ANALYSIS-MARKET-TRENDS
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Cultural difference - hinder to In-vehicle TV?
Two winners emerged from the 2006 World Cup in Germany - Italy and
in-vehicle digital TV. But while the masses already cheered for Italy,
digital TV in the car was a new player on the scene for most Europeans.
That introduction of digital TV has since given a boost to the European
rollout of in-vehicle TV and DVD video, but Western Europe still lags
far behind Japan in this regard.
Oddly, the reason for that has a lot to do with the way the Japanese number their street addresses.
The link is in-vehicle navigation. Video entertainment in the front seat of a vehicle was once considered unnecessary, if not hazardous, and hardly a viable market. But with navigation systems placing a bright, colourful 7-inch screen in the dash anyway - and one that's often connected to a DVD drive already - suddenly the idea of front-seat video seems less preposterous, and a small step to take.
And here the Japanese market has been a step ahead of Europe. Navigation systems were first introduced in Japan, and these were factory fitted systems, charged at a premium price. However, due to the complex infrastructure of road network and early backing in terms of supportive "real-time traffic information" from the Government, the new technology took off quickly, prices fell rapidly, and navigation systems became popular even in mainstream models.
However, the system of addresses and numbering in the West is more easily mapped out. Therefore, the expected demand never occurred because unlike in Japan it was not a necessity but remained a luxury option, the domain of premium cars. Only with the emergence of more affordable and portable sat-nav did demand start to increase.
Looking closer at the infrastructure of the road network is not as strange as it sounds, says Helena Perslow of IMS Research. "These trends suggest that factors such as country specific road network, culture and lifestyle can play a more influential role than usually credited, and generally have a much stronger influence than targeted marketing". Perslow continues, "we've see this with navigation systems, and now with in-vehicle TV".
What Perslow is hinting at is the clear division between integrated navigation systems in Japan and portable navigation systems in Western Europe.
In-vehicle TV has been available for over a decade in Western Europe, however, it was only with the World Cup in Germany 2006 that it became known to the masses. But as mentioned Western Europe still has a long way to go in comparison to Japan. It is estimated that 100% of factory fitted navigation systems are video capable, i.e. capable of showing TV or DVD in Japan. Whereas the comparable figure for Western Europe is only 31.3%. Like navigation systems there are many underlying factors to this, which is something Perslow explores in her latest report, The Worldwide Market for In-vehicle TV, Video and Display Technologies. Is there a future for in-vehicle TV in Europe? The report does forecast that the number of in-vehicle TVs will triple over the next eight years in Western Europe, although the gap between Japan and Western Europe will remain at about 1.3m units.
Oddly, the reason for that has a lot to do with the way the Japanese number their street addresses.
The link is in-vehicle navigation. Video entertainment in the front seat of a vehicle was once considered unnecessary, if not hazardous, and hardly a viable market. But with navigation systems placing a bright, colourful 7-inch screen in the dash anyway - and one that's often connected to a DVD drive already - suddenly the idea of front-seat video seems less preposterous, and a small step to take.
And here the Japanese market has been a step ahead of Europe. Navigation systems were first introduced in Japan, and these were factory fitted systems, charged at a premium price. However, due to the complex infrastructure of road network and early backing in terms of supportive "real-time traffic information" from the Government, the new technology took off quickly, prices fell rapidly, and navigation systems became popular even in mainstream models.
However, the system of addresses and numbering in the West is more easily mapped out. Therefore, the expected demand never occurred because unlike in Japan it was not a necessity but remained a luxury option, the domain of premium cars. Only with the emergence of more affordable and portable sat-nav did demand start to increase.
Looking closer at the infrastructure of the road network is not as strange as it sounds, says Helena Perslow of IMS Research. "These trends suggest that factors such as country specific road network, culture and lifestyle can play a more influential role than usually credited, and generally have a much stronger influence than targeted marketing". Perslow continues, "we've see this with navigation systems, and now with in-vehicle TV".
What Perslow is hinting at is the clear division between integrated navigation systems in Japan and portable navigation systems in Western Europe.
In-vehicle TV has been available for over a decade in Western Europe, however, it was only with the World Cup in Germany 2006 that it became known to the masses. But as mentioned Western Europe still has a long way to go in comparison to Japan. It is estimated that 100% of factory fitted navigation systems are video capable, i.e. capable of showing TV or DVD in Japan. Whereas the comparable figure for Western Europe is only 31.3%. Like navigation systems there are many underlying factors to this, which is something Perslow explores in her latest report, The Worldwide Market for In-vehicle TV, Video and Display Technologies. Is there a future for in-vehicle TV in Europe? The report does forecast that the number of in-vehicle TVs will triple over the next eight years in Western Europe, although the gap between Japan and Western Europe will remain at about 1.3m units.
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