In-Vehicle Infotainment Market Growth Insights: Size, Share, and Trends by 2028
The in-vehicle infotainment market is projected to grow from USD 16.4 billion in 2023 to USD 28.3 billion by 2028, at a CAGR of 11.6%. Government mandates on vehicles and the emergence of various technologies such as 5G and AI, and ADAS and other autonomous solutions are expected to offer promising growth opportunities in the In-vehicle infotainment market.
The growth of the in-vehicle infotainment market can be attributed to
the rising demand for entertainment, safety & security, navigation
services, and rear-seat entertainment. Additionally, factors such as government
mandates for electronic logging devices (ELD), growth in the smartphone
industry, 5G infrastructure, and use of cloud technologies with artificial
intelligence would create promising growth opportunities in the In-vehicle
infotainment market.
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“Embedded
infotainments are estimated to account for the largest market in 2023.”
Embedded systems are estimated to be the largest in-vehicle
infotainment systems during the forecast period in terms of value. Embedded
infotainment systems were earlier available in premium cars owing to the high
cost of these systems. However, the growth of the SUV segment and the adoption
of these systems in mid-range passenger vehicles has increased the demand for
embedded systems. Mid-range vehicle producers such as MG, Hyundai, Kia, and
Honda actively add the latest features, such as embedded connectivity, HUD, and
ADAS, in their vehicle models. In Europe, regulatory mandates are the prime
factor that drives the embedded system market growth. Starting on March 31,
2018, it became mandatory to be installed EU-wide 112 emergency assistance in
all newly manufactured passenger car models. This system connects the vehicle
to emergency services following a collision and provides location and impact
information to the nearest emergency response center.
Android Automotive to register the fastest growth of all
in-vehicle infotainment operating systems
Android is speculated to grow fastest during the forecast
period. The adoption of Android OS is an open-source platform gaining traction
due to its cost advantages, higher flexibility while developing programs, and
increasing availability of services with a large user base worldwide. This
platform offers a cost-effective solution compared to other systems, making
implementing it more affordable. The development and commercialization of
Android Automotive OS have attracted the attention of numerous automotive
suppliers and original equipment manufacturers (OEMs). For example, prominent
automakers such as General Motors and Stellantis have made significant
announcements regarding adopting Google’s new Android operating system for
powering infotainment systems across their entire vehicle lineup by the end of
2023. Also, Ford and Lincoln cars will switch to the same platform in two
years, while others, including some Dodge models and the Lucid Air, use an
Android-based system without Google Automotive Services. Collaborations between
companies like Audi and Volvo with Google have resulted in the utilization of
upgraded versions of infotainment systems. This widespread adoption indicates
the growing prominence of Android OS and positions it as a key operating system
for in-vehicle infotainment companies in the upcoming years.
Asia Pacific is estimated to be the
dominant regional market.
Asia Pacific is projected to lead the global market for the
in-vehicle infotainment market by 2028. The dominance is mainly due to the
presence of countries with higher vehicle production in different segments. For
instance, developing countries such as China, India, and Thailand produce most
of the economy and mid-range cars; thereby showcasing a substantial deployment
of affordable infotainment systems with some advanced features. On the other
hand, Japan, China, and South Korea have higher adoption of medium to premium
range vehicles which finds installation of more sophisticated infotainment
technology that includes in-built navigation, voice command, high-resolution
display, and other premium features. Further, this region's countries have
significantly improved internet infrastructure, spurring the demand for
infotainment systems among the tech-savvy population to provide a more
connected driving experience. 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. For
example, in 2023, Sibrose and Marelli Holdings Co., Ltd. announced their
collaboration to provide advanced over-the-air solutions to the next-generation
vehicle’s cockpit. This partnership aimed to enhance the functionality of the
vehicle’s cockpit by leveraging Sibros’ advanced over-the-air software update
and data management platform and Marelli’s expertise in automotive technology.
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.
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