Automotive Infotainment Systems Market Size, Share & Trends Analysis Report By Installation Type (In-dash Infotainment, Rear Seat Infotainment), By Vehicle Type (Passenger Car, Commercial Vehicle), By Product (Audio unit, Display unit, Heads-Up display, Navigation unit, Communication unit) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global automotive infotainment systems market size was valued at USD 29 billion in 2021. It is expected to reach USD 56 billion, growing at a CAGR of 8.8% during the forecast period (2022-2030).

Automotive infotainment is one of the fast-growing technologies in the auto industry. With the development of smartphone technology, it is anticipated that the growth trend will continue during the forecast period. As the demand for more personalized vehicles is growing worldwide, the infotainment systems market will play a significant role in making vehicles more personalized, owing to the growing demand for safety and comfort.

Automakers are strongly competing to implement advanced infotainment systems for their upcoming vehicle models during the forecast period. The expanding demand for mobility services (like ride-sharing or taxi services), the rising demand for luxury cars, particularly in emerging economies like India, and the increased emphasis on comfort, convenience, and safety are the main reasons propelling the market's expansion.

Market Dynamics

Global Automotive Infotainment Systems Market Drivers

Increasing Customer Preference for In-Dash Navigation System

In-dash navigation receivers are highly suited for travelers, as they are versatile and can command various information, entertainment, and communication sources through one device. Apart from accessing music through discs, files, or the radio, passengers can access the music and road-ready apps on their smartphones in many cases. Moreover, the receiver's built-in GPS guidance is often much more reliable than smartphone mapping apps, especially if passengers travel through areas with spotty cell coverage. Furthermore, some systems are compatible with real-time traffic services. Passengers can receive real-time traffic information, including traffic jams, construction, and even the average traffic speed along the programmed routes they are traveling. These navigation systems benefit cross-country travelers and people with long commutes to and from work.

Growing Advancement in Infotainment Systems

There is an increase in smartphone features being incorporated into in-car infotainment systems. Over 90% of North American and Europe adults have a mobile internet connection, which is among the highest rates among other regions. The use of smartphones for similar objectives when traveling by car has expanded alongside the availability of mobile devices. The modular hardware architecture is gaining favor from automotive manufacturers. Due to this, they can reduce the price of infotainment systems. Also, they are working on technology that will make it cheap to include smartphone functionality in-vehicle infotainment systems.

The modern infotainment system offers passengers more than just radio and music. Additionally, storage devices and communications systems with 3G and 4G connections can use a variety of band frequencies. In addition, infotainment systems are used to make calls, listen to podcasts, and play music while seamlessly integrating with the vehicle. The demand for rear seat infotainment systems is also very high and has grown over time.

Global Automotive Infotainment Systems Market Restraint

Infotainment Systems Impacting Driving Performance

Most modern vehicles have some entertainment system installed to make the ride more comfortable for the driver. Nonetheless, in recent years, screen sizes have been growing, raising concerns about the dangers of distracted driving and other accidents. Research shows that the physical buttons are much less distracting while on the move than those that can only be operated using a touchscreen. A local service provider could target ads based on typical driving routes in future screens.

Furthermore, several over-the-air (OTT) services are now usable within vehicles. Others are improving mobile payment and ordering processes for goods like coffee and gas. These all prospects can create a massive task for the policymakers to frame suitable regulations for the automakers. However, even with the voice command capability, older drivers find it challenging to use the modern infotainment system while driving. The tendency of infotainment systems to cause distraction will still be present, preventing the rapid adoption of the more complex infotainment system in the worldwide market, even if OEMs and infotainment makers are attempting to create the best yet safest systems for car owners.

