SEMA eNews Vol. 17, No. 40, October 2, 2014

Mobile Electronics Market Breakdown—Connectivity Is Key

By Jason Catullo

  2014 SEMA Annual Market Report
The 2014 SEMA Annual Market Report provides insight on the compact performance, street performance, light-truck, off-road, restyling, restoration, street rod and custom and racing niches.
   

In the mobile electronics market, connectivity remains a key factor in meeting consumer expectations—whether for their smartphones and tablets or the devices in their vehicles. Integrating smartphones into a vehicle’s interface and on-board Wi-Fi are just some of the latest examples of evolving technologies creating greater opportunities for personalization.

According to SEMA Market Research, the overall accessory and appearance product segment, which contains mobile electronics products, comprises $12.94 billion of the entire $33 billion specialty-equipment market.

Taking a look at the entertainment branch of the mobile electronics market, car audio has changed considerably from its traditional roots of amplifiers, subwoofers, and CD head units to include video players, hard drives and satellite radio. While the market has shifted, there are still plenty of opportunities in audio/entertainment, and this generation of audiophiles has some of the most technologically advanced, feature-rich components available at their fingertips.

As vehicles have become more electronically integrated and computer controlled, drivers have gained new connectivity options beyond the traditional entertainment services. Connectivity now plays into the world of vehicle performance as well. The smartphone that is currently used for streaming music can now also monitor engine diagnostics with an array of new devices being introduced into the industry.

"Mobile electronics was once synonymous with car stereo, however, connectivity has changed the scope of how we interact with our vehicles. Connected entertainment, such as music streaming and hands-free communication, is now the base expectation for head units,” states Gavin Knapp, head of market research for SEMA. “In the performance market, connectivity has created more opportunities for performance enthusiasts to pursue their passion as well.”

According to the 2014 SEMA Annual Market Report, traditional entertainment and security mobile electronics categories grew 2% from 2012 to 2013. Connectivity products (cellular/ipod/Bluetooth accessories) have shown sales growth in each of the last five years.

Members: Download a free copy of the 2014 SEMA Annual Market Report, which provides detailed insight on the compact-performance, street-performance, light-truck, off-road, restyling, restoration, street rod and custom, and racing niches. The SEMA Annual Market Report is conducted yearly to help SEMA-member companies understand the industry and make informed business decisions. SEMA research reports are available to SEMA members at no cost, and to nonmembers at a nominal fee. SEMA research reports are listed and can be accessed at www.SEMA.org/research.

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