We've known for some time that in-car CD players are ultimately destined for the recycle bin of consumer-electronics history, and a report out this week by the Consumer Electronics Association (CEA) confirms that the slide has already begun. According to this report in Twice, the CEA predicts that sales of OE integration products such as MP3/iPod adapters, auxiliary-in adapters, universal controllers, FM modulators, and Bluetooth-integration devices will surpass those of CD stereo head units in 2007 for the first time.
The report also highlights growth in the market for "mech-less" car stereos (or, stereos with no CD or tape mechanism, such as the Alpine iDA-X001), as well as for stereos with HD radio (such as the JVC KD-HDR1), and those with A2DP stereo Bluetooth for music streaming.
The CEA estimates that dealer sales of OE integration products will approach $1 billion this year, while retail sales will hit $2.7 billion. Although OE sales are expected to remain strong, the car audio after-market is set to shrink by 2010, due to continued slowing in traditional--read "CD playing"--products.