Electric Vehicle Infotainment Market Size, Share & Trends Analysis Report By Application (Navigation, VPA (Virtual Personal Assistant), App Store, Music, Rear Seat), By System Type (Multimedia, Heads-up Display, Navigation Unit, Communication Unit, Rear Seat Entertainment), By Connectivity Type (Bluetooth, Cellular, Wireless, Wired Connectivity), By Operating System (Android, Linux, QNX, Microsoft, Others), By End Use (BEV (Battery Electric vehicle), HEV (Hybrid Electric vehicle)) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global electric vehicle infotainment market size was valued at USD 1.56 billion in 2021 and is expected to reach USD 19.49 billion in 2030 expanding at a compound annual growth rate (CAGR) of 37.12% from 2022 to 2030.

 A system that offers a combination of informational and entertaining material or services is known as an infotainment system, and it is typically seen in modern automobiles. An In-Vehicle-Infotainment system's typical features include the ability to provide navigation while the vehicle is in motion, the management of audio-visual entertainment content, the provision of entertainment for passengers in the rear seats, and connectivity with smartphones to enable hands-free operation via voice commands.

The Infotainment Options let drivers keep their hands on the wheel and their eyes on the road, which ultimately results in a safer experience when they are inside the vehicle. It is essential that the information and entertainment options, such as menus and apps, be logically organised, and that users be able to access features with minimal effort in order to reduce the risk of accidents. Additionally, speech and audio instructions need to be the foundation of the platform for in-car apps, and drivers need to have the ability to navigate menus or apps.

The need for the EV infotainment market is being driven by the growing popularity of electric cars (EV) among users, both for personal and business use. The escalating demand for entertainment systems that are equipped with GPS navigation is another factor that is contributing to the expansion of the market. The capability of the infotainment system to perform services like as mapping, traffic monitoring, and position tracking has been significantly improved as a result of the implementation of this technology.

Integrated centre stacks are being added to electric vehicles by the manufacturers as a means of enhancing driver control and participation in the driving experience. Touch capabilities and vertical integration may be realised through the utilisation of a centre stack. The curved centre stack display improves not just the usability of the device but also the overall cost-effectiveness of using it. Another factor adding to the expansion of the industry is the fact that manufacturers are offering increasingly sophisticated iterations of infotainment systems, such as heads-up display infotainment systems and rear-seat infotainment systems.

Market Dynamics

Electric Vehicle Infotainment Market Drivers

Utilisation of Cloud Technology and The Expansion of the Smartphone Market

By the end of the year 2030, half of the entire cost of an automobile will be devoted just to the expense of automotive electronics. Electronics, sensors, and infotainment systems are going to be the primary growth drivers in this industry.

Between 2017 and 2022, there was a significant growth of 49.89 percent in the number of people using smartphones that were powered by Android. As Android operating systems are one of the most popular choices among original equipment manufacturers (OEMs) for mid- to high-end automobile segments, a trend that is analogous to this one is anticipated to emerge in the automotive industry. Because of the rise in sales of low-end automobiles, the cost of Android-based chipsets that are incorporated in the infotainment system has been optimised, which has driven the growth of the Android OS market for automotive infotainment systems.

In the automotive sector, the latest trend is moving toward infotainment systems that integrate smartphones in more sophisticated ways. The highly developed technology that is offered in the Skoda Slavia is a recent addition to the list. The new Slavia comes with an option between two cutting-edge information and entertainment systems. These enable the pairing of cellphones via the use of technology known as SmartLink and offer access to mobile online services. Both are controlled only through the utilisation of the primary colour touchscreen, which, according to the Active standard, measures 7 inches.

Therefore, the increasing integration of smartphones with in-vehicle infotainment systems in tandem with rising sales of smartphones would provide a significant way for original equipment manufacturers (OEMs) to provide cost-efficient choice across all car segments.

Numerous Sorts of Cloud Technology May Be Found in Today's Automobiles

By utilising the cloud, vehicles will be able to interact with one another to help reduce the number of collisions that occur and to keep traffic information and maps up to current. Although the use of cloud computing in automobiles is not a recent innovation, this technology is advancing at a breakneck pace because to the collaboration and partnership between the automotive sector and software companies. The services that Volvo provides to its customers serve as a striking illustration of how cloud computing may be utilised in a vehicle for functions more than simply providing entertainment. The user may take control of the car using their smartphone by downloading the Volvo On-Call app and utilising cloud-based services. After that, the user's smartphone can function as a digital key to unlock and start the vehicle. Additionally, it has the capability to manufacture and deliver temporary digital keys to the driver's family and friends in the event that they need to share the car.

