Global In Car Apps Market - 2023-2030

Market Overview

The Global In Car Apps Market reached US$ 53.1 billion in 2022 and is expected to reach US$ 102.9 billion by 2030, growing with a CAGR of 8.5% during the forecast period 2023-2030.

The market is witnessing the emergence of advanced technologies such as artificial intelligence (AI), machine learning, and natural language processing, which enhance the capabilities of in-car apps and hence act as potential market drivers for the technology. Furthermore, the future of the global in car apps market looks promising, driven by ongoing advancements in connectivity, autonomous driving technologies, and the increasing integration of smart devices and IoT solutions in vehicles.

North America holds a major share of the global in car apps market and U.S. holds more than 82.3% at the regional level due to high consumer purchasing power, advanced automotive technologies, and a strong presence of major technology and automotive companies. Government support and regulations also play a role in shaping the in-car apps market in North America, with initiatives aimed at promoting the safe and responsible use of in car apps while driving.

Market Dynamics

Rising Adoption of Autonomous and Electric Vehicles

Autonomous vehicles allow passengers to engage in activities other than driving. In car apps play a crucial role in providing entertainment, productivity tools, and personalized experiences during the journey. Passengers can use these apps for various purposes, such as streaming media, accessing social media, browsing the internet, or even conducting business activities. As autonomous vehicles become more common, the demand for engaging and interactive in-car apps is expected to rise.

The electric vehicle has shown significant growth in the past decade. Despite supply chain problems and the ongoing COVID-19 pandemic, electric car sales hit a new high in 2021. Sales nearly doubled to 6.6 million, representing a sales share of approximately 9%, compared to 2020, increasing the total number of electric vehicles on the road to 16.5 million. In 2021, the sales share of electric vehicles rose by 4 percentage points. According to the Net Zero Emissions by 2050 Scenario, there will be more than 300 million electric vehicles on the road by 2030, and they will make up 60% of all new car sales. Their sales share must rise by less than 6% percentage points annually to be on track with the Net Zero Scenario. Thus the increased penetration of electric vehicles creates an opportunity for in car apps that offer various applications to the system.

Growing Smartphone Integration

In car apps have shown tremendous growth in the past few years and the growing integration of smartphones has improved the overall functionality of these apps. Smartphone integration is used in various applications such as apple carplay and android auto, navigation and mapping apps, music and media apps and voice control and virtual assistants. Various companies are encouraging smartphone integration in vehicles leading to driving the market share.

For instance, on July 13, 2021, millions of BMWs received the updated BMW News app during the last few days. With this update, the News app is transformed into a thorough, practical, and knowledgeable in-car news service that can be customized for the user. This indicates that BMW is now providing a better service to satisfy the increased demand from customers for news-on-demand and informational podcasts. The inclusion of news feeds, customized, intelligent news filtering, and noticeably better audio quality are the main new features

Cost and Affordability

Affordability plays a crucial role in the adoption and usage of in-car apps. The cost of accessing or subscribing to these apps is too high leading to limiting their market penetration. Some in-car apps require a subscription or additional fees to access premium features or content. If the costs are perceived as too high by consumers, it may deter them from utilizing the apps or opting for alternative solutions.

In addition to the cost of the app itself, consumers also consider the costs of data usage or connectivity required for the app's functionality. High data costs or limited availability of affordable data plans can impact the adoption of data-intensive in-car apps. Furthermore, in car apps often rely on advanced hardware components and connectivity options, such as high-resolution displays, powerful processors, and stable internet connections. The cost of integrating these hardware components into vehicles or upgrading existing systems to support the apps can be a barrier.

COVID-19 Impact Analysis

The COVID-19 pandemic had a significant impact on the automotive industry as a whole, including the in car apps market. The implementation of lockdowns, travel restrictions, and social distancing measures resulted in reduced vehicle usage and disrupted supply chains. As a result, the demand for in car apps and related services was affected, as people's mobility and driving habits were significantly altered during the pandemic.

However, as restrictions eased and people gradually returned to normal activities, the demand for in car apps started to recover, driven by the need for navigation, contactless services, and enhanced connectivity while on the road.

Segment Analysis

The global in car apps market is segmented based on operating system, vehicle, application and region.

Growing Demand For Visual Directions, And Real-Time Traffic Escalates The Segmental Growth Of Navigation And Maps

The navigation and maps segment is expected to show the highest share in the global in car apps market, especially in regions like North America and Asia-Pacific showing the highest CAGR in the forecast period. Navigation and map apps enhance driver convenience by simplifying the process of finding locations, addresses, and points of interest. Drivers can use these apps to search for nearby restaurants, gas stations, parking facilities, and other essential services.

Additionally, these apps often provide additional information such as user reviews, ratings, and opening hours, enabling drivers to make informed decisions while on the road. For example, Yelp and TripAdvisor integration within navigation apps allows drivers to explore and discover new places based on recommendations and reviews from other users. Companies are also investing in boosting segmental growth.

For instance, on February 22, 2023, Mercedes-Benz planned to use updated in-car geospatial data and navigational capabilities from Google Maps Platform to create its brand of navigation. Through the collaboration, Mercedes-Benz is able to produce a driving experience that combines the dependable, reliable information from Google Maps with its unique luxury brand and feel.

Geographical Analysis

North America's High Adoption Rate Of Advanced Automotive Technologies And Connected Vehicles, Contributing To The Demand For In Car Apps

North America is at the forefront of technological advancements in the automotive industry. Major players in the region invest heavily in research and development to enhance in car app functionalities and user experiences. The market benefits from the region's robust infrastructure, high-speed networks, and advanced connectivity solutions. U.S. holds more than 2/3rd in the region and is expected to grow at a significant rate due to technological advancements, strong investments, and a favorable ecosystem for collaboration and innovation.

U.S. based technology companies, including Apple, Google, and Microsoft, have invested significantly in the development of in-car app platforms and services. These companies offer smartphone integration solutions, voice assistants, and app ecosystems that allow users to access a wide range of apps and services while on the road.

Competitive Landscape

The major global players include: Apple Inc, Google LLC, Microsoft Corporation, Harman International Industries, Inc, Bosch Automotive Service Solutions Inc, Telenav, Inc, TomTom N.V., Blackberry Limited, Aptiv PLC and Nvidia Corporation.

Why Purchase the Report?

• To visualize the global in car apps market segmentation based on operating system, vehicle, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of in car apps market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global in car apps market report would provide approximately 61 tables, 60 figures and 211 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies