Microsoft and Siemens team up for in-car entertainment

Redmond (WA) - Software giant Microsoft and consumer tech powerhouse Siemens have announced a partnership for car-based electronics.

The two companies said they are working on products that will integrate mobile phones, music players, and portable video devices into automotive technologies.

According to the announcement, production of these products will begin in 2009.

Research firm iSuppli estimates that "automotive infotainment" is currently a $38 billion market, and it stands to reach $54 billion by the year 2012.

Instead of just working on in-dash systems or custom installed units, the two companies want to create a streamlined system for using devices in an existing automotive set-up.

"New solutions in consumer electronics will be adapted for in-vehicle use more quickly and easily, since it will only be necessary to add individual software components," said Microsoft and Siemens in an official statement.