Industry Economics

The Audio Production Studios industry has experience volatile conditions over the five years to 2020.

Online streaming services have sparked a structural change in how media is consumed, distributed and recorded.

Alongside new mediums for distribution, recent technological improvements in recording equipment have enabled musicians and artists to take more control over their content than ever before.

Thus, industry revenue has been volatile during the period, which provides clients with facilities and technical expertise in audio production and postproduction services.

Over the five years to 2019, the Audiobook Publishing industry has exhibited strong growth as consumer demand for audiobooks has increased.In particular, the simultaneous rise of the digital audiobook format and increased smartphone usage have made audiobooks more accessible to a wider audience than ever before.

During the five-year period, digital audiobooks have continued to eclipse other audiobook formats, as they facilitate greater economies of scale and higher profit margin.

Furthermore, shifting media consumption habits among consumers have largely been in favor of audiobooks.Stoked by the increasing popularity of podcasts and online radio shows, consumers have turned to audiobooks as a convenient form of entertainment and education.

Overall, increased accessibility and shifting consumer preferences have resulted in outsized growth for the Audiobook Publishing industry during the five-year period.

Research expects industry revenue to increase an annualized 18.5% to $1.1 billion over the five years to 2019, including projected growth of 17.8% in 2019 alone.

The Automobile Interior Manufacturing industry manufactures automobile seats and interiors, including upholstery, trimming, seat covers, seat frames and seat belts.

The industry also includes the production of seats for aircrafts, buses and trains.

Historically, automakers have been the main drivers of demand for the industry.

Over most of the five years to 2021, demand for total automobiles has been relatively muted.

As a result, upstream suppliers, such as industry automobile interior manufacturers, experienced tepid demand.

Additionally, due to the COVID-19 (coronavirus) pandemic, macroeconomic conditions began to deteriorate and demand for new automobiles plunged even further.

Overall, industry revenue has decreased at an annualized rate of 4.3% to $28.8 billion over the five years to 2021.

However, this includes an anticipated rise of 5.6% in 2021, as operators adjust further to pandemic conditions and the economy normalizes somewhat.

An intensified focus on financial positions and net premium growth for liability insurance products have aided the Automobile Insurance industry over the five years to 2020.

Industry operators provide individuals and businesses with various lines of insurance needed to legally operate an automobile, as well as invest a portion of underwritten premiums in financial instruments.

Over the five years to 2020, the industry experienced rising premium prices as operators looked to rebuild profit margin and excess capital reserves.

Due to this trend, industry revenue is anticipated to increase at an annualized rate of 3.2% over the five years to 2020 to $308.8 billion.

Despite premium growth for the majority of the period, industry operators are expected to be negatively impacted by declining consumer confidence and investment income in 2020 as a result of fears surrounding the spread of coronavirus.

As a result, industry revenue is expected to decline 1.4% in 2020.

Despite this decline in 2020, industry profit margin, measured as earnings before interest and taxes, is expected to increase from 9.6% of industry revenue in 2015 to 11.6% in 2020, in part due to improved combined ratios during the latter portion of the period.

Operators in the Automobile Metal Stamping industry forge vehicle parts out of metal inputs, such as steel, aluminum and carbon fiber.

As a result, demand for industry products closely follows demand for finished vehicles, which improved over much of the five years to 2020 due to rising income and falling unemployment.

During the current period, domestic automakers increasingly shifted production schedules to focus on light-duty trucks and SUVs, aiding industry revenue.

Furthermore, low interest rates helped bolster consumer sentiment, encouraging consumers to spend money on big-ticket items, including vehicles.

However, as macroeconomic conditions deteriorated in 2020 due to the emergence of COVID-19 (coronavirus), so too did auto production and, therefore, industry revenue.

Overall, industry revenue is expected to decrease at an annualized rate of 4.6% to $30.8 billion over the five years to 2020, including an expected 16.3% drop in 2020 alone as car sales plummet in the aftermath of the pandemic.

Over the five years to 2020, the Automobile Engine and Parts Manufacturing industry has had a bumpy ride.

Operators in this industry manufacture gasoline engines and related components that are essential to the production of automobiles.

Therefore, industry revenue performance is directly linked to the production of vehicles.

As vehicle sales have increased over most of the past five years, so did demand for engines.

However, as new car sales growth slowed down in recent years, engine manufacturers’ revenue fell.

This decline was accelerated in 2020 as the outbreak of COVID-19 (coronavirus) decimated demand for new cars and therefore, demand for new auto engines.

Consequently, industry revenue has decreased, falling at an annualized rate of 5.1% to $28.4 billion over the five years to 2020, including an anticipated decline of 28.9% in 2020 alone.

This decline in revenue has contributed to declining industry profit as well.