What a difference a decade makes: Infotainment technology transforms automotive business

The rise of interactive communicatons has transformed the automotive industry in the last decade with infotainment becoming a big selling point for automotive companies.

09/16/2013


Compared to many high-technology markets—such as wireless communications—time often seems to progress slowly in the automotive business, with even a period of 10 years sometimes bringing only incremental changes to cars.

However, that all has changed during the past decade, as new infotainment technology has completely revolutionized cars and the automotive business as whole, according to the Automotive Technology Portals and Services from IHS Inc., a leading global source of critical information and insight. As sweeping as these changes have been, they are set to be eclipsed by events during the next decade, as a new wave of technologies sweeps through the market.

“The radical changes wrought by the rise of infotainment technology are dramatically illustrated by the transformation of automotive dashboards during the past 10 years,” said Ben Scott, technology solutions analyst for IHS Automotive. “In 2002, an owner of a new Ford Focus gazed down upon a proprietary dashboard that had no connectivity and that was adorned only with an AM/FM/CD music player. In 2012, the proud owner of a new Focus beheld a dashboard rich with infotainment features, including multiple displays, a wealth of apps and services and various means of connectivity. The major question that automakers need answered now is, ‘What will the Focus dashboard of 2022 look like?’”

Courtesy: IHS Inc.

This year’s model

Other major changes to impact the automotive market during the last 10 years include:

  • The average car in 2012 contained about $330 worth of semiconductors, up 65% from $200 in 2002, as presented in Figure 2 attached.
  • In 2002, infotainment technology wasn’t really a selling point in motor vehicles because the powertrain was a more important consideration. One decade later, it’s the complete opposite: infotainment systems now can account for as much as 10% of the price of buying a new car.
  • Ten years ago, most cars had no connectivity. Today cars come with various means of connecting with the outside world, including telematics, cellular, Wi-Fi and Bluetooth.

What’s next?

The automotive technology transformation is continuing with major innovations arriving every day, including new safety systems, increasing connectivity and expanding availability of telematics services.

Global average semiconductor content per motor vehicle sold. Courtesy: IHS Inc.

Collision warning systems are becoming more widely available and they, as with many other active safety applications, are adding functionality, often of the semi-autonomous variety, according to Jeremy Carlson, senior analyst for advanced driver assistance systems. Collision warning systems are evolving from alert-only to include some form of autonomous emergency braking.

Meanwhile, for some of the bigger brands by the end of 2014, every vehicle they sell will offer some sort of connectivity, according to Jack Bergquist, IHS senior analyst for infotainment. Looking at the cost to design a completely new car model, some companies are spending around one-third of the budget just on the in-vehicle infotainment (IVI) and the in-car technology around the system.

Mark Boyadjis, senior analyst, Infotainment & HMI observed that there's also a great deal of connected-car growth at present. In fact, motor vehicles are the third-fastest growing connected device behind smartphones and tablets.

Furthermore, telematics will experience fast growth because it is being driven by both consumers and OEMs. Consumers are interested in telematics services, including internet radio, emergency/ concierge service like eCall. OEMs on the other hand will want to use telematics to collect vehicle data. It’s likely that in the developed regions, every car manufacturer will offer some type of connected service in its model line-up by 2015.



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Hannover Messe 2016: Taking hold of the future - Partner Country status spotlights U.S. manufacturing; Honoring manufacturing excellence: The 2015 Product of the Year Winners
Inside IIoT: How technology, strategy can improve your operation; Dry media or web scrubber?; Six steps to design a PM program
World-class manufacturing: A recipe for success: Finding the right mix for a salad dressing line; 2015 Salary Survey: Manufacturing slump dims enthusiasm
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Warehouse winter comfort: The HTHV solution; Cooling with natural gas; Plastics industry booming
Managing automation upgrades, retrofits; Making technical, business sense; Ensuring network cyber security
Designing generator systems; Using online commissioning tools; Selective coordination best practices

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
click me