Automotive Infotainment Market Trends

Global Automotive Infotainment Market Overview

The size of the automobile market was estimated at USD 25.1 billion in 2021. The automotive infotainment market industry is projected to grow from USD 27.2 billion in 2022 to USD 48.2 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 8.51% during the forecast period (2022 - 2030). Increasing demand for infotainment systems, increasing preference for driver assistance systems (DASs), and provision for smartphone integration with IVI systems substantiate are the key market drivers enhancing automotive infotainment market growth. 

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

Automotive Infotainment Market Trends

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  Rising applications and technological advancements to boost the market growth

  
  

Automobile manufacturers are producing automobiles fitted with modern entertainment system technologies in response to the growing demand for safe, luxurious, and smart vehicles. The infotainment system enables the provision of both entertainment and information for an enhanced in-vehicle experience. Parking advice, predictive navigation, pre-trip planning, cloud-enabled synchronization, and other vital functions are being implemented by technologically advanced infotainment firms. Smart phones can also be linked to automotive infotainment systems via Wi-Fi, Bluetooth, or hotspot connectivity. When a smart phone is linked to an infotainment system, the user gains access to phone functionality. Customers can use infotainment to handle outgoing, incoming, and conference calls. For instance, with the introduction of its all-new Baleno in March 2022, Maruti Suzuki entered the line of offering development in-vehicle entertainment systems.

Although advanced infotainment systems are another high-tech challenge that some enthusiasts are eager to try, other new-vehicle customers find them difficult to use. They may find these systems less informative and more difficult to use, especially if they disregard the owner's handbook instructions. Climate controls, an archaic 'entertainment' system, and an AM/FM radio are also included, along with music, phone, navigation, and Internet access. Because they have so many features, the user may need to tap the screen several times to move from one to the next - provided the device replies swiftly.

Collaboration and partnership between e-commerce giants and automakers are likely to open up new growth potential for major participants in the In-vehicle Infotainment Market. In May 2022, for example, ECARX, a worldwide mobility tech business, agreed to merge with COVA Corp., a leader in the design, development, and implementation of intelligent vehicle technologies. ECARX creates hardware and software solutions for the development of connected, automated, and electrified mobility, which it delivers to the global automotive industry as it rapidly adapts to meet changing consumer demands. This merger and acquisition will benefit both the companies and their customers. Therefore, the rising applications and technological advancements have enhanced the automotive infotainment market CAGR across the globe in recent years.

However, to cater to the demand, there have been significant advances in the In-Car Infotainment Market. For instance, there have been a number of launches in the Operating Systems of automotive infotainment is another factor driving the growth of the automotive infotainment market revenue.

Automotive Infotainment Market Segment Insights

Automotive Infotainment operating system Insights

The automotive infotainment market segmentation, based on By Operating System, includes QNX, Linux, Microsoft, and Others. The QNX sector held the majority share in 2021, a contribution of around ~65-67% with respect to the Automotive in-vehicle infotainment (IVI) revenue. QNX is in high demand due to its versatility and aid in designing a variety of trustworthy infotainment systems that keep up with current improvements in mobile device markets. During the forecast period, the QNX segment is expected to increase significantly. Because of the benefits of the operating system and its open-source availability, the Linux industry is expanding, attracting automobile manufacturers and their suppliers. Furthermore, the open-source availability, cost savings benefits, and ease of availability due to the presence of various providers at every level in the software hierarchy fuel the Linux market demand. On the other hand, the Microsoft segment market value is increasing as a result of providers such as Kia, Ford, and Toyota.

Figure 2: Automotive Infotainment Market Share By Operating System 2021 (USD Billion)

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

Automotive Infotainment Regional Insights

By region, the study provides market insights for automotive infotainment into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Automotive Infotainment market accounted for USD 10.81 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period owing to the growing trend of family dinners and gatherings at home. North America leads the automotive infotainment market and will continue to do so during the evaluation period. North America's economy is mature, and significant investments are being made in the automobile industry, which is undergoing major development. Furthermore, factors such as rising car demand, major expenditures in expanding technology, and the availability of a diverse variety of innovative infotainment devices promote market expansion. In terms of value, the United States dominates the North American automobile infotainment industry.

Further, the major countries studied in the market report for automotive infotainment are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Automotive in-vehicle infotainment (IVI) Share By Region 2021 (%)

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

Europe's automotive infotainment market accounts for the second-largest market share due to the growing demand for a premium or luxury vehicles, which have considerably aided the expansion of the automotive infotainment market in Europe. Research and development programs are done by major automobile manufacturers, including BMW, Volkswagen, Ford, and Renault help the European automotive infotainment industry. The automotive infotainment market is predicted to gain a significant pace over the study period, with manufacturers installing infotainment systems in entry-level vehicles in order to gain a larger market share. Further, the German automotive infotainment market held the largest market share, and the UK automotive infotainment market was the fastest-growing market in the European region.

