Electric Vehicle Infotainment Market Size, Share & Trends Analysis Report By System Type (Audio, Video, Heads-up, Navigation, Rear Seat Entertainment System), By Connectivity Type, By End Use, By Region, And Segment Forecasts 2022 - 2030

Report Overview

The global electric vehicle infotainment market size is valued at USD 1.17 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 38.1% from 2022 to 2030. The increasing adoption of passenger and commercial electric vehicles (EV) among consumers is driving the demand for the EV infotainment market. The surging demand for GPS navigation-enabled infotainment systems is also contributing to the market growth. The system facilitates mapping, traffic monitoring, and location tracking functions which have increased the functionality of the infotainment system. Another factor, such as increasing usage of wireless connectivity with the EV infotainment system at a low cost is propelling the market growth. Furthermore, the manufacturers are incorporating integrated center stacks in their EVs with the purpose of improving control and engagement.

The use of a center stack provides touch capabilities and vertical integration. The curved center stack display also enhances user experience with enhanced usability and cost-saving. The manufacturer providing different variants of infotainment systems, such as heads-up display infotainment systems and rear-seat infotainment systems, is another reason for market growth. Moreover, the integration of operating systems such as Windows, Android, and Linux in EV infotainment system are further propelling the market growth. The operating systems can support software downloads, updates, convenience functions, and connectivity. The implementation of cloud technologies, Artificial Intelligence, and the Internet of Things has created new avenues for market growth.

The COVID-19 pandemic has severely impacted industries worldwide, forcing authorities to enforce containment measures such as quarantine and lockdowns. The subsequent containment measures placed by governments crippled industries around the world. The production of the infotainment systems is directly dependent on the production of automobiles which affects the EV infotainment manufacturers negatively. The aggressive spread of the pandemic caused a fall in demand for automobiles affecting the demand for infotainment systems. In 2021, as the lockdown was lifted owing to vaccination efforts, the demand for automobiles experienced a surge. Still, the demand surge was met with a disrupted supply chain of semiconductor chips. Regardless of vehicle type, the semiconductor's chips are integral to the infotainment system. The absence of semiconductor chips resulted in a production timeline delay. Therefore, the COVID-19 pandemic and the repeated supply chain and production disruption caused a restriction in the growth of the EV infotainment market.

Greater inclination in recent years toward electric vehicles has resulted in considerable demand for the infotainment system. Infotainment system enables enhanced safety of the passengers, and integrated navigation system also provides real-time traffic updates, and feature of smartphone syncing, facilitates easy access to apps for music streaming and calling. The major infotainment manufacturers are introducing technologies that are aimed at enhancing user experience. These constant innovations in the product offering by the manufacturers is further driving the market growth. For instance, Continental AG provides the components required for a pleasant and enhanced user experience in the new BMW iX. The Continental's cockpit high-performance computer is incorporated in BMW's electric car pushing for vehicle digitalization. It maintains track of the cockpit's ever-growing functional scope and the increasing software complexity in EVs. The cockpit computer is responsible for numerous software functions which enable the infotainment system to offer new opportunities to provide a consistent and unique user experience. The BMW model can also support a heads-up display that will project the relevant information, such as navigation instructions, warning messages, and data, such as speed, and fuel level, among others on the car's windshield.

Cloud technology is transforming business across industries and the automotive industry also leverages the same to create a premium experience for end-users of electric vehicles. Car manufacturers like Volvo are leveraging innovative products by Qualcomm and Google for powering the infotainment system of Volvo electric SUV. The carmaker will be incorporating Qualcomm's Snapdragon digital chassis, a cloud platform that analyzes data from the vehicle for advanced display, audio, navigation, and connectivity. The cloud platform also supports wireless and bluetooth connectivity to enhance user experience. With the android automotive operating system of Google, the electric SUVs will have the google assistant feature with all the google apps. The collaboration among Volvo, Google, and Qualcomm is redefining the infotainment experience for the end-users of EV four-wheelers while impacting the market with technological applications.

The use of electric vehicles has steadily increased in recent years due to the demand for fuel efficiency and a range of development efforts like bodyweight reduction and improved efficiency of electronic circuits in automotive. In contrast, the elements like Universal Serial Bus (USB), Bluetooth, operating system, and larger screen size have increased the current consumption and power channel in high-end cars. The high consumption of power directly impacts the battery efficiency of EVs. Thus, High power consumption is a major hindrance for infotainment systems in EVs. Moreover, infotainment services include features such as vehicle diagnostics, live traffic visualization, satellite-view maps, and music streaming which are available in premium infotainment services based on monthly and yearly subscriptions with automobile manufacturers such as Tesla. But the cost of such a subscription coupled with the paid software upgrade cost is another restrain in the EV infotainment market growth.

