In-Vehicle Payment Services Market Is Estimated To Witness High...

In-Vehicle Payment Services Market Is Estimated To Witness High Growth Owing To Rising Adoption Of In-vehicle Infotainment Systems

Posted 2023-12-04 13:21:03

The In-Vehicle Payment Services market is estimated to be valued at US$ 6.28 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
In-vehicle payment services refer to the ability of vehicle occupants to pay for goods and services directly from inside their vehicle using integrated technologies. This include payments for fuel, parking, tolls, food delivery and other items without needing to stop the vehicle. The growing demand for contactless payment solutions and development of advanced in-vehicle infotainment systems have boosted adoption of in-vehicle payment services.

Market Dynamics:
Growing adoption of in-vehicle infotainment systems equipped with embedded payment solutions is a major driver of the in-vehicle payment services market. Major automakers are focusing on integrating various digital technologies and services in vehicles to offer enhanced driving experience to customers. Furthermore, rising demand for contactless payment solutions amid COVID-19 pandemic is also fueling market growth. Growing preference for safe, secure and seamless payment options while on-the-go is propelling the need for in-vehicle payment platforms. Additionally, collaboration between automakers and payment giants to develop innovative payment solutions is expected to present lucrative opportunities for market players over the forecast period.

SWOT Analysis
Strength: In-Vehicle Payment Services allows users to make contactless payments securely while driving. This reduces driver distraction and improves safety. Three major automakers are investing heavily in this technology which should accelerate market growth. In-Vehicle Payment integration into infotainment systems provides a seamless payment experience for consumers.

Weakness: Lack of standardization across automakers results in fragmented solutions. Compatibility issues may arise when integrating payment systems. High costs associated with technology upgrades can be a barrier for wider adoption.

Opportunity: Growing demand for connected car technologies and emphasis on safety provides a huge market potential. Partnerships between automakers and digital payment providers are helping expand use cases. Consumers are becoming more comfortable with digital payments replacing cash and cards.

Threats: Stringent regulations around driver distraction could limit payment functionality while driving. Data privacy and security concerns may arise from linking financial information with vehicles. Alternatives like mobile payments from smartphones compete for user preference.

Key Takeaways
The global In-Vehicle Payment Services Market Share is expected to witness high growth, exhibiting CAGR of 17.% over the forecast period, due to increasing demand for contactless payment solutions and emphasis on road safety. Asia Pacific region is dominating the market currently due to high vehicle production in China and government initiatives for connected mobility in countries like India. North America and Europe are other major revenue contributors owing to large vehicle parc and early availability of advanced driver assistance systems.

Regional analysis The Asia Pacific region held the largest share of the global in-vehicle payment services market in 2023, accounting for a share of around 35%. China and India are witnessing increasing demand for digital payment options from younger consumers and policies supporting advanced technologies. Additionally, high vehicle production volume in China along with widening application in public transit is boosting the regional market.

Key players operating in the In-Vehicle Payment Services are BMW Group, Mastercard, Daimler Ag, Amazon, Ford Motor Company, Volkswagen Ag, Honda Motor Co., Ltd., General Motors Company, and Hyundai Motor. BMW Group and Daimler have integrated payment solutions in luxury vehicles for highway tolls and parking. Other automakers are partnering with payment networks to roll out services across more affordable models.

Please log in to like, share and comment!