Abstract

The growing safety, security, convenience, and entertainment needs of the consumers - especially from the passenger vehicle segment- is driving the Malaysian telematics, navigation, and infotainment markets. While the telematics and navigation markets are in the initial stage of development with only the presence of aftermarket participants, the infotainment systems market has existed since 2001. Sellers offer these systems as value-addition accessories to build brand loyalty and retain customers in the original equipment (OE) market.

This Frost & Sullivan research service provides an overview of and outlook for the Malaysia markets for telematics, in-car navigation, and infotainment systems. The study provides detailed revenue forecasts by segments as well as a comprehensive market share analyses. It offers strategic analysis of the current market trends and forecasts future developments for these products in both the OE markets and the aftermarkets. This invaluable market information is essential for both large and small market participants seeking to position themselves to gain maximum return on investment.

Rising New Vehicle Sales Drive Telematics Market

"Factors such as the availability of low-cost substitutes and the limited consumer awareness of product functions and benefits are hindering the growth of the telematics markets," notes the analyst of this research service. "The absence of collaboration between market participants and the reluctance of car accessory dealers to promote telematics is restricting consumer adoption." Nevertheless, the rise in the new vehicle sales especially the high-end ones and the subsequent increase in vehicle population are likely to drive the telematics equipment sales. Diverse factors such as increasing service revenues, product variety induced by technological advancements, and rise in the car thefts and hijacks are also boosting the demand for telematics products. The market is further encouraged by the enhanced consumer buying power on account of the growing Malaysian economy.

In case of in-car navigation systems (ICNSs), factors such as continuous infrastructure development and road construction activities as well as frequent thunder storms and floods in Malaysia and the growing product acceptance amongst youngsters is encouraging market growth. Further, the low level of competition presents a lucrative opportunity for early entrants into the ICNS market.

In-Car Infotainment Vendors Target Lower-Vehicle Segments

"Despite having a limited number of participants, the Malaysian in-car infotainment (ICI) market is a highly competitive one with an influx of inexpensive and unbranded products from China, Taiwan, and Korea," says the analyst. "To counter this competition, established companies are offering price discounts and have come up with infotainment products with fewer features for lower-vehicle segments."

The growing demand from consumers for superior infotainment quality is initiating a shift toward technologically and functionally superior ICI systems. Additionally, the burgeoning popularity of multi purpose vehicles (MPVs) and sport utility vehicles (SUVs), which are witnessing an introduction of new models, is spurring the demand for the ICI products.

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