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The NPD Group: Consumers Spent More Than $170 Million in 2011 Connecting Portable Media Devices in their Cars, but Traditional Car Audio Products Are Still in Demand

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PORT WASHINGTON, NEW YORK, FEBRUARY 14, 2012 –Portable media devices, such as smartphones, iPhones, and iPods, are gaining popularity in the vehicle as consumers increasingly use them to access digital content while on-the-go, according to leading market research company The NPD Group.  In fact, sales of products designed to integrate portable devices in the vehicle accounted for more than $170 million in 2011, according to NPD’s Retail Tracking Service.

NPD’s most recent study, Mobile CE: A Look Inside the Vehicle, found 84 percent of vehicle owners have a portable media device and more than three quarters (79 percent) are using them in the car. These devices are also used regularly with half of smartphone owners, and nearly two-in-five (37 percent) iPod owners said they use their devices “always” or “most of the time” while driving.   

Despite the popularity of these devices, traditional car audio products are still in demand.  Seventy three percent of vehicle owners with an FM radio said they use it during most car trips and 57 percent of consumers said the presence of a compact disc player will be vital in their decision to purchase their next car stereo system.

“Traditional radio and CD audio remain firmly entrenched in the vehicle from both a device and entertainment standpoint,” said Ben Arnold, NPD’s director of industry analysis. “But as ownership of mobile devices, digital content, and apps expands, consumers will be looking for ways to customize the in-vehicle environment with content and services."

In-vehicle connectivity is also starting to emerge as a purchase factor with a third (32 percent) of consumers saying the feature is highly important in their decision to buy future car audio products.

Consumers are also connecting their digital media devices through a variety of ways.  While 18 percent of vehicle owners have an auxiliary input installed into their vehicle stereo system, 11 percent are connecting through a USB port.  Despite being present in just 13 percent of vehicles, wireless connectivity is gaining favor as a way to more easily control these devices and tap into connected services.  More than half (56 percent) of vehicle owners with a built-in Bluetooth or wireless phone connection installed said they always use it or use it most of the time. 

“The key is for auto makers and traditional audio manufacturers to facilitate consumer use of connected devices in the vehicle, allowing content from the smartphone, tablet, or digital media player to easily stream or be controlled through the deck mounted in the dashboard,” Arnold said.  “We’re only going to see greater consumer attachment to social media, streaming audio and video, and other services as content options grow.”  

To learn more about how mobile audio manufacturers can gain from this opportunity, read Ben Arnold’s blog.

Methodology
A U.S. rep sample of more than 1,600 vehicle owners completed the survey through NPD’s online panel in December 2011.

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Sarah Bogaty
+1 516 625 2357
sarah.bogaty@npd.com

The NPD Group, Inc.
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