In-Car Entertainment in the Netherlands

PROSPECTS

Growing prevalence of pre-installed systems limits demand for aftermarket products

In-car entertainment volume sales declined consistently over 2014-2019, and the negative trend looks set to persist throughout the forecast period. The category will continue shrinking due to the fact that new cars sold in the Netherlands now typically come with good quality factory-installed entertainment and navigation systems.

In-car entertainment sales increasingly cannibalised by portable devices

Another major contributor to the declining trend in in-car entertainment volume sales is cannibalisation by portable devices. In particular, drivers are increasingly using smartphones to listen to the radio or music in their cars.

Manufacturers try to add value with products offering advanced connectivity

As the potential for volume sales rapidly contracts, in-car entertainment manufacturers are attempting to boost value sales via the launch of higher-end and premium products with more sophisticated functions and features. Notable recent developments in this field include the introduction of products that can connect with devices at home or virtual assistants, provide real-time traffic updates, synchronise appointments, share notifications with contacts etc.

COMPETITIVE LANDSCAPE

TomTom maintains overall lead thanks to dominance in in-car navigation

TomTom International BV remained the overall leader in in-car entertainment in volume terms in 2019 due to its dominant position in in-car navigation, where it enjoys a strong early mover advantage and a favourable reputation for innovation. This reputation has been reinforced in recent years as the company has attempted to counter the threat from smartphone apps by introducing added-value products.

Connectivity is the core focus of new products from JVC and Pioneer

JVC Nederland BV ranked second overall in in-car entertainment in 2019. It remained the clear leader in in-car speakers and in-dash media players thanks to its longstanding reputation for offering high quality products.

Lack of innovation continues to undermine Garmin’s performance

Garmin Nederland BV, TomTom’s main competitor in in-car navigation, placed third overall in in-car entertainment in 2019. The company recorded a steep decline in volume sales for a second consecutive year, partly due to a lack of investment in new product development towards the end of the review period.

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