The global automotive infotainment market was valued at USD 7.42 billion in 2022 and is expected to witness a CAGR of 9.7% from 2023 to 2030. The automotive industry constantly develops new technologies to create a quality driving experience. The emergence of the 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 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 occurred chipset shortage, the automobile manufacturers started producing substitute models with lesser features. For instance, In May 2022, BMW began shipping their vehicles to customers without CarPlay and Android Auto functionality in their infotainment systems and built-in Wi-Fi in several countries, including the U.S., UK, Spain, Italy, and France. The company's new chips are not certified for CarPlay or Android Auto, so the feature has been temporarily removed from its vehicles since 2022. BMW is shipping these vehicles without the missing functionality to customers to avoid further delays.
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 of information for drivers and passengers to make their journey secure and convenient.
Growing emphasis on safety for drivers 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 data about the vehicle. It sends it 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.
Based on product type 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 communication units, thereby increasing the adoption of infotainment devices in automobiles.
The heads-up display segment is expected to project a CAGR of 12% 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.
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 72.3% in 2022, 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.
By vehicle type, automotive infotainment can be bifurcated into passenger cars and commercial vehicles. The passenger cars segment holds 79.8% market share by volume in 2022. 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 exhibit at a CAGR of over 10.6% over 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.
Latin America is expected to witness a CAGR growth of 11.8% 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.
Asia Pacific is expected to witness a growth of 11.3% during the forecast period. The high demand for automotive infotainment systems is due to an increase in the customer's disposable income in 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.
The key players provide a wide range of products, including display unit, communication units, navigation units, head-up displays, etc. Strategic initiatives such as mergers and acquisitions, partnerships, and product launches are taken to strengthen their global footprint in the market.
In September 2022, Alps Alpine, Inc. launched a free software update that integrates TIDAL. There are several compatible head units, including Alpine Halo9 iLX-F509, Alpine Halo11 iLX-F511, Jeep-specific i509-WRA-JK, i509-WRA-JL, and iLX-507. The Alpine car audio system is the first aftermarket audio system to integrate TIDAL. Customers of Alpine head units can access TIDAL's catalog of over 90 million songs with high-resolution streaming. The TIDAL HiFi and HiFi Plus subscriptions will offer superior sound quality and lossless audio. 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
Report Attribute |
Details |
Market size value in 2023 |
USD 7.91 billion |
Revenue forecast in 2030 |
USD 15.13 billion |
Growth rate |
CAGR of 9.7% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2018 - 2021 |
Forecast period |
2023 - 2030 |
Quantitative Units |
Revenue in USD billion and CAGR from 2021 to 2030 |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; Germany; U.K.; Spain; China; Japan; India; Brazil; Mexico |
Segments Covered |
Product type, fit type, vehicle type, region |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Key Companies Profiled |
Alpine Electronics; Clarion Co Ltd.; Continental AG; Delphi Automotive Plc; Denso Corporation; Harman International; JVC Kenwood Corporation; Panasonic Corporation; Pioneer Corporation; Visteon Corporation |
15% free customization scope (equivalent to 5 analysts working days) |
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Pricing and purchase options |
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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 automotive infotainment market report by 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
b. The global automotive infotainment market size was estimated at USD 7.42 billion in 2022 and is expected to reach USD 7.91 billion in 2023.
b. The global automotive infotainment market is expected to grow at a compound annual growth rate of 9.7% from 2023 to 2030 to reach USD 15.13 billion by 2030.
b. The Asia Pacific dominated the automotive infotainment market with a share of over 55% in 2022. This is attributable to the growing sales and production of passenger cars in the region.
b. Some key players operating in the automotive infotainment market include Continental AG, Harman International, Panasonic Corporation, Alpine Electronics, Denso Corporation, Pioneer Corporation, Visteon Corporation, Clarion Co., Ltd., Delphi Automotive PLC, and JVC KENWOOD Corporation.
b. Key factors that are driving the automotive infotainment market growth include the growing demand for safety, improved comfort, and convenience in vehicles, which includes facilities such as smartphone integration, on-demand music, live audio streaming, and various other entertainment services.
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Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.
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