Automotive Infotainment Market Size, Share & Trends Analysis Report By Product Type (Heads-up Display, Navigation Unit, Display Unit), By Fit Type, By Vehicle Type, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global automotive infotainment market size was valued at USD 6.98 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.7% from 2021 to 2028. The COVID-19 pandemic has negatively affected the overall automotive industry, leading to a subsequent decline in the growth of the market due to a reduction in new requirements and automotive sales. However, 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; are the prominent factors driving the demand for automotive infotainment systems. Furthermore, technological proliferation such as voice recognition, advanced graphic user interface, and intuitive touchscreen in these systems is also expected to drive the market growth over the forecast period.

The infotainment system market for automotive is growing at a rapid rate. With the shifting mobility market, infotainment systems are evolving to offer vehicle occupants safety capabilities, new functionalities, and improved entertainment experience options. Through Wi-Fi and Bluetooth, smartphone connectivity enables a user to access messages and information, which further makes it easier to work on the go. The infotainment system in vehicles offers a digital experience in a car, covering digital assistants, multiple screens, and various input means. The inclusion of digital interfaces provides automotive suppliers and OEMs the freedom to design interfaces that deliver a more appropriate illustration of real-time data. The digital interfaces also outspread the scope to support numerous safety-critical features, including ADAS.

Technologies such as heads-up displays, gesture control systems, steering-mounted controls, telematics, central controllers, and advanced infotainment systems are used in passenger vehicles on a large scale for luxury, safety, comfort, and security benefits. Governments in some countries are imposing regulations related to vehicle safety and security. This has encouraged the demand for automotive electronic devices, including infotainment systems, across the globe.

The demand for connected infotainment solutions is growing in the automotive market. Estimates suggest that over 90% of passenger vehicles on the road are expected to have internet connectivity with the support of 3G/4G connectivity by 2022. The increasing acceptance and usage of Google’s Android Auto and Apple’s CarPlay is a trend that is expected to continue as technology advances. Moreover, the popularity of infotainment systems is expected to gain traction over the forecast period, creating favorable opportunities for the market growth. The growing usage of tablets in cars has encouraged OEMs to develop customized tablets for their vehicles. For instance, Audi has designed a 10.1-inch automotive-grade tablet specifically for its cars.

The COVID-19 pandemic changed the business dynamics in 2020 and is anticipated to affect the overall business scenario over the next few years. Lockdowns imposed worldwide to reduce the spread of the virus have led to supply chains disruptions and temporary closure of production at numerous production facilities. As a result, shipments were delayed and production volumes plummeted, severely affecting automotive production. The declining demand for passenger and commercial vehicles has impacted the automotive infotainment market growth. The overall automotive production volumes have deteriorated globally on a year-on-year basis, mainly due to decreased production volumes in Europe and North America, among other regions. Global car sales have dropped by about 33.3% from January 2020 to April 2020, with around 9 million fewer cars sold, compared to January 2019 to April 2019. In the U.S., the sales of passenger cars dropped nearly by 50% year-on-year compared to 2019.

Product Type Insights

The communication unit segment accounted for the largest share of around 26% of the overall market volume in 2020. Communication units have become reliable due to the introduction of the 4G LTE network, which allows advanced onboard features such as hands-free calling, 3D navigation, media streaming, and satellite radio. Furthermore, increased efforts for developing 5G network are expected to improve connectivity features in infotainment systems. Additionally, several automotive manufacturers aim to offer advanced communication systems in economic and mid-segment vehicle variants. All these factors are expected to drive the segment growth.

The head-up display segment is projected to expand at a CAGR of over 10.3% over the forecast period. A head-up display is a transparent display that displays information directly in the driver's line of sight. With the help of head-up displays, drivers get all the critical information such as speed, indicator arrows for navigation, and warning signals without looking down at the secondary display or instrument cluster. The future integration of augmented reality with head-up displays is expected to pave the way for enhanced safety and driving experience. All these factors are expected to drive the segment growth from 2021 to 2028.

Fit Type Insights

The OE fitted segment accounted for the largest revenue share of around 70% of the overall market in 2020. OE fitted products are expensive and present less scope of customization as they are standardized. They can be procured through authorized dealers and distributors. These products offer customers benefits such as easier servicing and maintenance and are covered under the car manufacturers’ warranty. In addition to this, an OE fitted set-up has access to car data, enabling the company to carry out direct marketing campaigns for service and support.

The aftermarket segment is expected to expand at a CAGR exceeding 5% from 2021 to 2028. Aftermarket suppliers of automotive infotainment systems offer these products at a low cost and this is expected to enhance the demand for aftermarket systems. Moreover, the customization flexibility offered by them is expected to stimulate the demand for aftermarket systems. Aftermarket parts are cheaper; however, the disadvantages of using aftermarket parts sometimes outweigh initial savings.

Vehicle Type Insights

The passenger cars segment accounted for the largest share of around 80% of the overall market in 2020. The increasing demand for connected car features in passenger vehicles and the onset of autonomous vehicles is expected to drive the segment growth. Additionally, automotive manufacturers are increasingly focusing on offering an improved user experience to their customers, which has also boosted the demand for automotive infotainment systems.

The commercial vehicles segment is projected to register a CAGR of over 9.8% over the forecast period. The increasing demand for commercial vehicles and the growing focus of automotive companies on including vehicle-to-vehicle communications in vehicles for fleet management are expected to boost the demand for automotive infotainment solutions, thus propelling the segment growth.

Regional Insights

The Asia Pacific region accounted for the largest revenue share of the overall market in 2020. It is anticipated to continue to dominate over the forecast period with a CAGR exceeding 10.2%. This growth can be attributed to the growing sales and production of passenger cars in the region. The increasing income levels and high demand for automobiles have resulted in the growth of luxury and mid-sized premium cars segments in the region. In 2020, China led the passenger car production with 19.9 million units.

Europe accounted for a considerable share of the overall market for automotive infotainment. The region is a manufacturing hub with prominent premium vehicle manufacturers and automotive OEMs. Automotive manufacturing activities in the region have been driven by high investments by OEMs such as Volkswagen, Daimler, BMW, Jaguar Land Rover, Honda, and Nissan. Most premium car manufacturers in the region install voice recognition systems, driver distraction mitigation systems, and HD in-dash display monitors, which is projected to drive the market growth in Europe.

Key Companies & Market Share Insights

The key players that dominated the global market in 2020 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. These players offer a wide range of automotive infotainment components such as audio units, display units, Heads-Up Displays (HUDs), and communication units for passenger cars and commercial vehicles. The companies are focused on providing advanced and technologically driven products to enhance their offerings in the market. They are also undertaking strategic initiatives such as regional expansions, acquisitions, mergers, partnerships, and collaborations to strengthen their position in the market.

Moreover, these players are consolidating their market shares by undertaking M&A activities. For instance, in May 2020, Continental AG and Pioneer Corporation announced a strategic partnership to integrate infotainment solutions. Under this partnership, both the companies planned to create a holistic user experience for the Asian market. In January 2020, SK Telecom Co. announced a partnership with Byton, a China-based Electric Vehicle (EV) manufacturer, to develop automotive infotainment systems. Some of the prominent players operating in the global automotive infotainment market are:

• 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 and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global automotive infotainment market report by product type, fit type, vehicle type, and region:

• Product Type Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)

  • Audio Unit

  • Display Unit

  • Heads-Up Display

  • Navigation Unit

  • Communication Unit

• Fit Type Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)

  • OE Fitted

  • Aftermarket

• Vehicle Type Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)

  • Passenger Cars

  • Commercial Vehicles

• Regional Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa