Looking forward to 2012, CSM Worldwide projects dramatic growth in factory-installed rear seat entertainment systems.
Of the three major automotive markets — West Europe, Japan and North America — the most significant growth will come in West Europe and Japan.
During the next six years the West Europe market will grow by 275 per cent, from US$81 million in 2006 to US$305 million in 2012.
The Japan market will grow 280 per cent during those six years, from US$45 million in 2006 to US$170 million in 2012.
While North America is the market leader in rear seat entertainment unit volume and will continue to be in the foreseeable future, West Europe and Japan will more than double their unit volume by 2012.
A combination of consumer demand and increased numbers of rear-seat-entertainment friendly automobiles such as small and mid-size Crossover Utility Vehicles (CUVs) and Multi Activity Vehicles (MAVs) will influence the growth of the market.
“Consumer acceptance of entertainment-type features in the traditionally performance-based market of West Europe will change the global landscape of the rear entertainment system market,” said Don Montroy, senior market analyst, North American Component Forecasts for CSM Worldwide. “Family entertainment technology is becoming increasingly popular in Japan as well. Increased installation in minivans coupled with the introduction of rear seat entertainment systems in compact and mid-size sedans will contribute to application growth in Japan.”
CSM’s forecast data supports the changing consumer trends.
The global rear seat entertainment systems market is projected to grow to $803 million by 2012, which represents 112 per cent growth over today’s market, estimated at US$379 million. Compared to West Europe and Japan, North America market growth will be more modest over the six-year period, growing 30 per cent from US$253 million in 2006 to US$328 million in 2012.
Currently, overall rear seat entertainment system installation is the highest in North America at about 4.1 per cent of vehicle production. West Europe and Japan lag the North America market with overall installation rates of 1.3 per cent and 1.1 per cent respectively.