In-Car infotainment Market

In-Car infotainment Market Overview:

Global In-Car infotainment Market Size was valued at USD 8.2 Billion in 2023. The In-Car infotainment market industry is projected to grow from USD 8.6 Billion in 2024 to USD 14.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.7% during the forecast period (2024 - 2032). To provide a high-quality driving experience, the automobile industry is developing new technology, which is the key market driver enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

In-Car infotainment Market Trends

Increasing Demand for Linked and Immersive Entertainment in Cars is driving the market growth

Market CAGR for in-car infotainment is being driven by the demand for linked and immersive entertainment in cars is rising. To create a seamless and interesting user experience, in-car entertainment systems mix numerous elements like audio, video, navigation, communication, and connectivity. Standard radio and CD players, two-way communications equipment, hands-free phone connections, vehicle voice commands, and other interactive audio or visual software-based applications are common components of in-car entertainment systems. Additionally, many in-car entertainment systems have a backseat DVD feature that enables users to watch movies and other visual content. In addition, mobile device connectivity is a significant element of in-car infotainment. Numerous technologies in newer vehicles enable electronics such as laptops, cellphones, and iPhones to connect to a vehicle for passenger use.

Additionally, improved technology accelerates industry growth over the projection period. These systems now have advanced graphic user interfaces, speech recognition, user-friendly touchscreens, and other capabilities to technological improvements. Application of voice assistants, automotive technology, in-car communications, and streaming video anticipated to drive the market growth. The Information domain computer supports various in-vehicle technologies in a single package, giving vehicle makers a cost-effective, flexible, scalable, and powerful control unit for the future of in-vehicle technology. Furthermore, during the projection period, the in-vehicle infotainment market will rise due to the incorporation of AI and sophisticated navigation systems. For instance, in December 2021, Pioneer's auto navigation system will be available as a factory-installed option on Suzuki Motor Corporation's SUV, the New S-CROSS.

In emerging nations, rising consumer disposable income and straightforward financing options have made it possible for consumers to own a passenger car, which has raised demand for technologically sophisticated cars with practical and helpful entertainment systems. The improvement of drivers' safety and experience brought by the incorporating these technologies into automobiles are fueling demand for automotive infotainment systems.

For instance, in May 2022, BMW started selling its vehicles to consumers without CarPlay and Android Auto features in their infotainment systems and built-in Wi-Fi. The company's vehicles have been without the CarPlay or Android Auto capability since its new CPUs are not certified for those systems. To prevent further delays, BMW is distributing these vehicles to consumers without the missing capability. The automakers creating replacement models with fewer features. Thus, driving the In-Car infotainment market revenue.

In-Car infotainment Market Segment Insights:

In-Car infotainment Component Insights

The global In-Car infotainment market segmentation, based on component, includes hardware and software. The hardware segment accounted for the highest CAGR during the forecast period. The increasing popularity of developing large infrastructure projects, skyscrapers, and commercial buildings boosting the demand for equipment globally. The need for concrete and road-building equipment like concrete mixers and pavers has increased as an investment in road construction programs has grown. 

In-Car infotainment Vehicle Type Insights

The global In-Car infotainment market segmentation, based on vehicle type, includes passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger cars are anticipated to hold the highest market share in the coming years (4.0 billion). The increased production of passenger automobiles internationally, the quick customer uptake, and the dramatic switch from conventional to electric vehicles. In addition, passenger automobiles provide more technological safety features and sophisticated entertainment systems are necessary for cabin amenities. Luxury automobile sales are influenced by the subscription-based services, better sales, and financing choices that automakers offer consumers. Additionally, firms like Uber and OLA are attempting to maintain a sizable market share by making passenger vehicles more interactive and hand-free to make long journeys more comfortable and fun. 

Figure 1: Global In-Car infotainment Market, by Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

In-Car infotainment Installation Insights

The global In-Car infotainment market segmentation, based on installation, includes OEM and aftermarket. OEM segment dominated the market share during the forecast period. Original equipment manufacturers (OEMs) are producers or businesses that market and resell other businesses goods. The original Original Equipment (OE) GPS navigation systems were fairly rudimentary, although technology advanced quickly. Early in the 2000s, a more precise GPS signal became available to civilians, and OE navigation devices quickly became commonplace. Many highly integrated infotainment systems is comprises original equipment entertainment, navigation, and telematics systems. These potent infotainment systems frequently manage the climate, give drivers access to crucial data on the engine’s health and other components, and typically include navigation capabilities.

