The European Aftermarket for Telematics and Infotainment

DUBLIN, Ireland--Research and Markets (http://www.researchandmarkets.com/reports/c68598) has announced the addition of “European Telematics and Infotainment Aftermarket - Investment Analysis” to their offering.

The European aftermarket for telematics and infotainment devices is witnessing robust growth, driven largely by the continuing decline in prices of telematics and infotainment systems. Furthermore, there have been rapid advancements in product features year-on-year and with the introduction of a host of sophisticated consumer electronics devices, more and more consumers are seeking to extend the home entertainment environment into their vehicles. Additionally, the increase in daily average distance travelled is also a factor in the increasing popularity of navigation and rear-seat entertainment systems.

However, increasing competition from the original equipment (OE) market could be an important challenge for aftermarket competitors. Due to the growing competition levels in the mature automotive industry, automobile manufacturers are increasingly looking at telematics and infotainment systems as an important product differentiation feature. "This has helped fuel demand for these systems in the OE market and aftermarket players fear losing out to the OE market participants once these systems become a standard factory-installed offering," notes the analyst of this research service. "In addressing this issue, a number of aftermarket players plan to enter the OE market through tie-ups and partnerships with auto makers."

Rear Seat Entertainment Systems and Mobile Phone-based Navigation Systems Likely to See Healthy Growth Rates

Among the product segments, the rear seat entertainment, mobile phone-based navigation, and dedicated navigation systems segments are likely to record good growth rates between 2007 and 2011. In the medium term these segments are also expected to witness some level of consolidation in an effort to ease the pressure on operating margins of existing participants. While private equity and venture capitalist attractiveness is likely to be moderate for some of these segments, it is expected to be a good investment avenue for asset management companies who look out for a mix of high-return stocks in their portfolios.

Considering the increasing pressure on operating margins, Frost & Sullivan believes that acquisitions, alliances, and strategic partnerships are going to be key for the growth in the EU telematics and infotainment aftermarket. "In future, regional companies could well become important acquisition targets as larger companies look to take advantage of lower cost as well as economies of scale," says the analyst. "Backward integration with technology and software providers and forward integration with sales and distribution companies are also expected to happen, in order to achieve operational synergies as well as increase market shares in this technology-intensive industry.

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

- Turn by turn navigation systems

- Map based navigation systems

- Mobile phones based navigation systems

- Dedicated navigation systems

- Rear seat entertainment systems

- In-vehicle Bluetooth car-kits

For more information, visit http://www.researchandmarkets.com/reports/c68598