In-Vehicle Infotainment Market Size, Share & Trends Analysis Report By Component (Software, Hardware, Services), By Vehicle Type (Passenger Cars, Commercial Vehicle), By Fitting (OE Fitted, Aftermarket), By Operating System (Android, Linux, QNX, Microsoft, Others), By Application (Navigation, VPA (Virtual Personal Assistant), App Store, Music, Rear Seat), By Location (Front Row, Rear Row), By Connectivity (3G/4G, 5G), By Form Factor (Embedded, Tethered, Integrated), By Display Size (<5”, 5-10”, >10”), By Product Type (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 In-Vehicle infotainment market size was valued at USD 25.5 billion in 2024. It is projected to reach USD 55.9 billion by 2032, growing at a CAGR of 10.3% during the forecast period (2023-2031).

In-vehicle infotainment systems deliver entertainment and information services to the driver and passengers while on the conveyance. The infotainment services are in the form of audio and video music, games, videos, social networking, applications, etc. Besides, vehicle diagnostics and the navigation system aid drivers in having safer journeys. The automotive industry embraces technological innovations in every facet, improving vehicle safety, enhancing engine performance and in-vehicle infotainment; for improving vehicle safety and facilitating efficient ways of transport. Increased consumer disposable income and simple financing options in developing countries have made it possible for people to buy passenger cars, which has increased demand for technologically advanced vehicles with useful and practical infotainment systems. In order to improve the functionality of infotainment systems, important automotive manufacturers are concentrating on advanced collaborative technologies like driver assistance, augmented reality real-time data collection, and the Internet of Things (IoT).

Market Dynamics

Market Drivers

Increasing Smartphone Penetration

From 2017 to 2022, there will be a remarkable 49.89% increase in the use of smartphones with Android operating systems. Since most O.E.M.s choose Android operating systems for mid to high-end car segments, a similar trend is anticipated in the automotive industry. The market for Android O.S. in automotive infotainment systems is being driven by the rise in sales of low-end cars, which has led to cost optimization of Android-based chipsets that are embedded in the system. The automotive industry is seeing a trend toward infotainment systems with sophisticated smartphone integration. The Skoda Slavia's cutting-edge technology has most recently been added to the list. For the new Slavia, there are two cutting-edge infotainment systems to choose from. These give access to mobile online services and allow smartphones to be paired via SmartLink technology. The central color touchscreen, which measures 7 inches in the Active specification, controls both completely.

As a result, the growing integration of smartphones with in-vehicle infotainment systems in tandem with rising smartphone sales would offer O.E.M.s a significant means of providing a cost-efficient choice across all car segments and would further propel the in-vehicle infotainment market growth.

Rapid Advancements in Cloud Technology

There are numerous forms of cloud technology in automobiles. Cars will be able to communicate with one another through the cloud to avoid collisions and update traffic data and maps. Although cloud technology in cars is not new, it is advancing quickly as a result of collaboration and partnerships between the software development community and the automotive industry. In order to assist the driver and provide real-time information on weather and traffic, the majority of electric cars can exchange data with data centers. The Tesla Model S is a recent illustration. The Tesla cloud receives all the information required to remotely and instantly assist the driver in almost any car-related issue without the need for the driver to be present. With a connected infotainment system, customers can update features and services. The goal of O.E.M. software development is to provide customers with a seamless experience across the cloud, car, and smartphone. The automotive industry, and the infotainment market, in particular, is moving toward trends that are user-friendly, and cloud technologies are important factors that are playing a crucial role in advancements in in-vehicle infotainment.

Market Restraints

High Cost of Infotainment System Subscriptions

Informational services like satellite radio, vehicle diagnostics, a Wi-Fi hotspot, roadside assistance, and real-time traffic data require an annual subscription. These services begin with a free trial, become accustomed to these conveniences, and eventually become pay-per-use. Although the cost of a basic subscription is not very high, it can add up over time. Furthermore, there are additional costs associated with subscription models and software upgrades. Thus, one of the major market restraints for in-vehicle infotainment is the additional cost of an annual services subscription.

Market Opportunities

Increasing Government Regulations for Traffic Safety

Future developments in telematics and in-vehicle infotainment are anticipated to have a positive effect on commuter safety and security. These technologies are currently in their primary stages of development and deployment. Regulations for the use of telematics solutions are eagerly sought after by regulatory bodies. Many industrialized and developing nations, including the U.S., Brazil, Russia, and the E.U., have already implemented or plan to implement telematics-related regulations for services like emergency calls and stolen vehicle tracking (SVT). Developing nations like China and India are also implementing laws pertaining to passenger safety and security, which will expand the market for infotainment solutions. Therefore, the adoption of such government regulations to assure the safety of drivers and passengers through features like navigation, voice control, driver assistance, and other features is expected to present growth opportunities in the in-vehicle infotainment market.

