Consumer research China: Automotive Infotainment Market in China
The word “infotainment” comes from the combination of “information” and “entertainment”. Automotive infotainment was developed based on audio system in the car, and nowadays represents a range of electronic devices concerned with a vehicle’s delivery of information and entertainment content to the motorists. The field includes areas like navigation systems, premium audio, telematics, fuel efficiency, safety and connectivity solutions.
During the past decade, there has been a dramatic change in the automotive industry due to the rise of infotainment technology. According to the online press releases from the information and analytics provider HIS and from consumer research China from Daxue Consulting, the global automotive infotainment revenue grew by 3.4% from 2010 to 2011, amounted to $32.5 billion. In 2012, the revenue went up to $34.6 billion, and is expected to reach $41.2 billion by 2016. The main auto infotainment suppliers are from Japan, Europe and the US. In 2012, Panasonic listed Top 1 with revenue of nearly $4 billion. This counted for more than 10% of global market revenue. Other companies such as Japan’s Pioneer, the American company Harman and Germany Continental also listed in the Top 10 global suppliers.
The Chinese infotainment market accounts a small share in the global market at present with revenue for OEM (original equipment manufacture) infotainment system of $2.3 billion in 2012. However, China’s motorists are shifting their demand from simple audio systems to full navigation and telematics solutions. This market is expected to triple by 2020. Considering the specific situation in China, there are several possible future trends:
Firstly, audio system will remain dominant in the market. It is estimated that in 2012, 83% of all passenger vehicles, including cars, SUVs and MPVs sold in China were still equipped with audio systems alone. Secondly, navigation systems are growing fast in the OEM infotainment market. On one hand, the navigation systems are expected to target more on mid- and entry-level light vehicle models andhence the price is falling. On the other hand, the road infrastructure in China is developing so fast that navigation is becoming a must for the motorists. Thirdly, OEM-embedded telematics systems market also sees big growth potential. This market is still at its early phase, and the systems are mainly installed in luxury and high-end light vehicles. As the income of Chinese consumers increase, the installation proportion of OEM telematics systems will also increase.
China became the world’s largest car market in 2013, and there is undoubtedly huge potential in the automotive infotainment market. In the fast-changing digital age, it becomes more and more important to examine carefully the future trends and design new products, which can meet the consumers’ demand.