Global Automotive Infotainment Systems Market Opportunities

Increasing Innovations to Improve In-Vehicle User Experience

The automotive industry is moving towards creating and developing breakthrough technology to provide improved connection solutions, promote vehicle safety, and enhance the in-car user experience. One of the well-known technologies is automotive infotainment, which serves as the hub for all current vehicle systems and unifies their operations so they can be managed and controlled from a single central device. To make travel as fun and straightforward as possible, the manufacturers are concentrating on adding more features to their infotainment. All smart automobile technologies, including ADAS systems, cellphones, telematics equipment, sensors, and others, are connected to modern vehicle infotainment systems. These developments are predicted to increase the CAGR of the market for vehicle infotainment significantly.

Regional Analysis

Asia-Pacific Dominates the Global Market

By region, the global automotive infotainment systems market is segmented into North America, Europe, Asia-Pacific, and the Rest of the world.

Asia Pacific accounted for the largest market share and is expected to grow at a CAGR of 8.9% during the forecast period. The transition from basic audio systems is driving the need for infotainment systems in China to touchscreen infotainment systems that enable various services, including navigation, Apple CarPlay, Android Auto, and telematics. It is anticipated that Japan will lead the globe in adopting vehicle infotainment systems during the forecast period. For instance, in 2019, Japan's METI indicated it might push the automobile sector to strengthen and expand areas of collaboration in anticipation of the era of Connected, Autonomous, Shared, and Electric vehicles (CASE).

North America is expected to grow at a CAGR of 8.8%, generating USD 12 billion during the forecast period. Major global players are located in North America and are working with the local technology giants to develop new technologies for customers. Mitsubishi Electric Corporation Americas debuted the FLEXConnect infotainment platform in 2019. MaaS is a high-performance demo system based on Qualcomm® SnapdragonTM automobile cockpit platforms. It has various customizable infotainment options that automakers can utilize to differentiate their vehicles and provide unique in-vehicle experiences. Major automakers in the country are investing in the latest technology to make the vehicle future-ready and give customers the best driving experience. For instance, in 2019, General Motors announced its plans to introduce new in-vehicle technology for the upcoming cars.

Germany is a leader in producing passenger cars among all member countries in the European Union. The automotive sector in the country accounts for over 29% of the overall EU automobile market share. Three major companies - Volkswagen, Daimler AG, and BMW, dominate the German automotive industry. Statistics in the country's automotive sector show that Germany produces over 6 million vehicles annually, including passenger and commercial vehicles. The growing trend of autonomous vehicles made automakers focus on driver assistance systems and infotainment systems, including rear seat infotainment systems. Audi A8 is the world's first level-3 autonomous driving vehicle to go into production, which features a new rear seat infotainment system developed by NVIDIA. In March 2020, Elmos announced a new CMOS-based 3D ToF (Time of Flight) imager, "E527.31", created for vehicle interior and exterior applications. The interior app can count passengers or control the infotainment system with gestures. Such developments drive market growth.

Segmental Analysis

The global automotive infotainment systems market is segmented by installation and vehicle type.

On the Basis of Installation Type

By installation type, the global automotive infotainment systems market is segmented into in-dash infotainment and rear seat infotainment.

In-dash infotainment accounts for the largest market share and is expected to grow at a CAGR of 8.8% during the forecast period. In-dash infotainment systems have been consistently upgrading with more user-friendly and responsive features, providing sharp graphics and easy-to-see, reach, and control while driving. Most new cars, trucks, and SUVs offer updated infotainment technology far superior to past systems. Many pickup trucks, minivans, and mainstream SUVs also come standard with feature-rich in-dash infotainment systems and smartphone app integration. For instance, the apps nowadays combine offline data with online services to indicate traffic, speed cams, search and routing.

There has been a rise in the demand for infotainment systems installed in the back seats of vehicles. Rear-seat infotainment systems were previously only found in high-end vehicles. However, the taxi companies began merging cutting-edge goods and services to provide the most satisfactory service to their clients to survive in the fiercely competitive taxi sector. Currently, one of the popular features offered by taxi companies is an infotainment system. In addition, the growing trend of autonomous vehicles has made automakers focus on driver assistance systems and infotainment systems, including rear seat infotainment systems. Emerging markets like India have witnessed automotive players entering the rear-seat infotainment system market. Thus, owing to such developments, the demand for rear-seat infotainment systems is expected to increase during the forecast period.

