Automotive Infotainment Market (By Product Type: Audio Unit, Display Unit, Heads-Up Display, Navigation Unit, and Communication Unit; By Fit Type: OEM Fitted and Aftermarket; By Vehicle Type: Passenger Cars and Commercial Vehicles) – Global Industry Analysis, Market Size, Opportunities and Forecast 2021-2028

The global automotive infotainment market accounted US$ 7.0 Bn in 2020 with a significant CAGR of 8.8% during the forecast period of 2021 to 2028

Automotive infotainment generally refers to a hardware and software platform that delivers audio and video in a vehicle. This generally includes audio and video streaming with a wireless (LTE, Wi-Fi, and Bluetooth) or wired network (HDMI, Ethernet) or even CD or a USB device. The infotainment systems run all the communication and entertainment functions of a car, from phone calls and navigation to music and podcasts. Current trends in the area of automotive infotainment market include internet based application or social network applications, whereas extendable, hybrid, adaptive, or even personalized human-machine interface (HMI) are emerging as future trends.

Growth factors

Rising utility of smart phones has gained significant attention in the worldwide market

The noticeable development in automotive infotainment in recent years and rising consumer popularity is owing to adoption of smartphone enabled systems such as Android Auto and Apple CarPlay according to the Consumer Reports, Inc. report. Additionally, the survey concluded that people utilizing Apple CarPlay-compatible infotainment systems reported that 64% are very satisfied with Apple CarPlay, 59% are very satisfied with Android Auto and 58% are very satisfied with vehicle in built system. The service providers are constantly improving their software with updates and bug fixes to offer better user experience. For instance, in September 2021, Apple upgraded CarPlay in iOS 15 with introducing new features for drivers such as message announcing using SiRi, driving focus while handling notifications, new wallpapers for personalized appearance, etc. Such are the factors that have positive influence for the overall growth of global automotive infotainment market.

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Technology driven automotive infotainment systems have accelerated the growth of global market

There exist as many infotainment systems as there are brands of cars available in the worldwide market. The history of automotive HMI development reveals that the development of new interactive in-car functionalities involving infotainment systems has often been influenced by upcoming new technologies. The development of such functions is motivated due to designing or construction safer, more efficient, and more comfortable vehicle system. Not only new technologies have evolved throughout the years, but also the development processes themselves have adapted consistently due to the challenges the automotive industry had to face with new technologies.

Report coverage

Restraints and Challenges of automotive infotainment market worldwide

Automotive Infotainment market is becoming more challenging and complex

Automotive infotainment is becoming more complex these days owing to rise in popularity of mobile internet, traffic information, navigation, digital broadcast, and streaming services integrated in one system. With wide number of available broadcast, wireless and cellular standards as well as different audio and video file formats and codecs, manufacturers of automotive infotainment systems need to ensure correct functionality even in the presence of interference. As per the Consumer's Report Inc., only 56% of owners reported that they were satisfied with car's infotainment system as there do exists a large gap between the best and the worst. Such factors are responsible for limiting the growth of global automotive infotainment market.

Market Segmentation

The global automotive infotainment market is segmented based on product type, fit type, and vehicle type. By product type, the market is segmented as audio unit, display unit, heads-up display, navigation unit, and communication unit. By fit type, the market is split into OEM fitted and aftermarket. Based on vehicle type, the market is bifurcated into passenger cars and commercial vehicles.

Based on product type, communication unit segment accounted dominant share for the growth of global automotive infotainment market. The communication unit is layered into three parts involving physical layer, network layer, and application layer. Many auto manufacturers secure inter-processor communication in automotive electronic control units (ECUs).

Modern vehicles are integrated with advanced telematics that is often connected to the internet through smartphones or Wi-Fi. The microcontroller installed are highly efficient powering the ECU’s and are equipped with operating system such as Linux or QNX that perform modem functionalities. The inter-processor communication link (IPCL) is connected with the host processor and the vehicle processor to exchange information between them.

These are the factors responsible for stimulating the segmental growth ultimately contributing for the overall market growth.

Based on fit type, OEM fitted segment accounts for the major share of automotive infotainment market. Additionally, based on vehicle type segment, the passenger car segment holds the dominating share for the projected period of 2021 to 2028

Regional Landscape

Asia Pacific accounts major share for automotive infotainment market

Among APAC provinces, India, China, South Korea, and Japan are the major regions that drive the growth of automotive infotainment market. High government involvement coupled with supportive government regulations, presence of top/prominent players in APAC region, and favorable foreign direct investment (FDI) policies, are the factors that impact positively for the stupendous growth of APAC regional market in terms of automotive infotainment market. The Cambridge University report states that, paradigm shifts are witnessed currently in the Chinese auto manufacturing companies by creating new entry points for Chinese firms to capture value in the industry. As China's auto sector gradually opens to multinationals, the government has made sure that Chinese state owned firms do not face any difficulties to grow. Taken this into consideration, the government has made competitive space for entrepreneurial startups and emerging players. Additionally, new collaborations and business models are also emerging on a large scale. For example, from top giants such as Alibaba and Xpeng collaboration open new doors for vehicle infotainment system, are driven by the trend of intelligent and connected electric vehicle.

On the other hand, Europe to witness second largest market share for automotive infotainment market. Among EU, countries such as France, Germany, UK, and Italy are mature markets for automotive infotainment market. Influx of robotic technology in the automotive sector is one of the key factors that attribute for the regional growth.

North America is expected to witness considerable growth for automotive infotainment market. This is due to Canadian Government identifying challenging opportunities in terms of automotive sector and launching innovative products involving influx of technology for a better future. For instance, Canada's automotive sector is prominent factor of the economy, representing 10% of manufacturing GDP and 13% of total merchandize exports. Additionally, Canada produces about 14% of all vehicles assembled in North America. Also, Canada is a hub for more than 670 suppliers of traditional automotive components and hundred more suppliers from other industries, involving information and communication technology (ICT).

Competitive Landscape

The prominent players of the global automotive infotainment market involve Alpine Electronics, Inc., Clarion Co., Ltd., Continental AG, Aptiv plc, Denso Corporation, Harman International Industries, JVC Kenwood Corporation, SK Telecom Co, Panasonic Corporation, Pioneer Corporation, Visteon Corporation, and among others

The key players involved in the automotive infotainment market dominated it by launching new range of products with a customer centric approach. Additionally, the companies also focused on offering advanced technologically driven products enhancing their offerings in the market.

Market Segmentation

Market By Product Type

• Audio Unit
• Display Unit
• Heads-Up Display
• Navigation Unit
• Communication Unit

Market By Fit Type

• OEM Fitted
• Aftermarket

Market By Vehicle Type

• Passenger Cars
• Commercial Vehicles

Market By Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia-Pacific
• Latin America
  • Brazil 
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa