Backup cameras will likely enjoy at least 3 more years of solid growth, which could be as high as 30 to 40 percent a year. After that, some suppliers see growth starting to fall off, while others say the market could still continue to see hefty gains.
By all accounts, aftermarket backup cameras enjoyed double digit growth last year and will see more of it in 2014.
Boyo, one of the leading camera suppliers said its sales were up about 20 percent in units last year and it expects another 10 or 15 percent growth this year, if the economy remains on its current track.
Rydeen foresees 30 percent industry growth each year for the next few years. After that, said Rydeen’s Phil Maeda, “OEM adoption will get much bigger and cameras will become standard in many vehicles,” leaving less room for aftermarket sales.
But VOXX (Audiovox) Electronics’s Tom Malone says backup cameras are really just starting to boom. “Even though car manufacturers are putting backup cameras in more and more cars, the exposure to the category is really just starting to gain traction and there are literally a couple hundred million cars out there that don’t have it. So I think people will be adding cameras for a long time to come.”
About 2/3rds of new cars offer backup cameras.
Malone said new features, like object sensing in the camera, will help keep the aftermarket ahead of the car companies. “I think the market will be strong for another 5 years with maybe the growth tapering in year 3,” said Malone.
Aftermarket sales in backup cameras began to turn a corner over the past 12 months as more consumers became aware of them, said several retailers, with some claiming sales of cameras and mirror monitors have doubled recently.
Car Toys said its automotive camera sales are growing by double digits in both units and dollars. “Customers recognize the benefits of a good camera and almost all of our Connected Car head units go out with one. Down the road just a bit it won’t be uncommon for cars to have several screens and several cameras,” said Jim Warren, Senior VP Merchandising.
Al & Ed’s Autosound, Van Nuys, CA said reverse camera sales have been gaining ground each year for the last several years. “We’re doing a better job of presenting that category to each and every customer,” said Purchasing Manager John Haynes. The large number of TV ads showing backup cameras in new vehicles is helping to validate the category, he added.
Steelmate estimates industry sales have been gaining at a rate of 3 to 40 percent a year. NAV-TV said its backup camera interface kit sales for specific cars grew by almost 50 percent last year.
Source: CEoutlook