System Type Insights

Based on system type, the EV infotainment market is segmented into multimedia systems, heads-up systems, navigation systems, driver safety, communication system, and rear system entertainment system. The multimedia infotainment system is projected to show significant growth during the forecast period, with the highest market share of 55.69 %in 2021. The multimedia infotainment system enables the driver to access features such as navigation system, calling, and music. Multimedia infotainment is also popular as it includes basic to some high-end functions and is compatible with low to high-end segment cars.

The heads-up display system is expected to register the highest CAGR of 46.6% in the forecast period. The heads-up display presents the information at the driver’s line of sight on the windshield. Using projection systems and mirrors to display navigation, road speed, warning message, and call information. The heads-up display enables the driver to operate the machine with reduced fatigue enhancing the driver’s alertness with respect to the outside environment. These are the major growth drivers for the adoption of heads-up displays.

Connectivity Insights

EV vehicle infotainment system can be categorized into Bluetooth, cellular, wireless, and wired connectivity based on connectivity type. The wireless connectivity segment has the highest market share of 41.07% in 2021 and the highest CAGR of 39.5% from 2022 to 2030. As the penetration of smartphones increases, network connectivity is also becoming stronger to cater to the growing connectivity functionalities of smartphones. The internet connection through smartphones has enabled wireless and cellular infotainment connectivity. Wireless and cellular connectivity in EV infotainment systems is gaining traction due to high-speed connection and high data transfer speed. The internet connection-based wireless technology facilitates cloud data transfer in an advanced infotainment system. The expanding reach of wireless connectivity worldwide enables EV infotainment systems to provide a seamless driving experience while propelling market growth.

Bluetooth connectivity is the most common option available in infotainment systems due to its low cost. However, the data transfer on Bluetooth is comparatively slow than cellular, wireless, and wired connectivity.

End-Use Insight

The electric vehicle infotainment market is bifurcated into two end-use types - battery electric vehicle and hybrid electric vehicle. The battery electric vehicle will dominate the end-use market with a share of 66.63% of the overall market in 2021. The rising carbon emission and increasing calls for alternative fuel options led to the adoption of battery electric vehicles. The government initiatives such as subsidies are also leading to the adoption of electric vehicles. The integration of technologies such as cloud, AI, and IoT, along with increased screen size, in battery electric vehicles is leading to the adoption of digital infotainment systems. Moreover, the rising popularity of rear-seat entertainment systems in a battery electric vehicle is also driving the market growth.

The HEV segment is expected to expand at a  CAGR of over 39.3 % within the forecast period. The utility of infotainment system in commercial vehicles is generally for navigation, tracking and communication. However, advanced infotainment system in commercial vehicles will enable the drivers to navigate the routes effectivity with the help of real-time traffic intel and maps. These factors will help expand the market share of commercial vehicle types for EV infotainment system.

Regional Insight

Based on the regional segment, the European region has the highest market share of 46.44% in 2021. The EV infotainment market growth in the European region is attributed to the presence of major automotive manufacturers, availability of manpower, and technological innovations. The rising demand for EVs in the region, along with stringent emission norms mandated by the authorities, is also a major factor in the market growth.

The rest of the market regions in the world are expected to expand at a CAGR of 53.9% within the forecast period. In the Asia Pacific and North America, the increased disposable income, availability of EV infrastructure, higher ownership of cars, and integration of infotainment with ADAS system and cloud are driving the market demand. The Latin America market segment is also expanding owing to the increasing demand for electric vehicle infotainment. The availability of 4G and 5G networks in the region, decreased data tariff rate, and increasing popularity of EV vehicles is driving the market.

Key Companies & Market Share Insights

The Electric Vehicle Infotainment market is competitive owing to strong advocacy for the adoption of electric vehicles worldwide. The key players have a worldwide market presence promoting healthy competition among the players. These companies dedicate considerable resources to research and development. To extend their footprint in the market, the major players resort to mergers, acquisitions, and strategic partnerships. For instance, Pioneer entered a strategic alliance with Cerence INC. to develop an AI-based infotainment system in a bid to create an enhanced mobility experience. With Cerence AI automotive assistance leveraging cloud-based AI technology, Pioneer will be able to develop an improved in-car experience for its end-users. The major players in the market are impacting and transforming the EV infotainment market through their innovations. Some of the prominent players in the global electric vehicle infotainment market include:

• Alpine Electronics

• Continental AG

• DENSO Corporation

• Harman International Industries Inc.

• Panasonic Corporation

Electric Vehicle 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 latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global electric vehicle infotainment market report based on system type, connectivity type, end-user, and region:

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

  • Multimedia

  • Heads-up Display

  • Navigation Unit

  • Communication Unit

  • Rear Seat Entertainment

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

  • Bluetooth

  • Cellular

  • Wireless

  • Wired Connectivity

• End-User Outlook (Revenue, USD Million, 2018 - 2030)

  • BEV

  • HEV

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

  • North America

    • U.S

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Norway

    • Sweden

  • Asia Pacific

    • China

    • Japan

    • South Korea