Internet radio will prevail in the automotive market

According to IHS iSuppli’s automotive market research report, sales of global equipment network radios will increase by more than 30 times in the next eight years, leading to a series of automotive applications that will be integrated into automotive electronic systems in the coming years.

In 2018, the sales volume of autos with integrated Internet radio on the audio body will increase from 168,000 units in 2010 to 24 million units, as shown in Figure 5. The United States will lead the development of the automotive Internet radio market. In 2018, the country’s sales will increase from 149,000 in 2010 to 10.9 million.

Car shipments using audio components that can integrate cloud content have soared, and will stimulate rapid growth in automotive applications in the coming years. These applications, whether built into the car or via mobile devices such as smartphones, will provide a variety of infotainment, entertainment, remote diagnostics, and navigation services. Music has been the main form of entertainment in the car for more than 75 years. It is expected that Internet radio will lead the revolution in car applications.

The development of automotive audio systems in the direction of application-based design has undergone fundamental changes, and the rapid development of in-vehicle Internet radio is being promoted. Automotive infotainment systems are shifting from fixed-featured stereos to IHS's application-based stereos.

Similar to a PC, an application-based audio ontology will be based on a software and hardware platform that will provide all functionality through the application. These applications will run on the body platform and will provide a human-machine interface (HMI)-based user interface. The depot has provided HMI in the car.

The smart phone integrated software in the audio body allows motorists to utilize numerous car-related smart phone applications. Smartphones also provide data plans, including wireless communication costs for receiving content and services. At present, only a few acoustic bodies have some of the above functions, but this trend will increase in the coming years.

Internet radio will be one of the most commonly used applications in audio-based applications.

Internet radio on the road About 50 cars in the United States have integrated Internet radio applications, or will be used in the 2012 version of the application. BMW, Ford, Lincoln, Mercedes, Scion, Buick, Chevrolet and Hyundai have integrated Internet radio applications in the US market. In Europe, only BMW and Mini provide Internet radio. In China, four luxury cars are adding Internet radio integration.

Internet Radio Services Wirelessly Several Internet radio service providers have entered the US market, including Pandora, iHeart-Radio, Slacker, and Spotify. The services of these companies constitute direct competition for standard radio broadcasts and subscription-based satellite broadcasts.

In most OEM and aftermarket audio vendors, Pandora is actually a cloud-based Internet radio application. For example, Pioneer provides a free Pandora Link application that requires an appropriate accessory market infotainment audio body to support wireless connectivity between the audio body and the mobile phone to enable Pandora radio integration.

Pandora provides services through a variety of distribution channels. In addition to providing services to PCs, Pandora has also developed a variety of applications for smart phones and has established partnerships with more than 200 consumer electronics manufacturers, including Alpine, Panasonic, Pioneer, Samsung and Sony.



Pandora also develops relationships with major automakers, including Ford Motor Co., Mercedes-Benz, and Mini, and establishes links with major automotive manufacturers' suppliers to integrate its services into existing and future car audio systems. In addition, General Motors, Hyundai and Toyota have announced plans to integrate Pandora services in the future.

Into the cloud world In addition to Internet radio, there are many other cloud-based content sources. Cloud music console services, such as Apple iCloud, Google Music, or Amazon Cloud Drive, may be used in automobiles because of their potential for use in the mobile industry. However, car manufacturers are currently less interested in introducing such cloud services into the car. On the contrary, they currently prefer popular entertainment applications such as Pandora, iHeartRadio and Slacker.

Egil Juliussen is chief analyst at IHS Automotive Infotainment.