Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Automotive data
- Market data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
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- Figure 1: Sales of in-car entertainment, information, safety and security systems, by segment, 2010-11
- Used vehicle sales fail to keep aftermarket in-car electronic sales steady
- Factory-installed systems dominate the market, followed by portable and transportable navigation
- Aftermarket satellite radio receivers drop to new lows of $45 million in sales
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- Figure 2: Fan chart forecast of total in-vehicle entertainment devices revenues, at current prices, 2006-16
- Market factors
- National, state, and local legislation threatening use of in-car electronics
- New vehicle sales and new vehicle production will drive the growth in factory installed electronics
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- Figure 3: Total U.S. new vehicle unit sales, 2000-10
- As driver’s commute times stay high, drivers will want to stay connected
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- Figure 4: Men’s and Women’s work drive commute time, 2010
- The consumer
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- Figure 5: Portable and handheld device usage in vehicles, by gender, July 2011
- Figure 6: Video equipment influence on car purchase by presence of children in household, July 2011
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- Figure 7: Products and features must have and willing to pay more for in next vehicle purchase by gender, July 2011
- What we think
Insights and Opportunities
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- ESPN and Fantasy Sports Application for your car
- Fantasy Sports
- ESPN
- Factory-installed Sony and Microsoft built-in gaming system for the vehicle
- GPS combined with Radar Detector
- The portable GPS unit with multiple applications
Inspire Insights
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- Inspire Trend—Make it Mine
- Inspire Trend—Access All Areas
Market Size and Forecast
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- Key points
- Factory-installed systems will lead the growth in the in-car electronics, safety, and security market
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- Figure 8: Total in-vehicle entertainment, safety, and security devices revenues, at current prices, 2006-16
- Figure 9: Total in-vehicle entertainment devices revenues, at inflation adjusted prices, 2006-16
- Fan chart forecast
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- Figure 10: Fan chart forecast of total in-vehicle entertainment devices revenues, at current prices, 2006-16
Market Drivers
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- Key points
- Legislation
- Impact of legislation on use of cell phones and other in-car electronics
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- Figure 11: State laws on distracted driving, Alabama-Montana, 2011
- Figure 12: State laws on distracted driving, Nebraska-Wyoming, 2011
- Figure 13: Handheld cell phone use banned while driving, by country, 2011
- Where manufacturers stand on developments and legislation
- Radar Detector Laws
- Vehicle sales
- New vehicle sales increase, potentially affecting aftermarket sales and installation
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- Figure 14: Total U.S. new vehicle unit sales, 2000-10
- Used vehicle sales rising, which may positively affect aftermarket sales
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- Figure 15: U.S. average dealership sales of used vehicles at new car dealerships, 2005-10
- Driving trends
- Longer commute times lead to consumers wanting more connectivity in their vehicle
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- Figure 16: U.S. Worker driver commute time, 2010
- Figure 17: Women’s work drive commute time, 2010
- Figure 18: Men’s work drive commute time, 2010
- People driving less, and taking fewer road trips creates less demand for high-ticket items
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- Figure 19: Annual vehicle miles travelled, 1980-2009
Competitive Context
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- Cell phones compete with portable GPS and other in-vehicle technologies
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- Figure 20: Portable and handheld device usage in vehicles, July 2011
Segment Performance
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- Overview
- Key points
- Factory-installed systems are leading the growth of entertainment
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- Figure 21: Sales of in-car entertainment, information, safety, and security systems, by segment, 2010-11
- Factory-installed systems
- Key points
- Production of new vehicles will drive sales of factory-installed units
- Carmakers need to be careful about putting too much content in vehicles
- Chrysler UConnect
- Ford Sync
- MyFord/MyLincoln Touch
- GM MyLink/Intellilink
- Hyundai Blue Link
- Toyota Entune
- HD radio offered as enhanced feature, alternative to satellite radio
- Sales and forecast of factory-installed systems
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- Figure 22: Total sales of factory-installed systems at current prices, 2006-16
- Aftermarket auto sound equipment
- Key points
- Aftermarket negatively affected by factory-installed components
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- Figure 23: Vehicles in operation, registration and scrappage rates, 1999-2009
- Sales and forecast of aftermarket auto sound equipment
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- Figure 24: Sales of aftermarket auto sound equipment at current prices, 2006-16
- Aftermarket satellite radio receivers declining since 2005
