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Automotive Infotainment Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles), By Application (Navigation, Media, Communication, Payment Services, and Telematics), By Distribution Channel (OEM and Aftermarket), and Regional Forecast, 2023-2030

Region : Global | Format: PDF | Report ID: FBI102676

 

KEY MARKET INSIGHTS

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The global automotive infotainment market size was valued at USD 30.69 billion in 2022. The market is projected to grow from USD 32.16 billion in 2023 to USD 49.86 billion by 2030, exhibiting a CAGR of 6.47% during the forecast period.


A vehicle’s infotainment system is an integrated media and information system providing the driver and passengers with information and entertainment. The system consists of a digital screen, also known as head unit, which controls various aspects such as cabin temperature, media, and information. The head unit also provides information modules such as navigation, telematics information, and internet connectivity.


The automotive industry is a highly evolving industry with major players consistently competing with each other by delivering new technologies and newer advancements to the existing technology. Integrating data and calling sim cards is one of the major trends observed in this market, along with features such as in-vehicle payment systems and displaying telematics data to the OEMs and users operating the vehicle. The infotainment system consists of various micro electrical units and is prone to failure due to improper wiring. These factors may affect the automotive infotainment market growth during the forecast period. However, the market is projected to grow significantly over the forecast period, with an increased focus on vehicle telematics, infotainment systems, media, and streaming services.


COVID-19 IMPACT  


Reduced Production and Demand for Vehicles during the Pandemic Hampered the Market Growth


The impact of COVID-19 on the market has been considered by the shutdown of production and assembly plants along with reduced parts supply. However, the market witnessed surging demand post-pandemic, owing to accelerated production of vehicles to clear the backlogs and recover the losses endured during the pandemic. However, the market witnessed a slowdown in the rolling out of the infotainment system caused by a shortage of semiconductor supply leading to a disrupted supply chain. This led to increased raw material prices and slower adoption rate of infotainment systems in next-generation vehicles.


The market is expected to grow post-recovery of semiconductor shortage steadily since major OEMs have accelerated R&D efforts to provide consumers with more detailed information on their vehicles. Additionally, the accelerated R&D projects for autonomous driving offer great opportunities for vehicle infotainment systems during the forecast period.


LATEST TRENDS


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Enriched in-Cabin Experience by Major Automotive OEMs is a Trend Observed in Market 


The automotive sector is stirring toward inventing and developing innovative technologies to develop connectivity solutions, advance vehicle safety, and enrich the in-vehicle user experience. Additionally, automotive infotainment is one of the prominent technologies, which works as a central point of all the current automotive systems and combines their functions to be monitored and controlled from one central unit.


The manufacturers are directing on integrating additional data accessibility features into their infotainment to make the journey enjoyable and effortless. The modern vehicle automotive infotainment connects with all smart automotive technologies such as 2X connectivity solutions, ADAS systems, smartphones, telematics devices, and sensors. These trends are anticipated to boost the growth of this market over the forecast period.


DRIVING FACTORS


Integration of Connectivity Features such as in-Vehicle Calling and Data Connectivity to Drive the Market


The development of next-generation vehicles is catering to an enhanced connected vehicle experience. The newer vehicles are installed with sim cards to access the internet and calling features, further reducing the dependency on a smartphone connection for media and connectivity functions. Additionally, the infotainment systems provide users and OEMs with vehicle data using OTA updates and information sharing enabled due to internet connectivity installed in the vehicle. Thus, developing connected vehicle technologies is expected to surge the demand for an enhanced infotainment system during the forecast period.


Demand for Vehicle Telematics to Drive Market Growth for Automotive Infotainment Systems


A smart infotainment system equipped with connected vehicles allows users and OEM to preview vehicle insights that provide the manufactures as well as buyers with enhanced vehicle data, allowing them to understand various aspects of the vehicle such as component condition, vehicle repairs, and other insights that are shared on the head unit of the vehicle. The data collected from individual vehicles helps further improve the vehicle performance and allows the manufacturers room to upgrade their existing vehicle fleets. Moreover, the users are also aware of the vehicle's condition, providing an enhanced driving and in-cabin experience. Thus, these features are expected to drive the market growth of automotive infotainment systems.


