The IN-VEHICLE infotainment systems provide entertainment and vehicle-related data to drivers and passengers. These systems offer features such as navigation, audio/video playback, communication, onboard diagnostics, and climate control. Increasing demand for enhanced driving experience and rising usage of smartphones have resulted in significant innovations in infotainment systems with new technologies. Also, autonomous driving has created the need for advanced in-vehicle systems. IN-VEHICLE infotainment systems enable connectivity of vehicles with external networks and smart devices through Bluetooth, Wi-Fi, and satellite communication.
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, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The key trend garnering significant momentum in the IN-VEHICLE infotainment market is the integration of artificial intelligence (AI) and 5G technology. AI assists infotainment systems to identify the location and interests of drivers and passengers through machine learning. This helps infotainment systems to provide personalized in-car experiences based on user preferences. Similarly, 5G networking enables high-speed internet connectivity in vehicles. This facilitates applications such as over-the-air updates, real-time traffic updates, and cloud-based navigation with augmented reality and virtual reality integration. Also, the growth of electric vehicles and self-driving vehicles is supporting innovations in infotainment technology. Developments such as gesture control, eye-tracking, and voice recognition are further simplifying in-car operations and improving driver/passenger experience.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the IN-VEHICLE INFOTAINMENT market is moderate. Established automakers have brand loyalty which makes entering difficult. However, contracting remains possible for new software and service providers.
Bargaining power of buyers: The bargaining power of buyers in the IN-VEHICLE INFOTAINMENT market is high. Large automakers can negotiate lower prices and demand additional services from suppliers. Buyers have many supplier options.
Bargaining power of suppliers: The bargaining power of suppliers in the IN-VEHICLE INFOTAINMENT market is moderate. While some software and components have few providers, automakers ultimately control if technologies are adopted. Supply chains are also becoming more global.
Threat of new substitutes: The threat of new substitutes in the IN-VEHICLE INFOTAINMENT market is moderate. Alternatives like smartphone integration and growing connectivity could replace dedicated vehicle systems over time. However, automakers still curate the in-vehicle experience.
Competitive rivalry: Competition in the IN-VEHICLE INFOTAINMENT market is high amongst tier-1 suppliers. Players must differentiate through features, integration, and service to survive. Partnerships are also common to pool resources and sharing costs benefits all firms.
Key Takeaways
The Global In-Vehicle Infotainment Market Size is expected to witness high growth over the forecast period. 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.
North America currently dominates the market due to high vehicle sales and technological adoption rates in the region. Asia Pacific is expected to be the fastest growing market due to rising incomes, increasing automobile production, and developing connectivity infrastructure. The US and Canada are major automobile manufacturing and sales hubs contributing to regional market size. However, Asia Pacific is poised to grow at strongest pace. Expanding middle class populations and local automaking in China, Japan, and India support regional demand.
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. These companies specialize in developing infotainment technologies, software integration platforms, and providing systems to tier-1 manufacturers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
