Vehicle Internet Radio Market Expected to Explode

The Internet is flooded with online radio stations. Through a simple search, users can find the music they want to hear ranging from top 40 hits to classic country songs and just about everything in between. While most of us are accustomed to stream and satellite radio stations on the web, listening to the same stations in our cars is another story. However, a new report suggests that the next vehicle you purchase just might come with Internet radio capability as a standard feature.

Worldwide sales of vehicles with Internet radio stations are expected to rise over the next eight years, opening the road to in-vehicle apps that will be incorporated into car electronic systems, according to IHS iSuppli Automotive Research Service from IHS.

“The next several years will see an explosion in the use of in-vehicle apps in cars, driven by booming shipments of automobiles employing head units designed to integrate cloud-based content,” said Egil Juliussen, principal analyst for automotive infotainment at IHS. “These apps, whether built into cars or provided via connected mobile devices like smartphones, will provide a range of infotainment, entertainment, remote diagnostics and navigation services. With music having been the leading form of entertainment in cars for more than 75 years, Internet radio is expected to lead the in-vehicle app revolution.”

Of course this technology is nothing new. Right now, nearly 50 car models in the United States already have Internet radio app integration or will have it in their model-year 2012 versions. In fact, BMW, Ford, Mercedes-Benz, Hyundai and many other models all currently feature Internet radio apps in their vehicles.

However, according to the report, the explosion of e-radio in cars is being fueled by major changes in the way car electronics systems are being designed. Instead of fixed function head units, automotive infotainment systems will feature apps-based head units, making it possible for consumers to listen to their favorite online music stations and talk radio programs while on the road.

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