Global In-Car Infotainment Market By Product (Audio Unit, Display Unit, Head-up Display, Navigation Unit and Communication Unit), By Installation Type (OE fitted and Aftermarket), By Application (Passenger Cars and Commercial Vehicles), By Component (Hardware and Software), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032
- Published date: Oct 2023
- Report ID: 32774
- Number of Pages: 360
The Global In-Car Infotainment Market size is expected to be worth around USD 30 Billion by 2032, From USD 14.5 Billion by 2023, growing at a CAGR of 7.90% during the forecast period from 2023 to 2032.
The demand for systems that can support in-car comfort, enjoyment, and convenience is expected to rise due to increased demand. Manufacturers are increasingly incorporating such systems into automobiles, as they realize that these features can influence consumers’ purchasing decisions. Increasing disposable income means that customers in emerging economies can now afford luxury and high-end vehicles with such systems.
These systems have advanced graphic user interfaces, speech recognition, and intuitive touchscreens thanks to technological advances. These developments indicate strong growth in the car infotainment industry over the next few decades. These systems are also popular because they allow users to connect to their smartphones via Bluetooth or Wi-Fi.
This allows them to access information and messages, making it easy to work from anywhere. These systems are becoming increasingly popular because they can be configured according to user’s preferences and needs. These systems are becoming more popular due to their ability to connect to cloud-based services, which allows seamless connectivity and remote access to playlists or video streaming.
Technological Advancements: Recent technological breakthroughs, such as high-speed internet connections, mobile devices, and artificial intelligence (AI), have allowed car makers to offer advanced infotainment features.
Increasing Demand for Connectivity: Consumers are increasingly looking for ways to stay connected while on the go, and in-car infotainment systems provide a way to access the internet, make phone calls, and stream music and videos.
Rising disposable income: As disposable income levels increase, more consumers can afford cars with advanced infotainment systems and are willing to shell out more money for premium features.
Consumer Preferences Shifting: As customers seek vehicles that provide a more personalized and convenient driving experience, in-car infotainment systems can deliver on this by providing features like voice recognition, touch screens, and customized entertainment options.
Government Regulations: Governments around the world are mandating automakers to include safety features in their vehicles, and in-car infotainment systems can play an integral role in improving driver safety by providing tools such as collision warning systems and lane departure warnings.
High Cost: The development and installation costs for in-car infotainment systems can be quite high, which may limit adoption rates among cost-conscious consumers.
Fragmented Market: The in-car infotainment market is highly fragmented, with numerous players offering competing products and services. This makes it challenging for consumers to navigate the space and restricts individual companies’ growth potentials.
Security Concerns: In-car infotainment systems can be vulnerable to cyberattacks, which could compromise driver safety and privacy. This poses a significant concern for consumers and could limit adoption rates if security issues aren’t adequately addressed.
Technical Complexity: In-car infotainment systems can be quite intricate, which may put off some consumers who may feel intimidated by the technology.
Limited Internet connectivity: In some areas, internet access may be patchy or nonexistent, which may limit the functionality of in-car infotainment systems and reduce their appeal to potential buyers.
Integration of Augmented Reality: The incorporation of augmented reality (AR) technology into in-car infotainment systems presents an exciting growth prospect. AR can be utilized to provide drivers with up-to-the-minute info about their environment, such as traffic conditions, weather updates, and navigation directions without distracting them from driving.
Increasing Adoption of Electric Vehicles: The growing adoption of electric vehicles (EVs) presents an excellent growth opportunity in the in-car infotainment market. EVs often come equipped with sophisticated infotainment systems that offer features such as energy monitoring, battery charging information, and range estimation.
Integration with Mobile Devices: As more consumers rely on their smartphones while driving, in-car infotainment systems are being designed to seamlessly connect with these devices, offering features such as wireless charging, Bluetooth connectivity, and mobile app integration.
