Global In-car TVs Market

Global In-car TVs Market

China's production and exports of in-car TVs are rising steadily, stimulated mainly by growing demand from both overseas and local markets. The rapid development of digital and networking technologies and the upcoming 2008 Beijing Olympic Games are major factors spurring demand growth. In 2009, domestic sales of in-car TVs are expected to surpass the 1 million-unit mark.

Encouraged by this positive outlook, many China suppliers will increase their production capacity despite the shortage of LCD panels. However, the limited LCD panel supply, combined with other factors such as rising production costs, will compel suppliers to raise their quotes.

Most makers aim to offer one-stop solutions to meet buyers' needs by expanding their product range to include entry-level in-car TVs to high-end multifunction models. Inspired by the digital home concept, several suppliers are beginning to develop allin- one car multimedia systems.

The following are some of the key trends we see in China's in-car TV industry:
• Exports will increase by up to 20 percent in the coming months. North America, EU regions and Asia will remain as major export markets.
• Many suppliers will expand their capacity by upgrading existing facilities, setting up more production lines or moving to bigger factories.
• Price increases within a range of 5 to 10 percent are expected in early 2008. This is brought about by the growing adoption of LCD panels in other consumer electronics such as GPS systems and digital photo frames, putting a strain on LCD panel supply and resulting in a 20 to 30 percent spike in the cost of production.
• Functionality and value-added features, such as incorporating touch-screen panel, card reader, DVD player, AM/FM radio, and USB and VGA port, are major product development focus of suppliers. New releases are also adopting bigger screen sizes from 8in to 10in.

This report covers the five main types of in-car TVs produced in China: flip down, headrest, in-dash, standalone and sun visor car TVs. All five product types have more or less equal production shares, although headrest and standalone car TVs take up slightly higher export volumes. Models with 7in LCD panels are the mainstream offering, although a wide range of screen sizes are available depending on the type of in-car TV. Suppliers are not only limited to producing these five types of in-car TVs. Most of them also offer products such as armrest in-car TVs, rear-view mirror in-car TVs and detachable flip down in-car TVs.