Aftermarket electronics manufacturers well positioned for success

Jan. 1, 2020
Aftermarket electronics manufacturers are exploring in-vehicle connectivty and integration with mobile devices, which is an area of high growth potential.
Just as vehicle manufacturers increase their focus on in-vehicle connectivity and integration with mobile devices in an effort to meet consumer demands, aftermarket electronics manufacturers are also able to explore this area of high growth potential. Aftermarket manufacturers are able to take advantage of a shorter product development cycle, and better product customization to capture consumer business in this dynamic market segment.

Original equipment manufacturers face significant challenges when attempting to penetrate a market segment as fast moving as advanced electronics. A vehicle manufacturer's typical product development cycle of three to five years between generations is much slower than the rapid, approximately 18-month development cycle seen in many consumer electronics products. This presents a serious barrier to consumer adoption of stand-alone telematics or infotainment systems, as a product of this type is often outdated when compared to the features and functionality of the latest consumer electronics. As a result, OEMs typically enter the market with products designed to interface with a consumer's mobile device, thereby avoiding obsolescence upon release.

Aftermarket participants are, at least in theory, able to completely bypass this compromise. Product development cycles for aftermarket electronics do not need to mirror the cycle of vehicles, as they are a standalone product sold through channels which are similar to the consumer electronics markets. Free of this constraint, manufacturers are then able to focus on bringing more cutting-edge technology to the market that is competitive with solutions being offered through the consumer electronics market. Aftermarket manufacturers are also able to explore new business models by virtue of the unique position they occupy in the market.

The use of consumer mobile devices for in-vehicle functions is, at best, a compromise made necessary by the limitations of current business models. An aftermarket electronics manufacturer is able to go beyond simple integration to explore the possibility of the creation of a fully optimized in-vehicle telematics and infotainment device based on existing open-source software platforms. A dedicated in-vehicle device would have radically different requirements for processing power, form factor, streaming data usage, HMI and available applications when compared to the current crop of mobile devices; these product attributes could be tailored to fit the requirements of a new generation of devices which could meet consumer needs at a lower cost while providing increased functionality.

Aftermarket manufacturers are also able to leverage their knowledge of automotive architecture to provide competitive advantages. A dedicated system could interact with a vehicle's OBD2 port, providing, for example, remote diagnostic capability linked to a vehicle navigation program which identifies the closest repair shops. Streaming music through an entertainment system could respond to a consumer's driving style, based on throttle, brake and steering inputs. Hands-free calling could also be implemented through a 4G VOIP connection to reduce the dependence on a consumer's mobile device. If aftermarket manufacturers are able to take advantage of their unique position in the market, achieving significant growth is entirely achievable.

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