IHS Technology reported that the use of smartphone in motor vehicles is the most disruptive trend in the automotive infotainment business today, presenting both challenges and opportunities for automakers and their processor semiconductor suppliers

The most promising prospect for automotive processors in the years ahead will be in the telematics portal head unit, which can connect with a smartphone for mobile broadband connectivity. Revenue for automotive infotainment processor chips for telematics portal head units will grow to $508 million in 2018, up from slightly less than $128 million in 2013. And while this particular application accounted for only 8 per cent of total global automotive infotainment processor market revenue in 2013, its share will surge to 30 per cent in 2018.

In comparison, the automotive processor segment with the highest revenue last year, head units for navigation, will shrink dramatically by 2018. Revenue will plunge to $51 million in 2018, down from $367.8 million in 2013, as navigation becomes a standard feature provided not only by multimedia and telematics portals but also by smartphones.

"Smartphone use in vehicles has led to two divergent approaches to head-unit designs, one replacing smartphone and the other one embracing them," said Tom Hackenberg, senior analyst for microcontrollers and microprocessors at IHS. "For the most part, automakers are heeding the call to accommodate mobile devices. This explains the dramatic rise in revenue for telematics portal head units, which address the complexities of the human-machine interface as well as the increasing consumer demand for ubiquitous connectivity."

To keep up with such consumer preferences, automotive original equipment manufacturers (OEM) are providing systems that are more extensively integrated. Not only will infotainment systems come with features such as networked displays, controls built into the steering wheel and large touch screens, cars will also be able to capitalise on users' smartphones to connect with the various integrated systems of the vehicle, in order to offer a richer and more up-to-date experience.

The great growth in new features from automotive OEMs is expected to take market share away from aftermarket vendors, which will be hard-pressed to exceed the rich user experience delivered from pre-installed and highly integrated infotainment systems.

By: DocMemory
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