The Automotive Infotainment Industry is expected to grow at a CAGR of 11.25 percent from the 2014-2019 thanks to a few up-and-coming trends.
TechNavio has pinpointed four of these trends that will have a positive impact on market growth during the forecast period:
Increased Demand for Automotive Infotainment
The Global Automotive Infotainment market is growing at a significant pace, which is leading to increased demand for HMI systems. An increase in global vehicle production and increased usage of infotainment devices are expected to play a vital role in the growth of the Global Automotive HMI market. Infotainment devices are used for communication, entertainment, and navigation and are expected to influence the demand for telematics devices, which will lead to increased market growth.
Steering wheel controls are the most preferred and popular input technology for infotainment (and telephony). The decline in cost of the specific electronics which are required to make these systems, is a driver for increased usage of similar automotive infotainment systems.
Shift Toward Low-cost Cars
Another major trend witnessed by the market is the growing focus on reducing prices of HMI systems to cater to the needs of low-end vehicle manufacturers.
Consumers are changing their preferences to shift to low-cost compact cars because of the increasing traffic jams and their tendency to quickly switch between car options for newest models. Compact and low cost segment cars equipped with automated manual transmission (AMT) and advanced HMI systems are expected to account for nearly half of the sales in the segment in the forecasted period.
The market is expected to witness increasing penetration of HMI systems in the Low-cost Cars segment in the coming years. Suppliers such as Continental and Robert Bosch are working closely with OEMs to develop low-cost systems for the medium-sized Cars and Compact Cars segment because these segments will help HMI systems vendors to attain economies of scale and reduce the price of HMI systems.
Popularity of Basic Voice Interface in Europe and North America
Advanced features are expensive and are targeted at high-end vehicles. However, there is an increased adoption of basic features of HMI systems in the low-end vehicles too, which in turn is expected to increase the market penetration of these systems in the forecasted period. The shipment of basic voice interface systems is expected to increase significantly in Europe and North America.
The penetration of basic voice interface in Europe is expected to be around 70 percent by 2019 while in North America it is expected to be 75 percent by 2019. The shipments of basic voice interfaces in Europe are expected to increase to 20.5 million units in 2018, while the shipments in North America are expected grow to 17.1 million units in 2018.
In addition to the basic voice interface, the steering systems (which are also an integral part of HMI systems) are expected to increase to 16.5 million vehicles in Europe by 2017. Whereas, the multifunctional knobs (another major component of HMI systems) are expected to increase to 1.5 million vehicles by 2017 in Europe itself.
Increased Demand from BRIC Countries
The continuous economic growth in the BRIC countries has led to an increase in the per capita income of the population, which in turn has increased the demand for automobiles in these countries. By 2020, it is predicted that more cars will be sold in Asia than in North America and Western Europe combined.
Indeed, China and India are expected to witness strong demand for passenger vehicles during the forecast period. Moreover, India is expected to become the third largest market in the world for passenger cars by 2020. Therefore, the demand for HMI systems is expected to increase in the BRIC countries in the next few years.