Voice Recognition: Voice recognition technology is becoming more and more commonplace in automobile infotainment systems, allowing drivers to control features such as audio playback, navigation, and climate control with voice commands.
Personalization: In-car infotainment systems are being enhanced to offer a more personalized driving experience, with features like driver profiles, personalized audio settings, and suggested routes based on driving habits.
Augmented Reality: Augmented reality technology is being integrated into car infotainment systems, offering features such as heads-up displays that project speed and navigation directions onto the windshield.
Advanced Safety Features: Car infotainment systems are increasingly being designed with advanced safety components like collision avoidance systems, lane departure warnings, and blind spot monitoring.
By Product Analysis, Head-up display market dominates the market with a 31% market share
On the basis of Product, the market is divided into Audio Units, Display Units, Head-up Displays, Navigation Units, and Communication Units. AR technology, which integrates cameras, sensors, Wi-Fi, and GPS to deliver dynamic information while driving, will soon be included in head-up display (HUD) systems. Though such an arrangement can help drivers make informed decisions, there are growing worries that too much data may distract them and compromise both driver and passenger safety.
Due to the addition of sophisticated multimedia and safety components such as rearview cameras and comprehensive information displays to these displays, their size is increasing exponentially. Due to the proliferation of 4G LTE networks, communication equipment is becoming more reliable, enabling advanced onboard features like 3D navigation, hands-free calling, satellite radio, and media streaming. Furthermore, efforts are underway to deploy 5G networks which will further increase connection options available in infotainment systems.
By component analysis, the software sector dominates the market with a 58% market share
By segmenting the in-car infotainment market by components, companies can identify specific areas where they should concentrate their efforts and resources. For instance, a software development firm could focus on creating better user interfaces or navigation software; similarly, hardware companies specialize in improving display screens or audio systems.
By application analysis, the commercial vehicle sector dominates the market with a 67% market share
By segmenting the in-car infotainment market based on car type analysis, companies can identify the unique needs and preferences of customers with various vehicles. Luxury sedan owners may be interested in high-end systems with advanced features like voice recognition or gesture control; commercial fleet owners might require infotainment systems with fleet management or logistics tracking capabilities. With this segmentation, companies are better able to develop products tailored specifically for different car types.
By installation type, Aftermarket segmentation dominates the market with a 60% market share
On the basis of installation, the market is divided into OE-fitted and Aftermarket segments. Since aftermarket suppliers of in-car infotainment systems offer their goods at lower costs, demand for these systems is expected to grow throughout the forecast period.
Although aftermarket systems can be tailored to customer preferences, their popularity is expected to grow. Furthermore, in-car entertainment aftermarket suppliers are working alongside manufacturers in an effort to enhance their existing solutions. Original equipment manufacturer (OEM) products tend to be costly and standardized, leaving little room for customization.
Authorized dealers and distributors can assist you in getting these items. These goods offer advantages such as quicker and easier repair/maintenance, often covered by the automobile manufacturer’s guarantee. OEM-fitted systems also give companies access to vehicle data, enabling them to run direct marketing campaigns and issue service/support warnings more effectively.
Key Market Segments
Based on Product
- Audio Unit
- Display Unit
- Head-up Display
- Navigation Unit
- Communication Unit
Based on component
- Passenger cars
- Commercial Vehicle
Based on the Installation type
COVID-19 Impact Analysis
Supply Chain Disruptions: The pandemic has caused global supply chains to collapse, leading to shortages in key components like semiconductors that will affect the production of in-car infotainment systems.
Decrease in Demand: The pandemic has caused a decrease in consumer demand for cars, particularly during lockdowns and travel restrictions. This has had an impact on demand for in-car infotainment systems as well.
Shift in Consumer Preferences: The pandemic has caused a shift in consumer preferences for in-car infotainment systems, with an emphasis on features such as contactless payment and voice recognition that can reduce the need for physical contact.
