Analysis by Product Type (Audio Unit, Display Unit, Heads-Up Display, Navigation Unit, Communication Unit); Sales Channel {Original Equipment Manufacturer (OEM), Aftermarket}; and by Vehicle Type (Motorcycles, Passenger Cars, Commercial Vehicles) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global automotive infotainment market is estimated to garner a revenue of USD 18 Billion by the end of 2033 by growing at a CAGR of ~9% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of USD 8 Billion in the year 2022. The growth of the market can be attributed to the growing innovations in the automotive industry as well as technological upgradation along with an upsurge in automotive research & development (R&D) worldwide. For instance, it was found that in 2020, European Union (EU) invested around USD 60 billion in automotive research and development.
In addition to these, factors that are believed to fuel the market growth of automobile infotainment include the rise in the number of vehicles connected to the internet. Infotainment systems have become better than before, they are not just for listening to music. Now with the help of the internet, the infotainment system provides voice assistants, telematic systems, navigation, and others. In 2021, around 70% of new automobiles and trucks are had internet connectivity and over 76 million connected vehicles were sold globally during that time
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~9% |
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Base Year Market Size (2022) |
~ USD 8 Billion |
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Forecast Year Market Size (2033) |
~ USD 18 Billion |
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Regional Scope |
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Growth Drivers
Growing Demand for Cars – Where in-vehicle infotainment (IVI), is a collection of hardware and software in automobiles that provides audio or video entertainment, advanced safety features, self-driving vehicles, digital cockpits for driver assistance, and other features. The rising demand for cars is expected to propel the automotive infotainment market in the forecasted period. It was found that worldwide more than 55 million units of cars were sold in the year 2021, showing an increase of ~4% from 2020.
Growing Number of Connected Cars – Infotainment systems can interface to other in-car systems and external devices through the Internet of Things (IoT). Autonomous, IoT (Internet of Things) connected cars are growing in number. Such cars are expected to hit ~400 million units by 2025.
Increasing Penetration of Bluetooth Technology – With the help pf Bluetooth, cars can get easily connected to phones and laptops, and other devices. Bluetooth-enabled cars are growing in number. Bluetooth can be used in music systems, location, and GPS. For instance, it is estimated that ~75% of all cars will use Bluetooth technology by 2024.
Rising Vehicle Crashes - The vehicle infotainment system has various sensors, to sense any object in proximity so that it can give the driver safety-related instructions to save the car from a collision. For instance, it was found that using a phone while driving is responsible for over 1.5 million vehicle crashes every year
Upsurge in the Share of 5G Infrastructure – High-tech infotainment systems are integrated with 5G connectivity that transforms the static systems into a digital one. 5th Generation network technology is the latest with very high upload and download speeds. 5G automotive applications are forecasted to reach nearly 21% by 2025.
Challenges
The global automotive infotainment market is segmented and analyzed for demand and supply by vehicle type into motorcycles, passenger cars, and commercial vehicles. Out of the three types of vehicles, the commercial vehicle segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the growing trend of shared mobility as well as rising freight transport along with the surge in the sales of commercial vehicles worldwide. For instance, the sale of commercial vehicles in the United States exceeded 12 million units in 2021.
The global automotive infotainment market is also segmented and analyzed for demand and supply by product type into audio unit, display unit, heads-up display, navigation unit, communication unit. Amongst these five segments, the display unit segment is expected to garner a significant share. The segment growth is attributed to higher number of displays installed in the cars. Display technology is now being driven by the automobile industry because they have become such a crucial component of the inside of cars. Throughout years, analogue dashboards are replaced by digital dashboard, touch-screen infotainment systems have been added, and rear-seat entertainment displays have been a plus point feature for several models. Over the next few years, the number of screens in cars will significantly rise, reaching up to 12 per vehicle. Moreover, in the coming future, every passenger in the seven-seater SUVs are likely to have their own display screens.
Our in-depth analysis of the global automotive infotainment market includes the following segments:
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By Product Type |
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By Sales Channel |
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By Vehicle Type |
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The Asia Pacific automotive infotainment market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the increasing number of vehicles, backed by the presence of a strong automobile network in the region, a growing number of vehicles, as well as the rising penetration of smart vehicles. For instance, according to the 2022 data, over 54% of all smart vehicles of different levels of automation sold so far across the world are in China. Furthermore, rising sales of luxurious cars in the Asia Pacific region, is expected to boost market growth in the region. Lamborghini is set to mark the sales of 100 cars in India, in 2022 the company sold around 92 cars, it was approximately 33% higher than the year 2021. In that year it sold around 69 units in India.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Rising automotive R&D expenditure, as well as the growing number of connected cars along with an increasing share of 5G infrastructure in the automotive sector, are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~9% over the forecast period, i.e., 2023 – 2033.
Ans: Complicated software designs as well as the possibility of data misuse are some of the factors estimated to hamper the market growth.
Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Alps Alpine Co., Ltd., Group Forvia, Harman International Industries, Incorporated, Panasonic Corporation, Robert Bosch GmbH, Visteon Corporation, Denso Corporation, Pioneer Corporation, Aptiv Global Operations Limited, and Continental AG.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by vehicle type, product type, sales channel, and by region.
Ans: The commercial segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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