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Car Audio and Electronics Sales To Hit $12.8 Billion in 08

Americans Spend More Time in Their Cars, More Money on In-Vehicle Electronics, Predicts CEA

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 study released today 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,” said 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 (CEA). The complete study is available free to CEA member companies. Non-members may purchase the study for $699 at

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About CEA:
The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the $161 billion U.S. consumer electronics industry. More than 2,200 companies enjoy the benefits of CEA membership, including legislative advocacy, market research, technical training and education, industry promotion and the fostering of business and strategic relationships. CEA also sponsors and manages the International CES – Where Entertainment, Technology and Business Converge. All profits from CES are reinvested into CEA’s industry services. Find CEA online at

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