The in-vehicle infotainment market provides connectivity and entertainment features to enhance the passenger experience within vehicles. In-vehicle infotainment systems offer services such as navigation, video and audio playback, smartphone integration, and rear-seat entertainment. These systems allow drivers and passengers to stream music, get driving directions, make calls or send messages hands-free. 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 from 2024 to 2030.

Key players operating in the in-vehicle infotainment 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. Research indicates that high demand for advanced connectivity features from consumers will drive market growth. In addition, automakers are focusing on building integrated infotainment systems to offer connected mobility experience and personalized services. However, rising data thefts and security issues associated with connected vehicles pose challenges to market expansion.

Key Takeaways

Key players such as BASF SE, Evonik Industries AG, and Clariant International AG are focusing on developing advanced infotainment modules and telematics control units to stay ahead in the competitive market. Demand for sophisticated entertainment and connectivity solutions from premium vehicle buyers globally is driving technological innovation. Furthermore, increasing collaborations between automakers and smartphone manufacturers are expanding the scope of mobility services supported by infotainment systems.

The growing demand for comfortable travel experience is motivating manufacturers to offer higher capacity storage, faster processors, and superior multimedia playback in vehicles. Advancements in artificial intelligence and machine learning are enabling more personalized and convenient features. Furthermore, the global prevalence of ride-hailing and shared mobility services is proliferating the integration of digital platforms with infotainment dashboards.

The rising sales of luxury vehicles equipped with advanced driver assistance, vehicle telematics, and cloud-based applications are fueling revenue streams from aftermarket infotainment upgrade kits and services. Automotive technology leaders are eyeing emerging markets like China, India, and Mexico for expanding footprint via partnerships with local OEMs and part suppliers. Collaboration with mapping companies is helping auto firms provide over-the-air map updates for intuitive navigation assisted by cloud computing.

Market drivers

The key driver for the Global In-Vehicle Infotainment Market Trend is the increasing adoption of connected car technologies globally. Connected vehicles have internet connectivity and access various online services and applications through integrated infotainment dashboards. The growing demand for safe, comfortable and convenient driving experiences is prompting automakers to introduce telematics, e-call services, rear-seat entertainment, and advanced navigation aids. Furthermore, consumer electronic control module standardization under initiatives like Android Auto and Apple CarPlay are stimulating innovation through open platforms. This is widening the scope of in-car personalization, information delivery, and digital services immensely.

Geopolitical Impact on IN-VEHICLE INFOTAINMENT Market Growth

The current geopolitical situation has created challenges in the growth of the IN-VEHICLE INFOTAINMENT market. Rising trade tensions between major economies like the US and China are disrupting supply chains and impacting certain component sourcing. Increasing nationalism and protectionist policies adopted by countries are also affecting cross-border collaboration and partnerships in this sector. The ongoing conflict between Russia and Ukraine is further exacerbating economic uncertainties and impacting automotive production and sales in the European region. Manufacturers will need to closely monitor the geopolitical developments and consider diversifying their supply networks to minimize risks from trade and policy disruptions. Localizing more production capacity and developing alternate supplier bases can help boost resilience in case of adverse global trade policies or political tensions. Companies may also explore partnerships with local players in different regions to establish a stronger on-ground presence.

Concentration of IN-VEHICLE INFOTAINMENT Market in Terms of Value

The European region currently accounts for the largest share of the global IN-VEHICLE INFOTAINMENT market in terms of value. Countries like Germany, UK, France and Italy have strong automobile manufacturing industries and a large installed base of premium and luxury cars equipped with advanced infotainment systems. The presence of leading automakers and infotainment hardware/software providers has made Europe a major revenue generator. However, with rising per capita income and an expanding middle class, the Asia Pacific market is expected to surpass Europe over the forecast period. Countries like China, India, Japan and South Korea are witnessing rapid vehicle sales growth and increasing uptake of connected vehicle technologies.

Fastest Growing Region in the IN-VEHICLE INFOTAINMENT Market

The Asia Pacific region is expected to witness the fastest growth in the IN-VEHICLE INFOTAINMENT market over the projected years. Major factors driving the growth include rising car ownership, expanding middle class population with increased spending power on premium features, and progressive government policies to boost connectivity infrastructure and automotive production. China and India specifically are anticipated to fuel the market as both countries represent large consumer bases, develop advanced automobile clusters, and offer investment opportunities for global OEMs and suppliers. With economic development translating to higher disposable incomes, adoption of luxury cars and premium infotainment systems will likely surge in this region.

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