In-Vehicle Payment System Market to Rise at 22.03% CAGR over 2023-2030; Surging Adoption in Developed Economies to Create Market Opportunities

The in-vehicle payment system market size is estimated to display strong growth by reaching USD 6.18 billion by 2030. Fortune Business Insights™ in its report titled “In-Vehicle Payment System Market Size, Share & COVID-19 Impact Analysis, By Mode of Payment (Credit/Debit Cards, RFID, e-Wallets, and QR Code), By Application (Fuel/EV Charging, Shopping, Food and Drinks, Parking, and Toll Collection), and Regional Forecast, 2023-2030” observes that the market size in 2022 stood at USD 1.12 billion and is expected to reach USD 1.53 billion in 2023. The market is expected to witness a strong CAGR of 22.03% during 2023-2030. The surge in the adoption of developed economies and the growing awareness of automakers to equip their upcoming models with advanced infotainment systems is increasing the market share. This inclining focus of OEMs toward developing in-car payment services is expected to boost the in-vehicle payment system market growth in the coming years.

Blackberry Partnered With Car IQ to Develop Technology for Secure Vehicle-Based Payment

In August 2021, Blackberry partnered with Car IQ to develop technology for secure vehicle-based payment capabilities by utilizing its cloud-connected in-car software platform, BlackBerry IVY, and direct access to vehicle sensors. Car IQ is a California-based fintech firm.  This will allow automakers in creating digital fingerprints which allow vehicles to connect to bank accounts.

The Pandemic Impacted The Automobile Industry Which Affected In-Vehicle Payment System Negatively

The COVID-19 pandemic severely impacted the automobile industry where the market for in-vehicle payment system was also impacted. This also created constraints in the use of passenger cars and public transport. The market recovered quickly due to the demand for contactless payment solutions worldwide and loosened lockdown restrictions in the following years. In March 2021, in Germany, Mercedes rolled out contactless in-vehicle fuel payment services for increasing demand for contactless payment solutions amid the pandemic.

Rising Demand for Connected And Autonomous Vehicles Drive Market Growth

Rising demand for connected and autonomous vehicles is predicted to drive in-vehicle payment system market growth. The connected vehicles are equipped with technology which allows the exchange the data with external technologies. Growing trend for integrating smart infotainment systems in connected vehicles is also set to drive the market growth. These systems have advanced technologies offers users with various functions including vehicle data, media consumption, in-vehicle payments, and smartphone mirroring.

However, high risks of data leak and data hacking is set to hamper the market growth. Firewalls and protection protocols can avoid the hacks but these technologies are costly leading to hindering the demand for the product.

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Market Players Have Been Opting For Strategic Partnerships And Collaborations

Market players have been opting for strategic partnerships and collaborations to improve the in-vehicle experience for customers and have a wide range of applications. Daimler AG is the leading player in passenger and commercial vehicle manufacturers. The company manufactures commercial vehicles through brands such as Freightliner, Western Star, Sterling, Setra, Thomas Built Buses, Orion, and Fuso.

Key Industry Development

• December 2022: Parkopedia announced the addition of a new in-vehicle feature provided by BMW. The services offer a convenient way to find parking spaces and pay for them through the vehicle’s dashboard screen.

List of Key Companies Profiled in the Market Report:

• ZF Friedrichshafen AG (Germany)
• BMW AG (Germany)
• Daimler AG (Germany)
• JAGUAR LAND ROVER AUTOMOTIVE PLC (U.K.) 
• General Motors Company (U.S.)
• Honda Motor Co. Ltd. (Japan)
• Hyundai Motor Group (South Korea)
• IBM Corporation (U.S.)
• Mastercard Inc. (U.S.)
• Visa Inc. (U.S.)

Further Report Findings

• North America dominated market share due to presence of largest payment service providers, Mastercard, Visa, and others collaborating with automakers. The market stood at USD 0.50 billion in 2022 due to technological advancements in North America.
• Europe holds second-largest share due to increasing penetration new-generation connected vehicles. Germany has the highest penetration of connected vehicles in Europe, followed by France and the U.K. Automakers have been focusing on out in-car payment services across major European countries.

Table of Segmentation