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Internet radio leads automotive brought-in apps

Posted: 28 Jul 2010 ?? ?Print Version ?Bookmark and Share

Keywords:internet radio? vehicle HMI? telematics? brought-in app? smartphone?

The latest trends in the automotive apps and services market are brought-in apps such as Internet radio. There is a a gradual shift in the United States and Europe from embedded telematics to hybrid connected telematics in terms of allowing features to run from a smart phone inside the car. Within this hybrid connected space, vehicle manufacturers possess ample influence to allow internet radio apps to course through inside the car from the smart phone and control it via vehicle Human Machine Interface (HMI).

New analyses from Frost & Sullivan, as well as an executive analysis of European and North American Automotive App Store Concepts and Services, find that the hybrid connected model would have an addressable market size of more than 5 million units by 2015 in North America alone. The hybrid connected telematics models like the Ford Sync offers huge potential to put smart phones into the cabin of the car and allow brought-in apps to run using vehicle HMI.

According to Frost & Sullivan's Global Program Manager Praveen Chandrasekar, the trend of Gen-Y's technology-users in the United States and Europe, which drives the use of mobile Internet on new generation smart phones and apps download from sites (i.e. Apple) is becoming increasingly popular. He says, "By using safe HMI to allow smart phones to be accessed inside the cabin, vehicle manufacturers are creating a superior brand image since consumers can continue to savor their digital experience inside the car." In Europe and the United States, Gen Y will continue to account for about at least a quarter of the total population until 2030, but in South Asia, Gen Y will likely represent over 40 percent of the population by 2030. This market is not without its challenges though, with connectivity and driver distraction being the main problems. On the one hand, vehicle manufacturers are looking to offer connectivity and services using consumers' voice and data connection. Meanwhile, telecom operators are objecting to this model and want vehicle manufacturers to put an additional security identity module (SIM) card with a dedicated voice and data plan to power services inside the car.

There is an increasing pressure from automakers to allow apps from smart phones to run inside the car for consumers and to safely utilize apps using vehicle HMI. Despite apps like Pandora Internet Radio are available free of charge, it is quite lucrative for automakers to provide specific HMI solutions that consumers could buy to access these apps. This would allow consumers to manage everything through one communication module with a single bill.





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