AM/FM radio continues to dominate U.S. in-car audio listening in mid-2026, but smartphone integration, streaming growth, selective radio removals by automakers, and a legislative push to mandate broadcast radio are reshaping the landscape.
Listening Shares and Platform Competition
Edison Research’s Q1 2026 Share of Ear data shows AM/FM radio (over-the-air or streamed) accounts for 55% of all in-car audio time among Americans ages 13+. Streaming audio holds about 16%, with the remaining ~29% split among podcasts, SiriusXM, YouTube, owned music, and audiobooks.
Among ad-supported in-car audio, radio’s share is even stronger—around 83% overall. Younger listeners (13–34) give radio 46% of in-car time versus 30% for streaming. Radio remains the primary source across most vehicle brands, though podcast listening varies sharply (e.g., higher among Tesla owners at ~17% of in-car ad-supported time, much lower for Chevrolet).
In-car listening represents a growing share of total radio time (over 50% in recent periods), reinforcing the vehicle as radio’s strongest environment.
In-car listening represents a growing share of total radio time (over 50% in recent periods), reinforcing the vehicle as radio’s strongest environment.
Consumer Preferences and Purchase Influence
A May 2026 Nielsen study (partnered with iHeartMedia) of more than 1,000 recent and prospective car buyers found:
- 51 Percent would refuse to buy a vehicle without AM/FM radio; However 49 percent would.
- More than 7 in 10 view it as essential standard equipment—on par with smartphone integration (Apple CarPlay/Android Auto) and ahead of satellite radio or built-in subscription music apps.
- Choice-based conjoint analysis ranked AM/FM radio as the second-most influential audio/infotainment feature in purchase decisions (behind only smartphone integration).
- About 8 in 10 value Emergency Alert System access via broadcast radio.
Smartphone Integration, Streaming, and Quality Issues
However, J.D. Power’s 2026 Initial Quality Study highlighted rising problems with infotainment screens and connectivity—particularly CarPlay and Android Auto issues—as a notable decline area. Drivers report frustration with laggy or unreliable systems.
Physical media continues to fade: factory CD players have essentially disappeared from 2026 models.
Physical media continues to fade: factory CD players have essentially disappeared from 2026 models.
Automaker Decisions and Emerging Tech: Some electric vehicle makers have removed or limited terrestrial radio. Examples include Tesla’s standard Model 3 and Model Y trims, Rivian’s R2 (no AM/FM, replaced by data connection and apps like iHeartRadio with subscription tiers), and the upcoming Slate electric truck. Reasons cited include electromagnetic interference in EVs (addressable with low-cost filters) and a preference for connected, monetizable experiences.
Broader tech trends include:
- Spatial/immersive audio (Dolby Atmos) expanding from luxury OEMs into aftermarket systems and more models.
- Software-defined DSPs, AI-powered voice assistants (more conversational and context-aware), and personalized cabin experiences.
- Growth in rear-seat entertainment, EV-optimized efficient amplifiers, and distributed/decentralized audio architectures that reduce hardware costs.
- Cars increasingly treated as “second living rooms” or multi-purpose spaces with streaming, gaming, and wellness features.
The bipartisan AM Radio for Every Vehicle Act (aiming to require AM—and often discussed with FM—receivers in new passenger vehicles, with transition labeling) continues to advance but faces delays. It has strong congressional support and has been attached to broader transportation packages. Broadcasters and emergency officials emphasize public safety (EAS reliability when cellular/power fails).
Automakers and some tech interests have lobbied against it, citing costs and design flexibility. State associations and the NAB intensified advocacy in July 2026