Automotive Infotainment Market To Hit Value $28.93 Billion By 2030 |Grand View Research, Inc.

San Francisco, 14 February 2024: The Report Automotive Infotainment Market Size, Share & Trends Analysis Report By Product Type (Audio Unit, Display Units, Heads-Up Displays & Others), By Fit Type, By Vehicle Type, By Region, And Segment Forecasts, 2024 – 2030

The global automotive infotainment market size is expected to reach USD 28.93 billion by 2030 and is anticipated to expand at a CAGR of 9.9% from 2024 to 2030, according to a new report by Grand View Research, Inc. Rising demand for safety features, digital cockpits, self-driving vehicles, and entertainment purposes is driving the demand for the automotive infotainment market. Advances in driver safety software and sensors are playing a niche role in driving the growth of the automotive infotainment systems market. As automotive technology continues to evolve in line with the strong emphasis on driver safety, automakers are incorporating digital monitoring systems (DMS) and ADAS into their automobiles.

Smartphones can be connected to the vehicle’s entertainment system using Bluetooth. Modern infotainment systems use HDMI cables, Bluetooth, and USB to send audio and video content to display screens, speakers, and headphones. Bluetooth connectivity allows for advanced functions such as hands-free calling and call record visibility. Furthermore, in March 2023, BMW launched an infotainment system which offers smartphone experience. The updated BMW iDrive infotainment system works on BMW Operating System 8.5, which is based on Linux and can make greater use of the BMW Curved Display. Users can rearrange the various icons on the system’s main screen, which has adjustable visuals, similar to a computer or smartphone screen, with the new iDrive update.

Automakers are increasingly offering rear-seat entertainment packages, which can enhance the journey experience for rear-seat passengers. These product offerings include a headrest mount for wireless devices, a headrest with built-in monitors, and portable hard drives with streaming facilities as well as audio devices, such as sound splitter adapters and wireless car headphones. Rear-seat entertainment systems are commonly installed in premium and luxury cars. As the demand for premium cars continues to grow in line with the rising levels of disposable income, the demand for automotive infotainment systems supporting rear-seat entertainment is also growing proportionally the increasing usage of a tablet in cars is particularly encouraging automobile manufacturers to design and develop tablets customized according to consumer and vehicle parameters.

Prominent automobile manufacturers are working closely with software development companies to develop a technologically advanced solution that provides a cutting edge over competitors. For instance, in April 2023, Alps Electric Co., Ltd. signed a long-term agreement with Tata Elxsi, a provider of technology services to develop next-generation vehicle software.

The continued integration of features such as on-demand music, connectivity to smartphones, and live audio streaming to cater to the growing demand for comfort, safety, and convenience in automobiles is expected to drive the growth of the market over the forecast period. Furthermore, Continued improvements in various infotainment features and the increasing affordability of vehicles are further contributing to the market growth. Additionally, critical automotive manufacturers are focusing on in-cooperation advanced technologies such as driver assistance, augmented reality real-time data collection, and the Internet of Things (IoT) to enhance the functionality of infotainment systems. The addition of these technologies in vehicles is refining drivers’ safety and experience, subsequently driving the demand for the automotive infotainment system.

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Automakers are emphasizing the integration of IoT into their automobiles to enhance vehicular end-to-end connectivity. Automotive OEMs are also collaborating with automotive software solution providers to develop low-latency, high-bandwidth solutions capable of withstanding low temperatures and high vibration when installed in light-duty or heavy-duty vehicles. IoT simplifies the accessibility to information for the occupants of the vehicles, thereby enhancing convenience and security during the commute.

Automotive Infotainment Market Report Highlights

• The OEM fitted dominated the fit type segment in 2023, owing to its easier serving, low maintenance, and company warranty feature.
• The passenger car led the vehicle type segment in 2023. The increasing demand for technologically advanced features in the passenger vehicles used by the transportation sector is a key contributor to the lion’s share of the segment.
• Asia Pacific dominated the automotive infotainment industry in 2023. This growth can be attributed to factors such as a highly competitive automotive market in the country, which encourages OEMs in the country to focus on providing enhanced customer experience by integrating touchscreen or large-screen infotainment systems
• In May 2023, Mitsubishi Electric Corporation partnered with Commsignia Ltd., a provider of V2X technology. Through the partnership V2X solution of Commsignia combined with High-Definition Locator (HDL) technology of Mitsubishi to support safety of advanced-driver-assistance systems (ADAS) and autonomous-driving.

Looking forward into the forecast period, major automakers are expected to continue integrating advanced infotainment systems in their newer vehicles. For instance, automakers, such as Nissan Motor Co. Ltd., Mitsubishi Motors Corporation, and Groupe Renault, are considering infotainment systems integrated with Google Inc.’s Android OS for their upcoming models. At the same time, the demand for in-vehicle infotainment is gaining traction in line with the shifting customer preferences and the strong emphasis on seamless smartphone pairing with the system. As such, several vendors are collaborating with technology companies specializing in areas, such as display units, audio units, comprehensive systems, and navigation systems, to introduce innovative automotive infotainment systems. The growing sales of luxury vehicles and the growing consumer preference for dashboard integrated infotainment systems are also creating new opportunities for the growth of the market.

Automobile manufacturers are focusing on incorporating IoT technologies to enable greater end-to-end connectivity of vehicles. With the collaboration of automotive manufacturers with software companies to build high bandwidth and low latency systems, these systems can work in high vibration and low-temperature environments when installed in light or heavy-duty vehicles. IoT increases the ease of accessibility of information for drivers and passengers to make their journey secure and convenient.

Growing emphasis on safety for drivers has brought advancement in technology, as automakers started integrating advanced driver assistance systems (ADAS) and digital monitoring systems (DMS) in cars. Parking assistance and traffic updating feature of ADAS and DMS assists the driver during their journey as these systems are installed in their infotainment system for monitoring and controlling purposes. These technological advancements in driver’s safety are creating a new growth opportunity for the automotive infotainment market.

Automotive Infotainment Market Report Scope

Market growth stage is high, and pace of the market growth is accelerating. The market is characterized by a high degree of innovation owing to the integration of the latest technologies, such as Internet of Things (IoT), Advanced Driver Assistance Systems (ADAS), and Augmented Reality (AR), to realize various innovative features that can improve drivers’ safety and enhance the driving experience.

The automotive infotainment industry is also characterized by a high level of merger & acquisition (M&A) and partnership activity by the market players. This is due to several factors, including launching innovative and advanced products in the market and to maintain strong brand position in the market.

List of Key Companies in the Automotive Infotainment Market

• Alpine Electronics
• Clarion Co., Ltd.
• Continental AG
• Delphi Automotive PLC
• Denso Corporation
• Harman International
• JVC KENWOOD Corporation
• Panasonic Corporation
• Pioneer Corporation
• Visteon Corporation