Further decrease of in-car entertainment expected over the forecast period. On the one hand, smartphones and (to a lesser extent) wireless speakers will continue to cannibalise demand for these products, particularly in-car navigation, while new cars will increasingly come with higher quality in-car entertainment, thus fewer consumers will feel the need to upgrade.
In line with the declining trends in the category, manufacturers are limiting their investments and fewer launches are expected in turn. The category is also facing compounded challenges beyond those already outlined.
With in-car entertainment sales in seemingly terminal decline, manufacturers are increasingly diversifying into other areas and shifting their focus to the supply of integrated systems to car makers, with some ceasing production of aftermarket components altogether. Over the forecast period, it is likely this trend will result in the competitive landscape becoming more consolidated, while also limiting new product development.
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In-car Entertainment consists of In-Dash Media Players, In-Car Navigation, and In-Car Speakers.See All of Our Definitions
This report originates from Passport, our In-Car Entertainment research and analysis database.
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