Automotive Infotainment Market Research Report - Global Forecast till 2027

Automotive Infotainment Market Research Report: Information By Operating System (QNX, Linux, Microsoft and others) and Region (North America, Europe, Asia–Pacific and RoW) - Forecast till 2027

ID: MRFR/AM/2676-CR | July 2019 | Region: Global | 134 pages

Automotive Infotainment Market Overview


Automotive Infotainment Market is projected to be worth USD 44.73 billion by 2027, registering a CAGR of 8.51% during the forecast period (2021 - 2027), The market was valued at USD 23.47 billion in 2020.


Automotive infotainment systems garner significant popularity, becoming a key component of luxury & connected cars. The world is becoming increasingly digitized, and the automotive industry would not be immune to this change. Whether it is mapping & plotting a route, commuter's calendar, or the ability to switch on a central heating system in the home in preparation for their return, customer expectations are steadily increasing. Companies that embrace this new connected world are likely to fare best in the future of mobility.


COVID-19 Analysis


The COVID- 19 pandemic has helped reestablish the importance of automation and the most sought-after connected technologies, connected cars, artificial intelligence, and infotainment systems. While pandemic-related logistics problems prompted manufacturing companies to consider new automation technologies that offset higher wages and increase efficiency, many individuals took up DIY projects to keep them engaged and improve their car comforts.


Resultantly, the global automotive infotainment industry began to garner traction, witnessing an increase in automation investments continually. In-vehicle infotainment systems perceive increasing adoption in the automotive industry for driver assistance systems. Internet of Things (IoT) and AI-enabled voice assistance are keeping automation and automobiles in the front. The COVID-19 pandemic has spurred plenty of interest in voice controls. The market witnessed many innovative product launches during 2020 and likely to continue ahead.


Market Dynamics 


Drivers


In-Vehicle Infotainment Systems to Witness Bolstering Demand


Increasing demand for infotainment systems and increasing the preference for driver assistance systems (DASs) drive the growth of the market. Due to the proliferating popularity of DAS, automotive players are increasingly getting interested in vehicle automation. They make substantial R&D investments to advance technological innovations. Also, the rising demand for vehicles equipped with DASs fuel the expansion of the global automotive infotainment market.


Additionally, major driving factors such as increased support for open-source and standard platforms for application development and provision for smartphone integration with IVI systems substantiate the demand for in-vehicle infotainment systems. The rising demand for infotainment systems and increasing production of vehicles and integration of infotainment with other systems push the growth of the market. 


Opportunities


AI-based Automotive Infotainment Systems Offer Significant Opportunities


Moreover, the rising adoption of self-service applications, voice search technologies, and driver assistance systems accelerates the market growth. The high demand for AI automotive infotainment and improvements in artificial intelligence and other infrastructure oriented technologies escalate the market growth. Emerging economies with rising uses of automotive infotainment technologies and rapid automation in manufacturing sectors would offer vast opportunities to global firms in the future.


Restraints 


Technical Complexities to Restrict Market Growth


Despite lucrative growth opportunities, the automotive infotainment industry faces some underlying intellectual challenges, such as difficulties in understanding bilinguals and recognizing the commands whenever drivers try to perform a hands-free action as significant headwinds for the automotive infotainment application market. Also, the limited integration of voice assistants with devices is projected to hamper the growth of the automotive infotainment market. 


Challenges


The long product life cycle and high cost of automotive infotainment devices are key factors challenging manufacturers. Also, the slow adoption rate of the technology and shortages of various small components required for the production poses significant challenges to the market players.


Segment Overview 

Automotive Infotainment Market has been segmented on the basis of Operating System and Region. 


QNX is the Largest Operating System


The operating system segment is bifurcated into Linux, QNX, Microsoft, and others. Among these, the QNX segment accounts for the largest market share. The demand for QNX is growing significantly due to their flexibility and assistance in developing a variety of reliable infotainment systems, keeping pace with ongoing advancements in mobile device markets. The QNX segment is projected to witness significant growth during the forecast period. 


The Linux segment is growing due to the advantages of the OS and its open-source availability, attracting automotive manufacturers and their suppliers. Furthermore, the Linux market demand is driven by its open-source availability, cost savings advantages, and easy availability due to the presence of multiple suppliers at every level in the software hierarchy. On the other hand, the Microsoft segment market value is growing due to suppliers such as Kia, Ford, Fiat, Renesas, Nissan, and Freescale. 


North America is the Largest Regional Segment 


By region, the market is bifurcated into the Americas (US, Canada, Mexico, Rest-of-North America) and South America, Europe (the UK, Germany, France, Italy, and Rest-of-Europe), Asia Pacific (China, Japan, India, South Korea, and Rest-of-the-APAC), and Rest-of-the-World. Among these, North America accounts for the largest market share, followed by the APAC region and Europe, respectively. 


Regional Analysis


North America to Maintain its Leading Position


North America is the global automotive infotainment market leader and would maintain its leading position throughout the assessment period. North America is a mature economy, and substantial investments are made in the automotive industry, which is undergoing a massive transformation.


Besides, factors such as the rising demand for passenger cars, significant investments in advancing the technology, and the availability of a wide range of innovative infotainment products drive the growth of the market. The US dominates the North American automotive infotainment market in terms of value. 


APAC Holds Second-Highest Share in Global Market 


Asia Pacific accounts for the second-highest share in the global market. The region is undoubtedly one of the most promising regions for the automotive market across the globe. Factors such as the emerging economies and their growing GDP and the increasing per capita income have created significant scope for the automotive industry as well as for the infotainment market. Additionally, the shift in production bases of several global automotive infotainment developers and technological advances influences automotive infotainment market growth. 


