There is significant potential for growth in the North American light vehicle infotainment systems market due to a combination of factors such as higher installation rates among automakers, declining system prices and greater consumer demand for entertainment options in their vehicles as daily average travel times continue to increase.
New analysis from Frost & Sullivan (financialservices.frost.com), North American Light Vehicle Infotainment Market: Investment Analysis & Growth Opportunities, reveals that this market earned revenues of approximately $2.90 billion in 2006 and estimates this to reach $5.30 billion in 2011.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Investment Analysis & Growth Opportunities in the North American Light Vehicle Infotainment Market, then send an email to Vanessa Quezada, Corporate Communications, at vanessa.quezada[.]frost.com with your full name, company name, title, telephone number, and email address. An overview will be sent to you via email upon receipt of the above information.
“Close to 40 percent of all new luxury cars and sports utility vehicles (SUVs) in North America have had rear seat entertainment systems installed in them,” remarks Frost & Sullivan Research Analyst A Sethuraman. “Light vehicle sales in the United States and Canada touched nearly 18.6 million units in 2006, reflecting the huge population of light vehicles in use in this region and the potential for infotainment systems to achieve increased penetration rates.”
However, while growth prospects appear promising, automotive infotainment companies face the challenge of manufacturing systems that offer advanced and appealing features at prices that are acceptable to consumers. With intensifying competition and the threat posed by low-cost based Asian infotainment companies, particularly from China, the pressure on operating margins is fast increasing.
Even though prices of infotainment systems have been steadily decreasing over the years, they have not been able to make any significant headway into the bulk market of high-volume cars, since many consumers continue to perceive them as expensive luxury goods.
“Acquisitions of regional infotainment companies, backward integration with technology companies and strategic alliances and partnerships in the distribution channel may help North American infotainment companies control costs and improve operating margins,” says Sethuraman.
Overall, however, the North American light vehicle infotainment systems market shows attractive growth rates and offers good investment opportunities to private equity companies, venture capitalists and asset management companies.
North American Light Vehicle Infotainment Market: Investment Analysis & Growth Opportunities is part of the Financial Benchmarking in the Automotive Industry subscription. It is designed to provide financial, marketing, and business development executives with in-depth information on current trends and issues that are likely to impact their investment and financial decisions. This research service also highlights the growth segments of notable interest and provides a comprehensive valuation analysis of the leading firms in the North American light vehicle infotainment systems market. Interviews with the press are available.
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