The global automotive infotainment market size was valued at USD 15.20 billion in 2016. The automotive entertainment industry is driven by the growing demand for in-car comfort and convenience, which include facilities such as on-demand music, smartphone integration, live audio streaming, and various other entertainment services. A consumer’s buying decision is highly influenced by the availability of such features.
The increase in disposable incomes in emerging economies, such as Asia Pacific, has enabled customers to spend on luxury or high-end cars that are equipped with these systems and is driving the demand for these products in this region. Technological proliferation in the in-car entertainment industry, such as advanced graphic user interface, voice recognition, and intuitive touchscreen in these systems, are also expected to drive the automotive infotainment systems market over the forecast period.
North America automotive infotainment market size, by product type, 2014 - 2025 (USD Million)
Smartphone connectivity, through Bluetooth or Wi-Fi, enables a user to access messages and information, which further makes it easier to work on the go. Additionally, the collaboration of different features helps the user in adopting customized solutions as per his/her requirements. In addition to this, cloud-based services also cater to the demand for these products, as they provide seamless connectivity and remote access to playlists and video streaming. Video and audio streaming capabilities along with loads of information on the internet is anticipated to provide a spurt to the in-car infotainment industry.
The in-vehicle entertainment industry is expected to witness a competition between OE fitted and aftermarket products, as the former focuses on quality while the latter is largely focused on price. Thus, the demand for OE products is expected to be high in developed nations. The price-based selection of infotainment systems is prevalent in developing regions such as Asia Pacific.
The Head-Up Display (HUD) system is expected to be equipped with Augmented Reality (AR) technology, which uses a combination of cameras, sensors, Wi-Fi, and GPS to provide dynamic information while driving. This enables the driver to make informed decisions. However, there are rising concerns over the distraction caused due to excess information displayed by the system. These concerns are expected to cause hindrances to the growth of the in-car entertainment systems industry.
Display units have increased in size due to complex multimedia, incorporation of safety features such as rearview camera, and comprehensive information display. The screen sizes are presumed to reach 7.0 inches or more. Large-sized display units are costly and therefore, are mainly observed in luxury vehicles. TFT-LCD and AMOLED displays are a few of the upcoming display technologies that are expected to be implemented in infotainment systems.
Communication units have become reliable due to the introduction of a 4G LTE network that enables the use of advanced onboard features such as 3D navigation, hands-free calling, satellite radio, and media streaming. Furthermore, increased efforts for developing a 5G network are expected to enhance connectivity features in infotainment systems. With access to the speedy data and high-tech accessories in the vehicle, demand for the in-car infotainment system industry is expected to surge forward.
Navigation systems have improved with cloud connectivity, which enables real-time location details and compatibility with multiple portable devices. Features, such as geotagging, allow the user to obtain information on a particular location that has been geotagged through digital photographs.
Passenger car drivers are increasingly adapting to newer digital technologies. New innovations, such as gesture control and voice-based command systems for multimedia, are expected to drive the in-vehicle infotainment industry. Incorporation of these features enhances convenience for the driver. The introduction of smart navigation and familiar path routing is anticipated to drive the in-vehicle entertainment systems industry over the forecast period.
The use of infotainment systems in commercial vehicles is higher in developed regions such as North America and Europe. These systems aid logistics companies in managing their fleet and obtaining real-time information on a vehicle’s location. They are also able to track fuel consumption and driver performance and analyze areas of improvement.
Aftermarket suppliers of In-vehicle infotainment systems offer their products at a low cost. This is expected to increase the demand for aftermarket systems. Further, the flexibility of customization offered by them is also expected to stimulate their demand.
Europe automotive infotainment market share, by fit type, 2016 (%)
OE fitted products are expensive and present less scope of customization, as they are standardized. They can be procured through authorized dealers and distributors. The products offer benefits, such as easier servicing & maintenance, to customers and are covered under the car manufacturers’ warranty. In addition to this, OE fitted systems have access to car data, which enables the company to carry out direct marketing campaigns for service and support.
North America dominated the market in 2016, owing to the concentration of key automotive entertainment systems industry participants, who stimulated the development of advanced in-vehicle infotainment systems. The increased use of voice recognition systems, driver distraction mitigation systems, and HD in-dash display monitors is expected to encourage the in-vehicle infotainment systems industry growth in this region.
The Asia Pacific region is estimated to grow at the fastest rate over the forecast period, owing to the growing bracket of disposable incomes of consumers and rising vehicle production. The rising sales of premium cars in China is further expected to bolster the market growth in this region.
The market comprises of major players such as Continental AG, Harman International, Panasonic Corporation, Alpine Electronics, Denso Corporation, Pioneer Corporation, Visteon Corporation, Clarion Co., Ltd., Delphi Automotive PLC, and JVC KENWOOD Corporation.
The OE fitted market is facing stiff competition from aftermarket manufacturers, owing to the low costs of aftermarket products. Moreover, the introduction of multiple applications has enabled market players to offer a wide range of infotainment systems. The market participants are collaborating with prominent OEMs to establish a strong foothold. For instance, Continental AG collaborated with Peugeot Société Anonyme (PSA) to offer new infotainment systems for the latest range of cars launched by PSA.
|
Attribute |
Details |
|
Base year for estimation |
2016 |
|
Actual estimates/Historical data |
2014 - 2016 |
|
Forecast period |
2017 - 2025 |
|
Market representation |
Revenue in USD Million & CAGR from 2016 to 2025 |
|
Regional scope |
North America, Europe, Asia Pacific, and South America |
|
Country scope |
U.S., Canada, U.K., Germany, India, Japan, China, and Brazil |
|
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
|
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific market information that is not currently within the scope of the report, we will provide it to you as a part of the customization |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the global automotive infotainment market based on product types, fit types, applications, and regions:
Product Type Outlook (Revenue, USD Million; 2014 - 2025)
Audio Unit
Display Unit
Head-Up Display
Navigation Unit
Communication Unit
Fit Type Outlook (Revenue, USD Million; 2014 - 2025)
OE fitted
Aftermarket
Application Outlook (Revenue, USD Million; 2014 - 2025)
Passenger Cars
Commercial Vehicles
Regional Outlook (Revenue, USD Million; 2014 - 2025)
North America
The U.S.
Canada
Europe
The U.K.
Germany
Asia Pacific
China
India
Japan
South America
Brazil
This report has a service guarantee. We stand by our report quality.
We are in compliance with GDPR & CCPR norms. All interactions are confidential.
Design an exclusive study to serve your research needs.
Get your queries resolved from an industry expert.
"The quality of research they have done for us has been excellent..."
