ID: MRFR/AM/0647-HCR | 110 Pages | Author: Sejal Akre | May 2023
The in-car infotainment market size is projected to be 11,940.2 million, with a registered CAGR of 7% from 2022 to 2030.
Information and entertainment services are provided to the driver and passengers within the vehicle by in-vehicle infotainment systems. Music, games, films, social networking, apps, and other audio and visual content make up the infotainment services. Additionally, G.P.S. systems and vehicle diagnostics help drivers have safer rides. The automobile business embraces technology advancements in all areas, enhancing engine performance, improving car infotainment system, and improving vehicle safety to provide effective modes of transportation. In emerging nations, rising consumer disposable income and straightforward financing choices have made purchasing passenger automobiles easier, raising the demand for technologically advanced cars with practical and usable entertainment systems. These factors are anticipated to drive the growth of the in-car infotainment market.
COVID-19 has quickly and significantly impacted the integrated infotainment car system business sector worldwide. Initial worries about a halt in exporting hardware and software components for infotainment systems swiftly changed to widespread production disruptions. Assembly plant closures also add tremendous pressure on a deteriorating supply base. Companies run the danger of breaking their commitments, which might force banks to step in and provide a loan or other financial support. The pandemic's exogenous shock hindered an already-occurring decline in the world's demand for autos, which is anticipated to accelerate merger and acquisition activity as prospects for sector consolidation for private equity investors materialize.
The incorporation of artificial intelligence to give a virtual personal assistant with active voice command to proactively instruct drivers is a current trend in the infotainment car system market. Additionally, infotainment systems in cars are in charge of using the Internet to connect the car to other cars. Connected cars can improve user experience in the car, increase vehicle safety, and have a positive impact on the environment by reducing traffic congestion.
In cars, cloud technology comes in a variety of forms. Through the cloud, automobiles can connect to update maps and traffic information while avoiding crashes. Although cloud technology for automobiles is not new, it is evolving swiftly because of collaborations and cooperation between the software development community and the automotive sector. Most electric cars can interchange data with data centers to help the driver and provide real-time data on weather and traffic. One recent example is the Tesla Model S. Without the driver being present; the Tesla cloud receives all the information remotely and immediately assists the driver with any car-related issue.
Annual memberships are necessary for informational services like satellite radio, vehicle diagnostics, a Wi-Fi hotspot, roadside assistance, and real-time traffic information. These services start as a free trial, users get used to the conveniences, and eventually, they switch to pay-per-use. A basic subscription doesn't come at a premium price but might add up over time. Subscription-based business models and software upgrades can come at extra cost. Consequently, the added cost of an annual services subscription is one of the main market barriers for in-vehicle infotainment.
Future developments in automotive telematics and infotainment car system are predicted to increase commuter security and safety. These technologies are currently in their early stages of development and adoption. Regulatory organizations are ready to establish rules governing the usage of telematics technologies. For services like emergency calls and stolen car tracking, several industrialized and developing countries, including the US, Brazil, Russia, and the E.U., have already established or plan to implement telematics-related rules.
The in-car infotainment market segmentation, based on components, is hardware and software. The car infotainment market growth was prominently high under the software category in 2021 due to the widespread installation of infotainment systems in cars and the expanding market for advanced vehicles. However, hardware is anticipated to be the fastest growing in the coming years. The rise of the hardware market is driven by consumer demand for sophisticated features in infotainment systems, including 3D navigation, satellite radio, and online content streaming
Based on vehicle type, the in-car infotainment market segmentation is passenger cars, light commercial vehicles, and heavy commercial vehicles. In 2021, passenger cars accounted for the largest market share of the market. A bigger percentage of the passenger car market is due to consumers' increased use of luxury cars, mainly in developing nations. Modern entertainment systems are required by luxury automobiles' lavish interiors and increased technology and safety features. Subscription-based services, better sales, and financing choices automakers provide consumers all impact luxury automobile sales. However, the lights commercial vehicles category is estimated to register the highest growth rate during the forecast period due to growing demand for commercial cars from the logistics sector and increased focus on fleet management by the auto industry.