Regional Analysis

The global In-Vehicle infotainment market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America is the most significant shareholder in the global In-Vehicle Infotainment market and is expected to grow at a CAGR of 9.9% during the forecast period. The skyrocketing consumer demand for premium vehicles in the U.S. is the key determinant snowballing the regional market growth. The demand for local companies will increase as voice recognition, and driver distraction systems gain popularity. End-user preference for high-definition in-gauss screens is another noteworthy trend in the local in-vehicle entertainment systems industry. According to reports, Emergency Safety Solutions, Inc. (E.S.S.), the company behind the Hazard Enhanced Location Protocol (H.E.L.P.), will collaborate with Tesla to implement a new vehicle hazard warning system. The Hazard Enhanced Location Protocol (H.E.L.P.®), developed by Emergency Safety Solutions, Inc. (E.S.S.), revolutionizes vehicle hazard warning systems to help prevent collisions with vulnerable and disabled vehicles and their occupants. E.S.S. announced today that it had signed a global agreement with Tesla, Inc. to deploy H.E.L.P. on Tesla models via an over-the-air software update, initially in North America.

Europe is pegged to be a prominent region in the In-Vehicle infotainment system. Europe is one of the prominent regions in the in-car infotainment market, mainly attributed to the presence of several luxurious automotive manufacturers — BMW, Mercedes, and Audi. Besides, favorable initiatives by the legislation — the European Union's decision to integrate eCall technology in all new cars sold from 2018 is spurring the market growth. It establishes a phone connection with the proper emergency call center and transmits information about the accident, including its location. The positioning of the distress signal is extremely precise thanks to Galileo, the European version of G.P.S. Emergency response times can be sped up by 50% in rural areas and 40% in urban areas with eCall. It can cut down on fatalities by at least 4% and severe injuries by at least 6%.

Asia Pacific is projected to witness the fastest growth in the In-Vehicle Infotainment market during the forecast period due to a rise in local consumers' disposable income, and there is a high demand for automobile infotainment systems. Due to their effectiveness, people preferred augmented reality technology-based solutions, which is fueling the expansion of automotive infotainment systems in the area. The region has showcased an increased adoption of auto infotainment systems in various countries. Further, this region reflects high lucrativeness for auto infotainment manufacturers, driving the growth of the market.

The L.A.M.E.A. region is expected to register a healthy growth rate in the In-Vehicle Infotainment market due to the focus that automakers are placing more and more on developing cutting-edge solutions internally. The user experience will be improved, and perhaps performance will improve with advanced automotive infotainment systems.

Segmental Analysis

The global In-vehicle infotainment market is segmented by component, vehicle type, and fitting.

Based on components, the global market is bifurcated into software, hardware, and services.

The software segment is the highest contributor to the market and is expected to grow at a CAGR of 10.1% during the forecast period owing to the high installation rate of infotainment systems in passenger cars and the burgeoning advanced automotive sector in several countries. According to IEEE Spectrum, the value of software and electronics for a premium car is already 35-40%.

The hardware segment is expected to witness a higher CAGR. The demand for advanced features in infotainment systems, such as 3D navigation, satellite radio, and online content streaming, is driving the growth of the hardware segment in the market.

Based on vehicle type, the global market is bifurcated into passenger cars and commercial vehicles.

The passenger car segment is the highest contributor to the market and is expected to grow at a CAGR of 9.7% during the forecast period. The increased use of luxury vehicles by consumers, mostly in developing countries, is responsible for a larger share of the passenger car segment. Luxury vehicles have more technology and safety features, and their luxurious interiors necessitate cutting-edge infotainment systems. Luxury car sales are influenced by the subscription-based services, better sales, and financing options that automakers offer to consumers. Additionally, businesses like Uber and OLA are working to maintain a sizable market share by attempting to make long drives more enjoyable and comfortable by enhancing the technology in passenger vehicles.

The commercial vehicle segment is expected to grow at a significant rate. The segment is anticipated to grow as a result of rising demand from the logistics industry for commercial vehicles and increased attention from the auto industry on using vehicles in fleet management.

Based on fitting, the global market is bifurcated into O.E. fitted and aftermarket.

The O.E. fitted segment is the highest contributor to the market and is expected to grow at a CAGR of 9.5% during the forecast period due to features that are simple to service and require little upkeep. Since O.E. systems are covered by the manufacturer's warranty and cannot be purchased separately, customers are more likely to choose O.E. systems over aftermarket alternatives, which helps the segment grow. Automobile manufacturers can access the stored data by including O.E. in their vehicles. The company's sales and marketing team can use the information gathered to further their campaigning efforts.

The aftermarket segment is expected to grow at a significant rate. The old-generation infotainment system has transformed into a new one as a result of technological advancements, giving customers the option to choose an infotainment system that suits their preferences and is reasonably priced.

Impact of covid-19

As part of steps to control the transmission of the COVID-19 pandemic, governments in several nations have limited the movement of commodities and people and suspended the functioning of manufacturing facilities. It has impacted power usage throughout the world. As per the short-term forecast of the United States Energy Information Administration (EIA), electricity consumption in the United States is expected to fall by a record 4.5% by the end of 2020, as businesses have temporarily shut down due to the government lockdowns to stop the prevalence of the coronavirus. As a result, global demand for and manufacturing instrument transformers is expected to fall.

Recent Developments

• In September 2022, Harman International acquired CAARESYS to enhance safety through cabin monitoring, A.D.A.S. solutions, and meet several other consumer demands.
• January 2022, Panasonic Automotive showcases driveable AR HUD 2.0 with an in-house eye-tracking system.
• In April 2022, Mitsubishi Motors launched Inca Jay digital cockpit, which comes with improved Advanced Driver Assistance Systems (A.D.A.S.)