The Asia-Pacific Automotive Infotainment Market is expected to grow at the fastest CAGR from 2022 to 2030. The region is, without a doubt, one of the most promising regions for the automobile market. Factors like as emerging economies' growing GDP and rising per capita income have generated considerable opportunities for both the automotive and infotainment industries. Furthermore, the transfer in manufacturing bases of several worldwide automotive infotainment providers, as well as technical improvements, affect the growth of the automotive infotainment market. Moreover, China's automotive infotainment market held the largest market share, and the Indian automotive infotainment market was the fastest-growing market in the Asia-Pacific region.

Automotive Infotainment Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the automotive infotainment market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the automotive infotainment industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the automotive infotainment industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, the automotive infotainment industry has launched highly technological infotainment systems with some of the most significant advancements. In the automotive infotainment market, major players such as Continental AG (Germany), Alpine Electronics, Inc. (Japan), Harman International (US), Pioneer Electronics (US), Panasonic Corporation (Japan), and others are working on expanding the market demand by investing in research and development activities.

Bayerische Motoren Werke AG abbreviated as BMW) is a German multinational automobile and motorbike manufacturer located in Munich, Bavaria. The company was created in 1916 with the intention of producing airplane engines, which it did from 1917 to 1918 and again from 1933 to 1945. Automobiles are marketed under the BMW, Mini, and Rolls-Royce brands, while motorcycles are marketed under the BMW Motorrad brand. BMW was the fourteenth-largest automaker in the world in 2017, producing 2,279,503 automobiles. The firm has a long history in motorsport, particularly in touring vehicles, sports cars, and the Isle of Man TT. For example, in May 2022, BMW began shipping automobiles to consumers in various countries, including the United States, United Kingdom, Spain, Italy, and France, without CarPlay and Android Auto features in their infotainment systems and built-in Wi-Fi. Because the company's latest semiconductors are not CarPlay or Android Auto certified, the feature has been temporarily withdrawn from their vehicles since 2022. To minimize further delays, BMW is distributing these vehicles to consumers without the missing capability.

Alps Electric Co., Ltd. is a Japanese multinational firm based in Tokyo that manufactures electrical devices such as switches, potentiometers, sensors, encoders, and touchpads. The Alps Electric Group has R&D, manufacturing, and sales facilities in Japan as well as in the Americas, Europe, Southeast Asia, Korea, and Greater China. Alps Electric has supplied over 40,000 different Operating Systems of electronic components to over 2,000 manufacturers of home appliances, mobile devices, cars, and industrial equipment worldwide since its inception. Alps Alpine, Inc. will provide a free software upgrade that incorporates TIDAL in September 2022. Alpine Halo9 iLX-F509, Alpine Halo11 iLX-F511, Jeep-specific i509-WRA-JK, i509-WRA-JL, and iLX-507 are all compatible head units. TIDAL is the first aftermarket audio system to be integrated into an Alpine automobile audio system. Alpine head unit customers have access to TIDAL's catalog of over 90 million songs via high-resolution streaming. Subscriptions to TIDAL HiFi and HiFi Plus will provide higher sound quality and lossless audio.

Key Companies in the automotive infotainment market include

• Continental AG (Germany)


• Alpine Electronics Inc. (Japan)


• Harman International (US)


• Pioneer Electronics (US)


• Panasonic Corporation (Japan)


• DENSO Corporation (Japan)


• Garmin Ltd. (Switzerland)


• Delphi Automotive PLC (UK)


• KENWOOD Corporation (Japan)


• ALLGo Embedded Systems Pvt. Ltd. (India)

Automotive Infotainment Industry Developments

February 2024 saw L&T Technology Services collaborating with Marelli, a leading mobility technology supplier to the automotive industry, to transform automotive infotainment and information cluster design. This partnership seeks to roll out Marelli’s revolutionary Digital Twin solutions that will redefine the automobile domain.

Legible Inc., a major digital book infotainment platform, revealed an exciting distribution agreement with HARMAN Automotive. The global HARMAN Ignite Android Automotive Operating System app store is owned by HARMAN Automotive, which caters to leading car makers globally.

In January 2024, Samsung Electronics and Hyundai Motor Group, the country’s semiconductor and automaker respectively, declared their strategic alliance to boost interconnectivity. The objective of this partnership is to merge Hyundai Motor and Kia’s intelligent vehicles such as electric cars with Samsung’s SmartThings platform to make it possible.

Alps Alpine Co., Ltd., was joined by DSP Concepts, Inc., an audio processing solutions company in October 2023 for purposes of providing sound technology for consumers. Next-generation audio products were developed by the said company through its acquisition of the Audio Weaver audio system development platform from DSP Concepts.

In July 2023, Pioneer Corporation announced an R&D expansion plan in India. The objectives of this move are to accelerate the development of innovative products in the mobility sphere and cater to an increase in the Indian automotive market.

Continental AG launched a Driver identification Display equipped with an integrated camera for biometric driver identification In February 2023. The Driver Identification Display is the world’s first internal vehicle display system that enables contactless, highly secure identification intended to deter fraud and theft while driving. 

Automotive Infotainment Market Segmentation

Automotive Infotainment Operating System Outlook

• QNX


• Linux


• Microsoft


• Others

Automotive Infotainment Regional Outlook

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  Middle East
  
  


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  Africa
  
  


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  Latin America