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Internet Radio Set To Explode: IHS

El Segundo, Calif. –
Global sales of cars with Internet radio capability are set to rise
dramatically during the next eight years, leading a wave of in-vehicle apps
that will be integrated into car electronics systems in the coming years,
according to the IHS iSuppli Automotive Research Service from IHS.

Sales of cars with
Internet radio integrated into their head unit will rise to 24 million units in
2018, up from 168,000 in 2010, IHS said, with the U.S. leading the pack. U.S. sales
are expected to grow to more than 10.9 million units in 2018, from 149,000 in

“The next several years
will see an explosion in the use of in-vehicle apps in cars, driven by booming
shipments of automobiles employing head units designed to integrate Cloud-based
content,” said Egil Juliussen, principal analyst for automotive infotainment at
IHS. “These apps, whether built into cars or provided via connected mobile
devices like smartphones, will provide a range of infotainment, entertainment,
remote diagnostics and navigation services. With music having been the leading
form of entertainment in cars for more than 75 years, Internet radio is
expected to lead the in-vehicle app revolution.”

According to HIS, this
increase is being enabled by a fundamental shift in the way car electronics
systems are being designed, with auto infotainment systems transitioning from
fixed-function head units to “apps-based” head units.

Smartphone integration
software is also contributing to the rise, as drivers can use their phones to
operate auto-related apps.

IHS said that about 50
car models in the United States currently have Internet radio app integration
or will have it in their model-year 2012 versions.

Pandora was cited as a
leading influence for the rise in Internet radio, along with iHeartRadio,
Slacker and Spotify. As for other Cloud-based sources of content, IHS named
Apple’s iCloud, Google Music and Amazon’s Cloud Drive as those likely to see
implementation in the car. “However, at this point in time, automotive OEMs
have shown little interest in implementing this type of Cloud service in the
car.  Instead, the trend is toward
popular entertainment apps such as Pandora, iHeartRadio, Slacker and more,” it