In-Car Electronics: Entertainment and Navigation - US
Report description
Fantasy sports have grown into a full-year commitment. People play for fun, social, and competitive reasons, and some even do it for a living. There are radio stations and ESPN shows dedicated to fantasy sports, and there are applications for television, Apple products, and other forms of media that facilitate players staying connected to their team. One area that has yet to be entered is an application or products that allow drivers to stay connected to their fantasy teams while in the car.
Table of contents
What you need to know
Definition
Data sources
Automotive data
Market data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
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
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
Figure 3: Total U.S. new vehicle unit sales, 2000-10
As driver’s commute times stay high, drivers will want to stay connected
Figure 4: Men’s and Women’s work drive commute time, 2010
The consumer
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
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
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
Inspire Trend—Make it Mine
Inspire Trend—Access All Areas
MARKET SIZE AND FORECAST
Key points
Factory-installed systems will lead the growth in the in-car electronics, safety, and security market 20
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
Figure 10: Fan chart forecast of total in-vehicle entertainment devices revenues, at current prices, 2006-16
MARKET DRIVERS
Key points
LEGISLATION
Impact of legislation on use of cell phones and other in-car electronics
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
Figure 14: Total U.S. new vehicle unit sales, 2000-10
Used vehicle sales rising, which may positively affect aftermarket sales
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
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
Figure 19: Annual vehicle miles travelled, 1980-2009
COMPETITIVE CONTEXT
Cell phones compete with portable GPS and other in-vehicle technologies
Figure 20: Portable and handheld device usage in vehicles, July 2011
SEGMENT PERFORMANCE
OVERVIEW
Key points
Factory-installed systems are leading the growth of entertainment
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
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
Figure 23: Vehicles in operation, registration and scrappage rates, 1999-2009
Sales and forecast of aftermarket auto sound equipment
Figure 24: Sales of aftermarket auto sound equipment at current prices, 2006-16
Aftermarket satellite radio receivers declining since 2005
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
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
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
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
Figure 30: Sales of aftermarket vehicle safety and security systems, at current prices 2006-16
THE RETAIL LANDSCAPE
MANUFACTURER WEBSITES
Key points
SiriusXM must focus on retaining subscription customers from its vehicle subscribers
Figure 31: Subscription changes for SiriusXM, 2008-10
Figure 32: Functionality of GPS manufacturer websites, 2011
AUTOMOTIVE & BIG BOX RETAILERS
Key points
National retailers
National GPS-only retailers
Regional & local retailers
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
Pioneer Navigation System with Aha Radio Integration
iRadar
MARKETING STRATEGIES
Key points
PORTABLE GPS UNITS
Garmin
TV
Figure 34: Garmin dancing GPS, TV ad, November 2010
Figure 35: Garmin Summer Vacation, print ad, May 2009
Figure 36: Garmin takes you to secluded nature, print ad, JULY 2008
Online
TomTom
TV
Figure 37: TomTom vs. generic GPS, TV ad, November 2010
Figure 38: TomTom makes it to the start line, TV ad, November 2010
Figure 39: TomTom getting lost without GPS, print ad, August 2009
Online
Magellan
Online
Figure 40: The Magellan Facebook promotion, October 2011
OTHER AFTERMARKET PRODUCTS
OnStar
TV
Figure 41: OnStar GPS, and emergency device functionality, TV ad, October 2011
Figure 42: OnStar and gift of OnStar with John Rich, TV ad, May 2011
Figure 43: Will OnStar work on my car, web ad, July 2011
Figure 44: OnStar Aftermarket Service, print ad, August 2011
Social media
SiriusXM
Print
Figure 45: SiriusXM, change the way you listen, print ad, November 2009
Social media
Alpine
Kenwood
JVC
VEHICLE PURCHASE AND INTENT TO PURCHASE
Key points
Impact of household income on used vs. new vehicle purchase
Figure 46: Purchased a vehicle in the past three years and plan to purchase in the next two years, by household income, July 2011
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
Key points
More than a quarter of all respondents currently have or have had an infotainment or telematics system in their vehicle
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
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
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
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
Key points
Men more likely to have portable GPS, women more likely to use cell phone as GPS
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
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
Figure 54: Portable and handheld device usage in vehicles, by household income, July 2011
Presence of children correlates with greater use of handheld technology
Figure 55: Portable and handheld device usage in vehicles, by presence of children in household, July 2011
OWNERSHIP OF IN-CAR ELECTRONICS
AUDIO
Key points
CD players are the main electronic item installed in consumers’ vehicles
Figure 56: Audio equipment installed in vehicles, by gender, July 2011
Oldest respondents least likely to have any audio equipment in vehicle
Figure 57: Audio equipment installed in vehicles, by age, July 2011
Only 53% of lowest-earning households have CD players in their car
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
Figure 59: Safety and security installed in vehicles, by gender, July 2011
Higher-income households more likely to have a rearview camera
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
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
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
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
Figure 64: Video installed in vehicles, by gender, July 2011
25-44 year olds most likely to have in-vehicle DVD players
Figure 65: Video installed in vehicles, by age, July 2011
NEW VEHICLE IN-CAR SYSTEMS AS STANDARD, UPGRADE, OR AFTERMARKET
Key points
