AUTOMOTIVE INFOTAINMENT MARKET ANALYSIS

The Global Automotive Infotainment Market was valued at US$ 27.4 Billion in 2022 and is forecast to reach a value of US$ 48.7 Billion by 2030, exhibiting a CAGR of 7.6% between 2023 and 2030.

Over the years, the global automotive infotainment systems have undergone significant transformations through gradual innovation, invention, and the complete reinvention of vehicle dashboards. Initially limited to music consoles, these systems have evolved into a diverse range of applications that enhance the driver and passengers' connectivity with their surroundings and the external world, while also providing entertainment during travel. The modern auto infotainment systems encompass functionalities such as audio and video content playback and management, driving navigation, and rear-seat entertainment options like music, video, games, and social networking. By offering a plethora of features, the auto infotainment systems empower drivers to engage in various virtual activities while driving or traveling, enabling them to work or connect in a manner similar to when they are outside a vehicle.

Global Automotive Infotainment Market: Regional Insights

North America held dominant position in the Global Automotive Infotainment market in 2022, accounting for 34.0% share in terms of volume, followed Asia Pacific, and Europe respectively.

Figure 1: Global Automotive Infotainment Market Share (%), By Region, 2022

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North America region dominated the global automotive infotainment market in 2022, accounting for 29.3% share in terms of value, followed by Asia Pacific and Europe, respectively

North America and Asia Pacific were two leading markets in terms of revenue in 2021, and are expected to hold their dominant position over the forecast period. The market growth in these regions is attributed to the growing automotive industry coupled with rising pollution. For instance, automotive infotainment are majorly used in vehicle in the automotive industry, which is expected to drive demand for infotainment over the forecast period. Moreover, increasing demand for quality parts in the automotive infotainment is expected to facilitate growth of the automotive infotainment market in North America.

The Asia Pacific region is expected to gain traction during the forecast period. The countries in the Asia Pacific regions are constantly investing in the automotive manufacturing sector. New plants are initiated to meet the energy requirement of countries such as India, Bangladesh, Taiwan, and others. Hence, the global automotive infotainment market is expected to gain traction in the Asia Pacific region in the forecast period.

Global Automotive Infotainment Market - Impact of Coronavirus (COVID-19) Pandemic

The global automotive infotainment market experienced a significant impact from the COVID-19 pandemic. Governments worldwide implemented lockdown measures as a precautionary response, resulting in the temporary suspension of automotive sector operations. This disruption in business activities had a cascading effect on the supply chain, leading to shortages of raw materials and components necessary for automotive manufacturing. Consequently, the demand and production of automotive infotainment, which holds extensive applications in the automotive sector, were adversely affected. As a result, the global automotive infotainment market faced sluggish growth during the pandemic period.

Global Automotive Infotainment Market- Drivers:

Integration of Smart Features

The integration of smart features, such as connected car technology, internet of things (IoT) connectivity, and vehicle-to-everything (V2X) communication, has played a significant role in driving the automotive infotainment market. These features enable real-time data exchange, remote vehicle control, and enhanced safety and convenience features.

In November 2021 Giesecke+Devrient (G+D) is launching SmartSIM CX Luna1.3M, a new range of security chips for the automotive industry. They are based on Infineon‘s next generation SLI37 automotive security controller and offer a multifunction platform for eSIM applications, IoT and digital car key solutions.

Focus on Driver Assistance and Safety

Automotive infotainment systems now incorporate advanced driver assistance systems (ADAS) and safety features, including collision warning systems, blind spot detection, lane departure warning, and adaptive cruise control. The integration of these features within infotainment systems enhances driver safety and contributes to the market's growth.

In Jun 2023, German multinational and automotive parts manufacturer, Continental AG, has launched a new cost-optimised ‘Smart Cockpit High-Performance Computer’ for OEMs. Unlike existing in-vehicle systems that utilise several on-board computer hardware units to support functions such as instrumentation and infotainment, Continental’s new Smart Cockpit HPC integrates multiple functions in a single box.

Global Automotive Infotainment Market- Opportunities:           

Integration of Voice Assistants and AI

The integration of voice assistants and artificial intelligence (AI) technologies provides an opportunity to enhance user experiences and offer hands-free control of infotainment systems. Voice-activated commands and AI-driven personalization can enable intuitive interactions, voice-based navigation, and personalized recommendations, making driving safer and more convenient.

In June 2023, Mercedes-Benz brings ChatGPT to MBUX vehicles for U.S. customers via Microsoft Azure OpenAI Service Mercedes-Benz is further expanding the use of artificial intelligence and integrating it into the voice control of its vehicles as the next step. By adding ChatGPT, voice control via the MBUX Voice Assistant's Hey Mercedes will become even more intuitive. An optional beta programme will start June 16, 2023 in the U.S. for over 900.000 vehicles equipped with the MBUX infotainment system

Augmented Reality (AR) and Heads-Up Display (HUD)

The integration of AR and HUD technologies into automotive infotainment systems can enhance the driver's situational awareness. By overlaying essential information such as navigation directions, speed limits, and safety alerts onto the windshield, AR and HUD offer a more intuitive and less distracting driving experience.

