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Infotainment Technology is Revolutionizing the Auto Industry

Sept. 10, 2013
The innovations in infotainment technology are drastically changing the automotive industry as more cars become connected and offer a variety of services.

Unlike most technology markets, the automotive industry generally sees few drastic changes from decade to decade, but the rise in infotainment features is transforming the entire business. According to the Automotive Technology Portals and Services from IHS Inc., automotive dashboards have changed drastically over the past 10 years; including added multiple displays, a variety of apps and services, and several means of connectivity.

In 2012, the average car contained about $330 worth of semiconductors, a 65% increase from vehicles in 2002. Ten years ago, infotainment technology also wasn’t a major selling point compared to power, but now, up-to-date features can account for as much as 10% of the price of a new car. Also, cars on the market today have a variety of connecting to the outside world, including telematics, cellular, Wi-Fi, and Bluetooth, where cars in the past decade have had little to no connectivity.

Infotainment systems in the future are focusing on new safety features, further connectivity, and a wider range and availability of telematics services. Collision warning systems are becoming widely available, adding a sort of autonomous emergency braking functionality to previous, alert-only systems. IHS also reports that motor vehicles are currently the third-fastest growing connected device behind smartphones and tablets. Telematics services including internet radio and emergency/concierge services are becoming increasingly popular as well.

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