In-car Infotainment Market Analysis Report By Product, By Installation, By Application, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global in-car infotainment market size was worth USD 17,181.7 million in 2018. The market is estimated to grow at a CAGR of 12.6% over the forecast period, 2019 to 2025. The increasing popularity of systems that can support various features such as entertainment, convenience, smartphone integration, entertainment & comfort, on-demand music, and other services is anticipated to bode well for the growth of the market. Considering the growing demand for these systems, automobile manufacturers are incorporating these systems as they influence manufacturers buying decisions.

Increasing disposable income of consumers in developing countries is allowing them to spend on luxury and high-end cars equipped with such systems. Further, advancements in technology have resulted in the introduction of voice recognition, enhanced graphic user interfaces, and other features, which, in turn, are estimated to supplement the market growth.

Other features such as smartphone connectivity, which allows users to access their mobile information on the go, are attracting consumers. Further, users can easily customize their requirements, thereby, attributing to the popularity of the systems. In addition, growing cloud-based connectivity that enables users to access video streaming and playlists easily is fueling the in-car infotainment system market growth.

The use of tablets is gaining traction among consumers, owing to which, manufacturers are designing customized tablets to suit the consumer need. For example, Audi designed a tablet of 10.1 inches in size, particularly for its vehicles. These tablets can easily be connected with infotainment systems and both person seating in the front and the rear seat can use this. These tablets are capable of withstanding high temperatures and can be used outside as well by unlocking them.

The competition between OEMs and aftermarket vendors drives market growth as OEMs focus on the quality of the products while aftermarket vendors focus on the price of the products. OEMs products are highly demanded in developed countries while emerging countries attract aftermarket products.

Product Insights

The demand for head-up display (HUD) is gaining traction among the consumer, as this system is equipped with AR that uses sensors, cameras, GPS, and Wi-Fi to provide information to the drivers while driving. This information help drivers in decision making, however, excess information may result in distraction for drivers.

The display unit size is increasing as complex multimedia other safety features such as comprehensive information display and review camera are being incorporated into the display systems. The size of the screen is projected to reach 7.0 inches or beyond. Large size screens are expensive and found in luxury cars. AMOLED and TFT-LCD are the upcoming technologies in a display system that are estimated to be used in the infotainment system.

Owing to the advent of 5G, the communication units are estimated to become reliable. Further, the 5G roll-out would make satellite radio, 3D navigation, media streaming, and hands-free calling easy for users.

Owing to the growing adoption of the cloud, navigation systems have enhanced significantly. Cloud offers real-time detection of locations and easy compatibility with various portable devices. Further, various other features such as geo-tagging allow users to gather information on a geo-tagged location.

Installation Insights

Depending on the installation, the market is categorized into OEMs fitted and aftermarket. OEMs are known to offer quality while aftermarket products are offered at low prices. Owing to the low prices, aftermarket products are gaining traction and are estimated to witness significant growth over the forecast duration. Moreover, aftermarket products can be easily customized depending on the user's requirement.

On the other hand, OEMs products are expensive and mostly standardized, thereby, offering less choice for customization. OE fitted equipment can also be procured by distributors and authorized dealers. These products are mostly covered under manufactures’ warranty and offer benefits such as easy maintenance and servicing.

Application Insights

The use of digital technologies in cars is gaining traction in the passenger car segment. Various innovations like voice-recognition systems and gesture recognition for multimedia are estimated to fuel the car infotainment market growth. These features provide convenience to drivers. In addition, the advent of smart navigation technologies helps in an enhanced driving experience.

Infotainment systems are widely used in commercial vehicles in developed regions such as Europe and North America. Fleet operators are using innovative technologies to obtain information in real-time about vehicles’ location. In addition, vehicle owners also track fuel consumption using advanced systems. Other benefits include tracking the performance of drivers and find out the areas for improvement.

The growing adoption of HUD in luxury passengers and commercial vehicles is projected to drive the commercial segment growth. HUD helps in enhancing the safety of the drivers in commercial vehicles. Continental AG introduced HUD systems, in 2016 and it was the first to do so. The company is aiming for the commercialization of its HUD at a large scale.

Regional Insights

In 2018, North America generated USD 5,723.1 million of revenue and emerged as the highest shareholder globally. The presence of leading market players is driving regional growth. Further, driver distraction mitigation systems and voice-based control systems are gaining popularity, thereby, augmenting the in-car infotainment market growth. In addition, the region is witnessing high demand for in-dash display systems.

On the other hand, APAC is estimated to exhibit the highest growth over the forecast duration. The rise in disposable income of consumers is allowing them to invest in expensive car accessories. Further, China is witnessing increasing sales of premium cars equipped with various amenities. In addition, growing smartphone penetration in the region is positively affecting the market.

Impact of COVID-19

The market has been adversely affected due to the outbreak of COVID-19 pandemics. The sales of automotive vehicles have witnessed a sharp decline in the second quarter. Additionally, the manufacturing of new vehicles has reduced owing to the disruptive supply chain of raw materials and lack of demand. The COVID-19 pandemic has led to a significant fall in public spending. Further, owing to the lockdown imposed by several governments, commercial vehicles operations have been hit badly. Thus, both passenger and commercial vehicle segments are generating lesser demand for in-car infotainment systems. While China has started various operations, two major automobile consumers India and U.S. continue to be under restrictions, thereby, slowing the market growth.

In-car Infotainment Market Share Insights

Major industry participants are Harman International, Denso Corporation, Visteon Corporation, Delphi Automotive PLC, Pioneer Corporation, Alpine Electronics, Clarion Corporation, and Panasonic Corporation among others. Owing to the presence of various players, the market is fragmented in nature. Various small and medium vendors are introducing affordable aftermarket solutions to consolidate their market position. The market is witnessing intense competition between aftermarket vendors and OEMs.

The introduction of advanced systems that can support a variety of infotainment systems is gaining traction in the market. Market players are collaborating with OEMs to gain a competitive edge. For example, Continental AG in collaboration with Inmarsat plc to develop an over-the-air solution.

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 2014 to 2025. For the purpose of this study, Million Insights has segmented the global in-car infotainment market report based on product, installation, application, and region:

• Product Outlook (Volume, Million Units; Revenue, USD Million, 2014 - 2025)
    • Audio Unit
    • Display Unit
    • Head-up Display
    • Navigation Unit
    • Communication Unit

• Installation Outlook (Volume, Million Units; Revenue, USD Million, 2014 - 2025)
    • OE fitted
    • Aftermarket

• Application Outlook (Volume, Million Units; Revenue, USD Million, 2014 - 2025)
    • Passenger Vehicles
    • Commercial Vehicles

• Regional Outlook (Volume, Million Units; Revenue, USD Million, 2014 - 2025)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • U.K.
        • Germany
    • The Asia Pacific
        • China
        • India
        • Japan
    • South America
        • Brazil