The single most interesting part of my experience at CES 2005 was attending a panel discussion entitled, "Plug In and Drive: Automotive Electronics." The day-long event, designed to foster collaboration between consumer electronics manufacturers and the auto industry, was sponsored by the Consumer Electronics Association, the Transportation Convergence Electronics Association, and the Society of Automotive Engineers. Executives from aftermarket car electronics manufacturers and Detroit auto makers participated in the two-part discussion.

Imagine: a room full of the people who have traditionally made replacing the stereo in your new car as difficult as possible (the "OEM," or Original Equipment Manufacturers, in industry jargon), meeting with the people whose business is to sell "aftermarket" car stereo systems that are better than what comes with your new car. There was definitely the potential for some sparks to fly.

Instead, the auto industry reached out to the CE industry at the conference in an attempt to bridge the aftermarket-OEM divide and to forge stronger bonds between the two sides. This was dramatic proof of the growing importance of consumer electronics in both automotive design and consumer purchasing decisions. Gary Shapiro, CEO of the Consumer Electronics Association, noted in his keynote address that "car electronics now represent 30% of the value of each car sold." Clearly, consumers want (and expect) to have the latest, greatest electronics gear in their new cars. Good news, folks — Detroit is finally listening!

In the chaos of CES, I was only able to attend the first half of the conference, which focused on consumer electronics; the afternoon session was devoted to the auto makers and factory electronics. I arrived at the 9 AM panel pretty much exhausted from the first three days of the show, and not very excited about sitting through a three-hour discussion. But within the first five minutes of the session, I found myself totally energized. This was not going to be a "how to sell more car stereos" seminar; instead, this was a unique opportunity to listen to industry leaders discuss where they saw the mobile electronics industry heading, with an emphasis on how to increase business for both aftermarket electronics manufacturers and auto makers.

In fact, the session proved to be so interesting and provocative that it colored my overall impression of CES 2005, as you can see in my CES 2005 Mobile A/V Overview. This, then, is my attempt to give you some insight into how mobile A/V systems might look in the coming years.

To give you some idea of where I'm going to take you, check out the image below. This is a vision of a future mobile A/V sytem as presented by panelist Steve Witt, V.P. of Brand Marketing at Alpine. (Steve was generous enough to let me review his PowerPoint presentation in preparation for writing this article — thanks Steve!).

Image courtesy of Steve Witt and Alpine Electronics.

You'll notice right away that there is no car stereo, per se, shown in this next-generation vehicle system. Instead, you see a digital server that manages all the content you'll be taking with you on the road. Music, video, e-mail are downloaded wirelessly from your home computer (or local wireless hotspot) to your car. Video screens are located in the headrest and on passengers' laps. A windshield display gives the driver real time directions, traffic, weather information, and such safety features as intelligent cruise control and lane departure alerts.

Cool stuff, huh? Obviously, this is just one example of how mobile A/V may look in a couple of years. The members of the panel put forth a variety of perspectives on the future of mobile A/V, some of which conflicted. Despite their varying perspectives, the members of the panel kept returning to a new vision of future automotive electronics in which the automobile is no longer treated as an isolated, specialized A/V environment. Instead, the car is an extension of the digital home, the digital office, and the new digital infrastructure of the country. Steve Witt summed it up best: "We [the automotive electronics industry] are on the threshold of a paradigm shift."