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Harman, Continental, and Bosch lead the way in connected infotainment systems, a segment that generated U$32 billion in revenues in 2019, finds global tech advisory firm ABI Research. In its latest Tier One Connected Automotive Infotainment Suppliers Competitive Ranking, Harman
is the clear leader, with Continental in a distant second place, and
Bosch a close third.
Together, these three accounted for 30 percent of the
total market revenue in 2019. While Visteon and Aptiv scored highly in
innovation criteria, their comparatively lower implementation scores
resulted in the fourth and sixth position in the overall ranking,
respectively.
The Tier One Connected Automotive Infotainment Suppliers competitive
ranking analyzed and compared 15 of the most prominent Tier One
suppliers offering connected infotainment worldwide – AISIN, Alpine,
Aptiv, Bosch, Faurecia, Continental, Denso, Harman, Hyundai MOBIS,
JVCKENWOOD, LG Electronics, Melco, Panasonic Automotive, Pioneer, and
Visteon – using ABI Research’s proven, unbiased innovation and
implementation criteria framework.
With navigation and multimedia offerings increasingly standardized,
particularly with the introduction of CarPlay and Android Auto,
innovation in next-generation infotainment means shifting toward
offering platforms based on an integrated cockpit domain controller that
can be scaled across different vehicle segments and advanced HMI
features.
“The ability to deliver on these innovative technologies,
particularly during the COVID-19 pandemic, means that financial strength
has become pivotal. Tier Ones with the strongest financial health will
not only be best prepared to weather the sales decline caused by the
lower new vehicle sales and factory shutdowns and but also to scale
production up to supply new orders when OEMs go back to a fully working
environment,” says Maite Bezerra, Smart Mobility & Automotive Research
Analyst at ABI Research.
“Harman leads the ranking because it has redefined its market
positioning as a premium infotainment provider to develop global cockpit
solutions with a scalable approach ranging from mass-market to premium
OEMs,” Bezerra explains. The combination of the company’s portfolio of
connected infotainment solutions alongside synergies from Samsung – its
parent since 2017 – results in a strong IVI portfolio with cutting-edge
HMI technology, solid financial health, and high regional coverage and
market share.
Continental is a traditional player in the automotive industry and
outperforms Bosch in terms of implementation due to higher Original
Equipment Manufacturing (OEM) collaborations and YoY sales growth. Bosch
stands out for the highest net worth and infotainment revenue among the
assessed Tier Ones, with an extensive global presence that heightens
understanding of local/regional preferences. “Both companies missed
out on a first place in the ranking due to the early stage of their
cockpit domain controller business,” says Bezerra.
Visteon is undoubtedly a leader in the cockpit domain controller segment
and ranks first in innovation due to its comprehensive offerings that
are easily scalable and cost-efficient. Nevertheless, the company missed
a top-three position due to low implementation scores. Similarly, Aptiv,
responsible for delivering the world’s first automotive infotainment
solution based on the Android Automotive OS, is an innovation leader but
ranks sixth in the overall ranking because of relatively low
collaboration with OEMs, net worth, and YoY sales growth in 2020.
“Overall, the leaders group consists of companies that deliver highly
innovative connected infotainment offerings while demonstrating high
market share and robust financial health. The mainstream group, led by
Visteon, consists of either innovative companies that lag behind in
implementation, such as Visteon and Aptiv, or significant implementers
that lag behind in deploying cockpit domain architecture in production
vehicles, such as LG Electronics and Panasonic Automotive. The
followers’ group, led by Pioneer, is mainly composed of companies that
either have a niche strategy such as focusing on specific regional
markets or vehicle categories, or companies with high or exclusive
aftermarket focus,” Bezerra concludes.
These findings are from ABI Research’s Tier One Connected Automotive
Infotainment Suppliers competitive ranking report. This report is
part of the company’s Smart Mobility & Automotive research service,
which includes research, data, and ABI Insights. Competitive Ranking
reports offer comprehensive analysis of implementation strategies and
innovation, coupled with market share analysis, to offer unparalleled
insight into a company’s performance and standing in comparison to its
competitors.