RESTRAINING FACTORS


Potential Security Breaches and Data Hacking to Hamper Market Growth


Integrating the advanced infotainment system gives users a richer and more informative experience. However, it required complex security systems and firewalls to protect the software, in-vehicle, and user data from potential data leaks. The risk of data manipulation and code overwriting may lead to fatal vehicle failures as well as data hacking of users. Since the users integrate their phones with in-cabin infotainment systems, various vital data points such as personal IDs and payment transactions are at risk of high exposure. Thus, a robust security system is necessary to prevent data leaks and hacking. These few factors are expected to damage product adoption. However, such attacks can be avoided with proper security bridges and firewalls.


SEGMENTATION


By Vehicle Type Analysis


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Higher Demand for Advanced Entertainment and Informatics in Passenger Cars is Surging the Demand for Automotive Infotainment Systems in this Segment


By vehicle type, the market is segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles.


Passenger cars segment dominated the market share. It accounted for 81.2% in 2022 and is anticipated to proliferate at a steady CAGR during 2023-2030, owing to features such as in-vehicle calling, OTA vehicle updates, connected cabin experience, and others. Due to the high demand for passenger cars among urban and suburban commuters, infotainment for passenger cars is estimated to witness higher demand. Additionally, the growing penetration of connected vehicle technology, autonomous driving technology, and electric vehicles is expected to add more value and demand for automotive infotainment for passenger vehicles.


Light commercial vehicles are highly popular for light commercial goods purposes. Thus, major OEM players are aiming to capitalize on this by introducing advanced infotainment systems to provide users with an in-cabin experience similar to passenger vehicles. OEMs also provide various information-sharing services to track fleet operations, thus increasing the efficiency of various operations. Additionally, major players aim to introduce aftermarket models to support further adoption of automotive infotainment technology to tackle climate change.


By Application Analysis


Payment Services Segment to Grow at a Significant Pace Owing to Ease of In-vehicle Payment Transactions 


Based on application, the market is segmented into navigation, media, communication, payment services, and telematics. The navigation segment dominated the market share in 2022. Navigation is one of the most used features of the infotainment system. Additionally, navigation is a primary feature associated with an infotainment system providing the driver with appropriate direction and traffic congestion data solutions.


Payment service is one of the sub-segments within the application segment, which is expected to grow at a significant growth rate due to the ease of payments processed directly through the vehicle, reducing the hassle involved in online smartphone payments. Thus, the ease of payment options further enriches the in-cabin and driving experience and is expected to grow rapidly in the forthcoming years.


By Distribution Channel Analysis


Owing to Technological Advancement Introduced by Automotive Manufacturers, OEM Segment Dominates the Market Share


Based on distribution channel, the market is fragmented into OEM and aftermarket. The OEM segment held the largest market share in 2022. This is attributed to high reliability and performance delivered by OE automotive infotainment system compared to aftermarket products leading to higher market share. 


The aftermarket segment is expected to grow significantly during the forecasted period owing to the rapid penetration of advanced automotive infotainment technology across various automotive aftermarkets. Additionally, OEM automotive infotainment systems are highly reliable and expensive; thus, many consumers may opt for a cheaper aftermarket product offering nearly as good as OEM-level performance. Thus, these factors are expected to drive market growth.


REGIONAL INSIGHTS


Asia Pacific Automotive Infotainment Market Size, 2022 (USD Billion)

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Due to High Production Rate of Automotive vehicles in Asia Pacific, the Region is Expected to Dominate 


Asia Pacific held a leading automotive infotainment market share, owing to the higher production rate of automotive vehicles and parts. Additionally, major companies within the market belong to the Asia Pacific region.


North America is expected to grow at the highest CAGR during the forecast period, owing to a stronger adoption rate of newer automotive technologies within the region.


