Car Infotainment Systems Increasingly Important

Cars' infotainment systems are becoming increasingly innovative and elaborate — drivers can navigate to a destination while operating a smartphone hands-free. And drivers' demand for in-car technology powered by the infotainment screen has been growing over the past year. In fact, consumers value in-car technology more than the car's driving performance, according to an Accenture survey.

The infotainment center — which is becoming the next mobile device — is creating a massive market opportunity. And tech companies like Apple and Google are entering the auto market to capture a share of the growing market.

In a new report, BI Intelligence examines the rise in demand for in-car technology over the past year. Further, we will examine the importance of Apple and Google in transforming the infotainment center and discuss how automakers are reacting to the two tech giants' entry into the market.

Here are some of the key takeaways:

• Consumer demand for in-car technology has increased significantly over the past year. Among recent car customers — those who recently purchased a car — in Germany, the US, and China, 37% agreed they would switch to another manufacturer if it was the only one offering a car with full access to applications, data, and media, up from 20% in 2014, according to a McKinsey survey. 
• Several factors are driving increased demand, including the consumer's expectation of always-on connectivity, greater awareness of connected car offerings, and governmental restrictions on using mobile phones while driving (which push consumers to hands-free modes of communication).
• Recognizing consumer demand for cross-platform in-car systems is crucial for automakers. 61% of consumers believe it's either essential or important that their car have the same operating dashboard as their phone, according to an Accenture survey. However, the recent acquisition of Nokia's Here by BMW, Audi, and Daimler may signal that automakers are attempting to keep Apple and Google out of the car's infotainment center.