In-Vehicle Infotainment Market is Estimated To Witness High Growth Owing To Increased Connectivity Features
The In-Vehicle Infotainment Market is estimated to be valued at US$ 24.85 Bn in 2023 and is expected to exhibit a CAGR of 10.8 %over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
In-vehicle infotainment systems allow the driver and passengers to access in-car entertainment and information through touchscreens or controls located in the vehicle. Typical functions include navigation, music playback from internal or external sources, communication via Bluetooth and other wireless technologies. In-vehicle infotainment enhances safety, convenience and driving experience for users.
Market key trends:
One of the major trends driving the growth of the in-vehicle infotainment market is increased connectivity features in modern vehicles. Today's infotainment systems support integration with smartphones through Apple CarPlay and Android Auto. This allows users to project apps from their mobile devices onto the vehicle's display screens while driving. Manufacturers are also integrating more advanced connectivity options like built-in LTE modems for high-speed internet access and software updates over-the-air. The continuous innovation in connectivity is expected to fuel the demand for upgraded infotainment systems with enhanced mobile integration capabilities.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as initial investments are relatively high due to R&D costs for vehicle integration solutions. However, digital technologies have lowered barriers to entry.
Bargaining power of buyers: Buyer bargaining power is high as automakers can demand lower prices and offer various vehicle models integrated with IVI systems from multiple suppliers.
Bargaining power of suppliers: Supplier bargaining power is moderate as IVI systems require specific technical expertise and integration capabilities limiting the number of capable suppliers.
Threat of new substitutes: Threat from substitutes is low as there are limited alternatives that can provide integrated in-vehicle entertainment, navigation, and connectivity solutions.
Competitive rivalry: Intense among existing players.
SWOT Analysis
Strength: The In-Vehicle Infotainment Market offers value-added advanced features to enhance user experience in vehicles. Growing preference for connected vehicles boosts demand.
Weakness: High integration complexities and costs involved in developing and upgrading IVI systems. Privacy and data security concerns.
Opportunity: Growing demand for advanced driver assistance systems and self-driving technologies will spur opportunities for innovative IVI solutions. 5G connectivity supports more immersive experiences.
Threats: Slow economic conditions can reduce discretionary spending on premium vehicles with advanced IVI systems. Stringent regulations around distracted driving practices.
Key Takeaways:
The Global In-Vehicle Infotainment Market Size is expected to witness high growth, exhibiting CAGR of 10.8% over the forecast period, due to increasing consumer demand for connected driving experiences. Proliferation of smartphones and widespread internet access have shaped current automotive technology expectations. Consumers now demand seamless integration of their personal devices within vehicle infotainment systems.
Regional analysis The Asia Pacific region currently dominates the global market and is expected to exhibit the fastest growth through 2030. Proliferating vehicle sales in China and India along with rising affluence is a key driver. As these emerging economies embrace digital lifestyles, infotainment systems have become an indispensable product differentiator. Growing production of luxury brands has augmented regional demand over recent years.
Key players operating in the In-Vehicle Infotainment market are Panasonic Corp Denso, Harman International, Tom-Tom, Continental AG, Bosch, Blaupunkt Inc., Magneti Marelli, Alpine Electronics Inc., Kenwood, Delphi, Visteon, Clarion Corp., Bose, Pioneer, and Aisin. Innovation and strategic partnerships will determine the success of individual companies. Geographical expansion into high growth developing markets also forms a key differentiation strategy.
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