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Automakers Integrate In-Vehicle Infotainment Systems

Automakers are now starting to capitalize on demand for the same dynamic multimedia experience in the car that people are already accustomed to within their home.

Automakers have begun to integrate in-vehicle infotainment (IVI) systems into a wider range of automobiles in order to re-energize new vehicle sales. According to the latest market study by In-Stat, over 35 million in-vehicle infotainment systems are expected to ship in 2015.

"In order to compete, the automotive industry must now keep pace with the innovation and scalability found in the consumer electronics industry," says Stephanie Ethier, Senior Analyst at In-Stat.

Along with a rich multimedia experience, today's car drivers and passengers are also starting to create demand for constant online connectivity.

The majority of automakers are embracing this demand for connectivity and forming strategic partnerships with technology and software companies to offer solutions that will enable consumers to access digital content in and out of the automobile via both wired and wireless options.

In-Stat's latest market research findings include:

- Due to the wide consumer acceptance of smartphone apps, the smartphone will be the preliminary source of in-vehicle infotainment and connectivity.

- The semiconductor TAM for IVI system suppliers will grow nearly 110 percent between 2010 through 2015, with the largest opportunity residing with those companies supplying applications processors, Wi-Fi/Bluetooth/GPS/FM combo chips and SDRAM.

- The BOM of a typical IVI system will be $75.78 in 2015.

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