The global automotive entertainment systems market has been poised for swift growth since the advent of 21st century, appropriated to the early adopters and innovators adoption of these sophisticated systems. Entertainment systems, predominantly rear-seat entertainment systems, MP3 players, and satellite radio, are rapidly surfacing into a preference attribute of today's automobile system elucidation. The automotive entertainment systems market is foreseen to witness a surge in number of new entrants to get a piece of the nascent market. Although the automotive entertainment systems market is still in the preliminary stage, major market accomplices are scuttling for differentiated position.
Automotive entertainment systems act as differentiation tool and are scheduled to extend the trend in the mid-segment cars. The wide application of this system include entertainment, location-based services, navigational services (GPS), internet (games, sport scores, surfing, social networking, movies, traffic conditions, weather forecast, etc.), communication functions such as making and receiving calls via smart phone integration and value added services.
Surge in disposable revenue has boosted the growth of high-end and luxury car segments, thereby contributing to the growth of the automotive entertainment systems market. Increasing modifications in customer driving experience, reduced costs, and increased product efficiency due to single processor deployment, and surging social status infringements have encouraged the automated entertainment systems market growth. Changing lifestyles also drive growth, as people are foreseen to spend an increased amount of time in their cars while commuting long distances. Vehicle owners are inclined to extend the comforts of their homes to their vehicles.
The development of OEMs offering is expected to stimulate automotive entertainment systems aftermarket growth. Since aftermarket products are not as expensive as OEM products, a large number of customers are expected to opt for the former. As automakers install the entertainment systems in the factory stage, aftermarket products are foreseen to get a considerable boost in product visibility aspect, consequently, helping raise the product awareness. Every dollar that OEMs invest in the automotive entertainment systems market facilitates product awareness and the specifications of the system, in order to drive the price-sensitive aftermarket.
Despite the emerging growth trend, the automotive entertainment systems market is expected to face some challenges. One of the major challenges imminent for the automotive entertainment market is high price as automotive entertainment systems are highly price perceptive.
The automotive entertainment systems market can be segregated on the basis of product into the audio unit, display unit, navigation unit, and communication unit. Based on the applications, the market can be isolated into entertainment, navigational, communication, and future applicability segments.
Automotive entertainment systems market players have collaborated with both, automotive and consumer electronics vendors, to increase the automotive entertainment installation in luxury and mid-segment cars. Automotive entertainment systems are foreseen to witness dynamic applicability owing to abridged costs of devices such as LCD display panels and reducing charges of assembled media admittance services.
Increasing per capita income and commute time across the globe have increased the reception for infotainment systems among the luxury and mid-segment car owners. North America is the expected to be one of the major reception regions followed by the European continent. This can be attributed to increased demand for high-tech products and rising awareness of people about technological advancements. The Asia-Pacific market is foreseen to reveal a noteworthy growth rate over the forecast period owing to the surging luxury car sales.
Some of the key participants in the automotive entertainment systems industry include JVC-Kenwood, Bosch, Delphi, Denso, Alpine, Harman International, and Pioneer. This market also includes software platform developers such as Luxoft, KPIT, Intel, and Nuance, automotive entertainment systems service providers Meego Aha – Harman, and navigation system-service providers, Garmin and TomTom.
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