Automotive Infotainment Semiconductor Growth Driven by Innovation

A/V Entertainment and Telematics IC Demand Worth $5.4 Billion By 2015

Boston, MA - 11 March 2009 -The Strategy Analytics Automotive Multimedia & Communications service report, "Infotainment Semiconductor Demand Forecast: Innovation Will Drive Growth," predicts that the rapid on-going innovation in digital consumer electronics and growing adoption levels will, in turn, create new in-vehicle and vehicle-portable device product opportunities for OEMs and suppliers that will increase infotainment semiconductor demand by 50% between 2008 and 2015.

Car audio entertainment will continue to provide important mainstream revenue growth opportunities for IC vendors due to the roll out of multi-standard broadcasting (e.g. SDAR, DAB, HD Radio, DRM, ISDB-T), and the storage and connectivity features increasingly expected by consumers with portable devices and "soft" audio and video content libraries (e.g. Bluetooth, USB, HDD). With the explosion in internet radio stations feeding off consumer desire for more diverse and specialized content, Strategy Analytics predicts that enabling Internet Radio is going to be a major driver of content and connectivity to the car.
"Automotive chip revenues across all applications are being negatively impacted in 2009 by the global economic downturn effecting car sales; however, new product innovation and high consumer interest in in-vehicle entertainment systems will provide semiconductor vendors with new growth opportunities" said Chris Webber, VP Global Automotive Practice.
"Infotainment semiconductor demand will also come from growth of in-vehicle DVD video systems and embedded eCall telematics modules, to support services such as OnStar and Toyota's recently announced US `Safety Connect,' service," added Senior Analyst, Mark Fitzgerald.


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