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- Figure 25: Sales of satellite radio receivers, at current prices 2006-16
- Figure 26: Automotive companies offering SiriusXM, October, 2011
- Mobile video systems
- Key points
- Aftermarket mobile video is being hurt by high prices and factory-installed units
- Sales and forecast of mobile video devices
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- Figure 27: Sales of mobile video devices, at current prices 2006-16
- Radar detectors
- Key points
- Radar detector sales will grow as vehicle sales increase
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- Figure 28: Sales of radar detector, at current prices 2006-16
- Portable and transportable navigation
- Key points
- Portable GPS systems have come down in total unit sales and also in unit price, leading to lower sales revenue
- Lower costs and technological advancements of in-dash systems will hurt portable GPS sales
- Sales and forecast of portable and transportable navigation units
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- Figure 29: Sales of portable and transportable navigation units, at current prices 2006-16
- Aftermarket vehicle safety and security
- Key points
- Aftermarket safety products negatively affect the market by factory technology
- Sales and forecast of aftermarket vehicle safety and security systems
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- Figure 30: Sales of aftermarket vehicle safety and security systems, at current prices 2006-16
The Retail Landscape
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- Manufacturer websites
- Key points
- SiriusXM must focus on retaining subscription customers from its vehicle subscribers
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- Figure 31: Subscription changes for SiriusXM, 2008-10
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- Figure 32: Functionality of GPS manufacturer websites, 2011
- Automotive & big box retailers
- Key points
- National retailers
- National GPS-only retailers
- Regional & local retailers
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- Figure 33: Regional and local retailers in car electronics offerings, 2011
- Online retailers
- Key points
- Online retailers have an advantage by not having storefronts
Innovations and Innovators
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- Pioneer Navigation System with Aha Radio Integration
- iRadar
Marketing Strategies
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- Key points
- Portable GPS units
- Garmin
- TV
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- Figure 34: Garmin dancing GPS, TV ad, November 2010
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- Figure 35: Garmin Summer Vacation, print ad, May 2009
- Figure 36: Garmin takes you to secluded nature, print ad, JULY 2008
- Online
- TomTom
- TV
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- Figure 37: TomTom vs. generic GPS, TV ad, November 2010
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- Figure 38: TomTom makes it to the start line, TV ad, November 2010
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- Figure 39: TomTom getting lost without GPS, print ad, August 2009
- Online
- Magellan
- Online
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- Figure 40: The Magellan Facebook promotion, October 2011
- Other aftermarket products
- OnStar
- TV
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- Figure 41: OnStar GPS, and emergency device functionality, TV ad, October 2011
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- Figure 42: OnStar and gift of OnStar with John Rich, TV ad, May 2011
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- Figure 43: Will OnStar work on my car, web ad, July 2011
- Figure 44: OnStar Aftermarket Service, print ad, August 2011
- Social media
- SiriusXM
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- Figure 45: SiriusXM, change the way you listen, print ad, November 2009
- Social media
- Alpine
- Kenwood
- JVC
Vehicle Purchase and Intent to Purchase
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- Key points
- Impact of household income on used vs. new vehicle purchase
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- Figure 46: Purchased a vehicle in the past three years and plan to purchase in the next two years, by household income, July 2011
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- Figure 47: Purchased vehicle in the past three years and plan to purchase in the next two years, by presence of children in household, July 2011
Ownership of Telematics/Infotainment Systems
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- Key points
- More than a quarter of all respondents currently have or have had an infotainment or telematics system in their vehicle
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- Figure 48: Ownership of vehicle telematics and infotainment systems, by gender, July 2011
- 25-34 year olds most likely to own a vehicle with telematics or infotainment systems
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- Figure 49: Ownership of vehicle telematics and infotainment systems, by age, July 2011
- Highest-earning households most likely to have infotainment or telematics in their vehicle
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- Figure 50: Ownership of vehicle telematics and infotainment systems, by household income, July 2011
- Ownership of telematics or infotainment systems higher among those with kids
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- Figure 51: Ownership of vehicle telematics and infotainment systems, by presence of children in household, July 2011
Use of Handheld and Portable Devices in Vehicle
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- Key points
