Demand for Greater Infotainment Value Doubles Revenues of Automotive Infotainment Systems Market

PALO ALTO, Calif.--April 6, 2005--The automotive infotainment systems market, which contains rear-seat entertainment systems, compressed audio players, and satellite radio/television systems, is witnessing high growth rates in all product segments. The market is looking to capitalize on this lead and strategize for greater penetration and long-term, sustainable growth.

New analysis from Frost & Sullivan (www.transportation.frost.com), North American Automotive Infotainment System Markets, reveals that revenue in this market totaled $2.01 billion in 2004 and projects to more than double to $4.84 billion by 2011.

If you are interested in a virtual brochure, which provides manufacturers and other industry participants an overview of the latest analysis of the North American Automotive Infotainment System Markets, then send an e-mail to Tolu Babalola, Corporate Communications, at tolu.babalola@frost.com with the following information: your full name, company name, title, telephone number, fax number and e-mail. Upon receipt of the above information, she will send you an overview via e-mail.

Consumers are demanding greater infotainment value from their vehicles and vehicle manufacturers. The products they have in their homes (digital entertainment systems with theater-level infotainment experience), they now want for their vehicles. Market participants will have to step up their research and development (R&D) efforts and offer innovative infotainment solutions at attractive price points, if they are to break into this market successfully.

Another factor compelling infotainment system manufacturers to incorporate attractive features into high system architecture is the increasing popularity of the Internet and home theatre systems among all consumer demographics. End users' greater awareness about consumer electronics is helping expand the market beyond high-end vehicles to other vehicle segments.

"Market participants that have developed strategies to conduct effective consumer and end-user analysis to understand the market's needs are expected to succeed," says Frost & Sullivan Research Analyst Sandeep Karr." Synergies between consumer and product research groups are crucial to make products that meet end-user needs, offering several growth prospects to companies that implement this strategy."

Since most automotive companies have capitalized on the opportunities offered, the market has seen frenzied research and development activity. With numerous technological innovations and product launches, consumers and automakers are concerned about the hasty obsolescence of the technologies.

To further drive the market, automotive infotainment companies are working to enhance Human Machine Interfaces (HMIs) and provide intuitive and flexible systems featuring forward/backward compatibilities at affordable price levels.

Since most consumers are not familiar with the operations of such advanced systems, they have caused distractions while driving. The new class of systems expects to surmount this problem by ensuring end-user comfort and ease of use.

"Automakers and consumers seek sophisticated HMIs that demand minimal driver intervention for greater driving safety," notes Kar. "The development of convenient and easy points of control, single-knob controls, touch-screen operation, voice-based HMIs, and other measures has been aimed at improving the HMIs."

Enhanced R&D activity by system manufacturers expects to lead to the creation of intelligent, user-friendly infotainment systems that will attract customers for their ergonomic styling.

North American Automotive Infotainment System Markets, part of the Transportation subscription, offers an in-depth analysis of the North American automotive infotainment system markets. It examines various industry challenges as well as market drivers and restraints. It also provides strategic recommendations for manufacturers to overcome the market hurdles. The research enables companies to align their positioning strategies to benefit from the changing markets and obtain maximum return on investment. Executive summaries and analyst interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com.

North American Automotive Infotainment System Markets

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Keywords in this release: automotive infotainment system, North America, rear-seat entertainment systems, compressed audio players, satellite radio/television systems, digital entertainment systems, home theatre systems, Internet, human machine interfaces, HMI, single-knob controls, touch-screen operation, voice-based HMI, research, information, market, trends, technology, service, forecast.