Reports: Sat Rad, Navigation System Penetration Rises - Radio World

Reports: Sat Rad, Navigation System Penetration Rises

Growth in consumer demand for high-tech features supplied in new vehicles has led to a significant increase in market penetration for satellite radio and navigation systems. That’s according to a study released by J.D. Power and Associates.
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Growth in consumer demand for high-tech features supplied in new vehicles has led to a significant increase in market penetration for satellite radio and navigation systems. That’s according to a study released by J.D. Power and Associates.

The study finds that 55 percent of new-vehicle owners report having satellite radio capability in their audio system, up considerably from 39 percent in 2007. Additionally, market penetration for navigation systems has also increased — up to 25 percent in 2008 from 20 percent in 2007.

“Nearly 60 percent of consumers say they want a navigation system on their next vehicle, and 66 percent of consumers want the ability to play MP3 files. To meet or exceed consumer expectations, manufacturers will need to focus on incorporating high-tech features in multimedia systems while avoiding increases in problem levels,” said Allison LaDuc, senior research manager of automotive product quality at J.D. Power and Associates.

Researchers asked questions about 28 different combinations of radios; HD-R was not included, presumably because those sales have not reached a high volume.

The study also finds that, for a third consecutive year, the three most commonly reported multimedia problems are front audio/entertainment system controls difficult to understand/difficult to use/poor location; navigation system map/wrong directions/poor location; and AM/FM radio poor/no reception. These issues account for nearly 60 percent of the total reported multimedia problems.

The 2008 Multimedia Quality and Satisfaction Study is based on responses from 81,530 new-vehicle owners who bought a 2008 model-year vehicle.

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