Demand For In-Vehicle CE Technology Takes Off
It’s important to note consumers’ preference for portable versus installed CE products for cars. One encouraging finding for the aftermarket is 21 percent of the driving age population plans to spend money on permanently installed CE products over the next year, a 50 percent increase in the number of buyers from last year. These consumers anticipate spending $339, resulting in a total market potential of $17 billion over the next year. In addition, many consumers might not factor the installation costs in their future purchase plans, which in turn could increase actual spending.
Drivers expect to spend even more money on portable CE products that will be used in the car. Research finds 27 percent of drivers plan to spend an average of $352 on portable CE products for the car, which amounts to a total of $23 billion in market opportunity. Given the higher revenues for portable devices, will the market for installed solutions decline in both popularity and revenues?
Looking at the aftermarket, the current trend favors portable CE solutions. CEA research surveying aftermarket installers found it more difficult to install CE products. Some might argue the increasing difficulty should not be a concern, since many consumers do not want aftermarket products installed. We found almost half of all driving age consumers (46 percent) want CE products installed at the factory, but more than one-third (37 percent) want the flexibility to upgrade and change some devices. Men and drivers under 24, in particular, prefer the flexibility of installing vehicle solutions themselves or by a professional.