Automotive Infotainment Market Size, Share & Trend Analysis Report By Product Type (Audio Unit, Display Units, Heads-Up Displays), By Fit Type, By Vehicle Type, And Regional Forecasts, 2022 - 2030

Report Overview

The global automotive infotainment market was valued at USD 7.03 billion in 2021 and is expected to witness a CAGR of 9.3% from 2022 to 2030. The automotive industry constantly develops new technologies to create a quality driving experience. The emergence of an automotive infotainment system as a technology that integrates information and entertainment has gained the attention of carmakers. Increased disposable income of consumers and easy financing options in developing nations have enabled the freedom to purchase passenger cars, thus, creating demand for technologically equipped cars with smart and convenient infotainment solutions.

Additionally, critical automotive manufacturers are focusing on in-cooperation advanced technologies such as driver assistance, augmented reality real-time data collection, and the Internet of Things (IoT) to enhance the functionality of infotainment systems. The addition of these technologies in vehicles is refining drivers’ safety and experience, subsequently driving the demand for the automotive infotainment system.

Although several favorable factors are expected to drive the market growth, the recent pandemic proved to be a hindrance. When the pandemic induced lockdown throughout the globe, the automotive industry had to completely shut down production due to supply disruption of equipment and raw materials. As the lockdown was lifted, the automotive industry faced rising demand which met a supply shortage of vehicles due to the disrupted production. The automotive production was further stalled due to the need for vital semiconductor components, including the chipset.

Chipset is pivotal to any vehicle, as it enables navigation, communication, and controlling functions in cars. The deficit of chipsets became a serious restrain owing to its application in automotive. However, to manage the production during the chipset shortage, the automobile manufacturers started producing substitute models with lesser features. For instance, in October 2020, BMW removed its touchscreen functionality feature from the car, and the parking assistance system was available only based on customer orders. Thus, the COVID-19 pandemic and repeated disruption in the supply chain have restricted the growth of the automotive infotainment market.

Automobile manufacturers are focusing on incorporating IoT technologies to enable greater end-to-end connectivity of vehicles. With the collaboration of automotive manufacturers with software companies to build high bandwidth and low latency systems, these systems can work in high vibration and low-temperature environments, when installed in light or heavy-duty vehicles. IoT increases the ease of accessibility to information for drivers and passengers to make their journey secure and convenient.

Growing emphasis on driver safety has brought advancement in technology as automakers started integrating advanced driver assistance systems (ADAS) and digital monitoring systems (DMS) in cars. Parking assistance and traffic updating feature of ADAS and DMS assists the driver during their journey as these systems are installed in their infotainment system for monitoring and controlling purposes. These technological advancements in driver’s safety are creating a new growth opportunity for the automotive infotainment market.

Furthermore, real-time data collection within the infotainment system collects information about the vehicle. It sends back to the manufacturer as data is an essential part of digital evidence used by car insurance companies and law enforcement officers to solve accidental cases.

Product Type Insights

Based on product type, the automotive infotainment market is segmented into the audio unit, display units, heads-up displays, navigation units, and communication units. Advanced onboard features like 3D navigation, hands-free calling, satellite radio, and media streaming are gaining consumer traction; this motivates automobile manufacturers to install communication units in some of the basic car models launched in the market. Furthermore, the 5G network increases the speed of the real-time data collection and accuracy of the communication units, thereby increasing the adoption of infotainment devices in automobiles.

The heads-up display segment is expected to project a CAGR of 10.7% for the forecast period due to the increasing application of Augmented Reality (AR) technology. With the usage of AR, real-time information such as speed, arrow indicators, and warning signals can readily be displayed and analyzed. The heads-up display projects the graphics on the windshield, steering wheels’ details, and assists in parking and barely a glance away from the driver. Thus, heads-up display devices are widely preferred by automobile customers worldwide.

Fit Type Insights

By fit type, the global automotive infotainment market is bifurcated into Original Equipment(OE) fitted and aftermarket. The OE fitted segment holds a market share of 71.6% in 2021, attributed to easy service and low maintenance features. OE fitted systems are part of the car warranty provided by the manufacturer, preventing customers from paying any extra fee for OE systems, thereby increasing its preference over other aftermarket products while contributing to segmental growth. By adding OE in automobiles, manufacturers can access the stored data. The collected information can then be utilized by the sales and marketing team of the company for campaigning purposes.

However, the aftermarket segment is expected to witness considerable growth of 6.3% for the given forecast period. With the advancement of technologies, the previous system has evolved into a new infotainment system providing customers the choice of selecting an infotainment system according to their preference and at a low cost.

Vehicle Type Insights

By vehicle type, automotive infotainment can be bifurcated into passenger cars and commercial vehicles. The passenger cars segment holds more than 80.0% market share by volume in 2021. A higher share of the passenger care segment is attributed to the increased adoption of luxury cars by consumers, concentrated in developing nations.

Luxury cars offer more technology and safety features, with cabin comforts requiring advanced infotainment systems. Automobile manufacturers provide subscription-based services, better sales, and financing options to customers, making these factors contributors to luxury car sales. Furthermore, companies such as Uber & OLA are trying to make long drives more comfortable and entertaining by making passenger vehicles more interactive and hand-free, thereby maintaining a significant market share.

The commercial vehicles segment is projected to develop by a CAGR of more than  9.3 % during the forecast period. The rise in demand for commercial vehicles by logistic sectors and the growing focus of automotive companies on including vehicles in fleet management is expected to propel the segment's growth.

Regional Insights

Latin America is expected to witness an 11.6% CAGR during the forecast period; this is attributed to automobile manufacturers' increasing focus on the in-house development of technologically advanced solutions. Advanced automotive infotainment systems will enhance user experience and potentially provide better performance.

The Asia Pacific region is expected to witness a 10.9% CAGR during the forecast period. The high demand for automotive infotainment systems is due to an increase in the customer's disposable income within the region. Customers prefer augmented reality technology-based solutions due to their effectiveness, thus driving the region's growth of automotive infotainment systems.

Europe holds a considerable share in the global automotive infotainment market due to the presence of prominent automobile manufacturers. Major automakers work closely with global software companies to launch advanced infotainment systems. The product launch will increase the company's revenue share and maintain its dominance over other competitors in the world.

Key Companies & Market Share Insights

The companies provide a wide range of products, including a display unit, communication units, navigation units, head-up displays, etc. Strategic initiatives such as mergers &  acquisitions, partnerships, and product launches are taken to strengthen their global footprint in the market.

In June 2021, Alps Alpine Co., Ltd, one of the key players in the automotive infotainment market, launched AlpineF#1Status, a premium car audio system. The vehicle has a high-resolution audio playback system that can provide an experience like a live performance. Thus, the product increases the level of entertainment and is expected to be highly preferred by the customers. Some of the prominent players in the global automotive infotainment market include:

• Alpine Electronics

• Clarion Co., Ltd.

• Continental AG

• Delphi Automotive PLC

• Denso Corporation

• Harman International

• JVC KENWOOD Corporation

• Panasonic Corporation

• Pioneer Corporation

• Visteon Corporation

Automotive Infotainment Market Report Scope

Segments Covered in the report   

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 2018 to 2030. For this study, Grand View Research has segmented the global automotive infotainment market report based on product type, fit type, vehicle type, and region:

• Product Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Audio unit

  • Display unit

  • Heads-Up display

  • Navigation unit

  • Communication unit

• Fit Type Outlook (Revenue, USD Million, 2018 - 2030)

  • OE Fitted

  • Aftermarket

• Vehicle Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Passenger Cars

  • Commercial Vehicles

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East &Africa