Mar 14, 2008

Americans to Spend More on Car Electronics

Sales of in-vehicle consumer electronics are going through the roof. In fact, sales of products like navigation and sound systems, DVD players and the like are predicted to grow at a rate of 13 percent this year to more than $12.8 billion, according to a study released today by the Consumer Electronics Association (CEA).

The study, Automotive Electronics -- What Consumers Have and What They Desire, reported that the typical American spends nearly 17 hours a week in his vehicle. As a result, CEA found that 38 percent of the driving-age population intends to purchase and install an in-vehicle consumer electric product over the next year. At the top of the list are remote vehicle starters (15 percent), in-dash navigation systems (13 percent) and car alarms (12 percent). There are also strong purchase intentions for technologies like satellite radio, HD radio and DVD players.

Based on results from this study, consumers say they are more likely to spend money on consumer electric products that are not permanently installed in vehicles than on permanently installed products. Clearly, this signals consumer desire for flexibility and multi-location use when it comes to buying such products.
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