Consumer electronic suppliers are muscling in on the European aftermarket for telematics and infotainment systems, heretofore the province of automotive companies, according to the research firm of Frost & Sullivan.

As a result, says research analyst Shyamsundar Anandhan, the market is experiencing greater demand for navigation solutions, mobile services for off-board support and Bluetooth car kits. In the future, the market is likely to be dominated by companies that have a presence in portable navigation and portable multimedia. Component or accessory suppliers will witness a surge in growth opportunities if they improve their capabilities and evolve into system suppliers, according to Anandhan. Meanwhile, the entry of new participants such as component suppliers and various traditional automotive companies into the portable navigation segment is expected to result in increased market fragmentation that is likely to hamper the growth of consumer electronic companies.

"The introduction of completely off-board navigation systems will lead to greater dependence on mobile network operators to ensure the provision of high-quality services," Anandhan said. "As a result, the market will witness reduced monopoly of navigation system suppliers."

According to Anandhan, portable navigation devices are replacing navigation systems that were traditionally embedded with either turn-by-turn or map display systems. “Portable navigation systems will continue to dominate the sector, as they offer better potential in comparison to traditional embedded navigation systems.

“At the same time,” he added, “integrated systems, which include navigation, rear seat entertainment and other crucial features in one single device are expected to promote overall market development. In-car entertainment, coupled with DVD-based navigation, is likely to challenge portable navigation suppliers.”