NEWS
CEA PREDICTS SALES OF IN-VEHICLE ELECTRONICS WILL GROW TO $12.8 BILLION
By Staff
Posted on Feb 28, 2008

Sales of in-vehicle consumer electronics (CE) will grow at a rate of 13 percent in 2008 to more than $12.8 billion, according to a recent study released  by the Consumer Electronics Association (CEA). The study, Automotive Electronics—What Consumers Have and What They Desire, reports that the typical American spends nearly 17 hours a week in his vehicle. As a result, CEA finds that 38 percent of the driving age population intends to purchase and install an in-vehicle CE product over the next year. At the top of the list are remote vehicle starters (15 percent), in-dash navigation systems (13 percent) and car alarms (12 percent). There are also strong purchase intentions for technologies like satellite radio, HD radio and DVD players.

“Given the amount of time that consumers are spending in their cars, it’s not surprising that they’re choosing to outfit their vehicles with the latest in-vehicle information and entertainment technology,” states Steve Koenig, CEA’s senior manager of industry analysis. “These are the products that make being on the road safer and more enjoyable.”

Based on results from this study, consumers are actually more likely to spend money on CE products that are not permanently installed in vehicles than on permanently installed CE products. Clearly, this signals consumer desire for flexibility and multi-location use when it comes to buying CE products.

“Consumers want to the flexibility to take their CE devices in and out of the car,” notes Koenig. “They also want to be able to switch out devices easily as technology shifts and advances. Cars that include solutions that make it easy to connect and power portable CE devices will do well with consumers.”

Automotive Electronics—What Consumers Have and What They Desire (February 2008) was fielded in December 2007. It was designed and formulated by CEA Market Research, the most comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer electronics industry. Please cite any information to the Consumer Electronics Association. The complete study is available free to CEA member companies. Non-members may purchase the study for $699 at www.eBrain.org.