Pricing and system design issues are among the factors hindering the OEM market for telematics and infotainment systems in Europe, according to a new study from Frost & Sullivan.

Research analyst Praveen Chandrasekar said the significant costs associated with these systems have effectively restricted them to the high-end models of premium vehicle manufacturers and prevented them from achieving mass-market penetration. “Most vehicle manufacturers do not have a strong focus on the design (of telematics and infotainment systems) according to consumer and vehicle segment needs," said Chandrasekar. "Manufacturers also need to consider reworking the pricing of the systems, taking into account the consumer acceptability factor."

Chandrasekar said the product design issue mainly revolves around the question of integration. “Although consumer demand is increasingly leaning toward fully integrated systems, original equipment suppliers continue to focus primarily on complex and sophisticated stand-alone systems for specific applications such as navigation or rear seat entertainment (RSE). This gap between consumer expectations and OE supplier focus is proving to be a major stumbling block to market penetration,” he said.