Growth of the European Aftermarket for Telematics and Infotainment to Hinge on Enhanced Demand for Portable Navigation Systems

LONDON, June 22 -- With the emergence of portable navigation suppliers and consumer electronic companies, the European aftermarket for telematics and infotainment systems is witnessing growing competition. Accordingly, major consumer electronic suppliers are consolidating their position as leaders in the market, which was earlier dominated by traditional automotive companies. As a result, the market is experiencing greater demand for navigation solutions, mobile services for off-board support and Bluetooth car-kits, thereby also assisting the growth of component suppliers and solution providers.

"The leading product segments such as navigation and Bluetooth telephony are luring an increasing number of suppliers in the value chain, thus contributing to the highly dynamic nature of the aftermarket," notes Frost & Sullivan Research Analyst Shyamsundar Anandhan.

In the future, the market is likely to be dominated by companies that have a presence in portable navigation and portable multimedia. In a related development, component or accessory suppliers will witness a surge in growth opportunities if they improve their capabilities and evolve into system suppliers.

Meanwhile, the entry of new participants such as component suppliers and various traditional automotive companies into the portable navigation segment is expected to result in increased market fragmentation. Subsequently, this is likely to hamper the growth of consumer electronic companies, which dominated the market in 2005.

"Further, the introduction of completely off-board navigation systems will lead to greater dependence on mobile network operators to ensure the provision of high-quality services," states Mr. Anandhan. "As a result, the market will witness reduced monopoly of navigation system suppliers."

Despite this, navigation systems, due to their high utility value, will continue to be the highest revenue-generating product segment in the market. Moreover, portable navigation devices are replacing navigation systems that were traditionally embedded with either turn-by-turn or map display systems. Thus, portable navigation systems will continue to dominate the sector, as they offer better potential in comparison to traditional embedded navigation systems.

At the same time, the emergence of integrated technology is driving suppliers to combine more than one application into a single device to gain improved market acceptance. Accordingly, integrated systems, which include navigation, rear seat entertainment (RSE) and other crucial features in one single device are expected to promote overall market development.

While the stand-alone RSE market is on the decline, portable digital versatile disc (DVD) players and integrated systems are emerging, thus supporting the continuously evolving in-car entertainment sector. Hence, in-car entertainment, coupled with DVD-based navigation is likely to challenge portable navigation suppliers that possess a large market share.

In the context of Bluetooth interface systems, hands-free calling through Bluetooth is gaining importance as a popular addition to the 1-DIN radio or a portable navigation device.

Overall, companies with multiple product segment capabilities, which include a portfolio that offers integrated systems, are likely to exhibit maximum growth potential in the aftermarket for telematics and infotainment systems. Moreover, navigation system suppliers would do well to forge alliances with mobile network operators and other navigation solution providers to provide high-quality off-board navigation.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Competitive Analysis of the European Aftermarket for Telematics and Infotainment Systems, 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, e-mail address, city, state, and country. We will send you the information through e-mail upon receipt of the above information.

Competitive Analysis of the European Aftermarket for Telematics and Infotainment Systems is part of the Transportation Subscription, which also includes research in the following markets: navigation, rear seat entertainment (RSE), integrated systems and Bluetooth-based in-car telephony. All research included in subscriptions provide detailed market opportunities and industry trends. All research is evaluated following extensive interviews with market participants. Interviews are available to the press.

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List of key industry participants: Alpine, Appello, Blaupunkt, Clarion, Garmin, Delphi-Grundig, Harman Becker, Kenwood, Magellan, Navigon, Navman, Navteq, Panasonic, Pioneer, Samsung Europe, Siemens VDO, Sony, Sony UK, Sony, Europe, TeleAtlas, TomTom, Valeo, Visteon, VDO Dayton, Wayfinder

List of keywords in this press release: aftermarket for telematics and infotainment systems, telematics, infotainment systems, Europe, portable navigation, consumer electronic companies, TomTom, Navigon and Pioneer, automotive companies, navigation solutions, mobile services, off-board navigation systems, Bluetooth car-kits, component suppliers, solution providers, Bluetooth telephony, multimedia, system suppliers, embedded navigation systems, integrated systems, rear seat entertainment, RSE, digital versatile disc, DVD, portable DVD players, in-car entertainment, 1-DIN radio