- Men more likely to have portable GPS, women more likely to use cell phone as GPS
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- Figure 52: Portable and handheld device usage in vehicles, by gender, July 2011
- Hands-free calling and a portable GPS are two items the 65+ consumer is most likely to own
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- Figure 53: Portable and handheld device usage in vehicles, by age, July 2011
- Higher household income increases likelihood of using a variety of handheld technologies in vehicle
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- Figure 54: Portable and handheld device usage in vehicles, by household income, July 2011
- Presence of children correlates with greater use of handheld technology
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- Figure 55: Portable and handheld device usage in vehicles, by presence of children in household, July 2011
Ownership of In-car Electronics
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- Audio
- Key points
- CD players are the main electronic item installed in consumers’ vehicles
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- Figure 56: Audio equipment installed in vehicles, by gender, July 2011
- Oldest respondents least likely to have any audio equipment in vehicle
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- Figure 57: Audio equipment installed in vehicles, by age, July 2011
- Only 53% of lowest-earning households have CD players in their car
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- Figure 58: Audio equipment installed in vehicles, by household income, July 2011
- Safety and security
- Key points
- Men’s vehicles feature more safety and security features than women’s vehicles
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- Figure 59: Safety and security installed in vehicles, by gender, July 2011
- Higher-income households more likely to have a rearview camera
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- Figure 60: Safety and security installed in vehicles, by household income, July 2011
- Communication and navigation
- Key points
- Hands-free calling system more prevalent than in-dash navigation
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- Figure 61: Communication and navigation installed in vehicles, by gender, July 2011
- Older respondents least likely to have any additional communication or navigation features except in-dash navigation
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- Figure 62: Communication and navigation installed in vehicles, by age, July 2011
- As with many upgraded features, highest-earning households most likely to have extra communication features
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- Figure 63: Communication and navigation installed in vehicles, by household income, July 2011
- Video
- Key points
- Some 12% of men have a DVD player installed in their vehicle
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- Figure 64: Video installed in vehicles, by gender, July 2011
- 25-44 year olds most likely to have in-vehicle DVD players
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- Figure 65: Video installed in vehicles, by age, July 2011
New Vehicle In-car Systems as Standard, Upgrade, or Aftermarket
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- Key points
- Respondents were most likely to have cell phone docks installed in both new and used vehicles
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- Figure 66: Products and features that were standard on a brand new vehicle, July 2011
Impact of In-car Electronics on Car Purchase Decision
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- Overview
- Key points
- Respondents more likely to be swayed by in-dash navigation over any other type of equipment
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- Figure 67: The influence of electronic products on car/truck purchase, July 2011
- Audio
- Key points
- Audio equipment may somewhat influence a buyer’s decision, but for most it will not be a deciding factor
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- Figure 68: Audio equipment influence on car purchase, by gender, July 2011
- Majority of older respondents not influenced by audio equipment
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- Figure 69: Audio equipment influence on car purchase, by age, July 2011
- Lower household income means less influenced by audio equipment
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- Figure 70: Audio equipment influence on car purchase, by household income, July 2011
- Video
- Key points
- Video equipment will influence the purchase of a vehicle for 70%+ of consumers
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- Figure 71: Video equipment influence on car purchase, by gender, July 2011
- Younger respondents more influenced by video equipment
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- Figure 72: Video equipment influence on car purchase, by age, July 2011
- Households with children younger than 18 most likely influenced by video
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- Figure 73: Video equipment influence on car purchase, by presence of children in household, July 2011
- In-dash navigation
- Key points
- 18-44 year olds and those with children most influenced by in-dash navigation
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- Figure 74: In-dash navigation influence on car purchase, by age, July 2011
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- Figure 75: In-dash navigation influence in car purchase, by presence of children in household, July 2011
- Telematics/Infotainment
- Key points
- Respondents equally split on the influence of telematics and infotainment
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- Figure 76: Telematics/Infotainment influence on car purchase, by gender, July 2011
