Automotive Infotainment Market

Rising applications and technological advancements to boost the market growth

Automobile manufacturers are producing automobiles fitted with modern entertainment system technologies in response to the growing demand for safe, luxurious, and smart vehicles. The infotainment system enables the provision of both entertainment and information for an enhanced in-vehicle experience. Parking advice, predictive navigation, pre-trip planning, cloud-enabled synchronization, and other vital functions are being implemented by technologically advanced infotainment firms. Smart phones can also be linked to automotive infotainment systems via Wi-Fi, Bluetooth, or hotspot connectivity. When a smart phone is linked to an infotainment system, the user gains access to phone functionality.

Customers can use infotainment to handle outgoing, incoming, and conference calls. For instance, with the introduction of its all-new Baleno in March 2022, Maruti Suzuki entered the line of offering development in-vehicle entertainment systems.

Although advanced infotainment systems are another high-tech challenge that some enthusiasts are eager to try, other new-vehicle customers find them difficult to use. They may find these systems less informative and more difficult to use, especially if they disregard the owner's handbook instructions. Climate controls, an archaic 'entertainment' system, and an AM/FM radio are also included, along with music, phone, navigation, and Internet access. Because they have so many features, the user may need to tap the screen several times to move from one to the next - provided the device replies swiftly.

Collaboration and partnership between e-commerce giants and automakers are likely to open up new growth potential for major participants in the In-vehicle Infotainment Market. In May 2022, for example, ECARX, a worldwide mobility tech business, agreed to merge with COVA Corp., a leader in the design, development, and implementation of intelligent vehicle technologies. ECARX creates hardware and software solutions for the development of connected, automated, and electrified mobility, which it delivers to the global automotive industry as it rapidly adapts to meet changing consumer demands. This merger and acquisition will benefit both the companies and their customers.

Therefore, the rising applications and technological advancements have enhanced the automotive infotainment market CAGR across the globe in recent years.

However, to cater to the demand, there have been significant advances in the In-Car Infotainment Market. For instance, there have been a number of launches in the Operating Systems of automotive infotainment is another factor driving the growth of the automotive infotainment market revenue.

The Global Automotive Infotainment Market Industry is experiencing rapid technological advancements, particularly in connectivity and user interface design. Innovations such as voice recognition, augmented reality, and artificial intelligence are enhancing the user experience. For instance, the integration of 5G technology is expected to facilitate seamless connectivity, enabling real-time updates and services. This trend is likely to attract consumers seeking modern and efficient in-car experiences, contributing to the market's projected growth from 33.2 USD Billion in 2024 to 72.5 USD Billion by 2035, with a CAGR of 7.36% from 2025 to 2035.

By region, the study provides market insights for automotive infotainment into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Automotive Infotainment market accounted for USD 10.81 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period owing to the growing trend of family dinners and gatherings at home. North America leads the automotive infotainment market and will continue to do so during the evaluation period. North America's economy is mature, and significant investments are being made in the automobile industry, which is undergoing major development.

Furthermore, factors such as rising car demand, major expenditures in expanding technology, and the availability of a diverse variety of innovative infotainment devices promote market expansion. In terms of value, the United States dominates the North American automobile infotainment industry.

Further, the major countries studied in the market report for automotive infotainment are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Automotive in-vehicle infotainment (IVI) Share By Region 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's automotive infotainment market accounts for the second-largest market share due to the growing demand for a premium or luxury vehicles, which have considerably aided the expansion of the automotive infotainment market in Europe. Research and development programs are done by major automobile manufacturers, including BMW, Volkswagen, Ford, and Renault help the European automotive infotainment industry. The automotive infotainment market is predicted to gain a significant pace over the study period, with manufacturers installing infotainment systems in entry-level vehicles in order to gain a larger market share.

Further, the German automotive infotainment market held the largest market share, and the UK automotive infotainment market was the fastest-growing market in the European region.

The Asia-Pacific Automotive Infotainment Market is expected to grow at the fastest CAGR from 2022 to 2030. The region is, without a doubt, one of the most promising regions for the automobile market. Factors like as emerging economies' growing GDP and rising per capita income have generated considerable opportunities for both the automotive and infotainment industries. Furthermore, the transfer in manufacturing bases of several worldwide automotive infotainment providers, as well as technical improvements, affect the growth of the automotive infotainment market.

Moreover, China's automotive infotainment market held the largest market share, and the Indian automotive infotainment market was the fastest-growing market in the Asia-Pacific region.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the automotive infotainment market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the automotive infotainment industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the automotive infotainment industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, the automotive infotainment industry has launched highly technological infotainment systems with some of the most significant advancements. In the automotive infotainment market, major players such as Continental AG (Germany), Alpine Electronics, Inc. (Japan), Harman International (US), Pioneer Electronics (US), Panasonic Corporation (Japan), and others are working on expanding the market demand by investing in research and development activities.

Bayerische Motoren Werke AG abbreviated as BMW) is a German multinational automobile and motorbike manufacturer located in Munich, Bavaria. The company was created in 1916 with the intention of producing airplane engines, which it did from 1917 to 1918 and again from 1933 to 1945. Automobiles are marketed under the BMW, Mini, and Rolls-Royce brands, while motorcycles are marketed under the BMW Motorrad brand. BMW was the fourteenth-largest automaker in the world in 2017, producing 2,279,503 automobiles. The firm has a long history in motorsport, particularly in touring vehicles, sports cars, and the Isle of Man TT.

For example, in May 2022, BMW began shipping automobiles to consumers in various countries, including the United States, United Kingdom, Spain, Italy, and France, without CarPlay and Android Auto features in their infotainment systems and built-in Wi-Fi. Because the company's latest semiconductors are not CarPlay or Android Auto certified, the feature has been temporarily withdrawn from their vehicles since 2022. To minimize further delays, BMW is distributing these vehicles to consumers without the missing capability.

Alps Electric Co., Ltd. is a Japanese multinational firm based in Tokyo that manufactures electrical devices such as switches, potentiometers, sensors, encoders, and touchpads. The Alps Electric Group has R&D, manufacturing, and sales facilities in Japan as well as in the Americas, Europe, Southeast Asia, Korea, and Greater China. Alps Electric has supplied over 40,000 different Operating Systems of electronic components to over 2,000 manufacturers of home appliances, mobile devices, cars, and industrial equipment worldwide since its inception. Alps Alpine, Inc. will provide a free software upgrade that incorporates TIDAL in September 2022.

Alpine Halo9 iLX-F509, Alpine Halo11 iLX-F511, Jeep-specific i509-WRA-JK, i509-WRA-JL, and iLX-507 are all compatible head units. TIDAL is the first aftermarket audio system to be integrated into an Alpine automobile audio system. Alpine head unit customers have access to TIDAL's catalog of over 90 million songs via high-resolution streaming. Subscriptions to TIDAL HiFi and HiFi Plus will provide higher sound quality and lossless audio.