On the Basis of Vehicle Type

By vehicle type, the global automotive infotainment systems market is segmented into passenger cars and commercial vehicles.

Passenger car accounts for the largest market share and is expected to grow at a CAGR of 8.9% during the forecast period. Infotainment systems are becoming more common in all vehicle segments, including the C and B segments, so they are no longer only found in expensive cars. Major premium automobile manufacturers are working to improve the current infotainment systems or provide better hardware to stand out to keep their devoted customer base. The automobile industry has seen a massive improvement in sports utility vehicles. With increasing consumer demand for owning a vehicle with only city driving on terrible roads and for the sporty off-road experience, SUV sales have significantly increased, propelling the market expansion.

Commercial vehicles are the second largest global automotive infotainment systems market segment. Logistic companies offering cargo or carrier services to different cities are looking for more straightforward solutions to deliver to customers. As a result, commercial vehicles are equipped with navigation systems to gain accuracy and precision in locating desired destinations, ensuring their on-time delivery motto. The biggest challenge for commercial vehicle users in navigation systems is to keep the data current. The roads' names must be correct to prevent drivers from being confused. A recent case study reported that a fleet of 1,000 trucks costs around USD 240,000 to USD 500,000 annually to keep the navigation systems updated. Most aftermarket navigation systems cost between USD 200 and USD 900. Consequently, fleet managers and logistics providers have leaned toward installing infotainment devices in their commercial vehicles, most commonly in the form of navigation equipment.

Impact of covid-19

COVID-19 has positive and negative market consequences, as carbon emissions have decreased globally due to the lockout. COVID-19's reduction in emissions is a short-term benefit. Still, when industries and enterprises attempt to recoup some of their financial losses in the first quarter of the year, carbon emissions will rise dramatically. COVID-19 had a negative impact on global recycling efforts. Countries, notably the United States, have halted or decreased recycling programs to focus on collecting additional domestic waste or because services have been disrupted by the virus.

Also, with industries slowly returning to normalcy following the COVID-19 outbreak, this shift in workplace health and safety is expected to increase due to mandatory social distancing and continuous personal care through sanitization to eliminate even the tiniest possibility of COVID-19 spread. COVID-19 has impacted various companies' revenues, and if the lockdown is lifted, companies will turn their attention to operations to make up for their losses.

Recent Developments

• July 2022 - Bosch intends to transform its Mobility Solutions division into a profit-and-loss accountable business sector. The mobility segment is changing, which has an impact on customer demand. Being able to meet the needs of both current and potential customers with specialized technologies and solutions from a single source is the goal of Bosch Mobility Solutions' reorganization.
• June 2022 - Bosch BASF Smart Farming GmbH, the joint venture between Bosch and BASF Digital Farming, intends to establish a commercial sales collaboration for its Smart Spraying solution with Stara, the largest agricultural machinery manufacturer in Brazil.
• July 2022 - Mitsubishi Electric Corporation (TOKYO: 6503) announced that its "SUSTIE®" Net Zero Energy Test Facility had obtained Platinum-level WELL Building Standard™ certification. This international certification evaluates the extent to which a building environment supports the well-being of its occupants. 
• July 2022 - Mitsubishi Electric Corporation (TOKYO: 6503) announced that it would launch a 50W silicon radiofrequency (RF) high-power metal-oxide-semiconductor field-effect transistor (MOSFET) module for use in high-frequency power amplifiers of commercial two-way radios on August 1. The model, which offers an industry-leading1 50W power output in the 763MHz to 870MHz band and a high total efficiency2 of 40%, is expected to help expand the radio communication range and reduce power consumption