- Telematics and Infotainment systems are influential for those with children in the household
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- Figure 77: Telematics/Infotainment influence on car purchase, by age, July 2011
- Figure 78: Telematics/Infotainment influence on car purchase, by household income, July 2011
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- Figure 79: Telematics/Infotainment influence on car purchase, by presence of children in household, July 2011
- Communication
- Key points
- Vehicle communication systems are more influential to men than women
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- Figure 80: Communications influence on car purchase, by gender, July 2011
- Communication systems favored by those aged 35-44
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- Figure 81: Communications influence on car purchase, by age, July 2011
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- Figure 82: Communications influence on car purchase, by presence of children in household, July 2011
- Safety and security
- Key points
- Security systems are more influential to those who live in an urban area
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- Figure 83: Safety and security feature influence on car purchase, by age, July 2011
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- Figure 84: Safety and security feature influence on car purchase, by household income, July 2011
- Figure 85: Safety and security feature influence on car purchase, by presence of children in household, July 2011
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- Figure 86: Safety and security feature influence on car purchase, by urban area, July 2011
In-car Electronics for Next Vehicle
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- Overview
- Key points
- Many willing to pay extra for the basics: CD players and security systems
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- Figure 87: Products and features people must have and are willing to pay for in their next vehicle purchase, July 2011
- Must-have devices for which consumers are willing to pay extra
- Key points
- Fewer than expected differences for gender needs for features
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- Figure 88: Products and features must have and willing to pay more for in next vehicle purchase, by gender, July 2011
- CD player must-have option for younger respondents, in-dash navigation higher responses from older
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- Figure 89: Products and features must have and willing to pay more for in next vehicle purchase, by age, July 2011
- As household income increases so does the amount of options for which respondents would pay more
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- Figure 90: Products and features must have and willing to pay more for in next vehicle purchase, by household income, July 2011
- Presence of children influences need for DVD players and monitors
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- Figure 91: Products and features must have and willing to pay more for in next vehicle purchase, by presence of children in household, July 2011
- Urban dwellers more likely to say “must have” to more options than those in suburban and rural areas
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- Figure 92: Products and features must have and willing to pay more for in next vehicle purchase, by urban status, July 2011
Impact of Race and Hispanic Origin
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- Key points
- Asian and Pacific Islander respondents were the most likely to have bought a new car recently
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- Figure 93: Purchased vehicle in the past three years and plan to purchase in the next two years, by race/Hispanic origin, July 2011
- Asians/Pacific Islanders had the highest response rate to currently owning a telematics system
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- Figure 94: Ownership of vehicle telematics and infotainment systems, by race/Hispanic origin, July 2011
- Asians, Hispanics most likely to have portable GPS
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- Figure 95: Portable and handheld device usage in vehicles, by race/Hispanic origin, July 2011
- Blacks were least likely to have a CD player in their vehicle
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- Figure 96: Audio equipment installed in vehicles, by race/Hispanic origin, July 2011
- Whites were most likely to have a security system
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- Figure 97: Safety and security installed in vehicles, by race/Hispanic origin, July 2011
- Hispanic respondents are most likely to have hands-free calling on their vehicle
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- Figure 98: Communication and navigation installed in vehicles, by race/Hispanic origin, July 2011
- Asians more likely to own video equipment in their vehicle
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- Figure 99: Video installed in vehicles, by race/Hispanic origin, July 2011
- Black respondents are most likely to be influenced by their audio system on their vehicle
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- Figure 100: Audio equipment influence on car purchase, by race/Hispanic origin, July 2011
- Black respondents were most likely to be willing to pay more for most options
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- Figure 101: The products and features will influence you somewhat concerning your next vehicle purchase, by race/Hispanic origin, July 2011
Cluster Analysis
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- Undistractibles
- Demographics
- Characteristics
