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Strategic Analysis of the Chinese Telematics and Infotainment MarketsPublished by: Frost & Sullivan Published: Dec. 14, 2006 - 105 Pages Table of Contents1. Executive Summary AbstractResearch OverviewThe Frost & Sullivan research service titled Chinese Telematics and Infotainment Markets provides market trends and future growth prospects for telematics and infotainment system in China. This study provides insight on the industry challenges, demand drivers and restraints that will cause the telematics and infotainment market sector to grow or decline. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following markets: navigation systems, digital maps, intelligent transportation systems, roadside assistance, vehicle tracking, telephony, rear seat entertainment, and productivity. Market Sectors Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research: By Application:
High Vehicle Occupancy Rate Promises Significant Opportunities Although very young at present, the Chinese telematics and infotainment markets are expected to witness considerable growth and development over the forecast period. Factors likely to contribute to this growth include high vehicle occupancy rates, increasing disposable incomes , growing acknowledgement of the benefits of telematics and infotainment as well as the upcoming Olympic Games in 2008 and the 2010 World Trade Exhibition which are expected to make significant use of telematics and infotainment to manage transportation and security. Moreover, the market is likely to see the introduction of more affordable products for use in a wider range of passenger vehicles and many automobile manufacturers are also planning to incorporate navigation system as a standard offering, thereby fostering the uptake of telematics and infotainment systems in the country. Nevertheless, Chinese consumers still lack sufficient awareness of telematics and infotainment system functions. Besides, there are too many varieties available for the consumers at present, and this coupled with unpleasant experiences such as low-quality products and lack of after sales service are likely to affect customer confidence in this developing market. "The non-availability of all functions in a single system is an added barrier to penetration, much like the high current prices of telematics and infotainment systems," notes the analyst of this research service. " As an example, the average price for an original equipment (OE) navigation system was about $1,463.4 in 2005 which is relatively high compared to the North American and Japanese markets. " Navigation Market set for High Growth In respect to the market segments, the Chinese navigation market (excluding the navigation software market) was worth $265.1 million in 2005, which is a growth rate of 62.2 percent over 2004. Given the compound annual growth rate (CAGR) of 43.4 percent, the market is likely to display high growth over the forecast period of 2006 to 2012. Among the others, the safety and security market was worth $5.8 million in 2005 and the Infotainment and Productivity Market (this excludes the productivity market, which is at its infancy stage) generated $153.6 million in 2005, with a growth rate of 22.9 percent. The emergence of the productivity market during the forecast period is likely to further boost the overall growth of the infotainment and productivity market by 2012. While Chinese consumers have some knowledge about the telematics and infotainment system, they are not entirely aware of the benefits they can draw from these. Hence, a campaign promoting the functions and benefits of the system is necessary, and distributors and manufacturers need to work together on campaigns to raise awareness and promote the use of telematics and infotainment systems. "In order make telematics and infotainment systems more affordable, vehicle manufacturers should explore opportunities to produce lower cost products, such as sourcing from local suppliers instead of importing parts," says the analyst. "Besides manufacturers should also improve on the current products and work towards combining multiple functions in one system, instead of a number of stand-alone systems." Get Full Details About This Report >> |
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