Increased Demand for Connected Services: The pandemic has spurred on an increase in demand for connected car services such as real-time traffic updates and remote vehicle diagnostics, as more consumers rely on their cars for safe, socially distant transportation.
Remote Work Trend: As more employees opt for remote working, demand for features like video conferencing and mobile office capabilities has grown.
By regional analysis, Asia Pacific dominates the market with a 39% market share
Over the forecast period, the Asia Pacific regional automotive entertainment industry is projected to experience rapid growth. Consumers’ increasing disposable income allows them to purchase passenger cars with the most modern amenities, and rising premium car sales in China are anticipated to contribute significantly to this sector’s expansion.
Furthermore, rising smartphone adoption and an uptick in demand for in-car infotainment systems that integrate smartphone technology are expected to fuel regional market development during this time.
Key Regions and Countries Covered in this Report:
- North America
- The US
- Western Europe
- The UK
- Rest of Western Europe
- Eastern Europe
- The Czech Republic
- Rest of Eastern Europe
- South Korea
- Australia & New Zealand
- Rest of APAC
- Latin America
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- United Arab Emirates
- Rest of MEA
The major companies in the in–car infotainment systems market are HARMAN International (USA), Panasonic Corporation (Japan), DENSO Corporation (Japan), Robert Bosch GmbH (Germany), Continental AG (Germany), and others.
Market Key Players:
- Volkswagen AG
- Harman International
- Ford Motor Company
- ALPS ALPINE CO., LTD
- AUDI AG
- BMW AG
- Continental AG
- PANASONIC CORPORATION
- PIONEER CORPORATION
- SAMSUNG ELECTRONICS CO
- VISTRON CORPORATION
- Other companies
- Expansion of Electric Vehicle Infotainment: As electric vehicles continue to gain in popularity, there has been an increasing focus on developing in-car infotainment systems tailored specifically for them. For instance, some manufacturers are now providing features like real-time energy monitoring and charging station locators.
- Enhanced Voice Recognition Technology: Voice recognition technology has long been a focus for in-car infotainment system developers, with recent advancements enabling more accurate and natural language processing capabilities.
- Integration with Smart Home Technology: In-car infotainment systems are being designed to integrate with smart home technology, enabling drivers to control devices such as thermostats and security systems from their cars.
- Increased Focus on Driver Safety: In-car infotainment systems are increasingly designed with driver safety in mind, featuring features such as hands-free operation and collision avoidance systems becoming more prevalent.
- Integration with Cloud-Based Services: In-car infotainment systems are increasingly relying on cloud-based services for real-time information such as traffic updates and weather forecasts.
- The emergence of 5G Connectivity: The introduction of 5G networks is expected to have a major impact on the in-car infotainment market, providing faster and more dependable connections as well as access to an array of connected features and services.
Report Features Description Market Value (2022) US$ 14.5 Bn Forecast Revenue (2032) US$ 30 Bn CAGR (2023-2032) 7.9% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Product, By Component, By Application, By Installation. Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Volkswagen AG 2023, Ford Motor Company, ALPS ALPINE CO., LTD, AUDI AG, BMW AG, Continental AG, PANASONIC CORPORATION, PIONEER CORPORATION, SAMSUNG ELECTRONICS CO., VISTRON, CORPORATION, Other companies. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
Frequently Asked Questions (FAQ)What is the In-Car Infotainment Market Size in the Year 2023?
The Global In-Car Infotainment Market size was USD 14.5 Billion by 2023, growing at a CAGR of 7.90%.What is the Estimated CAGR in In-Car Infotainment Market During the Forecast Period?
The Global In-Car Infotainment Market size is growing at a CAGR of 7.90% during the forecast period from 2023 to 2032.What is the Estimated In-Car Infotainment Market Size During the Forecast Period 2023-2032?
The Global In-Car Infotainment Market size is expected to be worth around USD 30 Billion by 2032, during the forecast period.
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