USB Port or an iPod Dock for Your Car?

The so-called audio system "retrofit" market is, as a result, poised to soar in the coming years, as consumers, Detroit and aftermarket electronics developers each push their own preferences.

A report by the Boston-based research firm, Strategy Analytics, called "Automotive Removable Storage - Car Makers and Suppliers Divided on Format," indicates that the majority of retrofit automotive infotainment systems with removable storage cards use Secure Digital (SD) or Multimedia Cards (MMC) format. Yet, car makers are showing a preference for USB connectivity. Still others are embracing docking systems for iPods, like those used for home audio systems.

Removable Storage Cards

The use of removable storage cards in automotive applications has been led by Japanese aftermarket suppliers, with Panasonic launching its first in-dash audio system with removable storage capabilities a few years ago.

While Japanese electronics vendors still lead the game in removable storage capable audio systems, European vendors, including Siemens (NYSE: SI) VDO and Blaupunkt have recently launched similar audio systems.

In the meantime, automakers are demonstrating a preference for USB port integration, with five mainstream car makers incorporating the technology into concept vehicles unveiled at the Frankfurt Motor Show 2005.

"USB slots are more flexible than removable memory cards. While cards like SD, MMC and Sony (NYSE: SNE) Memory Stick can only be used for relaying information, USB ports can also be used to connect portable music players and transfer power to portable devices," report author Clare Hughes, an analyst with the automotive practice of Strategy Analytics told MacNewsWorld.

However, there are safety issues around the in-vehicle USB memory sticks that extend beyond the dashboard. "Unlike SD and MMC cards, which have a standard form factor, a universal recessed slot for a USB stick cannot be designed. Since only the end connector is standardized, USB sticks can come in a variety of shapes and sizes," said Hughes.

Setting a Trend?

Despite the possible problems with USB sticks, the automotive electronics trends, first set at the Frankfurt Auto Show last fall, were followed-up on last week during the Geneva Motor Show 2006.

With the popularity of portable music players, online music downloads and DVDs soaring over the last two years, consumer entertainment choice outside of cars has expanded dramatically

"Aftermarket electronics vendors have been offering the latest advancements in entertainment system retrofit options for the last 18 months," said Hughes.

In the end, the advantage may lay with carmakers. They can offer new entertainment systems as factory or dealer installment options, including their ability to fully and safely integrate the systems into the car's interior. They can also offer multifunctional controllers.

"This has led to a significant increase of in-vehicle integration of advanced entertainment features, with compressed audio playback, portable music player connectivity and DVD rear seat entertainment systems all beginning to emerge on mainstream vehicles," noted Hughes.

Music Industry Chimes In

Music producers and artists are taking sides in the new music distribution battle, because they want the best audio systems possible in cars so their performances and productions are heard properly.

A firm called MusicGiants is promoting a system that provides "lossless, high sound quality downloads" from music labels at seven times the quality of standard MP3 downloads, the company said.

MusicGiants is working with Elliott Mazer, the long-time producer for Neil Young, and former producer of Janis Joplin, as well as Doug Clifford, the former drummer of Creedence Clearwater Revival, on marketing to the automotive electronics marketplace.