In-Car infotainment Market

Increasing Demand for Linked and Immersive Entertainment in Cars is driving the market growth

Market CAGR for in-car infotainment is being driven by the demand for linked and immersive entertainment in cars is rising. To create a seamless and interesting user experience, in-car entertainment systems mix numerous elements like audio, video, navigation, communication, and connectivity. Standard radio and CD players, two-way communications equipment, hands-free phone connections, vehicle voice commands, and other interactive audio or visual software-based applications are common components of in-car entertainment systems. Additionally, many in-car entertainment systems have a backseat DVD feature that enables users to watch movies and other visual content.

In addition, mobile device connectivity is a significant element of in-car infotainment. Numerous technologies in newer vehicles enable electronics such as laptops, cellphones, and iPhones to connect to a vehicle for passenger use.

Additionally, improved technology accelerates industry growth over the projection period. These systems now have advanced graphic user interfaces, speech recognition, user-friendly touchscreens, and other capabilities to technological improvements. Application of voice assistants, automotive technology, in-car communications, and streaming video anticipated to drive the market growth. The Information domain computer supports various in-vehicle technologies in a single package, giving vehicle makers a cost-effective, flexible, scalable, and powerful control unit for the future of in-vehicle technology. Furthermore, during the projection period, the in-vehicle infotainment market will rise due to the incorporation of AI and sophisticated navigation systems.

For instance, in December 2021, Pioneer's auto navigation system will be available as a factory-installed option on Suzuki Motor Corporation's SUV, the New S-CROSS.

In emerging nations, rising consumer disposable income and straightforward financing options have made it possible for consumers to own a passenger car, which has raised demand for technologically sophisticated cars with practical and helpful entertainment systems. The improvement of drivers' safety and experience brought by the incorporating these technologies into automobiles are fueling demand for automotive infotainment systems.

For instance, in May 2022, BMW started selling its vehicles to consumers without CarPlay and Android Auto features in their infotainment systems and built-in Wi-Fi. The company's vehicles have been without the CarPlay or Android Auto capability since its new CPUs are not certified for those systems. To prevent further delays, BMW is distributing these vehicles to consumers without the missing capability. The automakers creating replacement models with fewer features. Thus, driving the In-Car infotainment market revenue.

The Global In-Car Infotainment Market Industry is propelled by rapid technological advancements. Innovations in connectivity, such as 5G and vehicle-to-everything (V2X) communication, enhance the user experience by enabling seamless integration of smartphones and other devices. This integration allows for real-time updates, navigation, and entertainment options that are increasingly demanded by consumers. As of 2024, the market is valued at 8.6 USD Billion, reflecting the growing consumer preference for advanced infotainment systems. Furthermore, the anticipated growth to 17.7 USD Billion by 2035, with a CAGR of 6.8% from 2025 to 2035, underscores the importance of technology in shaping the future of in-car experiences.

The Global In-Car Infotainment Market Industry is significantly influenced by the incorporation of safety and navigation features. Advanced driver-assistance systems (ADAS) and integrated navigation tools enhance the overall driving experience while ensuring safety. Features such as real-time traffic updates, lane departure warnings, and collision avoidance systems are becoming standard in modern vehicles. This focus on safety not only meets regulatory requirements but also aligns with consumer expectations for secure driving environments. The increasing integration of these features is likely to contribute to the market's growth trajectory, with projections indicating a rise from 8.6 USD Billion in 2024 to 17.7 USD Billion by 2035.

The Global In-Car Infotainment Market Industry experiences a surge in consumer demand for connectivity features. Modern consumers prioritize the ability to stay connected while on the road, leading to an increased adoption of infotainment systems that offer internet access, app integration, and social media connectivity. This trend is particularly evident among younger demographics who expect their vehicles to provide the same level of connectivity as their smartphones. As the market evolves, manufacturers are responding by incorporating advanced features that cater to these preferences, thereby driving growth. The projected market expansion from 8.6 USD Billion in 2024 to 17.7 USD Billion by 2035 highlights the critical role of connectivity in the automotive sector.

