The global In-Vehicle Infotainment Market size is projected to grow from USD 20.8 billion in 2021 to USD 38.4 billion by 2027, at a CAGR of 10.8%. Government mandates on telematics and e-call services and emergence of various technologies such as 5G and AI would create growth opportunities for the In-Vehicle Infotainment Market.
By form type, the embedded segment is estimated to account for the major market share in 2021
By form type, the embedded segment is estimated to account for the largest market share of ~48-50% in 2021. The integrated segment is estimated to be the second-largest form segment with a ~32% market share in 2021. The growth in embedded technology is mainly driven by regulatory mandates in the EU, which mandated that all new car models in member states must have embedded technology as part of its European eCall system.
The embedded form type is prevalent in Europe and North America, while the integrated form type is growing in popularity in Asia Pacific and RoW. The major driver for this trend is the cost-sensitive nature of the regions (Asia Pacific and RoW), which prefer integrated connectivity as it is more economical than the embedded form. The market for the integrated form type, whose adoption is growing rapidly in the aforementioned regions, is projected to register a CAGR of 12.4% globally.
The android automotive OS segment to register a highest growth rate
The operating system segment of the In-Vehicle Infotainment Market is driven by Linux OS at present. However, Android Automotive OS is an open-source platform that reduces the cost of using it to zero, and it is cheaper to install than most other systems. Presently, it provides access to a series of services already having millions of users across the world and is expected to register the highest growth in the OS segment during the forecast period.
Moreover, many automotive suppliers and OEMs are working on the development and commercialization of Android Automotive OS; for instance, in August 2021, Renault announced to install Android Automotive in some of the models launched by its brands, and Renault Megane E-Tech would be the first to be introduced. Audi and Volvo have partnered with Google to use upgraded versions of infotainment systems. General Motors and Stellantis announced that they would use Google’s new Android operating system to power infotainment systems in all their vehicles by the end of 2023. Hence, Android Automotive OS is expected to emerge as key OS for in-vehicle infotainment companies and register the highest growth rate of 36.4% during the forecast period.
Asia Pacific is estimated to be the dominant regional market
According to MarketsandMarkets™ global IoT market report, Asia Pacific is estimated to be the largest global market for IoT in terms of revenue and connections by 2025. For the In-Vehicle Infotainment Market analysis, Asia Pacific includes China, India, Japan, South Korea, and Rest of Asia Pacific. In addition, factors such as increasing GDP, infrastructure investments, rising per capita income, growing inclination toward comfort and leisure, and government initiatives for FDIs have created more opportunities for advanced infotainment services in Asia Pacific. The tech-savvy population in these countries demands a better and more connected driving experience.
China has been a dynamic power for the global economy and an established ground in the field of connectivity. The country is expected to show tremendous growth opportunities along with steadily growing production capacity. According to MIIT, in April 2021, China built a 5G high-speed mobile network with 260 million 5G mobile connections. The connected car market is growing rapidly in China. As per CAAM’s report of November 2021, 228 connected cars and new startups were recorded in China. China is an important member of the 5GAA, a cross-industry association of vehicle manufacturers and telecom companies. Key manufacturers are focusing on entering strategic partnerships with market players for market expansion, R&D, and product advancement to keep up with the changing needs of passengers.
In March 2021, ZTE Corporation, a Chinese telecommunication company, announced expanding its business into the electric vehicle segment. In 2019, China Telecom Global and Tata Communications announced to work together to launch a global IoT service in the Chinese market. The partnership will allow companies to deploy and manage IoT devices easily and cost-effectively within China and internationally across multiple industries, including automotive, transportation, and logistics. In April 2019, Ford China announced the launch of SYNC+, a new in-vehicle infotainment system built specifically for Chinese consumers, powered by Baidu’s AI technology. In 2019, BlackBerry and Marelli China entered a strategic collaboration to integrate the QNX platform for digital cockpits into Marelli’s e-cockpit and digital cluster solution. In 2019, Honda signed an agreement with Chinese internet giant Alibaba Group to develop its third-generation Honda Connect infotainment system. In May 2019, Bosch expanded its presence in the eastern Chinese city of Wuhu by opening a new plant for infotainment systems. These developments indicate that China has huge growth potential in the In-Vehicle Infotainment Market during the forecast period.
Key Market Players:
The In-Vehicle Infotainment Market is led by established players such as Harman International (US), Panasonic Corporation (Japan), Alps Alpine Co Ltd (Japan), Robert Bosch Gmbh (Germany), and Continental AG (Germany). These companies adopted several strategies to gain traction in this market.