Driven by strong demand for navigation and entertainment, sales in the mobile electronics market grew 10.6% in 2006 to $6.1 billion, up from $5.5 billion in 2005, according to SEMA research. Although audio systems still comprise the greatest share of the segment, navigation and entertainment systems, defined as systems integrating audio, video, DVD players, game consoles, etc., grew to 23.5% market share in 2006, or $1.4 billion in retail sales. That’s an 11.9% and $1.1 billion increase since 1999.
Navigation and entertainment systems, in some ways, mirror the growth of the segment overall, which has seen extraordinary growth in the past seven years. Since 1999, the mobile electronics market has averaged 12.5% growth per year—up $2.8 billion.
For comparison, as the mobile electronics market grew 10.6% last year, the whole performance parts and accessories market grew 7.12%. And consider that the 2007 SEMA Show featured 218 mobile electronics exhibitors (including 74 first-timers)—up from 199 the previous year.
"People want to bring their MP3 players, mobile phones, DVD players and videogame consoles in the car with them," says SEMA News mobile electronics editor Doug Newcomb. "While more automakers offer OEM mobile electronics solutions, the specialty-equipment market levels the playing field so that anyone can integrate portable electronics into their vehicle. Hence the mobile electronics market is showing significant growth. And with portable navigation becoming more affordable, it's also fueling this growth."
Note that in many instances state law governs when and in what manner certain in-vehicle mobile electronics can be used. For further insight into the mobile electronics market, read the "Mobile Electronics" market report prepared by the SEMA Research & Information Center in the December 2007 issue of SEMA News.