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Automotive Multimedia Sales Underperforming in US and Europe

Increasing Availability Not Translating into Sales

The latest Strategy Analytics report, “Automotive Multimedia and Communications Systems Supply and Adoption Analysis,” concludes that despite increasing availability and strong consumer demand for automotive and multimedia communications features in cars, sales are poor. Although navigation systems are available on over 160 vehicle models in production in North America and Europe, and Bluetooth connectivity on over 60 models, in most mainstream car brands, multimedia sales remain at less than 5 percent.

Some selected companies, however, are able to generate significant sales in some specific segments. BMW, Mercedes Benz, Continental Automotive, Becker, JCI and Siemens VDO are all significant leaders in certain automotive multimedia and communications segments. But, in general, many mainstream markets are still wide open. Strategic marketing issues – including pricing, promotion and positioning – remain significant challenges for most mainstream car brands.

“There has been increasing vehicle model availability for many new multimedia and communications features, such as iPod interface, digital audio, Bluetooth and navigation. Apart from iPod connections, decent returns on these product investments are simply not being achieved by most car makers,” said Joanne Blight, Director of Strategy Analytics Automotive Multimedia and Communications Service. “Our surveys show consistent high consumer demand for and interest in a variety of automotive multimedia features in the vehicle. However, automotive companies just can’t seem to get their marketing strategies right.”

Estimated Multimedia and Communications Availability (Vehicle Models in Production in North America and Europe)

Embedded Navigation Bluetooth eCall Telematics iPod Connectivity
Number of Vehicle Models 165 63 106 68

Source: Strategy Analytics

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About Strategy Analytics
Strategy Analytics, Inc. – a global research and consulting firm – provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Boston, MA. and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics & Multimedia, Digital Consumer, Wireless Strategies and Enabling Technologies. For more information, see http://www.strategyanalytics.com

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