In-car Entertainment - UK - March 2005

Contents

Introduction and Abbreviations

• Definition
• Consumer research
• ACORN
• Advertising data

Abbreviations

Executive Summary

• Car trends important
• Key period for demographics
• Technology-driven
• OE dominates but aftermarket value still rising
• The cassette is dead
• Systems convergence
• Japanese dominate
• Halfords top adspend by a mile
• Online threatens specialists
• Consumer behaviour
• Future will see a blurring of the boundaries

Market Drivers

• Car parc growth
• Figure 1: Trends in GB car ownership, 1995-2004
• Figure 2: GB car parc, by type of ownership, 1992-2003
• Figure 3: Age of GB car parc, 2003
• Figure 4: Trends in the UK car parc and new registrations, 1998-2004
• Car travelling distances and purposes
• Figure 5: Trips and distance per person per year, by purpose, 1998-2003
• Expansion in key target group
• Figure 6: Trends and projections in UK population, by age group, 1999-2008
• Rising PDI benefits ICE market
• Figure 7: PDI and consumer expenditure, at current and constant 1999 prices, 1999-2008
• New technology

Market Size and Trends

• A thriving market
• Figure 8: Estimated UK sales of ICE products, 1999-2004
• Aftermarket sales lagging behind
• Figure 9: Value sales of ICE products, by OE and aftermarket, 1999-2004

Market Segmentation

• Entry-level standards continue to rise
• Figure 10: UK estimated value sales of ICE aftermarket products, by type, 2002 and 2004
• CD systems - aftermarket starting to plateau
• The rise of MP3
• DVD, TV and games systems
• DAB radio
• Blu-Ray Disk Technology
• Combined systems and Plug and Play

The Supply Structure

• Japanese domination
• Matsushita
• JVC
• Pioneer
• Sony
• Philips
• Goodmans Industries Limited
• Alpine
• Clarion
• Blaupunkt

Selected others

• Centurion Electronics
• Motorola

Trade associations

• Mobile Electronics & Security Federation
• Society of Motor Manufacturers and Traders

Advertising and Promotion

• Above the line
• Figure 11: Main monitored media advertising expenditure on ICE, 1999-2004
• Halfords dominates
• Figure 12: Main monitored media advertising expenditure on ICE, by selected brand, 1999-2004
• Below the line

Distribution

• Figure 13: Estimated ICE aftermarket sales, by outlet type, 2002 and 2004
• Halfords
• Online as a route to market

The Consumer

• Car ownership
• Figure 14: Household ownership of cars in selected years, 1998-2004
• Average mileage
• Figure 15: Average mileage driven per year, 2000-04
• Ownership of ICE systems
• Figure 16: Household ownership of ICE systems, 2001-04
• Ownership of ICE products in detail
• Figure 17: Household ownership of ICE products, by gender, age and socio-economic group, 2004
• Increased penetration among the young and the better-off
• Figure 18: Household ownership of ICE products, by lifestage, presence of children and Mintels Special Groups, 2004
• Figure 19: Household ownership of ICE products, by marital status, working status, household size and region, 2004
• Purchases of ICE systems
• Figure 20: Household purchases of ICE systems in the last 12 months, 2004
• MP3 players
• Figure 21: Ownership of MP3 players, 2002-04
• MP3 ownership in detail
• Figure 22: Ownership of MP3 players, by gender, age and socio-economic group, 2004
• The impact of children
• Figure 23: Ownership of MP3 players, by lifestage, presence of children and Mintels Special Groups, 2004
• Figure 24: Ownership of MP3 players, by marital status, working status, household size and region, 2004

Car usage - exclusive consumer research

• Figure 25: Car usage, December 2004
• More men commute by car
• Older consumers use their cars for leisure
• Household size matters
• The availability of public transport
• Surfing commuters

The Consumer - Detailed Demographics

• Figure 26: Car usage, by gender, age and socio-economic group, December 2004
• Figure 27: Car usage, by lifestage, presence of children and Mintels Special Groups, December 2004
• Figure 28: Car usage, by marital status, working status, car ownership and household size, December 2004
• Figure 29: Car usage, by region and ACORN categories, December 2004
• Figure 30: Car usage, by media usage, commercial TV viewing and supermarket usage, December 2004

The Future

• Cars remain on the road
• Technology push
• Small is big
• Integration
• OE puts pressure on specialists

Forecast

• Figure 31: Forecast of the UK market for in-car entertainment, 2004-09
• Figure 32: Indexed growth rates, 2004-09
• Deflation will double the market
• Original equipment
• Aftermarket
• In-car overload?
• Factors incorporated in the forecast