January 2023 HARMAN, an automotive technology company and subsidiary of Samsung Electronics Co., Ltd. focused on designing consumer experiences at automotive grade, today unveiled HARMAN Ready Vision, a set of Augmented Reality (AR) head-up display (HUD) hardware and AR software products to enhance driver safety and awareness. Ready Vision’s AR software integrates with vehicle sensors to deliver immersive audio and visual alerts that empower the driver with critical knowledge and information, in a timely, accurate and non-intrusive manner.

Global Automotive Infotainment Market- Trends:

Integration of Advanced Connectivity

The integration of advanced connectivity features, such as 5G, Wi-Fi, and Bluetooth, is a prominent trend in the automotive infotainment market. This enables seamless connectivity between vehicles and external devices, allowing for enhanced multimedia streaming, real-time navigation updates, and personalized user experiences.

In Feb 2023, Qualcomm Technologies, Inc announced the latest addition to its growing Snapdragon Digital Chassis™ connected car technology portfolio with its Snapdragon Auto 5G Modem-RF (Radio Frequncy) Gen 2. As Qualcomm Technologies’ most advanced automotive modem-RF (Radio Frequency) system available, it features high performance processing power and up to 200 MHz of network capacity to support reliable, low-latency connectivity for safe, intelligent and immersive riding experiences. Equipped with the latest advancements in 5G,

Increasing Demand for Personalization and Customization

Consumers are seeking personalized infotainment experiences that align with their preferences and lifestyles. This has led to an increased demand for customizable infotainment systems that allow users to tailor settings, themes, and content according to their individual needs.

With a new UI (User Interface) of maruti suzuki’s SmartPlay Pro/ Smartplay Pro+ lets you customize your viewing experience as per your preference. Personalize the wallpaper, re-arrange widgets, get shortcuts to frequently used features and add your favourite contact for quick access.

Global Automotive Infotainment Market- Restraints:

High Costs

The high cost of automotive infotainment systems remains a key consideration in the industry. Automotive infotainment systems incorporate advanced technologies and features that enhance the driving experience and provide various functionalities, such as multimedia, connectivity, navigation, and communication. These systems require sophisticated hardware, software, and integration processes, which contribute to their higher price compared to traditional audio systems. Additionally, the inclusion of high-resolution displays, touchscreen interfaces, voice recognition, connectivity options, and integration with mobile devices further adds to the cost. Automakers and technology suppliers continually strive to strike a balance between offering innovative and feature-rich infotainment systems while considering cost-effectiveness and affordability for consumers.

Regulatory and Safety Compliance

Automotive infotainment systems need to comply with stringent regulatory standards, especially regarding driver distraction and safety. Meeting these requirements may limit the inclusion of certain features or increase the complexity of user interfaces to ensure safe usage.

Figure 2: Global Automotive Infotainment Market Share (%), By Mode of Operation, 2022

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Global Automotive Infotainment Market- Segmentation:

Global Automotive Infotainment Market is segmented in to By System: Entertainment System (Audio System, Video System), Connectivity (Hands Free Call, USB Bluetooth, Wi-Fi Route), and Driver Assistance (Traffic Message Channel (TMC), Adaptive Cruise Control (ACC), GPS Navigation System   (GPS)).

By Vehicle Type: Passenger Cars (Compact & Mid-size, Premium, Luxury), Light Commercial Vehicle, Heavy Commercial Vehicle (Buses, Trailers, Trucks).

By Sales Channel: OEM, Aftermarket

The global automotive infotainment OEM (Original Equipment Manufacturer) is leading segment and refers to the market involving the production and supply of infotainment systems directly to vehicle manufacturers. Infotainment systems provided by OEMs are integrated into vehicles during the manufacturing process, offering a comprehensive range of multimedia, connectivity, and navigation features. These systems are designed to enhance the in-car experience for drivers and passengers, providing entertainment options, communication capabilities, and access to various vehicle settings and controls. The automotive infotainment OEM segment is highly competitive, with manufacturers continuously striving to innovate and offer advanced technologies and seamless integration with vehicle platforms.

The global automotive infotainment aftermarket segment refers to the market for additional or upgraded infotainment systems and components that are installed in vehicles after the initial purchase. This segment caters to the demand for enhanced connectivity, entertainment, and convenience features among vehicle owners who seek to customize their vehicles or upgrade the existing infotainment systems.

Global Automotive Infotainment Market: Key Developments

In May 2023 Nvidia Corp. and MediaTek Inc. will partner on technology to power advanced vehicle infotainment systems that can stream video or games or interact with drivers through artificial intelligence, the companies said. Under the agreement, MediaTek will integrate Nvidia graphic processing unit chiplet and Nvidia software into the system-on-chips it provides to automakers for infotainment displays, Reuters reported citing companies announcement at the Computex technology trade show

Global Automotive Infotainment Market: Key Companies Insights

Global Automotive Infotainment Market is highly competitive, owing to the rising launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on a regional as well as global basis. Some of the key players are Continental AG, Garmin Ltd., DENSO Corporation, Delphi Automotive LLP, Fujitsu Ten Limited, HARMAN International, Clarion, Pioneer Corporation, Panasonic Corporation, Visteon Corporation, Pacific Industrial Co., Ltd., Robert Bosch GmbH.

*Definition: Automotive infotainment refers to the integrated system of hardware and software technologies that provide entertainment, connectivity, information, and communication services within a vehicle.