- Opportunity
- Ride Flippers
- Demographics
- Characteristics
- Opportunity
- Ambivalent Travelers
- Demographics
- Characteristics
- Opportunity
- Cluster characteristic
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- Figure 102: In-car electronics owner clusters, July 2011
- Figure 103: Purchased vehicle in the past three years and plan to purchase in the next two years, by in-car electronics owner clusters, July 2011
- Figure 104: Ownership of vehicle telematics and infotainment systems, by in-car electronics owner clusters, July 2011
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- Figure 105: Portable and handheld device usage in vehicles, by in-car electronics owner clusters, July 2011
- Figure 106: Products and features installed in vehicles, by in-car electronics owner clusters, July 2011
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- Figure 107: The video products and features that influence and do not influence your decision, by in-car electronics owner clusters, July 2011
- Figure 108: The communication and navigation products and features that influence and do not influence your decision, by in-car electronics owner clusters, July 2011
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- Figure 109: The security and safety products and features that influence and do not influence your decision, by in-car electronics owner clusters, July 2011
- Figure 110: The audio products and features that influence and do not influence your decision, by in-car electronics owner clusters, July 2011
- Cluster demographics
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- Figure 111: In-car electronics owner clusters, by gender, July 2011
- Figure 112: In-car electronics owner clusters, by age, July 2011
- Figure 113: In-car electronics owner clusters by household income, July 2011
- Figure 114: In-car electronics owner clusters by race, July 2011
- Figure 115: In-car electronics owner clusters, by Hispanic origin, July 2011
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- Figure 116: In-car electronics owner clusters, by education, July 2011
- Figure 117: In-car electronics owner clusters, by employment, July 2011
- Figure 118: In-car electronics owner clusters, by presence of children in household, July 2011
- Figure 119: In-car electronics owner clusters, by household size, July 2011
- Cluster methodology
Appendix: Additional Consumer Tables
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- What consumers would like to have (wouldn’t pay extra for)
- Key points
- Security is the top option all would like to have
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- Figure 120: The products and features that will influence buyer somewhat in next vehicle purchase, by gender, July 2011
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- Figure 121: The products and features that will influence buyer somewhat in next vehicle purchase, by age, July 2011
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- Figure 122: The products and features that will influence buyer somewhat in next vehicle purchase, by presence of children in household, July 2011
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- Figure 123: Video installed in vehicles, by household income, July 2011
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- Figure 124: The products and features will influence you somewhat concerning your next vehicle purchase, by household income, July 2011
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- Figure 125: The products and features will influence you somewhat concerning your next vehicle purchase, by urban area, July 2011
- Other useful tables
- Car purchase influences
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- Figure 126: Safety and security feature influence on car purchase, by Hispanic origin, July 2011
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- Figure 127: Communications influence on car purchase, by household income, July 2011
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- Figure 128: Video equipment influence on car purchase, by household income, July 2011
- In-dash navigation ownership and influencers
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- Figure 129: In-dash navigation ownership, by region, August-September 2011
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- Figure 130: In-dash navigation ownership, by urban area, August-September 2011
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- Figure 133: In-dash navigation ownership, by vehicle ownership, August-September 2011
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- Figure 134: In-dash navigation upgrade or standard/came with car/truck, by gender, August-September 2011
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- Figure 135: In-dash navigation upgrade or standard/came with car/truck, by age, August-September 2011
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- Figure 136: In-dash navigation upgrade or standard/came with car/truck, by household income, August-September 2011
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- Figure 137: In-dash navigation upgrade or standard/came with car/truck, by marital status, August-September 2011
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- Figure 138: In-dash navigation upgrade or standard/came with car/truck, by household size, August-September 2011
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- Figure 139: In-dash navigation upgrade or standard/came with car/truck, by presence of children in household, August-September 2011
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- Figure 140: In-dash navigation upgrade or standard/came with car/truck, by financial situation, August-September 2011
Appendix: Trade Associations
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