Additionally, it may remotely preheat or precool the cabin, provide route directions, or check the fuel level from any device. Another example of cloud technology being integrated with infotainment systems is the partnership between Ford Motor Company and Microsoft Azure, which will result in the creation of the Ford Services Network and the provision of automated software solutions. In addition, Invisible-to-Visible, often known as I2V, is a future technology that will be used by Nissan Intelligent Mobility to combine the real and virtual worlds. It lets drivers "see the unseen" by merging information from sensors outside and within the car with data from the cloud. For example, it may show drivers what is farther down the road, what is behind a building, or what is around the bend.

The majority of today's electric vehicles are capable of exchanging data with remote data centres, which allows them to offer the driver with real-time information on things like traffic and the weather. A recent illustration of this is Tesla's Model S. The driver is not required to intervene in the resolution of almost any problem that may arise with their Tesla vehicle because the cloud service receives all of the information required to provide remote assistance in real time to the driver. Customers who have an entertainment device that is linked to the internet have access to updated features and services.

Electric Vehicle Infotainment Market Restraints

Annual Subscription Fees in Infotainment Systems Are an Additional Cost

Infotainment services that need a yearly membership include navigation, satellite radio, car diagnostics, Wi-Fi hotspot, roadside help, and live traffic statistics. These kinds of services typically begin with a free trial period, during which users become acclimated to the conveniences they provide before eventually being subjected to payment requirements. Even while the cost of a basic membership is not very high, the money spent over time might add up. In addition to this, there will be extra charges associated with the upgrading of software as well as various subscription plans. For example, the Audi Connect PLUS package, which includes a Wi-Fi hotspot, online radio, and Amazon Music, costs approximately ten dollars per month, while unlimited data costs twenty-five dollars per month. On the other hand, the Audi Connect PRIME package, which includes Amazon Alexa, natural voice recognition, Google Earth, traffic information, traffic light information, myAudi Destinations, and parking information, costs approximately one hundred ninety-nine dollars for six months and four hundred ninety-nine dollars for

Thus, the additional cost of annual services' subscription along with upgrading cost related to software and subscription models is one of the significant restraints that are seen for the in-vehicle infotainment market. Moreover, the market is expected to grow at a compound annual growth rate (CAGR) of 11.25% during the period 2018–2028.

Electric Vehicle Infotainment Market Opportunity

E-Call and Telematics Regulations Imposed by The Government

Future improvements to commuter safety and security are anticipated thanks to technologies like telematics and in-vehicle infotainment, which are presently in their main stages of research and adoption. The regulatory organisations are eager to impose rules for the use of telematics systems. Numerous industrialised and developing nations, including the US, Brazil, Russia, and the EU, have either implemented or intend to implement telematics-related regulations for services like emergency call (e-call) and stolen vehicle monitoring (SVT). The trend of legislation pertaining to passenger safety and security is being followed by developing nations like China and India, which will expand the market for telematics and entertainment solutions.

Some governments have started requiring passenger car safety features including emergency assistance in case of accidents and e-calls, which include the vehicle calling the state helpline in an emergency and providing the exact GPS coordinates of the accident's location.

Therefore, it is anticipated that the in-vehicle infotainment market will experience growth opportunities as a result of the implementation of such government regulations for passenger cars and commercial vehicles to ensure the safety of drivers and passengers through features such as navigation, voice control, driver assistance, and other features.

Regional Analysis

Based on region the EV infotainment market is divided into North America, Europe and Asia Pacific.

When broken down by geographical segmentation, the European area holds the largest market share in 2021, coming in at 46.44 percent. The presence of major automobile manufacturers, the availability of skilled labour, and technical advancements are all factors that are contributing to the expansion of the electric vehicle infotainment market in the European area. In addition to the strict pollution requirements that have been enforced by the authorities, the increasing demand for electric vehicles in the region is a key driver in the expansion of the industry.

The remaining market regions around the world are anticipated to rise at a compound annual growth rate of 53.9%. The market demand is being driven by factors such as an increase in disposable income, the availability of electric vehicle infrastructure, a rise in the ownership of automobiles, and the integration of infotainment with ADAS systems and the cloud in North America and Asia Pacific. The growing demand for advanced entertainment systems in electric vehicles is also contributing to the expansion of the Latin American market sector. The EV infotainment market is being driven by the availability of 4G and 5G networks in the region, a fall in the data tariff rate, and the growing popularity of electric vehicles (EVs).

Segmental Analysis

The electric vehicle infotainment market is segmented into the following categories System type, Connectivity type, end use and Region.

