A new study from Strategy Analytics, "China Automotive Infotainment Market," forecasts that the Chinese domestic market for vehicle entertainment and navigation systems will be worth at least $4 billion by 2013, with the market opportunity dominated for some time by vehicle OEM business. Although the aftermarket for car parts and infotainment accessories is currently small in China, a major increase in demand for in-car infotainment products is expected from 2007 onward, according to the report.
“There are significant cost-reduction opportunities for any international infotainment system vendor willing to invest locally, but Japanese vendors are leading this charge, said Joanne Blight, director of the Strategy Analytics Automotive Multimedia and Communications Service.
"For international automotive infotainment system suppliers, China offers opportunities to reduce component and system production costs, to increase access to international/Chinese vehicle OEM joint ventures, and to respond to the growing domestic Chinese OEM market," she said.