Passenger Cars Automotive Infotainment Systems Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented By Installation Type (In-dash Infotainment and Rear Seat Infotainment), By Distribution Channel type (OEM, Aftermarket) By Region, 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 18 Billion |
| CAGR (2023-2028) | 8.8% |
| Fastest Growing Segment | Rear Seat Infotainment |
| Largest Market | Asia-Pacific |
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Market Overview
Global Passenger Cars Automotive Infotainment Systems Market has been valued at USD 18 billion in 2022 and is expected to project strong growth during the forecast period with a CAGR of 8.8% during 2028.
Automotive infotainment is a car technology that entertains and informs the passengers and driver. The system consists of integrated A/V interfaces, touchscreens, keypads, and other devices to offer navigation services, hands-free phone integration, vehicle voice commands, parking aid, climate control, two-way communication devices, internet connection, and other security services. The features enhance vehicle performance efficiency and enhance safety and driving experience. The car industry is a constantly evolving industry, with main competitors constantly competing for new technology and advancements in existing technology. An automobile infotainment system is an information and multimedia system that provides entertainment and information to passengers as well as drivers. The system consists of a digital display screen, also referred to as a head unit, which controls different functions such as media, information, and climate control for cabin temperature. Besides, the head unit provides modules of information to include navigation, telematics information, as well as access to the internet. Key players in the auto industry continually compete against each other by deploying new technology and newer updates over the existing technology. Among some of the foremost trends in the market, which include such items as in-car payment systems and the delivery of telematics information to OEMs and occupants driving the car, is that of the combining of data and calling sim cards.
Key Market Drivers
Consumer Demand for Connectivity and Entertainment
One of the key drivers of the world passenger cars Passenger Cars Automotive Infotainment Systems market is the constantly increasing consumer demand for connectivity and entertainment options in their vehicle. Today's consumers want their vehicle to have smooth integration with their smartphone, access to streaming media, and a vast variety of digital content. Infotainment systems have progressed to address these needs by supporting connectivity features like Apple CarPlay and Android Auto, allowing customers to project the smartphone interface on the vehicle display. These systems also provide users with access to music, podcasts, and audiobooks, enhancing the driving experience.
Growth in In-Car Technology
Growth in in-car technology is another key driver of the passenger cars Passenger Cars Automotive Infotainment Systems market. Manufacturers are constantly making more powerful processors, higher resolution displays, and more sophisticated user interfaces. These advances in technology enable smoother, more responsive infotainment systems to execute a wider variety of functions. Gesture control, natural language processing, and augmented reality screens are some of the new technologies advancing the user experience within infotainment systems. Such developments are luring tech-conscious buyers and fueling market growth.
Integration of Voice Recognition
The incorporation of voice recognition technology is transforming the way passengers interact with infotainment systems. Voice-operated controls allow drivers to navigate, place calls, send texts, and control entertainment systems without removing their hands from the steering wheel. This makes travel safer by minimizing distractions and the removal of hands from the wheel. Voice recognition continues to become more natural and context-aware, enabling drivers to do more things with voice commands. As consumers become increasingly interested in safer and more convenient methods of engaging with their vehicles, this driver is poised to have a big influence on the infotainment systems market.
Increased Focus on Safety
Safety is of the utmost importance in the automobile industry, and infotainment systems are transforming to improve both passive and active safety features. Advanced driver-assistance systems (ADAS) are combined with infotainment systems to deliver real-time data and alerts to drivers. For instance, infotainment systems have the capability to show lane departure warnings, collision notifications, and blind-spot data. Such features not only increase safety but also help grow the market since customers are choosing vehicles with better safety technologies.
Connectivity to IoT and Smart Homes
Smart home and IoT systems are integrated with infotainment systems, leading to an integral experience for customers. Smart home devices are also connected by infotainment systems, where the user is enabled to monitor or control his home lighting, security systems, or thermostats from inside a vehicle. Internet of Things connectivity also makes car-to-home as well as home-to-car communications possible. For example, drivers can monitor whether they left their garage door open or get notifications from their smart home devices while driving. This connected driver factor benefits convenience and appeals to consumers looking for an all-encompassing digital lifestyle.
Autonomous and Electric Vehicles
Autonomous and electric vehicle (EV) growth is transforming infotainment systems. Autonomous cars need sophisticated infotainment systems that entertain and inform passengers while in self-driving modes. This has resulted in the creation of immersive entertainment features, such as large screens, augmented reality, and interactive content. EVs, however, focus on efficiency and sustainability. Infotainment systems in EVs tend to have features that maximize energy usage, offer real-time battery status, and find charging stations. Since autonomous and EV markets keep expanding, the need for advanced infotainment systems will increase.
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Regulatory Mandates and Safety Standards
Government regulations and safety standards are shaping the development of infotainment systems. These regulations focus on minimizing distractions and ensuring that infotainment interfaces are intuitive and easy to use while driving. For instance, some regions have restrictions on the use of certain features while the vehicle is in motion. Infotainment systems must comply with these regulations, driving manufacturers to design systems that prioritize safety.
