PUBLISHER: BIS Research | PRODUCT CODE: 1180152
PUBLISHER: BIS Research | PRODUCT CODE: 1180152
“Global In-Vehicle Payments Market to Reach $25,918.6 Million by 2031.”
The global in-vehicle payments market is projected to reach $25,918.6 million by 2031 from $4,900.0 million in 2021, growing at a CAGR of 18.15% during the forecast period 2022-2031. The recent surge in the adoption of in-vehicle payment services across developed economies and their growing global awareness is shifting automakers' focus to equip their upcoming models with the in-vehicle payment system. For example, well-known automakers, including Honda, General Motors, Mercedes, and others, have already begun to offer in-vehicle payment services in recent years. This shift in original equipment manufacturer (OEM) focus toward developing in-car payment services is expected to drive growth in the in-vehicle payments market in the coming years.
The in-vehicle payment system is a payment technology-equipped automotive system. This system enables the driver to make payments or transactions with various companies or applications, including gas/charging stations, parking, toll collection, and others. Furthermore, the system allows passengers to make purchases directly from their vehicle dashboard, saving time and making the process more convenient. As a result, the growing public demand for timely and efficient contactless transactions is driving the adoption of these services.
In-vehicle payment services enable drivers to order and pay for food, coffee, gasoline, groceries, parking spaces, and tolls without leaving the vehicle. MasterCard, Visa, and PayPal, among others, are collaborating with automakers around the world to develop and integrate new payment processes and methods in vehicles. For instance, in January 2019, Visa announced a partnership with SiriusXM to launch vehicle-based payments. Other automakers, including Volkswagen AG, Honda Motor Co. Ltd., and Ford Motor Co., have also created in-vehicle payment solutions and platforms.
Passenger vehicles are currently credited with the highest share of the demand for in-vehicle payments. Some key factors that have enabled the technical acceptance of these vehicles are high demand, higher registration of passenger cars, and less operating difficulty as compared to commercial vehicles. The need for passenger vehicles is growing due to the demand for heavy and luxury vehicles and an increase in the number of cars driven by diesel engines. Additionally, increased population, urbanization, and disposable income have significantly increased passenger vehicle production.
The gas/charging stations segment accounts for the largest market. A growing number of locations support the ability to pay from an app while driving. One must enter their pump number to begin pumping or charging their vehicle. Contactless payment readers can read payment information from a compatible credit card or a digital device such as an Apple CarPlay. The general idea behind the CarPlay update is that users can pay for gas using their car's touchscreen instead of a credit card.
The credit/debit card and apps segment accounts for the largest market. Debit and credit cards are the most popular payment methods and are widely used to make in-vehicle payments. They provide a convenient way to pay without cash or checks and are accepted almost everywhere.
North America currently holds the largest share of the global in-vehicle payments market. The North America region comprises the U.S., Canada, and Mexico. The presence of technology providers, minimal miscalculations, product customization, and reduced production timescale are the primary driving factors of the North America in-vehicle payments market. The U.S. government's policies for research and development activities regarding in-vehicle payments also hasten the region's adoption of in-vehicle payments.
Following are the drivers for the global in-vehicle payments market:
Following are the challenges for the global in-vehicle payments market:
The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.