In-Vehicle Infotainment Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Installation Type (In-dash Infotainment and Rear Seat Infotainment), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Regional, By Competition
Published Date: April - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 23 Billion |
| CAGR (2023-2028) | 6.7% |
| Fastest Growing Segment | Passenger Cars |
| Largest Market | Asia-Pacific |
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Market Overview
Global In-Vehicle Infotainment Market worth USD 23 billion in 2022 is projected to depict significant growth during the forecast period with a CAGR of 6.7%.
The international In-Vehicle Infotainment (IVI) market is witnessing incredible growth, led by the evolution of automotive technology and demand for connected cars by consumers. The growth is being spurred by a synergy of factors in terms of merging multimedia entertainment systems, navigation systems, and telematics devices to transform the car experience.
With the accelerated evolution of connected, smart, and electric cars, the market for IVIs is set to grow at a very high pace over the next few years. Not only the existing markets, but emerging markets of Asia and Latin America too are offering high-potential avenues for future expansion and growth for this innovative business.
Some of the key players in the IVI market are well-known tech giants like Apple and Google, who are constantly innovating and redefining the in-car experience. Joining them are some of the leading automotive manufacturers like Tesla and BMW, which are also playing a major role in shaping the future of IVI systems.
As the IVI market continues to develop and expand, it is important to look at possible challenges and variables that can affect its future course. Data security and privacy are of utmost concern, as the merging of different systems introduces a greater need for protecting sensitive data. Moreover, possible regulatory developments could affect the advancement and use of IVI technologies.
Key Market Drivers
Consumer Demand for Connectivity and Entertainment
Advancements in Technology
Safety and Convenience Features
Regulatory Initiatives
Regulatory initiatives play a significant role in driving the adoption of IVI systems. Many countries have launched regulations promoting road safety through hands-free and voice-activated infotainment systems. Laws restricting the use of mobile phones while driving have encouraged the development and integration of IVI systems that allow drivers to make calls and access information without taking their hands off the wheel. Complying with these regulations is a key driver for automakers and IVI system providers.
Integration of Advanced Driver-Assistance Systems (ADAS)
Rise of Electric and Autonomous Vehicles
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Competition and Differentiation
Global Expansion of the Automotive Market
Consumer Expectations and Customization
Environmental Concerns and Fuel Efficiency
In an era of increasing environmental awareness, IVI systems are contributing to improved fuel efficiency. Advanced navigation systems can optimize routes to reduce fuel consumption, and real-time traffic data can help drivers avoid congestion and reduce idle time. By providing drivers with information and tools to drive more efficiently, IVI systems align with the broader goal of reducing the environmental impact of vehicles.
Key Market Challenges
Technological Complexity and Integration
One of the main issues confronting the in-vehicle infotainment industry is the growing technological complexity of integration. IVI systems need to integrate seamlessly with different vehicle components, such as sensors, cameras, GPS, and entertainment options. This degree of integration can prove difficult, as it involves coordination among several technology providers, automakers, and software developers.
Data Security and Privacy Concerns
As car infotainment systems grow more networked, they produce and accumulate massive amounts of data. Such data contains details of driver habits, vehicle performance, location, and personal choice. Securing such data against cybersecurity attacks and user privacy is increasingly a cause of concern.
Cyberattacks on networked vehicles have serious implications, such as unauthorized manipulation of vital vehicle functionality or theft of confidential user information. Requirements for effective cybersecurity and periodic software updates to plug security vulnerabilities increase the complexity and expense of IVI system design and maintenance.
Regulatory Compliance
For instance, distracted driving rules are an important issue. Several states in most parts of the world have laws banning or limiting usage of specific features and interactions when driving. IVI systems need to be implemented such that distractions are reduced as far as possible, and drivers' focus is still on the road.
Consumer Expectations and User Experience
There are high expectations for infotainment systems in vehicles, fueled by consumers' familiarity with smartphones and other connected devices. These expectations encompass user-friendly interfaces, quick response times, accurate voice recognition, and access to a broad selection of apps and services.