Respondents were most likely to have cell phone docks installed in both new and used vehicles
Figure 66: Products and features that were standard on a brand new vehicle, July 2011
IMPACT OF IN-CAR ELECTRONICS ON CAR PURCHASE DECISION
OVERVIEW
Key points
Respondents more likely to be swayed by in-dash navigation over any other type of equipment
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
Figure 68: Audio equipment influence on car purchase, by gender, July 2011
Majority of older respondents not influenced by audio equipment
Figure 69: Audio equipment influence on car purchase, by age, July 2011
Lower household income means less influenced by audio equipment
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
Figure 71: Video equipment influence on car purchase, by gender, July 2011
Younger respondents more influenced by video equipment
Figure 72: Video equipment influence on car purchase, by age, July 2011
Households with children younger than 18 most likely influenced by video
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
Figure 74: In-dash navigation influence on car purchase, by age, July 2011
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
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
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
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
Figure 80: Communications influence on car purchase, by gender, July 2011
Communication systems favored by those aged 35-44
Figure 81: Communications influence on car purchase, by age, July 2011
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
Figure 83: Safety and security feature influence on car purchase, by age, July 2011
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
Figure 86: Safety and security feature influence on car purchase, by urban area, July 2011
IN-CAR ELECTRONICS FOR NEXT VEHICLE
OVERVIEW
Key points
Many willing to pay extra for the basics: CD players and security systems
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
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
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
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
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
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
Key points
Asian and Pacific Islander respondents were the most likely to have bought a new car recently
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
Figure 94: Ownership of vehicle telematics and infotainment systems, by race/Hispanic origin, July 2011
Asians, Hispanics most likely to have portable GPS
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
Figure 96: Audio equipment installed in vehicles, by race/Hispanic origin, July 2011
Whites were most likely to have a security system
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
Figure 98: Communication and navigation installed in vehicles, by race/Hispanic origin, July 2011
Asians more likely to own video equipment in their vehicle
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
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
Figure 101: The products and features will influence you somewhat concerning your next vehicle purchase, by race/Hispanic origin, July 2011
CLUSTER ANALYSIS
Undistractibles
Demographics
Characteristics
Opportunity
Ride Flippers
Demographics
Characteristics
Opportunity
Ambivalent Travelers
Demographics
Characteristics
Opportunity
Cluster characteristic
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
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
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
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
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
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
WHAT CONSUMERS WOULD LIKE TO HAVE (WOULDN’T PAY EXTRA FOR)
Key points
Security is the top option all would like to have
Figure 120: The products and features that will influence buyer somewhat in next vehicle purchase, by gender, July 2011
Figure 121: The products and features that will influence buyer somewhat in next vehicle purchase, by age, July 2011
Figure 122: The products and features that will influence buyer somewhat in next vehicle purchase, by presence of children in household, July 2011
Figure 123: Video installed in vehicles, by household income, July 2011
Figure 124: The products and features will influence you somewhat concerning your next vehicle purchase, by household income, July 2011
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
Figure 126: Safety and security feature influence on car purchase, by Hispanic origin, July 2011
Figure 127: Communications influence on car purchase, by household income, July 2011
Figure 128: Video equipment influence on car purchase, by household income, July 2011
In-dash navigation ownership and influencers
Figure 129: In-dash navigation ownership, by region, August-September 2011
Figure 130: In-dash navigation ownership, by urban area, August-September 2011
Figure 131: In-dash navigation ownership, by vehicle ownership, August-September 2011
Figure 132: In-dash navigation upgrade or standard/came with car/truck, by gender, August-September 2011
Figure 133: In-dash navigation upgrade or standard/came with car/truck, by age, August-September 2011
Figure 134: In-dash navigation upgrade or standard/came with car/truck, by household income, August-September 2011
Figure 135: In-dash navigation upgrade or standard/came with car/truck, by marital status, August-September 2011
Figure 136: In-dash navigation upgrade or standard/came with car/truck, by household size, August-September 2011
Figure 137: In-dash navigation upgrade or standard/came with car/truck, by presence of children in household, August-September 2011
Figure 138: In-dash navigation upgrade or standard/came with car/truck, by financial situation, August-September 2011
APPENDIX: TRADE ASSOCIATIONS
APPENDIX: RESEARCH METHODOLOGY
CONSUMER RESEARCH
Primary Data Analysis
Sampling
Global Market Insite (GMI)
Secondary Data Analysis
Experian Simmons National Consumer Studies
Statistical Forecasting
Statistical modelling
Qualitative insight
The Mintel fan chart
Weather analogy
APPENDIX: WHAT IS MINTEL?
Mintel provides industry-leading market intelligence
Mintel Solutions:
Mintel Oxygen Reports
Mintel GNPD
Mintel Inspire
Mintel Beauty Innovation
Mintel Menu Insights
Mintel Research Consultancy
Mintel Comperemedia
Related research categories
By sector: Cars, Electrical/electronics (in Components), Infotainment (in Components)
By market: United States (in North America)
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