In-Car infotainment Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America In-Car infotainment market is anticipated to dominate the market. The developed economy and expanding investments in the rapidly evolving automobile sector are major propelling factors. The expansion of the regional market is also fueled by the growing demand for in-car entertainment systems in the passenger automobile sector. The US dominates the North America in-car entertainment market to its significant investments in developing technologies and the wide availability of numerous innovative infotainment solutions.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Global In-Car Infotainment Market Share By Region 2022 (Usd Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Asia-Pacific In-Car infotainment market accounts for the second-largest market share due to a rise in local consumers' disposable money, a considerable demand for automobile infotainment systems. Effectiveness and augmented reality technology-based solutions are preferred by customers which is one of the factors, which is driving the market growth. A majority of the world's vehicles are produced in nations like China, South Korea, India, and Japan. The demand for vehicles is therefore being driven by rising vehicle production, which is also encouraging automotive OEMs to boost manufacturing capacity and provide infotainment systems in more affordable automobiles, combined with shifting customer preferences and rising middle-class per capita income. Further, the Chinese In-Car infotainment market held the largest market share, and the India In-Car infotainment market was the fastest growing market in the European region

The Europe In-Car infotainment Market is expected to grow at the fastest CAGR from 2024 to 2032. the widespread presence of top manufacturers and in-car entertainment companies. The region is the biggest market for premium vehicles and well-known automakers. Additionally, there is a significant need for in-car infotainment systems due to the region's enormous consumer base. The market also gains from R&D initiatives taken by significant automakers. Moreover, German In-Car infotainment market held the largest market share, and the UK In-Car infotainment market was the fastest growing market in the Asia-Pacific region.

In-Car infotainment Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the In-Car infotainment market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, In-Car infotainment industry must offer cost-effective items.

The government and private businesses are making significant investments in R&D for technological advancements in the global In-Car infotainment industry to benefit clients and increase the market sector. In recent years, the In-Car infotainment industry has advantages such as expanding vehicle production and integrating infotainment with additional systems. Major players in the In-Car infotainment market, including Volkswagen Group, General Motors Company, Denso Corporation, Ford Motor, Harman International Industries, Visteon Corporation, BMW, Fujitsu Ten Limited, Panasonic Corporation, Delphi Automotive, Apple Inc.,  and others are attempting to increase market demand by investing in research and development operations.

One of the top automakers in the world, the Volkswagen Group, with its headquarters in Wolfsburg, is also the biggest automaker in Europe when it comes to commercial vehicles. The Volkswagen Group is laying the groundwork for the most significant reform process with its "NEW AUTO - Mobility for Generations to Come" Group strategy and future programme. Nine people now make up Volkswagen AG's Board of Management. Oliver Blume, MD, is the company's chairman. Each Board Member is in charge of a single or more Volkswagen Group operations. At the Volkswagen Group, autonomous, connected driving will fundamentally alter customers' mobility experiences and pave the way for new data-based revenue models. In June 2023, to boost profitability and cash flow, Volkswagen Group focuses on strategy alignment and introduces performance programmes across all brands.

General Motors is an organisation with a global scope and capabilities, with its corporate headquarters in Detroit, Michigan, and employees all over the world. The company serves six continents and employs over 165,000 employees. General Motors supports local economies with more than 92,000 employees and hundreds of millions of dollars in economic activity.  Since 2010, GM has invested more than $1 out of every $4 made by American automakers in the country (26%)13. The company delivers 2,274,088 vehicles. The company’s comprehensive strategy for engineering safety via a human perspective is informed by research, technology, and activism. In June 2023, General Motors expands charging access to the Tesla Supercharger Network and strengthens its commitment to a unified charging standard.

Key Companies in the In-Car infotainment market include

• Volkswagen Group
• General Motors Company
• Denso Corporation
• Ford Motor
• Harman International Industries
• Visteon Corporation
• BMW
• Fujitsu Ten Limited
• Panasonic Corporation
• Delphi Automotive
• Apple Inc.

In-Car infotainment Industry Developments

July 25, 2024: Visteon's net sales for the second quarter of the previous year were $1,014 million, up from $983 million. The strong performance of the electrification and digital cockpit products was the main driver of the increase in net sales; lower customer recoveries as a result of better semiconductor supply and lower customer production were somewhat offsetting factors. Sales for Visteon exceeded customer car production volumes by 9%.

Visteon accounted for $71 million, or $2.54 per diluted share, of the second quarter's net income, while its gross margin was $147 million. A non-GAAP metric called adjusted EBITDA, which is described below, reached a record of $136 million in the second quarter, up $46 million from the previous year.