Key Market Challenges
Rapid Technological Developments
One of the major challenges in the Passenger Cars Automotive Infotainment Systems market is the rate of technological developments. The technology of infotainment is developing at a fast pace, with new features and functions being introduced frequently. Although this rapid development improves the user experience, it also challenges manufacturers to keep pace with the latest developments. Producers have to spend a lot on research and development in order to remain competitive and fulfill customer demands. Moreover, the constant introduction of new technologies may result in reduced product lifecycles, which makes it difficult to maintain older infotainment systems and keep them updated.
Growing Complexity of Systems
Infotainment systems are growing more complex, with an ever-increasing variety of features ranging from navigation and entertainment to connectivity and safety functions. The added complexity makes the systems harder to design, develop, and maintain. While manufacturers have to find a balance between delivering an exhaustive set of features and not letting the user interface become confusing and distracting, keeping the complexity under control is a big challenge as customers ask for more from their infotainment systems.
Fragmentation of Operating Systems
The automotive sector is confronted with fragmentation in the selection of operating systems for infotainment systems. Multiple manufacturers might employ different operating systems, such as proprietary operating systems, Android-based systems, or Apple CarPlay. Fragmentation can result in compatibility problems and complexity in the development of software. Making infotainment systems compatible across different operating systems and allowing them to integrate with smartphones and other devices without any problems is an important challenge. Manufacturers might have to invest in several development streams to accommodate various platforms, and this might drive up the cost and time needed for development.
Security and Privacy Issues
As infotainment systems become more networked, they collect and transmit considerable amounts of information. This might include information about the user, location information, and vehicle information. Safeguarding this information against cyberattacks and maintaining user privacy are essential concerns. Privacy invasions and data breaches can lead to serious outcomes, such as legal liability and reputational damage. Car makers need to install strong cybersecurity protocols and adhere to data protection regulations, which increase the cost and complexity of infotainment system development.
Distracted Driving Concerns
Infotainment systems with extensive feature sets and content can be a source of distracted driving, which is a major safety issue. Drivers can get immersed in accessing infotainment features, diverting their focus from the road. Regulators are increasingly concerned about distracted driving. Manufacturers need to develop infotainment systems with user interfaces that reduce distractions and ensure safety. Meeting consumer demand for sophisticated features while ensuring safety is an ongoing challenge.
Compatibility with Older Vehicles
Several cars currently on the market have older infotainment systems that do not have all of the features and connectivity features that newer systems enjoy. It can be a problem for manufacturers to ensure compatibility and offer updates to older cars. Manufacturers will need to create and support multiple generations of infotainment systems, which is a resource-draining endeavor. Maintaining cost-efficient methods for updating and enhancing older systems while continuing to work on new development is a delicate balancing act.
Consumer Resistance to Change
As consumers increasingly expect sophisticated infotainment functions, they can also resist changing the user interface and functionality of these systems. People become used to certain layouts and controls and resist changing to new ones.
Key Market Trends
Integration of Sophisticated Connectivity Features
One of the most notable trends in the Passenger Cars Automotive Infotainment Systems market is the integration of sophisticated connectivity features. Today's consumers want their cars to be extensions of their digital existence. Consequently, infotainment systems are becoming more and more central connectivity points. Infotainment systems today come with features like Apple CarPlay and Android Auto, enabling intuitive connectivity with smartphones. This integration allows users to mirror their smartphone interfaces, access apps, make calls, send messages, and stream content via the car's display. The increasing trend of greater connectivity not only enhances the user experience but also compensates for safety issues by providing a familiar and convenient interface for smartphone use.
Growth of Over-the-Air (OTA) Updates
Over-the-air (OTA) software updates have become more prominent in the Passenger Cars Automotive Infotainment Systems market. Like smartphone updates, OTA updates enable manufacturers to remotely and wirelessly push software updates and bug fixes to infotainment systems. OTA updates increase the versatility and longevity of infotainment systems. Manufacturers can make system performance improvements, introduce new features, and eliminate security vulnerabilities without having consumers make visits to dealerships for updates. This is consistent with consumer demand for periodic software updates and adds to higher customer satisfaction.
Growing Adoption of Voice Recognition
Voice recognition technology is seen to be largely adopted in infotainment systems. Sophisticated natural language processing and voice control are empowering drivers and riders to communicate more intuitively and safely with infotainment systems. Voice recognition integration minimizes distractions, where drivers can engage different functions like navigation, hands-free calls, messaging, and media playback by voice commands. As the tech gets advanced, it makes overall user experience improved, making the infotainment system safer and easier to use.
Personalized User Profiles and AI Support
Personalized user profiles and artificial intelligence (AI) support are new trends in automotive infotainment systems. The systems are meant to identify individual passengers and drivers, adapting settings and preferences. AI assistants offer recommendations and information personalized to the user. Personalized user profiles provide convenience through automatic adaptations of settings like seat position, climate control, and infotainment settings based on user identification. AI-based assistants, like virtual voice-activated friends, provide real-time data, recommendations, and entertainment choices based on individual tastes. This is consistent with the larger trend towards personalized, adaptive in-car experiences.
