Global Automotive Entertainment Systems (OEM and Aftermarket) to Reach US$40.9 Billion by 2017, According to New Report by Global Industry Analysts, Inc.

Share Article

GIA announces the release of a comprehensive global report on Automotive Entertainment Systems market. Global Automotive Entertainment Systems OEM and aftermarket is expected to reach US$26.7 billion and US$14.2 billion, respectively, by the year 2017. Miniaturization of speaker systems, integrated models of in-dash DVD players with SD slots and car audio systems with USB drive and Bluetooth technology will open up avenues for growth in the post recession period.

Automotive Entertainment Systems: A Global Strategic Business Report

Follow us on LinkedIn - Years of research and product developments in automotive electronics space have allowed consumers to experience same kind of entertainment that they get from home entertainment systems, in their vehicles and when on the move. Modern day vehicles come equipped with state-of-art entertainment systems, which allows users to play audio or video in their vehicles, thereby enhancing the user experience while driving or when being driven. In-car entertainment is big business with several new automobile models coming equipped with factory fitted high-end entertainment systems, as vehicle manufacturers re-focus on these systems as effective tools for product differentiation in a saturated automobile market. From car audio systems, gaming consoles to the convergence of information and entertainment, infotainment, the market over the last couple of decades has witnessed sea changes in technology development, and evolution. The upcoming years will witness not so common technologies like navigation systems, video systems, integrated cellular, satellite technologies and mobile gaming, evolving into bundled equipment integrated in the automobiles of the future. The rapid technology developments in consumer electronics especially in the field of mobility, has played instrumental roles in influencing consumers preferences for mobile entertainment.

A key guiding design goal for car audio systems is integration. Products with bluetooth connectivity, integration ability with popular consumer media devices, such as, iPods, built-in USB drives, are forecast to score maximum gains in the upcoming years. For instance, integrated models of in-dash DVD players with SD (flash storage) slots, GPS navigation and digital-TV with touch screen, USB ports, and Bluetooth technology are rising in popularity. Miniaturization of speaker systems is especially crucial in car audio systems with consumers preferring thinner speakers and shallow sub-woofers. With the Internet emerging into a vehicle for music proliferation, thanks to the vast library of both freely downloadable music, and pay per song services like Apple's iTunes, consumers currently demand anytime, anywhere network connections, and access to favorite music.

The MP3 format marked the first step in easy music portability between devices. However, CD/DVD players supporting MP3 require cumbersome transfer of music onto CDs/DVD discs and currently new generation audio systems are designed to directly connect to the network to eliminate compatibility issues with multiple Internet audio formats i.e. WMA, and MPEG versions. Additionally, car audio systems with USB drive eliminates the need for MP3 formatted CDs and allows the user to directly load music from the PC through a pen drive. Also in vogue are car audio systems with Wi-Fi connection that enables the user to directly upgrade hard drive configurations.

As with any other industrial sector, the global automotive entertainment industry had its own initial hurdles, and suffered a setback due to the recent economic recession. 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. The prolonged recession 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.

Going forwards, demand will be driven by recovery in GDP growth, employment rates, incomes levels and discretionary incomes, and rise in consumer confidence. Proliferation of Internet radio in automobiles will continue to gather steam in post recession period, and mirroring this trend is the rising number of in-dash Internet radio systems offered by various OEMs and third party providers.

As stated by the new market research report, Europe and Asia-Pacific together accounts for a major share of the global Automotive Entertainment Systems market in the OEM segment. By segment, Standard Audio Players is the largest contributor to revenues of Automotive Entertainment Systems market in the OEM segment. Conventional AM/FM car radio systems are being largely displaced by digital/satellite radio systems. Add on amplifiers, subwoofers, and speakers are loosing flavor given the growing availability of fully integrated full line audio/video systems. Satellite Radio is forecast to be the fastest growing segment within the Automotive Entertainment Systems market. Global market revenues for Satellite Radio in aftermarket segment are expected to surge at a CAGR of 14.8% over the analysis period. Opportunities in the aftermarket currently stem from upgradation of older vehicles in use.

Major players in the global marketplace include Alpine Electronics of America Inc., Audiovox Corporation, Bose Corporation, Blaupunkt GmbH, Clarion Corporation of America, Continental Automotive GmbH, Delphi Automotive LLP, 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, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections (US$ Million) for major geographic markets including the United States, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World. Market Analytics are reported both at OEM and the Aftermarket Level. Product segments analyzed include DVD Players, Standard Audio Players, Satellite Radio, and Others.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Automotive_Entertainment_Systems_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

Follow us on LinkedIn

Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Public Relations
Visit website

Media