iSuppli Automotive Electronics Market Research

The downturn in the car electronics market hit bottom in the first quarter. However, iSuppli expects the second half of the year will bring a significant improvement in auto sales compared to the first. This will lead to an annual sales increase in 2010 for auto electronics categories including audio head units, navigation, Advanced Driver Assist Systems (ADAS), embedded telematics, and Bluetooth. Thanks mostly to government-sponsored incentives, auto sales recently have performed more strongly than expected in some regions.

One major factor leading to improved auto market conditions in the United States is the end of the uncertainty surrounding the bankruptcies of General Motors and Chrysler.In addition, the United States government now is offering a cash-for-clunkers program that gives consumers incentives to trade in old cars for new models. This is expected to boost U.S. auto sales by 250,000 in 2009. The total could be even higher if the program’s $1 billion budget is increased.

iSuppli forecast of the U.S. auto electronics industry through the year

The figure above shows relative sales of head-unit, in-vehicle navigation, ADAS, embedded telematics and Bluetooth-based Hands-Free Interface (HFI) electronics. The sales pattern is similar for each category, with a decline in 2009 and growth in the following years. Only Bluetooth HFI systems are set to enjoy a sales increase in 2009 due to the success of Ford Sync and similar systems.

iSuppli forecast of the world automotive electronics industry through the year

The sales pattern is similar for each category with a decline in 2009 and growth in the following years. ADAS will achieve a slight sales increase in 2009. ADAS consist of five segments: ultrasonic and camera park assist, adaptive cruise control, lane departure warning and blind-spot detection systems. Bluetooth HFI systems also will enjoy a sales increase in 2009 due to higher availability of such systems in every region.

More info: iSuppli Automotive Research