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Sustained, Strong Growth for China Auto Infotainment Market
Date: 14 February 2012

Recent analysis from IMS Research forecasts that total revenues for the Chinese market for infotainment systems* will increase quickly from $1.7 billion in 2011 to $5.3 billion in 2018.

The large increase in revenues is related to two factors. First, unit shipments for all major head unit types are predicted to almost double by 2018, thanks to the projected increase in light vehicle sales in China. Second, IMS Research projects that the average revenue for in-car infotainment systems per vehicle will increase beyond US$200 by 2018.

Michael Liu, an automotive analyst in IMS Research’s Shanghai office commented, "Although total market revenues are forecast to increase quickly up to 2018, there is a very different scenario for the future of each head unit type. For example, the OEM audio head unit market will stay flat over the forecast period, despite a shrinking OEM fitment rate caused by a shift to navigation head units in many mid-level cars.”

The future for the OEM audio/video head unit market, however, is desperate. It is forecast to shrink and eventually disappear. Safety issues and limited demand for watching video content while in the car are the two major reasons for this.

By contrast, the future of the OEM market for navigation head units is very promising. Market revenue is projected to increase fivefold by 2018. This is largely because OEM navigation head units are predicted to be used in increasing volumes of mid- and entry-level light vehicles. Furthermore, a falling average selling price will boost sales, and having navigation functionality is becoming a necessity for many in China as the road infrastructure is developing very quickly.

Outside of the established head unit types, the market for embedded telematics head units shows promise. Although the market is in an early phase in China right now, such systems will see some penetration in high-end and luxury light vehicles in the near future. A very important driving factor for this market is how much the service price will decrease in the near future. This will be particularly critical if the product is to penetrate mid- or even entry-level vehicles.

*Including audio, audio/video, navigation, and embedded telematics systems

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Editors Note :

Alastair Hayfield – Research Director, Automotive and Transport, IMS Research


T: +44 (0) 1933 402255 alastair.hayfield@imsresearch.com


About “In-Car Audio, Infotainment & Driver Information Systems - China – 2011’’ report


This is the 2nd edition of the IMS Research report on the Chinese Market for In-Car Audio, Infotainment & Driver Information/Telematics Systems. This 2011 edition continues to offer IMS Research’s most comprehensive coverage of the light vehicle entertainment, navigation and telematics markets, including forecasts of important trends to 2018. This report should be valuable for market personnels in system suppliers, vehicle manufacturers, semiconductor and software companies in the supply chain.

About IHS Inc. (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 employs more than 5,600 people in more than 30 countries around the world.

About IMS Research:

IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry, offering syndicated market studies, custom research and consultancy services. Clients include most of the household names in the industry. IMS Research has offices in Europe, the US, China, Taiwan, South Korea, and Japan. To find out more, contact IMS Research: enquiries@imsresearch.com; T: +44 (0) 1933 402255; http://imsresearch.com