Automotive Entertainment Systems: A Global Strategic Business Report
San Jose, CA (Vocus/PRWEB) April 12, 2011
The trickle down impact of the depressing business climate in the automotive industry on the global Automotive Entertainment Systems market is reflected in notable declines in growth rates in recent years. Factors that have brought down the automotive industry, such as restricted access to credit, rising levels of unemployment, decline in purchasing power, reduction in household wealth, falling consumer confidence, and postponement of new car purchases, among others have also played instrumental roles in dragging down growth in the automotive entertainment systems segment of the auto industry.
While decline in vehicle production hurt demand for in-vehicle entertainment systems in the OEM market, postponements of aftermarket purchases of dispensable aftermarket fittings and accessories including infotainment/entertainment solutions resulted in decline in demand in the aftermarket as well. Expensive aftermarket electronic installations have been especially impacted by the recession as in-vehicle entertainment systems turned extremely unattractive among target vehicle users, given the tight financial conditions.
With the passion for luxury cars and SUVs cooling, and with consumers trading down to inexpensive, low and mid-tier economy cars with limited features, the market in general witnessed significant softening of business opportunities. Since, high-end entertainment systems find applications in luxury cars, the decline in demand for expensive cars eroded revenues in the marketplace. With one of the inescapable symptom of the recession being declines in consumer spending and purchasing power, a seismic change in attitude in currently underway with consumers cutting down on spending on products which are considered as luxury. The prolonged recession has interestingly induced a long-term shift in consumer perception towards performance, price and value offered by products, which is expected to linger on even into the post recession period.
However, with recession having played out its part in full proportions and the automotive industry emerging from the previous lows, the worst is now over for automotive entertainment systems market, and a rebound is seen as inevitable over the next few years. With vehicle production staging a comeback, thanks to increasing consumer demand for new cars as a result of resurgence in growth fundamentals such as recovery in GDP growth, improvements in employment rates, incomes levels and discretionary incomes, and rise in consumer confidence, the demand for automotive entertainment systems in the OEM segment will be on the rise over the next few years.
As companies wake up to the fact that undeterred focus on long-term plans is critical to ward off the impact of the economic slowdown, creative designs, technology specifications and advanced capabilities will continue to come to the market, thereby driving demand for new-age automotive entertainment systems such as Satellite Radio, Hard-Disk-Drive Systems, and WMA/MP3 Systems. Opportunities in the aftermarket segment will mostly stem from upgrades of older vehicle in use. Also, in-car navigation and information systems have a higher appeal in the aftermarket, as factory fitted satellite navigation systems have product cycles that lag behind technology development in the aftermarket. This is primarily because unlike aftermarket manufacturers, automakers are saddled with issues related to specifications, testing, and conformance to technical and regulatory requirements. This thereby results in products manufactured by companies, such as, Garmin, Michelin and TomTom, outpacing factory fitted units even before the launch of the car itself. The rapid pace of depreciation in the value of factory-fitted systems will continue to result in skewing consumer preferences towards aftermarket products.
As stated by the new market research report on Automotive Entertainment Systems, Europe remains the largest regional market for automotive entertainment systems in the OEM segment. Asia-Pacific is the fastest growing regional market for automotive entertainment systems, with revenue from OEM segment in particular in the region waxing at a CAGR of more than 7.0% over the analysis period. Asia-Pacific market is also the largest regional market for automotive entertainment systems in the aftermarket segment. Growth in Asia-Pacific market is driven by robust automotive production scenario and increasing number of vehicles in use, thanks to strong demand for new cars in the region, particularly emerging countries such as China and India. Although Standard Audio Players market continues to remain the largest product segment, it will soon be overshadowed by new age entertainment systems markets.
Major players in the marketplace include Alpine Electronics of America Inc., Audiovox Corporation, Bose Corporation, Blaupunkt GmbH, Clarion Corporation of America, Continental Automotive GmbH, Delphi Automotive LLP, Hyundai Mobis, Harman International, JVC America Inc., Kenwood USA Corporation, KVH Industries Inc., LG Electronics Inc, Magnadyne Corporation, Mitsubishi Electric Automotive America Inc., Myron & Davis, Panasonic Automotive Systems Company of America, Pioneer Electronics (USA) Inc., Sirius XM Radio Inc, Sony Corporation, Visteon Corporation, RaySat Inc., among others.
The research report titled “Automotive Entertainment Systems: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, and key strategic industry activities. Market estimates and projections are presented for all major geographic markets including US Canada, Japan, Europe (France, Germany, Italy, UK, and Rest of Europe), Asia-Pacific, Latin America and Rest of World. The report analyzes key product markets such as DVD Players, Standard Audio Players, and Satellite Radio among others both in OEM and aftermarket segments.
For more details about this comprehensive market research report, please visit –
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