Rapid Growth Expected Among Automotive Display Audio Infotainment Suppliers, IHS Automotive Reports
SOUTHFIELD, Mich. (October 8, 2014) – Companies like Panasonic, Fujitsu-Ten, and Pioneer will see large growth over the next six years as display audio infotainment is forecasted to grow rapidly, according to IHS Automotive, part of IHS (NYSE: IHS) and a leading global source of critical information and insight to the global automotive industry.
IHS Automotive forecasts that vehicles with a Display Audio infotainment system will reach 25.4 million in 2020 worldwide. Panasonic, Fujitsu-Ten, and Pioneer currently have the largest market share among suppliers of display audio infotainment systems.
In comparison, those with traditional in-vehicle navigation systems in 2020 will be at 23 million. In 2014, display audio is only forecast to be 14.4 million units, meaning that while display audio will see a CAGR of 12 percent from 2014-2020, navigation will only see a CAGR of 7.6 percent in that same time period. This means companies like Harman, Bosch, and Alpine, which are currently the top three global navigation hardware suppliers, will need to look to add growth through other business like display audio systems.
“There are two explanations that explain the rapid growth in display audio units over navigation systems,” said IHS Automotive senior analyst Kevin Hamlin. “The first one is the rear-view cameras that will be required in all new vehicles starting in 2018 in the United States. The second explanation is due to OEMs implementing applications (apps) into the vehicle, usually via the driver’s smartphone.”
IHS Automotive analysis indicates that many OEMs are foregoing embedded navigation, such as GM’s MyLink solution, or choosing to have embedded navigation as an additional option, such as Toyota Europe’s Touch solution. Apps are becoming increasingly popular due to an increasing number of consumers that use smartphones and the number of consumers that now accept data plans in addition to voice plans. In vehicle infotainment and display audio screens are a way for OEMs to accommodate these consumers by allowing them safe access to apps in the vehicle.
About IHS Automotive (www.ihs.com/automotive)
IHS Automotive, part of IHS Inc. (NYSE: IHS), offers clients the most comprehensive content and deepest expertise and insight on the automotive industry available anywhere in the world today. With last year’s addition of Polk, IHS Automotive now provides expertise and predictive insight across the entire automotive value chain from product inception—across design and production—to the sales and marketing efforts used to maximize potential in the marketplace. No other source provides a more complete picture of the global automotive industry. IHS is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. 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.
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