The global In-Car Infotainment market size is projected to reach USD 44620 million by 2028, from USD 25730 million in 2021, at a CAGR of 7.7% during 2022-2028.
Major Factors Driving The Growth Of The In-Car Infotainment Market
The demand for devices that offer in-car comfort, entertainment, and convenience is likely to increase. This includes devices that offer on-demand music, live audio streaming, internet access, and other entertainment options. Automakers are more conscious of the possibility that these technologies could affect a customer’s purchase decision. This factor is expected to drive the growth of the In-Car Infotainment market
Furthermore, increase in consumer disposable income and simple financing alternatives in emerging countries have made it possible for people to buy passenger automobiles, which has increased demand for technologically advanced vehicles with useful and practical entertainment systems. This will fuel the growth of the In-Car Infotainment market.
TRENDS INFLUENCING THE GROWTH OF THE IN-CAR INFOTAINMENT MARKET
Since 5G technology has been in development for some time, automakers are placing more and more emphasis on connectivity when developing infotainment systems for drivers. an improvement in features for internet connectivity. Wi-Fi connectivity is a growing trend in infotainment since it is inexpensive and has a high level of consumer demand. Faster internet connections are simply one benefit of increased connectivity; car owners may also directly access their texts, emails, phone apps, music, navigation, and online shopping while relaxing in the luxury of their own automobiles. This will fuel the growth of the In-Car Infotainment market.
Technology has progressed as a result of automakers introducing digital monitoring systems (DMS) and advanced driver assistance systems (ADAS) into their vehicles. As these systems are installed in the driver’s infotainment system for monitoring and regulating purposes, their parking assistance and traffic update features of ADAS and DMS aid the driver during their travel. The In-Car Infotainment market is seeing new growth opportunities as a result of these technical developments in driver safety.
In order to improve the functionality of infotainment systems, important car manufacturers are concentrating on collaborative sophisticated technologies including driver assistance, augmented reality real-time data collection, and the Internet of Things (IoT). The improvement in drivers’ safety and experience brought about by the incorporation of these technologies into automobiles is fueling the growth of the In-Car Infotainment market.
The opportunity to add luxury features like larger screens and branded music, as well as the potential to access the income streams associated with streaming services like Spotify and Netflix, give infotainment systems a competitive edge for automakers. First, many OEMs switched out traditional switches for touch-screen controls, and now voice controls are increasingly being used in their place. The IVI unit, which is quickly evolving from an entertainment-focused device with a little navigation support to the center of the driving experience, is usually thought to be the natural home for these. During the projected period, these variables are anticipated to offer attractive prospects to In-Car Infotainment market participants.
IN-CAR INFOTAINMENT MARKET SHARE
Due to characteristics that are simple to maintain and require little maintenance, the OEM segment is expected to be the most lucrative. Since OEMs are covered by the manufacturer’s guarantee and cannot be purchased separately, customers are more likely to choose OE systems over aftermarket alternatives, which helps the category grow. Automobile manufacturers can access the stored data by including OE in their vehicles. The company’s sales and marketing team can use the information gathered to further their campaigning efforts.
During the forecast period, the Asia Pacific region is expected to be the most lucrative. Due to a rise in local consumers’ disposable money, there is a considerable demand for automobile infotainment systems. Due to their effectiveness, customers choose augmented reality technology-based solutions, which is fueling the expansion of car infotainment systems in the area.