Johnson Controls will introduce its first infotainment system in an unspecified global 2014 model year vehicle in North America, Europe and Asia. The supplier is currently unveiling its infotainment system technology at the 2013 International Consumer Electronics Show (CES) in Las Vegas.
Johnson Controls has been active in the automotive electronics sector for more than a decade, offering the likes of connectivity systems, hands-free telematics, and Human Machine Interface (HMI) systems. However, this is the first time it will provide full in-vehicle infotainment systems for vehicle manufacturers.
“As the market has migrated toward more integrated infotainment solutions, we have developed in-house capabilities and formed strategic partnerships in the development of our products,” commented Paul Lambert, Group Vice President and General Manager, Electronics, Johnson Controls Automotive Electronics and Interiors. “As a result, we offer automakers integrated system solutions that include navigation, audio management, connectivity and HMI design.”
Lee Bauer, Vice President of Infotainment, Johnson Controls Automotive Electronics and Interiors, explained that the company’s vision for infotainment will address both automakers and consumers desire for a “composited” view of diverse information sources within the vehicle: “Infotainment and Information applications currently running on multiple operating systems, will be fused together in a comprehensive driver information package that is intuitive, safe and scalable for vehicles. Multiple operating systems that can run in their own hardware space without modification will be the cornerstone of bringing automotive embedded infotainment and driver information into a cloud based future.”
The rising demand for connectivity is a key motivator behind the company’s business strategy. According to a recent online survey conducted for Johnson Controls by Harris Interactive, interest in greater connectivity within the vehicle is a top priority. 84% of US vehicle owners polled would like to control the features in their vehicle via a touch-screen infotainment system; 83% want to get updates to vehicle infotainment systems delivered wirelessly; 76% would like to connect to the Internet using their vehicle as a Wi-Fi hotspot; 67% would like to download applications directly to their vehicle; and, 61% would like to pay for something using a debit or credit card linked to the infotainment system in their vehicle.
“This market research validates Johnson Controls’ infotainment approach. We deliver the latest technology features that consumers demand with an intuitive Human Machine Interface throughout our development process,” commented Lambert. “This information is helping us to provide market-leading infotainment solutions that take into account ever-increasing consumer electronics functionality without sacrificing safety.”
This is the first time it will provide full in-vehicle infotainment systems for vehicle manufacturers
Johnson Controls is perhaps best known as a seat supplier with a growing interest in EV batteries, but it is the company’s expanded offering in the electronics segment and investment in China that are proving key growth drivers, noted David Leiker, research analyst at Robert W Baird & Co., in a research note cited by the Journal Sentinel. The supplier’s electronics offerings accounts for around US$500m of the total US$3.7bn automotive business backlog. Last fiscal year, electronics brought in sales of US$1.4bn and provided the highest profit margins within the company’s automotive experience unit.
The Journal Sentinel also quotes Bill Jackson, head of Johnson Controls’ electronics business, as stating that the company currently holds 25% of the dashboard display market, making it the segment leader. For heads-up displays on the windshield, Johnson Controls is the number three supplier.
For 2013, Johnson Controls expects Automotive Electronics and Interiors sales to increase approximately 2%. For the mid-term (through 2017), the segment is expected to report annual margin expansion of 60 to 70 basis points driven in part by higher profitability in Electronics.
Megan Lampinen
