The global automotive infotainment market exhibited strong growth during 2015-2020. Looking forward, expected the market to grow at a CAGR of around 8% during 2021-2026. Automotive infotainment is an in-vehicle device that provides entertainment and information to the driver and the passengers. The system includes integration of audio/video (A/V) interfaces, touchscreens, keypads, etc., for offering navigational services, hand-free phone connections, vehicle voice control, parking assistance, climate control, two-way communications tools, access to the internet and other security services. These features help in increasing operational efficiency of the vehicles along with improving safety and driver experience. Owing to this, automotive infotainment systems are widely installed in passenger as well as commercial vehicles.
The global automotive infotainment market is primarily driven by the increasing vehicle sales and production and growing demand of smart infotainment in base models. Furthermore, rising consumer living standards supported by their growing disposable income levels have led to the increasing demand for luxury and premium cars across both emerging and developed economies. Owing to this, several automotive companies are expanding their production and distribution networks to meet the growing demand. Moreover, the rising inclination towards vehicle customization for high-end comfort and convenience is further driving the automotive infotainment market. Additionally, rising focus on driver comfort and safety, particularly in commercial vehicles with high travel time, has led to the rapid installation of automotive infotainment systems in these vehicles.
Furthermore, the implementation of navigation and vehicle control units in commercial vehicles helps in reducing the response time during emergencies, thereby eliminating the risk of accidents. Besides this, several automobile manufacturers are also offering low-cost infotainment systems, thereby increasing the product affordability. Additionally, the rising adoption of smartphones along with high internet connectivity has a significant impact on market growth on a global level. furthermore, various technological advancements in the sector have led to the introduction of infotainment devices with innovative features, such as in-car Wi-Fi, driver assistance, voice recognition, etc.