In-car Entertainment - US - September 2009

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Consumer survey data
• Advertising creative
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Recession, new car sales downturn, contributing to projected market loss
• Factory-installed systems dominate market, followed by aftermarket audio
• Aftermarket satellite radio receivers drop almost 90% in about four years
• National, state and local legislation threatening use of in-car electronics
• New car unit sales declining, likely affecting OEM sales, installation
• Consumer survey findings
• Market Size and Forecast
• Key points
• Recession, new car sales downturn, contributing to projected market loss
  • Figure 1: Total in-vehicle entertainment devices revenues, at current prices, 2005-10
  • Figure 2: Total in-vehicle entertainment devices revenues, at inflation-adjusted prices, 2005-10
• Factory-Installed Systems
• Key points
• Recession expected to force factory-installed sales to drop by about a third
• Carmakers putting entertainment components into single delivery systems
• UConnect
• Sync
• HD radio offered as enhanced feature, alternative to satellite radio
  • Figure 3: Total factory-installed systems wholesale revenue, 2005-10*
• Aftermarket Autosound Equipment
• Key points
• Aftermarket negatively affected by factory technology, all-in-one GPS
  • Figure 4: Total aftermarket autosound equipment wholesale revenue, 2005-10*
• Aftermarket satellite radio receivers drop almost 90% in about four years
  • Figure 5: Total wholesale revenue of satellite radio receivers, 2005-10*
• Mobile Video
• Key points
• Mobile video evolving from single to multi-use; threatened by high costs
  • Figure 6: Total mobile video devices wholesale revenue, 2005-10*
• Market Drivers
• National, state and local legislation threatening use of in-car electronics
• New car unit sales declining, likely affecting OEM sales, installation
  • Figure 7: Total U.S. car unit sales, 2003-08
  • Figure 8: U.S. unit sales of light vehicles, January-June 2008 and 2009
• Used vehicle sales rising, which may positively affect aftermarket sales
  • Figure 9: U.S. sales of used vehicles at new car dealerships, 2001-08
• In-Car Entertainment--Installation
• Key points
• Consumers most likely to install GPS systems themselves
  • Figure 10: In-car entertainment installation, July 2009
• Installation--CD Players
• Key points
• Male respondents are more likely to buy, install CD players themselves
  • Figure 11: CD player installation, by gender, July 2009
• Drivers aged 18-24 most likely to have CD players in car upon purchase
  • Figure 12: CD player installation, by age, July 2009
• Drivers with lower household incomes more likely to install CD players
  • Figure 13: CD player installation, by household income, July 2009
• Installation--GPS
• Key points
• Male drivers are more likely than female drivers to install GPS systems
  • Figure 14: GPS installation, by gender, July 2009
• The youngest drivers are most likely to buy, install GPS devices
  • Figure 15: GPS installation, by age, July 2009
• Drivers with higher household incomes most likely to have GPS systems
  • Figure 16: GPS installation, by household income, July 2009
• Installation--MP3 Players
• Key points
• Young drivers most likely to have, install MP3 players
  • Figure 17: MP3 player installation, by age, July 2009
• MP3 player purchasing more active among highest income groups
  • Figure 18: MP3 players, by household income, July 2009
• Installation--Subwoofers
• Key points
• Male drivers more likely than women to have subwoofers
  • Figure 19: Subwoofer installation, by gender, July 2009
• Oldest respondents least likely to have subwoofers installed in vehicles
  • Figure 20: Subwoofer installation, by age, July 2009
• Highest-income households most likely to purchase cars with subwoofers
  • Figure 21: Subwoofer installation, by household income, July 2009
• Installation--Amplifiers
• Key points
• Male drivers more likely to install amplifiers in their vehicles than women
  • Figure 22: Amplifier installation, by gender, July 2009
• Youngest respondent age group most likely to install amplifiers
  • Figure 23: Amplifier installation, by age, July 2009
• Middle-income households most likely to self-install amplifiers in vehicles
  • Figure 24: Amplifier installation, by household income, July 2009
• Innovation and Innovators
• Special jack allows cell phone users to talk, hands-free, through car radio
• Automotive cameras marketed as providing greater security, safety
• Singular domain will establish how automotive internet operates into future
• Voice-activated text messaging service advocates road safety, ease of use
• Advertising and Promotion
• Car audio and video promoted mainly through electronic media channels
• Rock festival sponsorships generate brand exposure with younger fans
• Analysis of in-car entertainment broadcast spots
• Driver confidence, ease of use emphasized through GPS navigation spots
  • Figure 25: TomTom Go ad, 2009
  • Figure 26: Raven Cruizer ad, 2009
• Because delivery systems offer content variety, infinite choices need to be emphasized
  • Figure 27: XM Satellite Radio ad, 2008
  • Figure 28: XM Satellite Radio ad, 2008
• Vehicle Ownership
• Key points
• Mid-sized cars most popular model among car buyers
  • Figure 29: Vehicle ownership, by gender, July 2009
• About a quarter of car drivers in all age groups prefer to drive mid-size cars
  • Figure 30: Vehicle ownership, by age, July 2009
• Higher-income households are more likely to pick larger cars, SUVs
  • Figure 31: Vehicle ownership, by household income, July 2009
• Weekly Vehicle Participation
• Key points
• Most respondents spend five or more hours per week in their cars
  • Figure 32: Weekly vehicle participation, by gender, July 2009
• Under-35s likely to spend 11 hours or more in cars
  • Figure 33: Weekly vehicle participation, by age, July 2009
• Drivers with higher household incomes spend more time in their cars
  • Figure 34: Weekly vehicle participation, by household income, July 2009
• In-Car Entertainment--Frequency
• Key points
• Satellite radio popular among those who have it
  • Figure 35: In-car entertainment frequency, July 2009
• CD player frequency by age
  • Figure 36: CD player frequency, by age, July 2009
• GPS frequency by gender
  • Figure 37: GPS frequency, by gender, July 2009
• GPS frequency by age
  • Figure 38: GPS frequency, by age, July 2009
• MP3 adaptor frequency by age
  • Figure 39: MP3 player adaptor frequency, by age, July 2009
• Amplifier frequency by gender
  • Figure 40: Amplifier frequency, by gender, July 2009
• Amplifier frequency by age
  • Figure 41: Amplifier frequency, by age, July 2009
• Subwoofer frequency by age
  • Figure 42: Subwoofer frequency, by age, July 2009
• Subwoofer frequency by gender
  • Figure 43: Subwoofer frequency, by gender, July 2009
• In-Car Entertainment--Attitudes
• Key points
• Male respondents prefer to listen to their own music over radio
  • Figure 44: In-car entertainment attitudes, by gender, July 2009
• Under-25s seem most comfortable with in-car entertainment
  • Figure 45: In-car entertainment attitudes, by age, July 2009
• Respondents in higher-wealth households favor satellite radio, GPS
  • Figure 46: In-car entertainment attitudes, by household income, July 2009
• Race and Hispanic Origin
• Key points
• Whites, blacks drive mid-size cars most, Hispanics prefer compacts most
  • Figure 47: Vehicle ownership, by race or Hispanic origin, July 2009
• White respondents less likely to spend long hours in their cars
  • Figure 48: Weekly vehicle participation, by race or Hispanic origin, July 2009
• Black respondents comfortable with in-car entertainment options
  • Figure 49: In-car entertainment attitudes, by race or Hispanic origin, July 2009
• Blacks show greatest potential for long-term CD player usage, loyalty
  • Figure 50: CD player frequency, by race or Hispanic origin, July 2009
• Hispanics use GPS systems more frequently than whites, blacks
  • Figure 51: GPS frequency, by race or Hispanic origin, July 2009
• Hispanics reliant most on MP3 players in cars; blacks present opportunity
  • Figure 52: MP3 player adaptor frequency, by race or Hispanic origin, July 2009
• Black respondents most frequent users of amplifiers
  • Figure 53: Amplifier frequency, by race or Hispanic origin, July 2009
• Appendix: Other Useful Consumer Tables
• MP3 installation by gender
  • Figure 64: MP3 player installation, by gender, July 2009
• CD player frequency by gender
  • Figure 65: CD player frequency, by gender, July 2009
• CD player frequency by household income
  • Figure 66: CD player frequency, by household income, July 2009
• GPS frequency by household income
  • Figure 67: GPS frequency, by household income, July 2009
• MP3 player adaptor frequency by household income
  • Figure 68: MP3 player adaptor frequency, by household income, July 2009
• MP3 player adaptor frequency by gender
  • Figure 69: MP3 player adaptor frequency, by gender, July 2009
• Amplifier frequency by household income
  • Figure 70: Amplifier frequency, by household income, July 2009
• Subwoofer frequency by household income
  • Figure 71: Subwoofer frequency, by household income, July 2009
• Subwoofer frequency by race or Hispanic origin
  • Figure 72: Subwoofer frequency, by race or Hispanic origin, July 2009
• Appendix: Trade Associations