A study by IHS iSupply said sales of automobiles with Internet radio capability will spike by more than 30X over the next eight years through 2018.
And it will create an “explosion” of apps for the car, causing car radios to transition into “app-based head units,” said iSuppli.
Sales of cars with Internet radio worldwide will soar to 24 million units in 2018, up from 168,000 in 2010. The U.S. will lead the charge, with sales growing to more than 10.9 million units in 2018, from 149,000 in 2010.
The trend will also lead to a “wave of in-vehicle apps” that will continue to extend the radio beyond a basic music device.
“These apps, whether built into cars or provided via connected mobile devices like smartphones, will provide a range of infotainment, entertainment, remote diagnostics and navigation services. With music having been the leading form of entertainment in cars for more than 75 years, Internet radio is expected to lead the in-vehicle app revolution,” said analyst Egil Juliussen at IHS.
“The next several years will see an explosion in the use of in-vehicle apps in cars, driven by booming shipments of automobiles employing head units designed to integrate cloud-based content,” he added.
About 50 car models in the U.S. already have Internet radio app integration or will offer it in model-year 2012. These include car models from BMW, Ford, Lincoln, Mercedes-Benz, Scion, Buick, Chevrolet and Hyundai. In Europe, only BMW and Mini offer Internet radio so far. In China, there are four Chinese luxury models that are in the process of adding Internet radio integration.
Pandora has partnered with the makers of more than 200 consumer electronics devices, including Alpine, Panasonic, Pioneer, Samsung and Sony. It has also developed relationships with auto makers including Ford, Mercedes-Benz and Mini. Also General Motors, Hyundai and Toyota have announced plans for future Pandora integrations.
For more, see the IHS iSuppli report “The Connected Car—In-Vehicle Apps for the Future.”
Source: IHS iSuppli