IN-VEHICLE INFOTAINMENT MARKET ANALYSIS

The global in-vehicle infotainment market size was valued at US$ 22.43 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 10.8% from 2023 to 2030.  The in-vehicle infotainment market has seen significant growth over recent years due to technological advancements and increasing demand for smart integrated car systems. The global market is driven by the increased popularity of electric and autonomous vehicles, a trend towards connectivity, rising disposable income and increasing awareness about safety features in cars.

Global In-vehicle infotainment Market: Regional Insights

North America among regions is anticipated to gain major growth in the global in-vehicle infotainment market over the forecast period. This is attributed to growing sales in automotive industry, rise in production and sales of automobiles in Mexico, and the U.S. Moreover, high awareness regarding telematics and infotainment systems in consumers, and growing demand for luxury and commercial vehicles are also driving growth of the global in-vehicle infotainment market in the region.

Moreover, Europe is also anticipated to gain substantial growth in the global in-vehicle infotainment market during the forecast period, owing to presence of major automotive producers in the region. Europe is known to be the home of four of the top 10 automotive manufacturers around the world. The region is witnessing increasing automotive production and competent performance of domestic market. The awareness regarding in-vehicle infotainment systems and telematics is high in the region. These factors are in turn driving growth of the market across the region.

Figure 1. Global In-Vehicle Infotainment Share (%), By Region, 2022

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Global In-vehicle infotainment Market Drivers:

Growing vehicle production to boost the market growth

The demand for infotainment systems depends largely upon the vehicle production. There is a major rise in production of vehicles; according to the Organization Internationale des Constructeurs Automobiles (OICA), in 2010, the vehicle production around the world was 77.59 million units and it increased during 2010-2015 reaching 90.78 million units in 2015. This rise in production of vehicles can be attributed to various factors such as growing population, increasing urbanization, rise in number of OEMs, and increasing disposable incomes. Ultimately, the demand for infotainment systems for vehicles is increasing, which in turn is driving growth of the global in-vehicle infotainment market.

Rise in adoption of smartphones to fuel the market growth

The focus of automotive industry is shifting to integrated smartphone solutions from fully embedded infotainment solutions due to growing penetration of smartphones and apps along with low cost hardware in the market. According to Coherent Market Insights, in 2010, the number of smartphone sold was 296.65 million which further increased to 1,423.9 million in 2015. OEMs are increasingly investing on Human-Machine Interface (HMI), which is also driving the integration of smartphones into the cars computers for infotainment. Thus, growing adoption of smartphones is expected to propel growth of the global in-vehicle infotainment market over the forecast period.

Global In-vehicle infotainment Market Opportunities:

Future demand for autonomous and connected cars is expected to create growth opportunities in the global in-vehicle infotainment market over the forecast period. With connected cars, drivers can communicate with other cars on the road, which is vehicle-to-vehicle (V2V), and road infrastructure, which is vehicle-to-infrastructure, vehicle-t-device system, using internet access and communicating devices. There are many trial projects going to for the development of advanced vehicles such as autonomous and connected vehicles. Thus, the demand for in-vehicle infotainment systems is likely to increase in the future, which in turn will create growth opportunities in the global in-vehicle infotainment market.

Unprecedented growth of automotive sector in developing countries to create business opportunities in the global in-vehicle infotainment market over the forecast period. Emerging countries such as India, China, Vietnam, Japan, and Indonesia are witnessing significant growth of automotive sector, as sales of vehicles in these countries are increasing, owing to rise in per-capita disposable income. Thus, the demand for advanced vehicles such as connected cars is increasing in these economies. This in turn is anticipated to create growth opportunities in the global in-vehicle infotainment market.

Global In-vehicle infotainment Market Trends:

Growing shift toward innovation for enhancing in-vehicle user experience is a major trend

The automotive industry around the world is shifting toward design and development of innovative technologies in order to offer better connectivity solutions, improve in-vehicle user experience, and advance vehicle safety. Automotive infotainment is one of the major technologies that work as a central point of all the new automotive systems. It combines their functions so that they can be controlled and monitored from one central unit. The demand for infotainment systems is therefore increasing in automotive industry. This trend is thus likely to boost growth of the global in-vehicle infotainment market over the forecast period.

Increasing advancements in infotainment systems

The integration of smartphone functions into in-vehicle infotainment systems is increasing. The use of mobile phones is increasing rapidly all over the world, and along with it, the use of smartphones has increased in cars for same purpose. The access to internet through mobile phone is widespread across several regions. Thus, infotainment systems are increasingly witnessing advancements that make them compatible to connect with smartphones. This trend is therefore expected to continue in the global in-vehicle infotainment market over the forecast period.

Global In-vehicle infotainment Market Restraints:

Issues regarding safety and security to hamper growth of the market

Use if in vehicle technologies can also be a distraction and reason for inattentive driving, which one of the major causes for accidents all over the world. According to National Highway Traffic Safety Administration and Virginia Tech Transportation Institute, nearly eight people are killed due to inattentive driving, and nearly 1,161 people suffer injuries in crashes caused due to inattentive driving in the U.S. The popularity of integrated infotainment systems is increasing, however, it has become the source of distraction as it involves connectivity via a smartphone. Thus, safety and security issues of in-vehicle infotainment are expected to hinder growth of the global in-vehicle infotainment market over the forecast period.