Meeting these demands without compromising driver safety is a delicate balancing act. User interface design and voice command integration need to be intuitive and user-friendly. Bad user experiences can result in frustration, distraction, and even safety issues.
Fragmented Ecosystem and Industry Collaboration
Manufacturers tend to develop their own branded IVI systems or deal with certain technology vendors, creating non-standardization. This can restrict innovation, reduce consumer choice, and escalate development costs. Furthermore, it makes it difficult for third-party developers to make applications and services available across vehicle models and brands.
Cost Constraints and Market Competition
The expense of creating, implementing, and supporting sophisticated in-car infotainment systems may be considerable. The reason for this cost burden comes from the necessity of investing in research and development, cybersecurity solutions, software updates, and hardware aspects.
Market rivalry exacerbates these cost pressures. Car manufacturers and technology suppliers have to find a balance between the need to provide innovative infotainment capabilities and the requirements of sustaining profitability. Cost-effective answers that add value to the consumer are vital for success within this competitive marketplace.
Additionally, the sensitivity of the market to economic downturns and consumer demand fluctuations can be challenging for IVI system providers. Economic uncertainties may result in decreased vehicle sales and, by extension, a drop in demand for infotainment systems.
Key Market Trends
Integration of Advanced Connectivity
One of the most prominent trends in the IVI market is the integration of advanced connectivity features. With consumers increasingly looking for seamless connectivity in their vehicles, automakers are integrating technologies like 4G and 5G connectivity, Wi-Fi hotspots, and Bluetooth into IVI systems. This enables passengers to browse the internet, stream media, and access smartphone apps from the vehicle directly, improving the overall in-car experience.
In addition, Vehicle-to-Everything (V2X) communication is revolutionizing IVI systems. V2X allows cars to exchange data with other vehicles, traffic, and pedestrians to enhance road safety and traffic management. IVI systems are the key to reporting and presenting the information to the driver, which makes it the most important trend in the field.
Infotainment Personalization
Consumers are increasingly demanding personalized experiences in their cars, just like they have for their phones and other digital platforms. IVI systems are answering this call by providing personalized infotainment. These systems utilize AI and machine learning algorithms to examine user preferences, driving patterns, and historical data to customize content and suggestions.
Personalization encompasses various aspects, including customized music playlists, suggested routes based on previous destinations, and even adjusting climate control settings to individual preferences. The goal is to create a more comfortable and enjoyable driving experience for each user.
Voice Recognition and Natural Language Processing
Voice recognition is also especially important to minimize driver distractions since it supports hands-free control of infotainment, navigation, and communications systems. Incorporation of virtual assistants such as Amazon's Alexa and Google Assistant into IVI systems further contributes to their increased functionality and useability.
Augmented Reality (AR) Navigation
AR navigation is proving to be a game-changer in the IVI space. This technology projects real-time information, including navigation cues, traffic information, and points of interest, onto the driver's line of sight through the windshield. AR navigation not only offers concise and contextual directions but also makes the road safer by minimizing the need for the driver to take his eyes off the road.
Car makers and tech firms are designing AR head-up displays (HUDs) in seamless integration with IVI systems. As it becomes more economical and widespread to access AR navigation, it can become a de rigueur in premium and possibly mid-range automobiles.
Content Streaming and In-Car Entertainment
In-car entertainment goes beyond the ordinary radio and CD player. IVI systems can now provide ample options for streaming content, from access to music, films, podcasts, and audiobooks. IVI systems have the streaming services like Spotify, Apple Music, and Netflix built-in, allowing the passengers to use their favorite media on the go.
The advent of self-driving cars will continue to boost demand for in-car entertainment. With occupants no longer required to pay attention to driving, they will have ample time to access entertainment and infotainment features.
