Telematics, Navigation and Infotainment System Enterprises Must Focus on Building Product Awareness to Sustain Growth

PALO ALTO, Calif., Sept. 7 -- End-users perceive telematics, navigation, and infotainment systems as luxury products that they want and not necessarily need. Enterprises must overcome this perception while competing with alternate products such as global positioning systems (GPS) that offer similar functions.

New analysis from Frost & Sullivan (http://www.transportation.frost.com/ ), Malaysian Telematics and Infotainment Markets, reveals that revenues in the infotainment segment of these markets totaled $15.1 million in 2004 and can reach $45.2 million in 2010.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants an overview of the latest analysis of the Malaysian Telematics and Infotainment Markets, then send an e-mail to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

"Lack of product awareness due to insufficient exposure and publicity is hindering the growth of the telematics and navigation system market," states Frost & Sullivan Research Analyst Tan Siok Hui.

In addition, major telecommunication providers offer real-time traffic updates through multimedia message services (MMS) so that mobile phone users receive pictures of real-time traffic conditions on a specific road. Therefore, not all vehicle owners perceive navigation systems as a necessity.

To tackle this situation, enterprises in this nascent market should device appropriate promotional strategies and awareness campaigns to educate consumers on the product benefits and features, leading to greater penetration into the Malaysian passenger vehicle market.

Another concern for the in-car navigation system (ICNS) companies is the increasing difficulty for digital map developers to offer accurate maps and constantly update them, while the new infrastructure construction activities continue to rise.

"Nevertheless, this provides ICNS manufacturers opportunities to offer real-time traffic reports and alternative traffic routes, thus enabling them to improve traveling efficiency and avert long waits near traffic signals," observes Hui.

The country's economic growth has also spurred the demand for car accessories, including better sound quality entertainment and navigation systems. Economies of scale during production that result in a subsequent reduction in ICNS prices can make the products more affordable for the majority of vehicle owners in Malaysia.

In the meantime, prices have declined in the in-car infotainment (ICI) system market due to the high levels of competition, especially from the unbranded products from China, Korea, and Taiwan. To combat this, ICI product manufacturers are offering price discounts and have introduced low-range car entertainment systems with fewer features to tap into the lower vehicle segments.

Further, the increasing consumer preference for advanced product features can result in vehicle owners switching from conventional audio systems to ICI systems, which are both technologically and functionally superior.

The rising acceptance of ICI products among the younger generation due to their trendy designs and a gamut of entertainment functions are driving the market. This growth is likely to continue with the introduction of the downloading function in the ICI systems.

The Malaysian Telematics and Infotainment Markets provides an overview and outlook for the telematics, ICNS and ICI system markets. The study enables the manufacturers of this equipment to design strategies and position their products to benefit from the changing markets and obtain maximum return on investments. Analyst interviews and executive briefings 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/ .