Europe accounted for a significant market share owing to the greater adoption rate for connected vehicle technology due to growing supporting infrastructure within the region. As the major automotive vehicle companies are present in the region, the market is expected to develop at a steady rate.


The rest of the world is likely to follow the growth trends of the major regions and grow significantly as major European regions aim to expand their manufacturing operations in the African continent.


KEY INDUSTRY PLAYERS


Major Players Are Aiming Toward Introducing Technological Advancements to Offer Additional Value for Consumer Products 


Key players in the market include Harman International Industries, Inc., Visteon Corporation, Denso Corporation, Robert Bosch GmbH, and LG Electronics. The companies aim to launch new models equipped with advanced technology and aftermarket models to provide an enhanced in-cabin experience and lead the competitive landscape.


Several players are also aiming toward collaborations and partnership contracts with major companies to capture majority of the market size. However, due to a strong competitive environment, automobile manufacturers are provided with a bigger leverage to choose companies suitable for their vehicle models creating a favorable product mix.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • January 2023 – Panasonic Automotive Systems Corporation introduced its new update for the skipgen in-vehicle infotainment system that provides the user access to Siri while using Apple carplay or Alexa on voice commands of “Hey Siri” or “Alexa”

  • November 2022 – Tietoevry announced its partnership with HaleyTek, a joint venture between Volvo Cars and ECARX to develop an Android Open Source system project oriented infotainment system for the existing and upcoming fleets of Volvo and Polestar vehicles.

  • July 2022 – LG Electronics, Inc. announced receiving the order for USD 6.2 billion, which will include vehicle components, telematics, and infotainment systems. The figure represents the company’s 13% backlog. The company aims to lead the in-vehicle infotainment system by providing its products and solutions to major car manufacturers such as Mercedes, Renault, and General Motors.

  • June 2022 – BMW Motors announced the integration of the Android automotive system into its existing and upcoming models. The system will be integrated alongside BMW’s Operating System 8 starting in 2023.

  • May 2022 – Alpine Electronics company launched its Tidal integration for music streaming, available through a free software update. The features will also be available in the aftermarket versions of this infotainment system head unit. The integration of Tidal will allow users access to enhanced sound quality and lossless audio.   


REPORT COVERAGE


An Infographic Representation of Automotive Infotainment Market

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The research report covers a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers in-depth analysis of several factors that have contributed to its growth in recent years.


Report Scope & Segmentation



















































  ATTRIBUTE



  DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 6.47%



Unit



Value (USD Billion)



Segmentation



By Vehicle Type



  • Passenger Cars

  • Light Commercial Vehicles

  • Heavy Commercial Vehicles



By Application



  • Navigation

  • Media

  • Communication

  • Payment Services

  • Telematics



By Distribution Channel



  • OEM

  • Aftermarket



By Geography



  • North America (By Vehicle Type, By Application, By Distribution Channel)

    • U.S. (By Vehicle Type)

    • Canada (By Vehicle Type)

    • Mexico (By Vehicle Type)



  • Europe (By Vehicle Type, By Application, By Distribution Channel)

    • U.K. (By Vehicle Type)

    • Germany (By Vehicle Type)

    • France (By Vehicle Type)

    • Rest of Europe (By Vehicle Type)



  • Asia Pacific (By Vehicle Type, By Application, By Distribution Channel)

    • China (By Vehicle Type)

    • India (By Vehicle Type)

    • Japan (By Vehicle Type)

    • South Korea (By Vehicle Type)

    • Rest of Asia Pacific (By Vehicle Type)



  • Rest of the World (By Vehicle Type, By Application,  By Distribution Channel)



Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 30.69 billion in 2022 and is projected to reach USD 49.86 billion by 2030.

Registering a CAGR of 6.47%, the market will exhibit good growth over the forecast period (2023-2030).

The passenger cars segment is expected to be the leading segment in this market during the forecast period.

Harman Industries, LG Electronics, and Panasonic Corporation are some of the major players in the global market.

Asia Pacific held the largest share in the market in 2022.

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