Europe is Emerging as a Promising Market for Automotive Infotainment Systems 


Europe is rapidly emerging as a promising market expected to display a sharp rise throughout the forecast period. The flourishing automotive industry in Europe fosters the growth of the automotive infotainment market. Also, the increasing demand for premium or luxury vehicles has significantly contributed to the growth of the automotive infotainment market in Europe. 


The European automotive infotainment market benefits from research and development projects undertaken by major automobile manufacturers, such as BMW, Volkswagen, Ford, and Renault. With manufacturers installing infotainment systems in entry-level vehicles for acquiring greater market share, the automotive infotainment market is expected to witness massive traction during the review period.


Competitive Landscape


Players Focus on Product Development & Expansion


The automotive infotainment market appears extremely fragmented, considering the presence of established manufacturers. Eminent players seek opportunities to integrate across the extensive value chain while focusing on expanding production capacities, R&D investments, and M&A activities to gain additional impetus. They deliver reliable, leading-edge solutions and services, substantially investing in developing adept technologies and products. 


List of Key Companies 


Continental AG (Germany), Alpine Electronics, Inc. (Japan), Harman International (US), Pioneer Electronics (US), Panasonic Corporation (Japan), DENSO Corporation (Japan), Garmin Ltd. (Switzerland), Delphi Automotive PLC (UK), KENWOOD Corporation (Japan), and ALLGo Embedded Systems Pvt. Ltd. (India) are some of the affluent contenders holding sizeable automotive infotainment market share. 


Continental AG (Germany) is a multinational automotive parts manufacturing company. The company operates through five key business segments, including chassis & safety, powertrain, tires, interior, and continental technologies. The interior segment includes comfort & security, control units, display systems, infotainment systems, haptic controls, interior cameras, connectivity & telematics, and software solutions & services.  


Recent Developments


January 26, 2021 – Qualcomm launched new auto platforms stretching from infotainment to autonomous control. After skipping CES 2021, Qualcomm held its own virtual automotive summit – 'Automotive Redefined,' held during Jan.26 - 27, 2021. During the event, Qualcomm launched many technologies and made partnership announcements aimed at positioning the company as a complete vehicle platform technology supplier.


January 27, 2021 – GOWIN Semiconductor Corp., the world's fastest-growing programmable logic company, announced the release of its new automotive-grade FPGAs, targeting applications for telematics, infotainment, and the powertrain.


January 27, 2021 – Tesla expanded its partnership with Samsung to build 5-nanometer chips capable of powering Tesla's autonomous vehicles. Tesla's in-vehicle infotainment system (IVI) employs several chips, including conventional processors, memory, neural-network processors (NPUs), display driver IC (DDI), and security integrated circuits.


November 2020 – Vewd, the leading provider of OTT software solutions, announced that white-labeled cloud-managed platform – 'Vewd for Automotive,' which brings the best of streaming entertainment to car manufacturers and automotive infotainment platforms, solved the key challenges of delivering high-quality premium OTT content in head units and rear seat infotainment displays. The offering features a highly optimized software client that supports key global content provider services and a cloud back-office that provides complete management capabilities and data insights.


Report Overview


The automotive infotainment market analysis features unique and relevant factors anticipated to significantly impact the market growth during the assessment period. The detailed research report would help industry players to understand the market better. The automotive infotainment report defines the historical and current automotive infotainment market trends boosting the growth of the market. 


Additionally, the COVID-19 impact on the automotive infotainment industry is also included in the report. Regional assessment in this report and unlocks several untapped opportunities in regional and international markets. Detailed company profiling enables users to evaluate company shares, emerging product lines, pricing strategies, innovation possibilities, the scope in new markets, and much more.


Segmentation Table


Operating System



  • QNX

  • Linux

  • Microsoft

  • Others


Region 



  • North America

  • Europe

  • Asia Pacific

  • Rest of the World (RoW)



Report Scope:
Report Attribute/Metric Details
  Market Size   2027: USD 44.73 billion
  CAGR   8.51% CAGR (2020-2027)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Operating System and Region
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Continental AG (Germany), Alpine Electronics, Inc. (Japan), Harman International (US), Pioneer Electronics (US), Panasonic Corporation (Japan), DENSO Corporation (Japan), Garmin Ltd. (Switzerland), Delphi Automotive PLC (UK), KENWOOD Corporation (Japan), and ALLGo Embedded Systems Pvt. Ltd. (India)
  Key Market Opportunities   AI-based Automotive Infotainment Systems Offer Significant Opportunities
  Key Market Drivers   In-Vehicle Infotainment Systems to Witness Bolstering Demand


Frequently Asked Questions (FAQ) :


Key Players of the market include Alpine Electronics, Inc. (Japan), Continental AG (Germany), Harman International (US), Panasonic Corporation (Japan), Pioneer Electronics (US), DENSO CORPORATION (Japan), Garmin Ltd (Switzerland), KENWOOD Corporation (Japan), Delphi Automotive PLC (UK) and ALLGo Embedded Systems Pvt Ltd (India).

The Global Automotive Infotainment Market is estimated to register a CAGR of 8.51% during the forecast period. The global automotive infotainment market has experienced potential growth over the past few years.

North America market has emerged as the leading region in terms of value followed by APAC and Europe. The US dominates the North America automotive infotainment market in 2020, in terms of value, and is also expected to maintain its dominance during the forecasted period.

Automotive infotainment market looks promising during the forecast period due to the major driving factors such as increased support for open-source and standard platforms for application development, provision for smartphone integration with IVI systems.

Automotive Infotainment Market segmented by Operating System (QNX, Linux, Microsoft and others) and Region (North America, Europe, Asia–Pacific and RoW) - Forecast till 2027