Product Innovations Drive the Emerging Automotive Entertainment and Navigation Systems Market, Says Frost & Sullivan

SAN JOSE, Calif., March 17 -- Advancements in consumer electronics, wireless communications, and other enabling technologies is facilitating the rapid introduction of feature-rich innovative products that support advanced entertainment and navigation applications.

The expanding range of applications and the continuous introduction of new products at steadily declining prices is propelling rapid growth in the North American mobile infotainment market.

New analysis from Frost & Sullivan (http://www.transportation.frost.com/ ), North American Automotive Entertainment and Navigation Systems Market, reveals that the original equipment (OE) and aftermarket sales generated revenues of $1.2 billion in 2002, and are expected to reach $4.7 billion in 2008.

"Multimedia delivery platforms and new products such as DVD-based rear- seat entertainment systems with multi-channel surround sound audio, voice- based navigation systems, satellite radio, and compressed-audio (MP3) playback systems are redefining the in-vehicle entertainment experience," says Frost & Sullivan Research Analyst Veerender Kaul.

Market participants are faced with the challenge of overcoming the threat of obsolescence in an increasingly competitive market where, product cycles are short, development costs are high, and prices are constantly under pressure.

"With navigation systems entering high-volume vehicles, such as Toyota Camry and Honda Accord, the market is poised for strong growth," says Kaul.

Technologies such as Bluetooth and 802.11 that offer wireless data-link capabilities will enable different devices in the vehicle to communicate with each other and with devices at home and at work. This will significantly enhance the value of mobile electronics devices and drive their growth.

"Manufacturers endeavor to provide easy-to-use multifunctional devices based on flexible system architectures to meet the varied end-user demands," adds Kaul. "Ability to deliver continuous price-performance improvement is critical for market success."

To cater to the increasingly important customer segment of "soccer moms" and older males, manufacturers are strengthening their consumer electronics and mass merchandising channels.

Frost & Sullivan will hold a conference call at 3:00 p.m. (EST) on Thursday, March 20, 2003 to provide manufacturers, end-users and other industry participants an overview, summary, challenges and latest coverage on the North American Automotive Entertainment and Navigation Systems Market. Those interested in participating in the call should send an email to Cynthia Cabral - Media Relations Executive at ccabral@frost.com .

Frost & Sullivan is a global leader in strategic growth consulting. This ongoing growth opportunity analysis is part of the North American ITS/Emerging Technologies Markets Subscription, which also includes market insights on the Impact of 42-Volt Electrical Systems on North American Automobiles and the North American Intelligent Automotive Technologies Markets. Frost & Sullivan also offers custom growth consulting to a variety of national and international companies. Executive summaries and interviews are available to the press.

  North American Automotive Entertainment and Navigation Systems Market