El Segundo, Calif. - Automotive infotainment systems will rise 3 percent globally in 2012, according to IHS iSuppli, due to rising car production and increased electronic content in vehicles.
Automotive infotainment revenue in 2011 was $32.5 billion, up 3.4 percent from 2010, due mainly to car production increases, according to the IHS iSuppli "Automotive Infotainment Semiconductor Market Tracker" report. It rose 4.6 percent in 2010.
IHS includes navigation systems, premium audio, telematics, fuel efficiency, safety and connectivity solutions in automotive infotainment.
Revenue in 2012 is projected to surge to $33.5 billion, IHS said, and growth will range from 4.7 to 6.4 percent in the next four years. By 2016, the market will reach $41.2 billion, it noted.
"The vehicle infotainment market has defied the impact of the natural disasters in Japan and Thailand," said Luca De Ambroggi, senior analyst for automotive infotainment at IHS. "The industry is set to achieve good growth in 2011 and 2012 as car sales continue to expand and as automakers add more electronic features into their vehicles. Also, a surge in automobile production is pushing up global revenue for the vehicle infotainment market, with connectivity and telematics options as well as low-cost navigation solutions embedded into car dashboards on the rise."