Based on the installation, the market is divided into OEM and aftermarket. The O.E.M. category dominated the market for in car infotainment in 2021 because they have easy-to-maintain and service characteristics. O.E. Customers are more inclined to prefer O.E. systems because they are covered by the manufacturer's warranty and cannot be purchased separately. The aftermarket category is anticipated to witness significant growth over the forecast period. Technology improvements have changed the outdated infotainment system into a new one, allowing customers to select an infotainment system that meets their tastes and is reasonably priced.
By region, the market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the most extensive market share. Asia-Pacific will exhibit the highest CAGR during the forecast period.
North America dominated the market share in 2021. The desire for high-end vehicles among American consumers is the primary driver of the regional market's rapid rise. As speech recognition and driver distraction technology advance, local companies will see an increase in demand. The preference of end customers for high-definition in-gauss screens in the local market for in-vehicle entertainment systems is another intriguing development. According to reports, Tesla and Emergency Safety Solutions, Inc. (E.S.S.) collaborated to develop a new automotive hazard warning system.
Asia-Pacific accounted for the second-largest market share in 2021. Due to a surge in local customers' disposable income, there is a significant demand for car infotainment systems. People chose augmented reality technology-based solutions due to their effectiveness, causing the market for vehicle infotainment systems to grow. Due to their effectiveness, augmented reality technology-based solutions are preferred by customers. Most of the world's vehicles are produced in nations like China, South Korea, India, and Japan. The demand for vehicles is therefore being driven by rising vehicle production, which is also encouraging automotive O.E.M.s to boost manufacturing capacity and provide infotainment systems in more affordable automobiles, combined with shifting customer preferences and rising middle-class per capita income.
The market includes tier-1, tier-2, and local players. The participants are focusing their efforts on promoting R&D. Additionally, they support strategic expansion activities, including product introduction, joint ventures, and partnerships to expand their client base and boost their market position. For instance, in September 2022, Harman International purchased CAARESYS to satisfy several customers demands and improve safety through cabin monitoring and A.D.A.S. solutions.
Prominent players in the in-car infotainment market research include Volkswagen Group (Germany), General Motors Company (U.S.), Denso Corporation (Japan), Ford Motor (U.S.), Harman International Industries (U.S.), Visteon Corporation (U.S.), BMW (Germany), Fujitsu Ten Limited (Japan), Panasonic Corporation (Japan), Delphi Automotive (U.K.), Apple Inc (U.S.), among others.
Vehicle Type Outlook
The objectives of the study are summarized in 5 stages. They are as mentioned below:
To identify and estimate the market size for the in-car infotainment market report segmented by component, vehicle type, and installation by value (in US dollars). Also, to understand the consumption/ demand created by consumers in the in-car infotainment market forecast between 2022 and 2030
To identify and infer the drivers, restraints, opportunities, and challenges in the in-car infotainment market growth (Profitability, Benchmarking, Volume, Value, Macro-Economic Factors, Y-o-Y Growth Analysis)
To find out the factors which are affecting the in-car infotainment market size among consumers (Gross Margin, Sales Footprint, Strategy, Channels, Economic Outlook, Growth Projections)
To identify and understand the various factors involved in the market affected by the pandemic
To provide a detailed insight into the major companies operating in the market. The profiling will include the company's financial health in the past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
|Market Size||2030: USD 11,940.2 Million|
|CAGR||7% CAGR (2022-2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Component, Vehicle Cars, and Installation|
|Geographies Covered||North America, Europe, Asia-Pacific, and the Rest of the World (RoW)|
|Key Vendors||Volkswagen Group (Germany), General Motors Company (US), Denso Corporation (Japan), Ford Motor (US), Harman International Industries (US), Visteon Corporation (U.S.), BMW (Germany), Fujitsu Ten Limited (Japan), Panasonic Corporation (Japan), Delphi Automotive (UK), Apple Inc (US).|
|Key Market Opportunities||Government Regulations for Traffic Safety are Increasing|
|Key Market Drivers||An increase in the advancement in technology|
The in-car infotainment market forecast period is 2022 - 2030
The market is expected to register a CAGR of ~7% over the next 10 years, according to in-car infotainment market research.
Asia-Pacific is expected to register the highest CAGR during 2022 - 2030
North America held the largest share in 2021
Volkswagen Group (Germany), General Motors Company (US), Denso Corporation (Japan), Ford Motor (US), and Harman International Industries (US) are the major companies operating in the market.
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