight materials, demands more sophisticated testing methodologies that are not always affordable or accessible. Service providers are also required to keep their tools and technologies updated with the latest standards and software updates, which adds to operational overheads.

Limited Standardization of NVH Metrics

The absence of universally accepted standards for measuring and evaluating NVH performance creates inconsistencies in the delivery of acoustic engineering services. Different automotive manufacturers often employ proprietary benchmarks or subjective evaluation methods, which makes it challenging for service providers to deliver consistent results across projects. This lack of standardization also complicates the training and development of NVH engineers, as skillsets may not transfer uniformly between client requirements. In acoustic simulation and modeling, variations in software platforms and testing protocols can lead to misalignment in expected versus delivered outcomes, causing delays in product validation and potential cost overruns. For electric vehicles, the situation becomes even more complex with newer sound design requirements and regulatory noise alerts that vary across jurisdictions.

Key Market Trends

Integration of AI and Machine Learning in Acoustic Design

Artificial intelligence and machine learning are reshaping the way acoustic engineering services are delivered in the automotive industry. These technologies are being used to predict sound behavior, identify patterns in noise propagation, and optimize acoustic materials based on real-time data. By analyzing vast datasets from simulation runs, machine learning models can forecast how changes in vehicle architecture, materials, or layout will impact NVH performance, allowing for quicker and more accurate design iterations. AI is also enabling the automation of acoustic tuning by identifying optimal configurations without requiring physical prototyping. This not only reduces development time but also cuts costs associated with manual testing. In electric vehicles, AI algorithms can be trained to generate artificial propulsion sounds that are both safe for pedestrians and pleasant for occupants. Deep learning models are also being used to detect and isolate vibration sources, improving the precision of diagnosis in complex systems.

Growing Use of Virtual Prototyping Tools

Virtual prototyping is becoming a central trend in automotive acoustic engineering, allowing engineers to simulate NVH performance without the need for physical models. Digital twins, 3D CAD models, and real-time acoustic simulation software enable early-stage design evaluation, which helps avoid costly design revisions and shortens product development cycles. These tools allow multiple NVH variables to be assessed simultaneously, including airflow noise, powertrain vibrations, and cabin resonance. Virtual testing also supports a more iterative design process, where various acoustic materials and structural modifications can be tested virtually before being implemented in physical builds. As vehicles become more complex with integrated electronics, infotainment systems, and lightweight materials, the need to analyze acoustic impact during the conceptual design phase is increasing. Virtual prototyping addresses this by offering scalable, precise, and flexible modeling capabilities. It also supports collaboration across different engineering teams and geographies, improving workflow integration and decision-making.

Increasing Electric Vehicle Infrastructure

The expansion of electric vehicle infrastructure is playing a significant role in accelerating demand for automotive acoustic engineering services. As more charging stations, battery-swapping networks, and grid-supportive ecosystems are developed, the adoption of electric vehicles is rising at a faster pace. This infrastructure growth boosts consumer confidence in EV usability, leading to higher sales and prompting automakers to enhance vehicle design and performance including NVH characteristics. The quieter nature of electric drivetrains makes minor noises more pronounced, pushing OEMs to prioritize acoustic treatments to preserve cabin comfort and brand differentiation. With charging infrastructure becoming more accessible, long-distance EV travel is increasing, creating a need for consistent NVH performance across varied terrains and speed ranges. For instance, India’s EV charging infrastructure is undergoing rapid expansion to meet surging EV demand, with sales rising from 1.17 million in FY23 to 1.67 million in FY24. Four-wheeler EV sales nearly doubled to 90,432 units. Despite progress, challenges like slow charging, inadequate infrastructure, lack of standardisation, and grid stability persist. India currently has a 1:400 EV-to-public charger ratio, compared to 1:7 in China and 1:20 in the US. To reach a 1:40 ratio by 2030, the country must install over 4 lakh chargers annually, totaling around 13 lakhs. Fast-charging tech, government-backed installations, and auto OEM efforts to offer home charging and improved battery warranties are helping address range anxiety and reliability concerns.

Segmental Insights

Vehicle Type Insights

In 2025, the passenger car segment was expected to dominate the India Automotive Acoustic Engineering Services market. The growing demand for enhanced driving comfort, quieter cabins, and premium user experience among individual vehicle buyers is driving the need for advanced acoustic treatment in this segment. Automakers are investing in noise, vibration, and harshness (NVH) optimization for mass-market and luxury passenger vehicles to differentiate on comfort and in-cabin refinement. As consumers increasingly associate acoustic performance with vehicle quality, there is heightened emphasis on reducing powertrain noise, wind turbulence, and road-induced vibrations. The shift toward electric and hybrid passenger cars is also contributing to this trend, as the reduced engine noise in these vehicles highlights previously unnoticeable sounds, creating new NVH challenges.

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Region Insights

In 2025, the western region was expected to dominate the India Automotive Acoustic Engineering Services market. This region has a high concentration of automotive manufacturing facilities, R&D centers, and testing laboratories that actively engage in acoustic engineering processes. The presence of a robust automotive ecosystem supports large-scale production and fosters demand for NVH optimization in both internal combustion and electric vehicles. Automakers and engineering service providers in this region are focusing on early-stage simulation, material acoustics, and active noise control systems to enhance in-cabin experience across vehicle segments. With increasing consumer demand for comfort and refinement, the western region is witnessing growing adoption of acoustic simulation software and digital prototyping tools.

Recent Developments

• ​In 2024, BMW Group and Tata Technologies formed a 50:50 joint venture, BMW TechWorks India, to develop automotive software, AI-driven solutions, and IT services. Based in Pune, Bengaluru, and Chennai, the venture will support BMW’s global digital operations and aims to scale its workforce significantly by 2025.
• In 2025, Continental launched its Ac2ated Sound display, turning vehicle screens into speakers using vibrating actuators. This innovation cuts audio system weight by 40 kg, reduces space needs, and delivers immersive, directional sound without traditional speakers.
• In 2025, Gestamp is driving early collaboration with OEMs to develop smarter, lighter vehicles using innovations like GES‑GIGASTAMPING® and Highpertubes. These solutions enhance safety, reduce weight, and support faster EV development.
• In 2025, Henkel Anand India is advancing as a key partner for automotive safety and comfort solutions. It introduced high-damping structural adhesives to reduce cabin noise and improve ride comfort, while also leveraging digital tools for enhanced quality control and efficiency across its operations.

Key Market Players

• Siemens Digital Industries Software (Siemens AG)
• Robert Bosch GmbH
• Continental Engineering Services GmbH (Continental AG)
• Bertrandt AG
• Schaeffler Engineering GmbH
• Autoneum Holding Ltd
• IAC Acoustics (Catalyst Acoustics Group)
• AVL List GmbH
• EDAG Engineering Group AG
• FEV Group GmbH

Report Scope:

In this report, the India Automotive Acoustic Engineering Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•           India Automotive Acoustic Engineering Services Market, By Vehicle Type:

o    Passenger Cars

o    Commercial Vehicle

•           India Automotive Acoustic Engineering Services Market, By Propulsion Type:

o    ICE

o    Electric

•           India Automotive Acoustic Engineering Services Market, By Application:

o    Drivetrain

o    Powertrain

o    Body & Structure

o    Interior

o    Others

•           India Automotive Acoustic Engineering Services Market, By Process:

o    Designing

o    Development

o    Testing

•           India Automotive Acoustic Engineering Services Market, By Region:

o    North

o    South

o    East

o    West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Automotive Acoustic Engineering Services Market.

Available Customizations:

India Automotive Acoustic Engineering Services Market report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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