Advanced Driver Assistance Systems (ADAS) Integration
One of the prominent trends is the inclusion of advanced driver assistance systems (ADAS) in IVI systems. IVI displays are increasingly being utilized to show vital information of ADAS features such as adaptive cruise control, lane-keeping assist, and collision avoidance. Integration increases the awareness of the driver as well as the overall safety of the vehicle.
Moreover, IVI systems can feed real-time data and notifications from ADAS sensors and cameras, enabling drivers to make informed decisions during driving. The synergy between IVI and ADAS is one of the major drivers of innovation in the automotive sector.
Electric and Autonomous Vehicles
The trend towards electric vehicles (EVs) and autonomous vehicles (AVs) is impacting IVI trends. EVs usually include sophisticated IVI systems that display battery status, charging stations, and energy use. IVI systems in AVs are central to offering entertainment and information to passengers who are no longer responsible for driving.
AV development is also supporting the expansion of mobile office capabilities in IVI systems. The time spent in transit can be used more efficiently by passengers, who can work or do other things while the vehicle performs the driving functions.
Sustainability and Eco-Friendly Features
Sustainability and ecofriendliness are becoming highly relevant in the automotive sector, and IVI systems are not an exception. Car manufacturers are integrating ecolog-friendly elements in IVI systems, like giving energy-efficient driving advice and suggesting information about surrounding electric vehicle charging stations.
IVI systems are also working towards sustainability in the form of decreasing the necessity for physical maps and printed resources, which tends to reduce the usage of paper and waste. This is all part of the wider industry initiative towards environmental sustainability.
Segmental Insights
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Installation Type Insights
The Global In-Vehicle Infotainment market provides two primary types of installationsOEM (Original Equipment Manufacturer) and Aftermarket. OEM installations are built into the vehicle during production, ensuring smooth integration and functionality. Aftermarket installations, however, enable vehicle owners to upgrade or enhance infotainment features after purchase. As technology continues to evolve at an expedited pace, both types of installations are growing, but the OEM segment of the market prevails, mainly because it is directly related to new car purchases. It's also relevant to mention the increased impact of smartphone mirroring software, which is inducing growth in both markets through the facilitation of added functionality and convenience.
Vehicle Type Insights
The Global In-Vehicle Infotainment industry is becoming diverse, with mixed trends being realized across different models of vehicles. Passenger vehicles are a major component of this market because of the huge demand for luxury cars featuring sophisticated infotainment systems. These systems support navigation, Bluetooth connectivity, as well as integration of smartphones and other features. Conversely, the commercial vehicle segment is gradually gaining momentum, fueled by the demand for fleet management and long-haul transportation services through real-time information systems. Accordingly, various types of vehicles are influencing the Global In-Vehicle Infotainment market dynamics in their own ways.
Regional Insights
Within the North America region, the growth in the use of in-vehicle infotainment systems is chiefly fueled by consumers' high disposable income and need for luxury vehicles with sophisticated features. Europe, however, has a strong automobile industry and presence of prominent automotive firms, thus driving demand for in-vehicle infotainment systems in the region. In the Asia-Pacific market, the increasing demand for better driving experiences combined with a flourishing automobile industry, particularly in China and Japan, is likely to contribute to the expansion of the in-vehicle infotainment market.
Recent Developments
- August 2022Maruti entered the streakof carrying advancement in the automotive infotainment systems by introducingits all-new Baleno.
- March 2022Acura MDX launched its newType S version, which remained popular among car enthusiasts—made incredibleefforts to design this fleet based on current consumer expectations. The carhas a touchpad infotainment system with an amazing OLED display.
Key Market Players
- Denso Corporation
- Robert Bosch GmbH
- Continental AG
- Harman InternationalIndustries Inc.
- Magnetic Marelli SpA
- Kenwood Corporation
- Alpine Electronics Inc.
- Mitsubishi Electric Corporation
- Visteon Corporation
- Pioneer Corporation
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