A research report from Strategy Analytics concludes that Blaupunkt, Siemens VDO, Delphi and Visteon, which collectively own 68% of the market for audio head units in new vehicles in Europe and North America, are likely to maintain their dominance despite increasing competition.

Joanne Blight, director of Strategy Analytics automotive practice, said scale economies, well-established carmaker supply relationships and new product ranges should keep the quartet on top. She said that Blaupunkt and Siemens VDO accounted for 55% of audio head units shipped for European vehicle production in 2006 while Delphi and Visteon shipped 66% of head units for North America. She added that Alpine, Harman International and Bose, “are mounting strong and well-targeted competition in the premium audio sectors of the market.”

Blight said consumer audio requirements inside the vehicle and on personal devices is changing rapidly. “The ongoing challenge for market leaders and their competitors is to develop well-priced products to meet the increasing demand for new forms of digital audio entertainment. In particular, compressible format CD players, digital radio and connectivity for portable music players will very quickly become central features on in-vehicle entertainment systems.”