Low consumer acceptance to limit the market growth

Societal and consumer acceptance of infotainment systems in vehicles is acting as a major challenge to the market growth. The lack of awareness about infotainment systems among customers is a major challenge. Moreover, the cost of these systems also impacts adoption and deployment of these systems. Thus, this factor is anticipated to hinder growth of the global in-vehicle infotainment market over the forecast period. However, with increasing smartphone penetration is likely to drive adoption of infotainment systems. This is further expected to support the market growth in the coming future. 

Figure 2. Global In-vehicle infotainment Market Share (%), By Distribution Channel, 2022

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Global In-vehicle infotainment Market Segmentation:

The global in-vehicle infotainment market report is segmented into Device Type, Vehicle Type, Distribution Channel, and Technology Type.

Based on Distribution Channel, the market is segmented into OEM Channel, and Aftermarket Channel. Out of which, OEM Channel is expected to dominate the global market over the forecast period and this is attributed to the rise in demand of connected vehicles, affordable offerings by OEMs, and changing consumer preferences are driving the growth of in-vehicle infotainment systems. Due to growing competition in automotive market, OEMs are adopting various strategies such as offering better systems of infotainment at low cost, as well as compact cars for luring customers. Thus, the segment is likely to gain major growth in the coming future.

Aftermarket segment is also expected to witness significant growth in the near future and this is owing to the high amount of total shipment and revenue for passenger cars including shipment in aftermarket. Lower price point of devices such as video systems, navigation systems, and audio systems is a major driver for in-vehicle infotainment systems in aftermarket. Thus, the segment is expected to show strong growth in the coming future.

Based on Vehicle Type, the market is segmented into Passenger Cars (Compact Cars, Luxury Cars, and Mid-Size Cars); Commercial Vehicles (LCV, Heavy Trucks, and Heavy Buses). Out of which, Passenger Cars is expected to dominate the global market over the forecast period and this is attributed to the increasing sales of passengers, especially in developing regions, and growing demand for navigation services by consumers. Moreover, due to rise in disposable income, the segment is likely to show major growth in the global in-vehicle infotainment market.

Commercial Vehicles segment is also expected to witness significant growth in the near future and this is owing to the growing sales of commercial vehicles across developed nations such as Spain, Italy, the U.K., and the U.S. Moreover, due to increasing safety concerns, the demand for fleet tracking services is increasing, which is also driving the demand for infotainment systems in vehicles. Thus, the segment is likely to show major growth in the coming future.

Based on Device Type, the market is segmented into In-Car Navigation Systems, In-car Video Systems, and In-Car Audio Systems. Out of which, In-car Navigation Systems is expected to dominate the global market over the forecast period and this is attributed to the growing demand and adoption of in car navigation systems. These navigation systems use satellite navigation technology in order to find directions and steer drivers in unknown locations. Due to various benefits of this systems, their adoption is increasing, which is further driving growth of this segment.

In Car Video Systems segment is also expected to witness significant growth in the near future and this is owing to the growing popularity of in car video systems. Several car manufacturers are including in car video systems, in order to offer better in car experience to customers. Thus, growing demand for in car video systems is likely to boost growth of this segment.

Based on Technology, the market is segmented into Embedded Telematics, Tethered Telematics, and Integrated Telematics. Out of which, Embedded Telematics is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of embedded telematics as connectivity solutions, as they offer support to applications such as eCall and they also support remote diagnostics with security and reliability being fundamentals. Thus, with increasing preference for embedded telematics, the segment is likely to show substantial growth in the near future.

Tethered Telematics segment is also expected to witness significant growth in the near future and this is owing to the various advantages of using tethered telematics in vehicles. Tethered telematics solutions use an external SIM for connectivity, and applications to run in the vehicle. These solutions are mainly used for infotainment, navigation, and convenience. With increasing demand for infotainment systems, use of tethered telematics solutions is increasing, which is further driving growth of this segment.

Global In-vehicle infotainment Market: Key Developments

In December 2021, Bosch announced development of a new infotainment domain computing system with high-performance and developed specifically for the vehicles. The new system offers features such as in-car communication, video streaming, in-car payment, voice assistants and more.

In January 2023, Holoride, a startup company backed by Audi introduced a novel device at CES 2023 in Las Vegas for bringing virtual reality entertainment to every car. With the launch of this product, a company relying on alliances with automakers for the expansion reached a turning point.

In October 2022, Mercedes-Benz with Apple announced to have acclaimed Spatial Audio of Apple Music that supports Dolby Atmos, will now be available as a native experience in Mercedes-Benz vehicles. With this collaboration, the company aims to offer finest music experience to their customers.

In April 2021, LIZHI Inc. and WM motor collaborated for promoting their innovation to develop smart travel. LIZHI will be installing/providing in vehicle audio products to the WM W6 EV model of WM motors.

Global In-vehicle infotainment Market: Key Companies Insights

The global in-vehicle infotainment market is highly competitive. This is attributed to continuous 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 regional as well as global basis.

Some of the key players in the global in-vehicle infotainment market are Panasonic Corp Denso, Harman International, Tom-Tom, Continental AG, Bosch, Blaupunkt Inc., Magneti Marelli, Alpine Electronics Inc., Kenwood, Delphi, Visteon, Clarion Corp. Bose, Pioneer, and Aisin

*Definition:

A vehicle infotainment system consists of components that manage driving information and entertainment for drivers and passengers. It consists of control elements such as touch screen displays, button panels and steering wheel controls. It is equipped with audio and video interfaces to transfer data to display screens and speakers.