On the Basis of System Type

Based on System type the EV infotainment market is divided into Multimedia, Heads-up Display, Navigation Unit, Communication Unit, Rear Seat Entertainment. With the greatest market share of 55.69 percent in 2021, the multimedia infotainment system is anticipated to have considerable growth over the course of the projection period. The driver can access services like the navigation system, phoning, and music thanks to the multimedia entertainment system. Because it is suitable with low- to high-end sector automobiles and offers basic to some high-end functionality, multimedia infotainment is also quite popular.

The heads-up display system is anticipated to see the largest CAGR throughout the projection period, at 46.6 percent. The information is shown on the windshield in the driver's line of sight by the heads-up display. Navigation, road speed, warning message, and call information are shown via projection systems and mirrors. The heads-up display improves the driver's attentiveness to the surroundings outside so that they can operate the vehicle with less weariness. The adoption of heads-up displays is primarily being fuelled by these growth factors.

On the Basis of Kind of Communication

Based on the kind of communication, EV car infotainment systems may be divided into Bluetooth, cellular, wireless, and wired connectivity categories. With a market share of 41.07 percent in 2021 and a CAGR of 39.5 percent from 2022 to 2030, the wireless connectivity sector has the highest figures. In order to support the expanding connection capabilities of smartphones, network connectivity is likewise increasing stronger as smartphone adoption rises. Wireless and cellular infotainment connections have been made possible by internet access on cellphones. Due to its fast connection and data transmission speeds, wireless and cellular connectivity in EV infotainment systems is gaining popularity. In a cutting-edge infotainment system, cloud data transfer is facilitated by wireless technology based on an internet connection. Wireless connectivity's rising global coverage makes it possible for EV infotainment systems to deliver a smooth driving experience while accelerating market expansion.

Due to its low cost, Bluetooth connection is the most often used choice in infotainment systems. However, cellphone, wireless, and cable communication all transport data more quickly than Bluetooth does.

On the Basis of End Use

Based on end use the EV infotainment market is classified into the following BEV (Battery Electric vehicle), HEV (Hybrid Electric vehicle). The battery electric vehicle and the hybrid electric vehicle are the two end-use categories that make up the electric vehicle infotainment industry. With a market share of 66.63 percent in 2021, the battery electric car will command the end-use market. Battery electric vehicles have become more popular as a result of increased carbon emissions and growing need for alternate fuel sources. Government programmes like subsidies are also encouraging the use of electric cars. Digital infotainment systems are becoming more popular as a result of the integration of technologies like cloud, AI, and IoT in battery electric vehicles and larger screens. Additionally, the industry is expanding due to the growing demand for entertainment systems for the backseats of battery-powered cars.

Within the projected period, the HEV market is anticipated to grow at a CAGR of more than 39.3 percent. In commercial vehicles, the infotainment system is often used for communication, tracking, and navigation. However, commercial vehicle drivers will be able to navigate routes effectively with the aid of real-time traffic information and maps thanks to sophisticated infotainment systems. These elements will aid in increasing the market share of EV infotainment system for commercial vehicle types.

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

Bosch created a high-performance infotainment domain computing system in December 2021 that was specifically designed for the cars of today and future. It facilitates the swift introduction of technologies like as in-car communication, in-car payment, video streaming, voice assistants, and more. The Information domain computer gives car makers a powerful, versatile, scalable, and cost-effective control unit for the next generation of in-vehicle technology. It supports numerous in-vehicle systems in a single package.

The MultiViu Sports display platform, a highly customizable instrument cluster for motorcycles and motor scooters, was introduced by Continental in December 2021. Based on a scalable development framework, MultiViu Sports displays may be readily modified to meet the needs of various motorcycle riders. Major Austrian manufacturer KTM is already utilising the technology and will install the seven-inch MultiViu Sports 7 on its KTM 1290 SUPER ADVENTURE S.

The launch of the Harman Ignite Store Developers Portal, a development hub devoted to the Android Automotive developer community, was announced by Harman in April 2021. Developers for the Android Automotive open OS may simply scale and manage automotive apps that OEMs have already deployed through the Developers Portal in order to create new digital touchpoints with their consumers through the HARMAN Ignite Store.

The New S-CROSS SUV from Suzuki Motor Corporation will come standard with a Pioneer auto navigation system in December 2021. For the European market, this is the first Suzuki vehicle to use Pioneer's in-car navigation system.

As a strategic investor in December 2021, Continental invested in the German-American software company Apex.AI. The technology firm emphasised the significance of sophisticated software applications for next car generations by doing this. Since 2020, Continental and Apex.AI have been working together to commercialise a cutting-edge operating system for automobiles.