Communications and Technology Industry Research

The number of vehicles sold in the United States with optional support for Apple’s (News - Alert) iPod is expected to jump almost 20 percent – from 39 percent this year to more 58 percent next year.

 

This reflects automakers’ drive to accelerate sales by offering compelling technological features, according to iSuppli Corp., a market intelligence company.

 

“The automotive industry is at the point where in-vehicle technologies – or the lack of them – are influencing sales,” said Phil Magney, vice president of automotive research for iSuppli. “The charge toward greater technological integration has been led by car OEMs like Hyundai and Honda (News - Alert), which are making USB/iPod combination interfaces standard on many of their vehicles. It’s also been spurred by OEMs like Audi and Mercedes, which offer integrated Media Device Gateways that allow any device imaginable to integrate with a vehicle.”

 

For the past few years, U.S. consumers have been demanding improved connectivity between their vehicles’ audio/video systems and their Portable Media Players (PMPs), particularly iPods. Automakers responded by making 39 percent of vehicle models in the U.S. this year with iPod integration options. In 2009, 58 percent of car models will have iPod support available from the factory, making it the first time that more than half of cars will sport this feature.

 

For integration with other PMPs and portable devices, automakers will offer USB interface options on one-third of all available vehicle models next year, up from just 16 percent in 2008.

 

The rising penetration of iPod and USB interfaces in motor vehicles is a part of a general effort by automakers to respond to the consumer demand for connectivity. In a recent survey of the 2009 model-year vehicles, compiled by iSuppli, it was apparent that automakers are placing greater emphasis than ever before on technology features.

 

Automakers are also aggressively adopting Bluetooth wireless connections. After achieving a 55 percent availability in new U.S. vehicle models in 2008, Bluetooth will rise to 82 percent in 2009, either as standard or optional equipment. There are many new implementations of Bluetooth, offering advanced voice recognition and support of streaming audio transfer.

 

“These days, nearly every mobile device offers some Bluetooth connectivity, whether it is simple Hands-Free Profile or more advanced profiles like Audio/Video Remote Control Profile or Advanced Audio Distribution Profile,” said Mark Boyadjis, North American automotive analyst for iSuppli. “The influx of Bluetooth technology has blanketed the consumer electronics industry, and this is spilling over into cars.”

 

iSuppli’s Technology Availability Index also reports that embedded Hard Disk Drives used in infotainment systems will be available in nearly one-third of the 2009 model lineup, or in about 88 models. This trend is fueled by the increasing size of digital maps and related content along with storage for audio files.

 

Another feature more evident in the 2009 year models is real-time, location-based content. Traffic data is an example of this as are weather conditions and fuel prices. Many OEMs have expanded real-time traffic into their products for 2009, including Ford, Volkswagen, Mercedes and GM. Satellite providers XM and Sirius have expanded their traffic coverage into more metropolitan areas and increased granularity within existing covered areas.