In-Vehicle Infotainment Market Forecasts to 2030 - Global Analysis By Vehicle Type, Component, Location, Connectivity, Form Factor, Propulsion, Display Size, Application and by Geography

According to Stratistics MRC, the Global In-Vehicle Infotainment Market is accounted for $18.63 billion in 2024 and is expected to reach $40.04 billion by 2030 growing at a CAGR of 13.6% during the forecast period. The integrated multimedia systems known as in-car infotainment (IVI) systems are made to offer a variety of communication, navigation, and entertainment options inside a car. In order to provide drivers and passengers with access to a wide range of services and applications while driving, these systems often integrate internet connectivity, audio, video, and vehicle control features. In order to improve the driving experience, modern IVI systems frequently come equipped with voice recognition, touchscreen interfaces, and smartphone integration.

According to the International Data Corporation (IDC), the global market for in-vehicle infotainment systems is expected to experience significant growth over the next five years, driven by advancements in technology and increasing consumer demand for enhanced connectivity and entertainment features in vehicles.

Market Dynamics:

Driver:

Increasing customer requirements

Vehicles with cutting-edge connectivity and entertainment systems are more in demand from customers looking to improve their driving experience. Demand for advanced IVI systems is being driven by the need for seamless smartphone integration, streaming service access, and real-time information like traffic updates and weather forecasts. Customers expect the same technological advancements in their cars as they do in other areas of their lives as they grow accustomed to them. Additionally, in order to satisfy customer expectations and set themselves apart in a crowded market, automakers are being compelled by this trend to create and incorporate state-of-the-art IVI solutions.

Restraint:

High price of cutting-edge IVI systems

The incorporation of advanced technologies like sophisticated processors, high-resolution displays, and advanced connectivity features can significantly increase the cost of developing and implementing advanced IVI systems. Significant R&D expenses and increased manufacturing costs are frequently associated with these systems. One reason why these systems aren't as common in more affordable cars is their high cost, which can be particularly problematic for lower-end models. Furthermore, manufacturers and customers may find it difficult to afford because of the continuous costs associated with software upgrades and maintenance.

Opportunity:

Increase in self-driving and electric cars

IVI systems have new opportunities as autonomous vehicles (AVs) and electric vehicles (EVs) become more popular. Sophisticated IVI systems can improve the advanced technological integrations that EVs frequently have to manage energy consumption, charging status, and range optimization. As drivers give up control, IVI systems can be extremely helpful to AVs by offering real-time updates, entertainment, and connectivity. Moreover, the creation of IVI systems specifically designed to meet the requirements of AVs and EVs may lead to the opening of new market niches and uses, spurring industry expansion.

Threat:

Strong market rivalry

The IVI market is crowded with competitors fighting for a larger share of the market. The competition to provide the newest and most sophisticated IVI systems is fierce among established automakers, tech firms, and newcomers. There may be price wars, lower profit margins, and more pressure to differentiate products as a result of this fierce competition. Additionally, it can be difficult and expensive for businesses to stand out in the crowded market, but they must constantly innovate and provide distinctive features.

Covid-19 Impact:

The in-vehicle infotainment (IVI) market was significantly impacted by the COVID-19 pandemic, which also caused supply chain disruptions, production delays, and changes in consumer priorities. Critical component shortages during the pandemic, caused by manufacturing restrictions and disruptions in the global supply chain, impacted the timely delivery of IVI systems. Furthermore, the demand for non-essential automotive features declined as a result of consumers cutting back on spending and reorienting their priorities to necessities during economic uncertainty. As consumers looked for better in-car entertainment and connectivity options, the pandemic also accelerated trends toward digitalization and connectivity, increasing interest in advanced IVI solutions.

The Passenger Car segment is expected to be the largest during the forecast period

The market for in-vehicle infotainment (IVI) is dominated by the passenger car segment. The strong desire for improved connectivity, entertainment, and navigation features in consumer cars has led to a strong demand for sophisticated infotainment systems, which is the reason for this dominance. In order to satisfy consumer demands for seamless smartphone integration, high-resolution displays, and voice-activated features, passenger cars are becoming more and more outfitted with complex IVI systems. Moreover, continuous technological advancements and rising customer expectations for a personalized and connected driving experience are contributing factors to this segment's growth.