In-Car infotainment Market Segmentation:

In-Car infotainment Component Outlook

• Hardware
• Software

In-Car infotainment Vehicle Type Outlook

• Passenger cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles Agriculture

In-Car infotainment Installation Outlook

• OEM
• Aftermarket

In-Car infotainment Regional Outlook

• US
• Canada

• Germany
• France
• UK
• Italy
• Spain
• Rest of Europe

• China
• Japan
• India
• Australia
• South Korea
• Australia
• Rest of Asia-Pacific

• Middle East
• Africa
• Latin America

In-Car infotainment Market Segmentation

In-Car infotainment Component Outlook (USD Billion, 2018-2032)

• Hardware

• Software

In-Car infotainment Vehicle Type Outlook (USD Billion, 2018-2032)

• Passenger cars

• Light Commercial Vehicles

• Heavy Commercial Vehicles

In-Car infotainment Installation Outlook (USD Billion, 2018-2032)

• OEM

• Aftermarket

In-Car infotainment Regional Outlook (USD Billion, 2018-2032)

• North America Outlook (USD Billion, 2018-2032)

  • North America In-Car infotainment by Component

    • Hardware

    • Software

  • North America In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • North America In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • US Outlook (USD Billion, 2018-2032)

  • US In-Car infotainment by Component

    • Hardware

    • Software

  • US In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • US In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • CANADA Outlook (USD Billion, 2018-2032)

  • CANADA In-Car infotainment by Component

    • Hardware

    • Software

  • CANADA In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • CANADA In-Car infotainment by Installation

    • OEM

    • Aftermarket

• Europe Outlook (USD Billion, 2018-2032)

  • Europe In-Car infotainment by Component

    • Hardware

    • Software

  • Europe In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • Europe In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • Germany Outlook (USD Billion, 2018-2032)

  • Germany In-Car infotainment by Component

    • Hardware

    • Software

  • Germany In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • Germany In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • France Outlook (USD Billion, 2018-2032)

  • France In-Car infotainment by Component

    • Hardware

    • Software

  • France In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • France In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • UK Outlook (USD Billion, 2018-2032)

  • UK In-Car infotainment by Component

    • Hardware

    • Software

  • UK In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • UK In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • ITALY Outlook (USD Billion, 2018-2032)

  • ITALY In-Car infotainment by Component

    • Hardware

    • Software

  • ITALY In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • ITALY In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • SPAIN Outlook (USD Billion, 2018-2032)

  • Spain In-Car infotainment by Component

    • Hardware

    • Software

  • Spain In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • Spain In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • Rest Of Europe Outlook (USD Billion, 2018-2032)

  • Rest Of Europe In-Car infotainment by Component

    • Hardware

    • Software

  • REST OF EUROPE In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • REST OF EUROPE In-Car infotainment by Installation

    • OEM

    • Aftermarket

• Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Asia-Pacific In-Car infotainment by Component

    • Hardware

    • Software

  • Asia-Pacific In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • Asia-Pacific In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • China Outlook (USD Billion, 2018-2032)

  • China In-Car infotainment by Component

    • Hardware

    • Software

  • China In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • China In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • Japan Outlook (USD Billion, 2018-2032)

  • Japan In-Car infotainment by Component

    • Hardware

    • Software

  • Japan In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • Japan In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • India Outlook (USD Billion, 2018-2032)

  • India In-Car infotainment by Component

    • Hardware

    • Software

  • India In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • India In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • Australia Outlook (USD Billion, 2018-2032)

  • Australia In-Car infotainment by Component

    • Hardware

    • Software

  • Australia In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • Australia In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Rest of Asia-Pacific In-Car infotainment by Component

    • Hardware

    • Software

  • Rest of Asia-Pacific In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • Rest of Asia-Pacific In-Car infotainment by Installation

    • OEM

    • Aftermarket

• Rest of the World Outlook (USD Billion, 2018-2032)

  • Rest of the World In-Car infotainment by Component

    • Hardware

    • Software

  • Rest of the World In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • Rest of World In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • Middle East Outlook (USD Billion, 2018-2032)

  • Middle East In-Car infotainment by Component

    • Hardware

    • Software

  • Middle East In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • Middle East In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • Africa Outlook (USD Billion, 2018-2032)

  • Africa In-Car infotainment by Component

    • Hardware

    • Software

  • Africa In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • Africa In-Car infotainment by Installation

    • OEM

    • Aftermarket

  • Latin America Outlook (USD Billion, 2018-2032)

  • Latin America In-Car infotainment by Component

    • Hardware

    • Software

  • Latin America In-Car infotainment by Vehicle Type

    • Passenger cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • Latin America In-Car infotainment by Installation

    • OEM

    • Aftermarket