In-Vehicle Infotainment System is Estimated to Witness High Growth...

In-Vehicle Infotainment System is Estimated to Witness High Growth Owing to Opportunity High End Infotainment Features

Posted 2024-02-01 10:51:25

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In-vehicle infotainment system is an in-car entertainment and information system that is integrated into the vehicle's features. It allows integration of various functions such as dashboard instrumentation, in-car phone and navigation through smartphone connectivity, wireless internet, safety and driving assistance system, and other applications into one system accessible via touchscreen and voice command. The advantages of integrating various digital systems into one touchscreen unit include ease of use, improved safety by reducing driver distraction, and real-time connectivity.

The global In-vehicle infotainment market is estimated to be valued at US$ 28.63 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity
The growing demand for high-end in-car infotainment features such as navigation, reverse camera, smartphone connectivity among customers will drive the market growth. Many luxury and premium vehicles now offer advanced features such as voice commands, gesture controls and telematics to ease the use of numerous digital in-car applications. Major automakers are focused on integrating these premium functions to gain competitive advantage and attract tech-savvy customers. With growing income levels, customers are willing to pay more for such high-tech infotainment amenities. This presents lucrative opportunities for infotainment manufacturers and automakers to offer innovative systems and capture this demand for upgraded connectivity and entertainment on the move.

Porter’s Analysis
Threat of new entrants: The automotive in-vehicle infotainment market has moderate threat from new entrants due to high capital requirement in R&D of new technologies. The market is dominated by few established players with strong brand names.
Bargaining power of buyers: Buyers have moderate bargaining power due presence of several vendors offering similar in-vehicle infotainment systems. However, switching costs for buyers are moderate.
Bargaining power of suppliers: Major suppliers including semiconductor manufacturers and software developers have moderate to high bargaining power due to differentiated and technical nature of components supplied.
Threat of new substitutes: Threat of substitution is low as in-vehicle infotainment systems offers convenience and safety which cannot be provided through substitutes.
Competitive rivalry: The market witnesses high competitive rivalry among existing players to gain higher market share through innovation, partnerships and geographic expansion.

SWOT Analysis
Strength: Growing demand for connectivity features in vehicles and advancement in technologies.
Weakness: High costs of developed systems, technology obsolescence, and complex product design.
Opportunity: Scope for new features integration, expanding into emerging markets, and advent of autonomous vehicles.
Threats: Stringent regulations, rapid changes in technology, and intense competition.

Key Takeaways
The Global In-Vehicle Infotainment Market Size is expected to witness high growth during the forecast period owing to rising demand for connectivity and mobility features. The global IN-VEHICLE INFOTAINMENT Market is estimated to be valued at US$ 28.63 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2031.

The Asia Pacific region dominates the global market and is projected to continue its dominance in coming years led by China, India and Japan. Factors such as increasing sales of premium vehicles, rising disposable incomes and digital revolution in the region will propel future growth. Countries such as China, India and Japan are expected to dominate the Asia Pacific market on account of rapid urbanization, rising living standards and growing middle class population.

Key players: Key players operating in the in-vehicle infotainment market are BASF SE, Evonik Industries AG, Clariant International AG, Croda International PLC, DowDuPont Inc., Solvay SA, Arkema S.A., Akzo Nobel N.V., Mitsubishi Chemical Corporation, A. Schulman, Inc. BASF SE, being the market leader, offers a wide range product portfolio for different application segments in automotive industry.