The 5G segment is expected to have the highest CAGR during the forecast period

The 5G segment of the in-vehicle infotainment (IVI) market is anticipated to grow at the highest CAGR. The shift from 3G/4G to 5 G technologies is propelling substantial expansion because of 5G's increased connectivity, faster data rates, and reduced latency. Real-time data transmission and the smooth integration of sophisticated IVI features like cloud-based apps, high-definition streaming, and improved vehicle-to-everything (V2X) communication are made possible by this next-generation network technology. Additionally, the growing need for advanced infotainment services and applications is supported by 5G's increased bandwidth and dependability, which positions it as a critical enabler of upcoming automotive innovations and propels the IVI market's robust growth.

Region with largest share:

The market for in-vehicle infotainment (IVI) is dominated by North America. The advanced automotive industry in the region, the strong presence of leading automotive and technology companies, and the high demand for cutting-edge technology by consumers are all credited with this dominance. Advanced features like integrated connectivity, high-resolution displays, and improved infotainment capabilities are prioritized by North American consumers, which have led to a notable uptake of complex IVI systems. Furthermore, North America's dominant position in the market is further supported by the region's concentration of significant automakers and technology providers, which encourage ongoing innovation and investment in IVI technologies.

Region with highest CAGR:

In the in-vehicle infotainment (IVI) market, the Asia-Pacific region is anticipated to grow at the highest CAGR. The rapidly growing automotive industry in nations like China, India, and Japan, along with rising consumer demand for better connectivity and sophisticated infotainment features, are the main causes of this growth. The rise in IVI system adoption is partly explained by the region's expanding middle class, rising car ownership, and large investments in automotive infrastructure and technology. Moreover, the Asia-Pacific region's concentration of significant automakers and tech firms fosters continuous innovation and development, which accelerates market expansion.

Key players in the market

Some of the key players in In-Vehicle Infotainment market include Mitsubishi Electric Corporation, Clarion Corporation, Robert Bosch Gmbh, Delphi Automotive PLC, Harman International, Garmin Ltd, Pioneer Corporation, JVC Kenwood Corporation, Continental AG, Panasonic Corporation, Denso Corporation, Alps Alpine Co Ltd, Visteon Corporation and Fujitsu.

Key Developments:

In July 2024, Bosch Global Software Technologies (BGSW) and GMR Group have entered a Special Purpose Vehicles (SPVs) arrangement to implement the smart metering program for the cities of Agra, Varanasi, and Prayagraj in India. GMR Group combines its expertise in infrastructure management with BGSW's value in designing and building state-of-the-art smart metering system architecture.

In May 2024, Mitsubishi Electric Corporation and Musashi Energy Solutions Co., Ltd., a subsidiary of Musashi Seimitsu Industry Co., Ltd., announced their signing of a partnership and co-development agreement on May 14 for Innovative Energy Storage Devices to be incorporated into Innovative Energy Storage Modules, and Battery Management Systems (BMSs) that monitor and control battery usage for railway operators and rolling stock manufacturers.

In March 2023, Alps Alpine and Tata Elxsi announce a strategic long-term agreement for growing vehicle software development sectors. Tata Elxsi, a global leader in design and technology services, has been chosen by Alps Alpine, the leading Japanese manufacturer of electrical components and in-vehicle information systems, to establish a Global Engineering Centre (GEC) at its campus in Thiruvananthapuram.

Vehicle Types Covered:

• Passenger Car
• Light Commercial Vehicle (LCV)
• Heavy Commercial Vehicle (HCV)

Components Covered:

• Hardware
• Software
• Service

Locations Covered:

• Front Row Infotainment Systems
• Rear Row Infotainment Systems

Connectivity's Covered:

• 3G/4G
• 5G

Form Factors Covered:

• Embedded
• Tethered
• Integrated

Propulsions Covered:

• IC Engine
• Electric

Display Sizes Covered:

• Less than 5"
• 5.1" - 10"
• More than 10"

Applications Covered:

• Navigation
• VPA (Virtual Personal Assistant)
• App Store
• Music
• Rear Seat
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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