The satellite radio technology existed in the market for quite a long time now but it was not widely accepted to become an industry standard. Automo expects that satellite radio will become industry standard equipment in medium term. The automakers should also consider other receptions such as navigation, cell phone, FM and AM radio, and the antenna. The satellite radio supplier should include all the function in one unit to achieve a wide adoption.
A clear and uninterrupted reception for the satellite radio is still an issue and the customers are not satisfied with the current offerings. The quality of the reception is dependent on the terrestrial infrastructure and the unit’s configuration. The satellite radio offering companies can improve the reception by employing space diversity i.e. the two antennas should be employed and it should be positioned at a vivid location for the great reception service. The real challenge in this scenario is the cost versus benefit for the end user to employ antennas.
Another rapidly developing and an interesting market is of mobile satellite television system. But, this system also faces issues with a blockage in mountainous areas and dense urban locations. At present, satellite television is the niche market which is very expensive and the hardware is bulky and at present, there is no clear picture of the market adoption rate.
The satellite radio service companies have showcased the ability to provide satellite television irrespective of the nature of the video, but the television requires reception system which is more sophisticated.
The key value proposition for the automakers is GPS based navigation because of its volume sales and demand. The company offering satellite radio should include GPS as one of the elements in their unit. The telematics and navigation should be an internal part of development activities for the satellite radio companies.
The wireless networking technologies such as Wi-Fi, Bluetooth, Wi-Max will be supporting the vehicle to roadside communication, dedicated short-range communication, inter-vehicle, and intra-vehicle communication. In light vehicles, these wireless technologies will support innovative and advanced applications in the vehicle.
The price of the antenna system comprises 20% of the overall cost of the hardware. The hardware prices should be reduced rapidly to ensure mass adoption. The aftermarket and manufacturing strategies need to be designed to reduce the overall cost of the hardware. If the option is cost friendly, the consumer would be willing to subscribe to the satellite radio. Cost is the major hindrance for the adoption in the automotive sector, higher cost will eventually increase the vehicle ownership price. This price is a major hurdle for the satellite radio adoption.
In automotive domain, the vehicle will continuously demand the capabilities which help for greater communication take an example of connected driving and autonomous vehicle, it requires communication technology which does not fail the end user in need. The communication capabilities are not just for the infotainment system but it is also necessary for the security and safety applications such as intelligent transportation, asset tracking, collision avoidance, and others. For the satellite radio to be successful and become an industry standard all these functions mentioned above should be integrated in to one unit and should be offered to a customer with a cost-friendly option.