2016/07/01 Strategy Analytics: Consumer Demand for In-Car AM/FM Radio and CD Players Declines to New Lows

User Experience of In-Car Internet Radio Has Hindered Growth

Boston, MA - June 22, 2016 - A recent survey from the In-Vehicle UX (IVX) group at Strategy Analytics assessed consumer interest in, usage of, and satisfaction with in-car infotainment features. While the AM/FM radio remains the top source for infotainment in the car, daily use continues to steadily decline.  The percentage of consumers who feel that an in-vehicle CD player is a “must-have” feature continues to fall to historic lows.  However, no new infotainment source has clearly risen to take their place.

Click here for the report:  http://bit.ly/28N3VZp

According to the report (“Usage of In-Car CD Players Continues to Drop, but What Will Replace Them?”), consumer appetite for in-car internet radio and connections for portable music players have both levelled off after strong growth through 2015 in the US, Europe, and China.  Consumers’ interest in digital radio in Europe and satellite radio in the US has also either remained steady or declined slightly.

Derek Viita, Senior Analyst and report author, commented that although usage of the in-car AM/FM radio has declined, it “remains tops for usage and interest, primarily driven by the desire for up-to-date traffic information without the data connection that most popular traffic apps require.”

Continued Viita, “The only source in the US and Europe that continues to show steady (though slow) growth in interest is an in-vehicle connection to apps. Apple CarPlay, Android Auto, and Baidu CarLife (which all can provide easy access to a user’s preferred apps) are uniquely positioned to take advantage of this trend.”

Chris Schreiner, Director of IVX, added, “Some of these trends indicate that the value added (by the infotainment feature) is not strong enough to warrant wide adoption or re-subscription.  However, many of these trends are a strong indicators that current in-vehicle implementations are not usable or compelling enough to adopt for regular daily use.”
 Source: Strategy Analytics