The radio industry has been undergoing a turbulent period of change over the last decade as traditional broadcast services have been challenged by the rise of Internet radio. However, as with many other sectors, new technologies that emerge within the radio industry do not necessarily lead to the complete replacement of established services. Instead, consumers are becoming increasingly accustomed to listening to radio over multiple platforms. For the automotive industry there are three factors that will determine the speed with which new platforms in the car shift from niche to mass market:

Digital switch-over
In various European markets, governments are considering a switch-over from analogue to digital services during the next decade, leading to pressure on vehicle manufacturers to develop 'DAB-ready' receivers.

Summary of market trends in Europe - Details available in the report

Legislative policies
Governments in Europe are increasingly mandating the fitment of DAB in order to push forward the digitisation of radio, whilst the USA government is considering a mandate for FM on mobile phones that could significantly speed up the consumer uptake of HD radios outside of the car. 

Consumer needs
There are strong signs that consumer demand for Internet radio is likely to become widespread over the next 2-3 years in both Europe and the USA.

SBD's latest report report, The future of Broadcast and Internet radio in the car, provides a granular analysis of how the radio industry is changing in Europe and the USA, focusing specifically on the shift from analogue to digital roadcasting and internet streaming. The report also forecasts how the automotive industry will adapt to these changes and provides recommendations for how best to satisfy the growing consumer demand for 'Intelligent Radio'. To buy this report contact Alessio Ballatore at ABallatore@sbd.co.uk.