In-vehicle infotainment (IVI) systems provide entertainment, connectivity, and accessibility features inside vehicles. IVI solutions incorporate navigation, audio, communication, and other applications directly into automotive head units to enhance the driving experience. Drivers use IVI systems for tasks such as playing music, making calls, guiding routes, checking weather and traffic conditions, and controlling vehicle functions. IVI technology continues to advance through features like built-in wireless connectivity, voice control interfaces, personalized profiles, and backend integration with smartphones. The growing demand for connectivity and convenience while driving has fueled strong adoption of IVI systems across different vehicle types. Consumers today expect their vehicles to function much like mobile devices and seamlessly integrate with other consumer electronics. As such, automakers are emphasizing connectivity and convenience and incorporating technologically advanced IVI platforms.
The global In-Vehicle Infotainment Market is estimated to be valued at US$ 35.2 billion in 2023 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 key trends:
One of the primary trends in the in-vehicle infotainment market is the growing integration of advanced driver assistance systems (ADAS). Many modern IVI systems come equipped with features like lane departure warning, blind spot monitoring, adaptive cruise control, and collision avoidance technologies to enhance safety. Furthermore, the emergence of self-driving vehicles will drive further innovation in IVI technologies. As autonomous vehicles hit the roads, IVI interfaces will evolve to focus more on parcel tracking, entertainment, work productivity, and controlling vehicle functions remotely. Advanced IVI platforms that leverage artificial intelligence and cloud connectivity will also become more prevalent. This will allow cars to continuously learn driver preferences, stream content seamlessly, and receive over-the-air updates. With automakers prioritizing connectivity, the in-vehicle infotainment market is well-positioned for continued growth over the next decade led by evolving consumer needs and next-generation automotive technologies.
Porter’s Analysis
Threat of new entrants: Moderate barriers to entry due to huge R&D and capital investment required to develop competitive infotainment systems.
Bargaining power of buyers: Moderate as buyers have options but differentiated systems offered by automakers limit full shift to alternatives.
Bargaining power of suppliers: High as leading software/chip suppliers can negotiate on pricing and production terms with automakers dependent on their technology.
Threat of new substitutes: Low as in-vehicle infotainment is critical in-car experience with limited close substitutes.
Competitive rivalry: Intense rivalry among automakers to offer latest connectivity features integrated with safety, navigation and entertainment functions.
Key Takeaways
Global In-Vehicle Infotainment Market Size is expected to witness high growth.
Regional analysis European market accounts for the largest share currently due to stringent safety norms and demand for connected features. The Asia Pacific region is expected to surge ahead backed by rising vehicle production in China and sales of passenger vehicles.
Key players operating in the in-vehicle infotainment market are Bosch, Panasonic Corporation, Harman International, Alpine Electronics and Pioneer Corporation. Key players focus on integrating connected services, over the air updates and multi-display integration to enhance the in-car experience.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
