Automotive Infotainment Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The car-infotainment market is valued at $27 billion in 2022 and is expected to reach $48 billion by 2030, at a CAGR of 8.46% during the forecast period. The market growth is attributed to the increasing integration of advanced technology into vehicles, owing to the demand for enhanced connectivity, entertainment, and navigation features. Besides, the rising focus on the development of smart vehicles has accelerated the development of the car-infotainment industry, particularly in the areas of artificial intelligence, cloud computing, and 5G. The growth is also attributed to the increasing popularity of electric vehicles, which are often equipped with sophisticated car-infotainment systems, and the growing trend of smartphone integration into cars through platforms such as Apple CarPlay and Android Auto. Meanwhile, the leading car-infotainment players, such as Bosch, Harman, Panasonic, and Pioneer, are continuously investing in research and development to improve their products. Besides, strategic collaborations with technology companies and the introduction of next-generation car-infotainment systems have also bolstered their competitive edge in the fast-evolving market.

Regional Market Size

Regional Deep Dive

The global car entertainment market is in a state of great transformation, driven by technological progress, consumers’ increasing demand for connectivity and a regulatory framework that encourages safety and innovation. In North America, the market is characterized by a high penetration of advanced infotainment systems, driven by the demand for easy access to mobile phones and other devices. In Europe, the strong drive towards electric vehicles, which are often equipped with advanced entertainment systems, is reflected in the increasing penetration of such systems. In Asia-Pacific, meanwhile, the car industry is booming and the market is characterized by a strong focus on the development of artificial intelligence and the development of new and improved user interfaces. The Middle East and Africa are gradually implementing car entertainment systems, driven by rising vehicle sales and the growing middle class. The demand for cost-effective car entertainment solutions is growing in Latin America as the car industry develops.

Europe

• European manufacturers like Volkswagen and BMW are leading the charge in developing infotainment systems that prioritize sustainability and user experience, aligning with the region's strong focus on environmental regulations.
• The European Union's stringent regulations on data privacy and cybersecurity are prompting automotive companies to invest in secure infotainment solutions, ensuring consumer data protection while enhancing system capabilities.

Asia Pacific

• In Asia-Pacific, companies like Huawei and Samsung are making significant strides in automotive infotainment, focusing on integrating 5G technology to enhance connectivity and real-time data processing.
• The region's growing emphasis on smart cities and autonomous vehicles is driving innovation in infotainment systems, with governments supporting initiatives that promote technological advancements in the automotive sector.

Latin America

• Latin America is seeing a rise in demand for affordable infotainment solutions, with companies like Renault and Fiat introducing cost-effective systems to cater to the budget-conscious consumer.
• The region's increasing smartphone penetration is influencing automotive manufacturers to integrate mobile connectivity features into their infotainment systems, enhancing user engagement and experience.

North America

• The North American market is heavily influenced by major players like Tesla and Ford, which are integrating advanced infotainment systems into their electric vehicles, enhancing user experience and connectivity.
• Recent regulatory changes, such as the push for vehicle-to-everything (V2X) communication, are shaping the development of infotainment systems, encouraging manufacturers to innovate in safety and connectivity features.

Middle East And Africa

• The Middle East is witnessing a surge in luxury vehicle sales, with brands like Mercedes-Benz and Audi incorporating high-end infotainment systems that cater to tech-savvy consumers.
• Government initiatives in countries like the UAE are promoting smart transportation solutions, which include advanced infotainment systems as part of their broader vision for smart city development.

Did You Know?

“Did you know that nearly 80% of consumers in North America consider infotainment systems a critical factor when purchasing a new vehicle?” — Consumer Electronics Association (CEA) 2023 report

Segmental Market Size

The sphere of automobile entertainment plays a crucial role in enhancing the in-car experience, and is currently experiencing a steady growth due to the increasing demand for advanced communication and entertainment features. The growing popularity of the smartphone as a communication and entertainment tool, and the rising expectations of consumers for a seamless digital experience are the two main factors driving this market. Further, the regulatory pressure to enhance safety and connectivity in cars is a major stimulus for the development of more advanced entertainment systems. Currently, the market is in a stage of maturity, with companies such as Tesla and BMW leading the way with advanced entertainment solutions. Applications such as navigation, voice recognition and streaming are becoming standard in new vehicle models. The trend towards electric and hybrid cars, and the desire to differentiate one’s product from the competition, are accelerating this market. Artificial intelligence and cloud technology are shaping the development of the in-car entertainment systems, making the experience more personal and interactive.

Future Outlook

The market for car entertainment systems will increase from $ 27 billion in 2022 to $ 48 billion in 2022, with a CAGR of 8.51%. This growth is driven by the integration of advanced technology such as artificial intelligence, machine learning, and the Internet of Things into the vehicle system. As consumers demand more connected and personalized experiences, automakers are investing heavily in car entertainment systems that provide seamless connectivity, improved navigation, and entertainment options. It is expected that more than seventy percent of new cars will be installed with entertainment systems by 2030, up from about forty percent in 2022. The advent of 5G and other new technologies will revolutionize the landscape of the entertainment system. In addition, as the safety of the driver and passengers is becoming more and more important, the development of advanced driver assistance systems (ADAS) and voice recognition technology is expected to increase. Also, regulations that promote the safety of vehicles and reduce distractions will also influence the design and functionality of car entertainment systems, in order to meet consumers' evolving needs and safety standards. As these trends continue, the market for car entertainment systems will continue to grow, driven by innovation and the desire to improve the overall driving experience.