The Global Market for Automotive Entertainment Systems for OEM and the Aftermarket is Projected to Reach US$10.3 Billion and US$7.6 Billion Respectively by 2022
Stable Auto Production &
Rising Car Density Drive the Global Market for Automotive Entertainment
Systems, According to a New Report by Global Industry Analysts,
Inc.
GIA
launches comprehensive analysis of industry segments, trends, growth drivers,
market share, size and demand forecasts on the global Automotive Entertainment
Systems market. The global market for
Automotive Entertainment Systems for OEM and the Aftermarket is projected to
reach US$10.3 billion and US$7.6 billion respectively by 2022, driven by stable automobile
production, rising passenger car density and rise of extreme commuting.
Automobiles,
over the years, have become the everyday way of life for a large portion of the
global population. Rapid urbanization and unchecked urban sprawl have resulted
in people travelling long distances and spending more time travelling to work
and back. Modern commuters on an average spend substantial amount of time on
the road, thus making entertainment vital and indispensable. Drivers and
passengers demand cars to be more than a mode of transportation and lay strong
emphasis on being informed and entertained when in the vehicle, thus creating
strong business case for automotive entertainment systems such as audio
players, DVD players, and satellite radio systems among others.
Audio players such as MP3 and CD players
with USB ports allow drivers/commuters to listen to music and audio books in
the car, thus making productive use of time in the traffic and leveraging
commute time for indulging in personal hobbies like music and reading. Also,
with research studies demonstrating the impact of music in alleviating stress
experienced during traffic congestion, a growing number of vehicle owners are
turning to their favorite music player over their in-car stereo decks, thus
benefiting demand for car audio systems. Audio books help commuters catch up on
their favorite reading, while satellite radio enables them to keep in tune with
the latest news and events. This increased reliance on entertainment system is
also encouraging upgrades to more technologically feature rich systems and
decks, thus benefiting opportunities in the aftermarket. Growing passenger car
density worldwide is also helping expand the addressable opportunity for automotive entertainment
systems in
the aftermarket. Key factors driving passenger car density, especially in
developing countries, include growing GDP, strong employment rates, increase in
disposable income, rapid urbanization, upgrading lifestyles and increased
spending on consumer durables such as automobiles. The growing global base of
vehicle fleet generates a steady flow of upgrades in the aftermarket.
Opportunities
for automotive technologies in the OEM market on the other hand are largely
reliant upon the overall health of the automobile industry. Stable production outlook for cars despite
slowing growth in auto sales, therefore is helping sustain demand prospects for
automotive entertainment systems in the OEM market. Renaissance of automotive production in the
United States and the United Kingdom, political support for the automotive
industry in Germany, Spain and Italy as it represents the key engine of
economic growth, and emergence of new production zones in Southeast Asia and
Africa are all helping sustain growth in auto production. In Japan, the
aggressive economic policy is keeping the domestic automotive industry ticking.
Mexican production is showing strong gains as the country emerges into a
production hub for the United States. In conclusion, the projected global
growth in volume serial production of automobiles and increased penetration of
automotive electronics and software will provide balanced growth opportunities
for entertainment systems, especially robust, affordable cost-effective
entertainment systems. Also, automotive
OEMs are constantly looking for opportunities to improve their sales by
introducing novel vehicle models with add-on features to better meet the needs
of customers, thereby creating opportunities for advanced automotive
entertainment systems.
As
stated by the new market research report on Automotive Entertainment
Systems, Asia-Pacific
represents the largest as well as the fastest growing market for automotive
entertainment systems with sales to the OEM and aftermarket segments waxing at
a CAGR of 3.0% and 3.6% respectively over the analysis period 2015-2022. Huge
population, increasing income levels, growing car ownership and robust demand
for small affordable workday cars will generate strong demand for basic
entertainment systems such as audio players, DVD players and radios. By
segment, DVD Players represents the fastest
growing product market in the OEM and aftermarket segments.
Major
players in the market include Alpine Electronics of America, Inc., Bose
Corporation, Blaupunkt GmbH, Clarion Corporation of America, Continental
Automotive GmbH, Harman International, JVCKENWOOD USA Corporation, Kenwood USA
Corporation, KVH Industries, Inc., LG Electronics Inc, Magnadyne Corporation,
Mitsubishi Electric Automotive America, Inc., Myron & Davis, Panasonic
Automotive Systems Company of America, Pioneer Electronics (USA) Inc., Sony
Corporation, Visteon Corporation, and VOXX International Corporation, among
others.
The
research report titled “Automotive Entertainment
Systems: A Global Strategic Business Report” announced by Global Industry Analysts Inc.,
provides a comprehensive review
of market trends, issues, drivers, mergers, acquisitions and other strategic
industry activities of major companies worldwide. The report provides market
estimates and projections for all major geographic markets including the US,
Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of
Europe), Asia-Pacific (China and Rest of Asia-Pacific), Latin America (Brazil
and Rest of Latin America) and Rest of World. DVD Players, Audio Players,
Satellite Radio, and Other Entertainment Systems are the key product markets analyzed
in the report, across
the OEM and Aftermarket segments.
For
enquiries e-mail us at rsd@strategyr.com or info411@strategyr.com.
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