• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
IHS Release: China's In-Vehicle Infotainment Set to Triple by 2020
 

IHS Release: China's In-Vehicle Infotainment Set to Triple by 2020

on

  • 648 views

China’s motorists are developing more sophisticated tastes in car electronics, shifting their demand from simple audio systems to full navigation and telematics solutions—a development that will ...

China’s motorists are developing more sophisticated tastes in car electronics, shifting their demand from simple audio systems to full navigation and telematics solutions—a development that will cause the country’s automotive OEM infotainment systems market to rise by a factor of three from 2012 to 2020.

Statistics

Views

Total Views
648
Views on SlideShare
648
Embed Views
0

Actions

Likes
0
Downloads
2
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    IHS Release: China's In-Vehicle Infotainment Set to Triple by 2020 IHS Release: China's In-Vehicle Infotainment Set to Triple by 2020 Document Transcript

    • News Release News Media Contact: Jonathan Cassell, IHS Direct: +1 408 654 0319 Mobile: +1 408 921 3754 Jonathan.Cassell@ihs.com CHINA’S IN-VEHICLE INFOTAINMENT MARKET SET TO TRIPLE BY 2020 Shanghai (Sept. 17, 2013) – China’s motorists are developing more sophisticated tastes in car electronics, shifting their demand from simple audio systems to full navigation and telematics solutions—a development that will cause the country’s automotive OEM infotainment systems market to rise by a factor of three from 2012 to 2020. The total market revenue for OEM infotainment systems in China is set to expand to $7.1 billion in 2020, up from $2.3 billion in 2012, according to a IHS Automotive new report entitled "In-Car Audio, Infotainment & Driver Information Systems - China - 2013" from IHS Inc. (NYSE: IHS), a leading global source of critical information and insight. Revenue this year is expected to surge by 26 percent to reach nearly $3.0 billion, as presented in the attached figure. The market for OEM infotainment systems includes basic audio, audio/video, navigation, telematics and rear-seat infotainment equipment that is installed in cars by original equipment manufacturers. A major factor
    • driving the growth of revenue in China is the fact that navigation and telematics are more expensive than simple audio systems. Revenue Forecast for OEM Infotainment Systems in China (Millions of U.S. Dollars) 2012 2013 2014 2015 2016 2017 2018 2019 2020 Millions of U.S. Dollars 2,343 2,959 3,519 4,132 4,698 5,319 5,963 6,536 7,090 Source: IHS Inc. September 2013 Source: IHS Inc. September 201 Navigation systems find fast growth "The market for in-vehicle navigation is booming in China, leading the way for the growth in the OEM infotainment market,” said Michael Liu, senior analyst, China automotive electronics, at IHS Automotive. “By 2020, shipments of navigation systems will reach 8.2 million units, accounting for 35 percent of all the passenger light vehicles sold in China. This is largely because OEM navigation systems are expected to be featured in more mid- and entry-level light vehicle models. The falling pricing is one reason, but - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenue Forecast for OEM Infotainment Systems in China (Millions of U.S. Dollars)
    • another important factor has to do with the fact that China’s road infrastructure is developing so quickly and navigation is becoming a must- have feature." Audio systems keep the volume up Although OEM navigation and telematics are gaining popularity in China, audio is still the major infotainment product type in China. IHS estimates that 83 percent of all passenger vehicles, including cars, sports utility vehicles and multipurpose vehicles sold in China during 2012 were still equipped with audio systems alone—and with no other infotainment features. But because of the increasing installation of OEM navigation and embedded telematics systems, the fitment rate of OEM audio systems is forecast to drop steadily. Even so, OEM audio is forecast to remain the largest infotainment category in 2020. At the same time, the market in China for OEM audio/video systems is phasing out quickly. Safety issues and limited demand among passengers for watching video content while in the car are the two major reasons for this. For their part, most suppliers upgraded their audio/video systems to navigation products a long time ago. Telematics on the rise Although still in its early phases in China, telematics is already of very high interest to vehicle manufacturers and consumers. OEM-embedded telematics systems mainly will be installed in high-end and luxury light vehicles, with fitment rates forecast to increase quickly to reach 15 percent in 2020, up from just 1 percent in 2012.This is because most luxury vehicles are expected to have OEM telematics systems in the future. Given the steady rise in income among Chinese consumers on average, the proportion of luxury vehicles among the population will also increase, giving way to more high-end vehicles equipped with OEM telematics systems. As a result, market revenue is forecast to quickly climb to $1.9 billion in 2020, up from only $122 million in 2012.
    • The Chinese in-vehicle infotainment market remains huge with plenty of opportunities overall. Still, companies can experience difficulties in coming up with product portfolios future-proofed to meet the needs of consumers. Because of this, it is vitally important that companies examine future trends and take consumer preferences into careful consideration when developing new products, IHS believes. ### About IHS (www.ihs.com) IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs more than 8,000 people in 31 countries around the world. IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. © 2013 IHS Inc. All rights reserved.