Consumer Sales of In-Vehicle CE Devices Expected to Rise in 2006

ARLINGTON, Va.--May 16, 2006--More than a fourth of consumers own MP3 player equipment for their vehicles, according to new research from the Consumer Electronics Association (CEA(R)). This may seem like a far cry from the majority (97 percent) who own the long time standard AM/FM radio, but the new study shows digital audio alternatives have gained a significant foothold in the automotive electronics market.

"The switch from analog to digital that is taking place in the home is also taking place in the automobile," said CEA Director of Research Joe Bates. "Consumers enjoy the portability, flexibility and personalization that digital provides. We've seen this in factory shipment data, as well as in this new consumer survey."

MP3 players, cell phones, mobile and portable video navigation and factory-installed autosound equipment contributed to the $6 billion (27 percent) growth of mobile technologies in 2005. CEA estimates that $27 billion worth of mobile electronics products was shipped in 2005 and more than $30 billion will be shipped in 2006.

The CEA study, Consumer Technologies in the Automotive Environment, analyzes what consumers currently have in their car, what they want and why. Some of the most popular devices currently used in the car include traditional electronics, such as the AM/FM radio and CD players (single and multi disk, 75 and 60 percent respectively). Other popular mobile products include keyless entry (55 percent), alarm systems (48 percent), component speakers (34 percent) and DVD players (32 percent). Most of these products are still powered by the car battery.

"Our study also found there are several areas that pose great opportunity for the industry. Consumers across all segments are interested in owning more safety and navigation aids, and in having access to a wide range of content in their vehicles," continued Bates.

Future interest levels for products continue to be among the traditional products, but car safety and convenience products also rank higher amongst consumers. Fifty-six percent of consumers expressed interest in owning an alarm system, nearly 10 percent more than those who currently own them. Almost half of consumers expressed interest in a navigation system and in-vehicle safety devices compared to the quarter who currently own them.

Future interest is based on the consumer's needs in the car. A majority plan on or need their mobile technologies for getting news, traffic and weather updates. Other activities hinged mostly on entertainment options in the car; such as listening to satellite radio, books on tape, sports as well as watching movies, television and accessing the Internet.

While car ownership rates and automobile sales remain constant over the broad scope of demographics, the mobile technologies market can be segmented into five groups based on age, attitudes, gender, income and needs. The study delves into each group, identifying which products are of most interest.

"We've broken down the market into five attitudinal segments: soccer moms and dads, in-touch travelers, telecommuters, bus riders and the little old lady from Pasadena. Soccer moms and dads are heavy mobile CE users and are interested in more entertainment options to help them relieve stress, communicate and be entertained. In-touch travelers spend a lot of time in the car and need to be constantly connected. Telecommuters spend little time in their cars and prefer to be out of touch when they are in their car. Bus riders are more likely to be passengers or not own a car and are interested in CD changers, speakers and security. And lastly 'the little old lady from Pasadena' refers to consumers who are least interested in mobile technology," said Bates.

CEA's Consumer Technologies in the Automotive Environment (April 2006) was conducted in January and February 2006. It was designed and formulated by CEA Market Research, the most comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer electronics industry. Please source any information cited to the Consumer Electronics Association (CEA(R)). The complete study is available free to CEA member companies. Non-members may purchase the study for $499 at http://www.ebrain.org/crs/crs_all.asp.

About CEA:

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 2,100 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $125 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.

CEA also sponsors and manages the International CES - Defining Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

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