April 23, 2024
In-Vehicle Infotainment Market

In-Vehicle Infotainment is Estimated to Witness High Growth Owing to Advancement in Connected Vehicle Technologies

The In-vehicle infotainment market has witnessed significant growth in recent times owing to the growing demand for intelligent transportation systems and connected vehicle technologies. In-vehicle infotainment systems offer various features such as navigation, battery monitoring, music playback, media streaming, and connectivity options that enhance the driver and passenger experience. Rising consumer inclination towards technologically advanced features in vehicles and growing demand for distraction-free driving experience are some of the key factors driving the sales of in-vehicle infotainment systems. 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 2030.

Key Takeaways

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.

The key opportunities in the In-vehicle infotainment market include introducing advanced technologies such as 5G connectivity, Artificial Intelligence (AI) assistants, and augmented reality head-up displays. Growing demand for luxury vehicles equipped with sophisticated infotainment systems especially in emerging economies also presents significant growth prospects.

Growing adoption of connected vehicle solutions and integration of advanced capabilities such as over-the-air updates are driving technological innovations in the In-vehicle infotainment market. Developments in areas such as advanced driver-assistance systems, autonomous driving, and blockchain for secure vehicle telematics will further accelerate technology adoption.

Market drivers

The primary driver for the Global In-Vehicle Infotainment Market Trend is the rising demand for connectivity and advanced infotainment features from customers. Drivers and passengers nowadays expect their vehicles to be continuously connected and provide access to various media, navigation, and other downloadable apps and services. Secondly, stringent safety regulations regarding driver distraction are prompting OEMs to integrate infotainment controls and display clusters for safer and more convenient use. This is encouraging innovations that allow drivers to use connected features without averting focus from the road.

Challenges in the IN-VEHICLE INFOTAINMENT market:

Connectivity issues continue to pose challenges to the IN-VEHICLE INFOTAINMENT market. The need for uninterrupted high-speed connectivity for seamless functioning of infotainment systems remains unmet in several regions. Moreover, the growing complexity of in-vehicle systems makes it difficult to integrate new technologies seamlessly. Legacy systems also limit the scope of upgrades, requiring higher investments.

SWOT Analysis:

Strength: Features like navigation, rear cameras, and driver assistance create an engaging in-cabin experience. Wide availability of aftermarket and factory-fitted systems boosts adoption.
Weakness: Integrating new connectivity and safety technologies is complex and expensive. Driver distraction due to non-driving infotainment functions is a concern.
Opportunity: Growth of electric vehicles and autonomous driving offers scope for advanced AI-based infotainment. 5G connectivity can enhance immersive services.
Threats: Stricter regulations against distracted driving may limit certain features. Shift to shared mobility temporarily reduces demand for new vehicles and infotainment systems.

North America captured over 35% of the global market value in 2024 owing to high vehicle fleet and demand for premium vehicles with advanced accessories. Asia Pacific is expected to witness the fastest CAGR during the forecast period led by growing vehicle production and sales and rapidly expanding middle-class in China and India driving demand. INFOTAINMENT usage continue to rise across regions as new vehicles are equipped with integrated systems while aftermarket systems enhance existing vehicles.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it