More Advanced In-Car Entertainment Choices
In-car entertainment options have grown extensively, with infotainment systems providing access to a wide variety of content. Streaming services such as music, podcasts, audiobooks, and video streaming are being integrated more and more into infotainment platforms. Passengers can experience a vast array of entertainment options while traveling, making travel more enjoyable and less monotonous. Infotainment systems are also now being equipped with high-definition screens, premium audio systems, and larger screens, improving the overall in-car entertainment experience.
Integration of Augmented Reality (AR)
Augmented reality (AR) is entering the auto infotainment space. AR displays project digital content onto the actual world view from the windshield or other windows of the vehicle. The displays provide navigation guidance, points-of-interest information, and safety-related information. AR makes navigation easier and gives drivers real-time, context-dependent information without distracting them from driving. For instance, AR can point out future turns, show warning signs of hazards, and offer information on nearby shops. This trend helps enhance navigation accuracy and safety.
Sustainability and Eco-Friendly Features
Sustainability and environmentally friendly features are increasingly taking center stage in automotive infotainment systems. Infotainment systems are programmed to offer information regarding vehicle efficiency, such as energy consumption and emissions. These features assist drivers in making environmentally friendly choices while on the road. For instance, infotainment systems can provide fuel-efficient driving tips or show real-time energy consumption information in electric vehicles (EVs). This is part of the overall trend toward environmental stewardship in the automotive sector.
Segmental Insights
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Distribution Channel Type Analysis
The market is divided into two segments based on distribution channelOEM and aftermarket. In 2022, the OEM sector held the greatest market share. This is due to the superior dependability and performance of OE vehicle infotainment systems as compared to aftermarket devices, resulting in a larger market share. Because of the fast adoption of modern automotive infotainment technology across multiple automotive aftermarkets, the aftermarket industry is predicted to increase considerably throughout the forecasted period. Furthermore, OEM automobile entertainment systems are both very dependable and expensive; as a result, many buyers may pick for a less expensive aftermarket solution that performs almost as well as OEM-level performance. As a result, these factors are projected to fuel market growth.
Regional Insights
The Asia Pacific region dominates the in-vehicle infotainment industry. Due to the availability of labour at cheaper salaries, lower manufacturing costs, lax car safety requirements, and government pushes for FDIs in the area, it had higher growth in vehicle production than Europe and North America. Countries such as China, South Korea, India, and Japan are mostly responsible for vehicle manufacture. Thus, rising vehicle production, changing customer tastes, and rising middle-class per capita income are driving vehicle demand and motivating automotive OEMs to improve manufacturing capacity and provide infotainment systems in lower-priced vehicles as well. Because of the larger manufacturing rate of automotive cars and parts, Asia Pacific had the largest automotive infotainment market share. Furthermore, key market participants are from the Asia Pacific area.
North America is predicted to develop at the fastest CAGR during the forecast period, owing to the region's faster adoption of innovative automotive technology.
Recent Developments
Mercedes-Benz AG and Qualcomm Technologies, Inc. established a partnership in September 2022 to deploy Snapdragon Digital Chassis technologies to offer the most sophisticated digital capabilities to future Mercedes-Benz automobiles. Qualcomm Cockpit Platforms are being used by Mercedes-Benz to power intuitive and intelligent infotainment systems. These next-generation solutions will incorporate very intuitive artificial intelligence experiences for in-car virtual support.
Mercedes-Benz Group AG announced a relationship with ZYNC, a California-based technology startup, in June 2022. The latter business will supply the OEM with a premium in-car digital entertainment platform as part of this collaboration.
Maruti entered the trend of carrying development in automobile entertainment systems by unveiling its all-new Baleno in August 2022. The vehicle is outfitted with Smart Play Pro+, a cutting-edge touchscreen infotainment system with a large 9-inch display for passengers. While it has all of the features of the Smart Play Pro, the business has added additional navigations, vehicle play, and innovations based on constructive input from auto enthusiasts.
Acura MDX released its new Type S version in March 2022, which remained popular among automobile enthusiasts—made tremendous efforts to develop this fleet based on current customer expectations. The vehicle features a touchpad infotainment system with an incredible OLED display.
Harman International bought Apostera, an augmented reality (AR) and mixed reality (MR) software provider, in February 2022. Harman hopes to increase its automotive product line through the development of AR and MR technologies, since AR may be used for head-up displays and infotainment systems.
Denso created Global Safety Package 3, an active safety system meant to increase vehicle safety by offering them high sensing capabilities of their surroundings, in January 2022. It combines the functionality of a millimeter-wave radar sensor with a vision sensor to help the driver in securely operating the vehicle. This product is found in the Hino Ranger, Lexus NX, Toyota Noah, and Voxy.
Key Market Players
- Denso Corporation
- Robert Bosch GmbH
- Continental AG
- Harman InternationalIndustries Inc.
- Magnetic Marelli SpA
- Kenwood Corporation
- Alpine Electronics Inc.
- Mitsubishi ElectricCorporation
- Visteon Corporation
- Pioneer Corporation
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By Distribution Channel Type |
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