CEA: In-Vehicle Electronics a $12.8 Billion Market in 2008

A new study from the Consumer Electronics Association predicts that sales of in-vehicle consumer electronics will grow at a rate of 13 percent in 2008 to more than $12.8 billion.

The study, Automotive Electronics -- What Consumers Have and What They Desire, reports that the typical American spends nearly 17 hours a week in his vehicle. As a result, CEA finds that 38 percent of the driving age population intends to purchase and install an in-vehicle CE product over the next year.

"Given the amount of time that consumers are spending in their cars, it's not surprising that they're choosing to outfit their vehicles with the latest in-vehicle information and entertainment technology," says CEA Senior Manager of Industry Analysis Steve Koenig. "These are the products that make being on the road safer and more enjoyable."

At the top of the list are remote vehicle starters (15 percent), in-dash navigation systems (13 percent) and car alarms (12 percent). There are also strong purchase intentions for technologies like satellite radio, HD radio and DVD players.

Based on results from this study, consumers are actually more likely to spend money on CE products that are not permanently installed in vehicles than on permanently installed CE products. According to the association, this signals consumer desire for flexibility and multi-location use when it comes to buying CE products.

The complete study is available free to CEA member companies. Non-members may purchase the study for $699 at www.ebrain.org. For more information, visit www.ce.org.