Analysis of the European Aftermarket for Telematics and Infotainment Systems - Market Size and Forecasts
The European Aftermarket for Telematics and Infotainment Systems is Likely to Increasingly Feature Integrated Portable Navigation Systems Integration Made Possible by Technological Innovation Offers More to Consumers London, UK – 14 February, 2006 - Previously, the lack of product differentiation plagued the European Telematics and infotainment industry. Now however, the opening of the aftermarket has brought in products from the consumer electronics industry, thereby making differentiation more pronounced and has caused traditional suppliers to face intensifying competition. Accordingly, market success will increasingly be defined by the ability of Telematics suppliers to match pace with the technological developments of consumer electronics companies. The aftermarket greatly improved the success rate of the Telematics and infotainment industry. Initially, the original equipment (OE) market was associated with products having prohibitive prices meant only for higher-segment cars. This, however, changed as the industry was revolutionised by the aftermarket with the introduction of low-cost portable solutions, both in navigation and entertainment. Mobile phones equipped with 3G technology provided an ideal platform for portable navigation to take off in the aftermarket. Hand-held map-based navigation with advanced mobile phones and PDA systems are gaining traction in the market. "Portable navigation systems have caused a major shake down in the European aftermarket with almost half of the total unit sales among all applications in the infotainment industry," according to Frost & Sullivan (http://transportation.frost.com) Transportation Analyst Shyamsundar Anandhan. "The popularity of hands-free telephony and media streaming, will cause wireless technologies such as Bluetooth and Wi-Fi to increasingly penetrate the market especially since Bluetooth and the iPod are worthy marketing tools for in-car entertainment systems." The European Telematics and Infotainment systems market earned revenues of € 7.93 billion in 2005 and is estimated to reach € 23.02 billion in 2011. Of all the segments in the infotainment industry— integrated systems, navigation systems, rear-seat entertainment (RSE) systems and in-vehicle Bluetooth interface systems—integrated systems are most likely to meet consumer demands. However, consumer unwillingness to pay a high price for integrated systems could be a damper to potential revenue generation. Other factors that could adversely impact the Telematics and Infotainment systems market are low levels of customer awareness and the burgeoning consumer electronics market. Although high price is still a major factor that could impede purchase of these products, consumers have a misconception that Infotainment products are complicated to use. In addition, traditional suppliers are struggling to keep pace with consumer electronic companies which have faster development cycles. By collaborating with consumer electronics companies, traditional suppliers can optimally leverage the rapid evolution of technology and offer complete solutions. Suppliers can also identify the product mix that consumers favour and distribute it accordingly to avoid either dumping or scarcity. Offering easy–to-use products with innovative advertising in addition to training distributors and dealers on increasing customer awareness will also prove beneficial. "Although these are daunting challenges, the aftermarket is likely to fight back with integrated Infotainment systems that combine navigation and entertainment in one single device which is expected to be the trend in the coming years," according to Mr. Anandhan. "The declining popularity of stand-alone products and consumer electronics companies that provide the latest technology at competitive prices will force traditional suppliers to rethink their strategies in the aftermarket.” Therefore, traditional automotive companies will greatly benefit by combining their strengths of automotive expertise with the lightning fast production cycles of a consumer electronic company. Suppliers will also need to form partnerships with portable solutions manufacturers as low-cost portable solutions are possible in every car. Moreover, consistent demand for utility features in automotives is likely to keep this market running smoothly. 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 Analysis of the European Aftermarket for Telematics and Infotainment Systems - Market Size and Forecasts, then send an e-mail to Magdalena Oberland, Corporate Communications, at magdalena.oberland@frost.com with the following information: your full name, company name, title, telephone number, fax number, e-mail address and source of information. Upon receipt of the above information, an overview will be sent to you through e-mail. Background 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. List of Keywords in this Press Release: Telematics, Infotainment, aftermarket, Europe, navigation systems, rear seat entertainment systems, RSE, integrated systems, in-vehicle Bluetooth interface systems, hand-held map-based navigation, research, information, market, trends, technology, service, forecast, market share