The Global In-Car Infotainment Market Industry is shaped by stringent regulatory compliance and standards aimed at enhancing vehicle safety and environmental sustainability. Governments worldwide are implementing regulations that mandate the inclusion of specific infotainment features, such as hands-free communication and emergency response systems. These regulations not only promote safety but also encourage manufacturers to innovate and improve their infotainment offerings. As the industry adapts to these evolving standards, the market is expected to grow significantly, with a projected increase from 8.6 USD Billion in 2024 to 17.7 USD Billion by 2035, reflecting the impact of regulatory frameworks on market dynamics.

The Global In-Car Infotainment Market Industry is witnessing substantial growth in emerging economies, where rising disposable incomes and urbanization are driving demand for advanced automotive technologies. As consumers in these regions become more affluent, their expectations for in-car experiences evolve, leading to increased adoption of infotainment systems. Manufacturers are strategically targeting these markets, recognizing the potential for growth. The anticipated market value increase from 8.6 USD Billion in 2024 to 17.7 USD Billion by 2035 illustrates the significant opportunities available in these emerging markets, which are likely to contribute to the overall CAGR of 6.8% from 2025 to 2035.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America In-Car infotainment market is anticipated to dominate the market. The developed economy and expanding investments in the rapidly evolving automobile sector are major propelling factors. The expansion of the regional market is also fueled by the growing demand for in-car entertainment systems in the passenger automobile sector. The US dominates the North America in-car entertainment market to its significant investments in developing technologies and the wide availability of numerous innovative infotainment solutions.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Global In-Car Infotainment Market Share By Region 2022 (Usd Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Asia-Pacific In-Car infotainment market accounts for the second-largest market share due to a rise in local consumers' disposable money, a considerable demand for automobile infotainment systems. Effectiveness and augmented reality technology-based solutions are preferred by customers which is one of the factors, which is driving the market growth. A majority of the world's vehicles are produced in nations like China, South Korea, India, and Japan.

The demand for vehicles is therefore being driven by rising vehicle production, which is also encouraging automotive OEMs to boost manufacturing capacity and provide infotainment systems in more affordable automobiles, combined with shifting customer preferences and rising middle-class per capita income. Further, the Chinese In-Car infotainment market held the largest market share, and the India In-Car infotainment market was the fastest growing market in the European region

The Europe In-Car infotainment Market is expected to grow at the fastest CAGR from 2024 to 2032. the widespread presence of top manufacturers and in-car entertainment companies. The region is the biggest market for premium vehicles and well-known automakers. Additionally, there is a significant need for in-car infotainment systems due to the region's enormous consumer base. The market also gains from R&D initiatives taken by significant automakers. Moreover, German In-Car infotainment market held the largest market share, and the UK In-Car infotainment market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the In-Car infotainment market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, In-Car infotainment industry must offer cost-effective items.

The government and private businesses are making significant investments in R&D for technological advancements in the global In-Car infotainment industry to benefit clients and increase the market sector. In recent years, the In-Car infotainment industry has advantages such as expanding vehicle production and integrating infotainment with additional systems. Major players in the In-Car infotainment market, including Volkswagen Group, General Motors Company, Denso Corporation, Ford Motor, Harman International Industries, Visteon Corporation, BMW, Fujitsu Ten Limited, Panasonic Corporation, Delphi Automotive, Apple Inc.,  and others are attempting to increase market demand by investing in research and development operations.

One of the top automakers in the world, the Volkswagen Group, with its headquarters in Wolfsburg, is also the biggest automaker in Europe when it comes to commercial vehicles. The Volkswagen Group is laying the groundwork for the most significant reform process with its "NEW AUTO - Mobility for Generations to Come" Group strategy and future programme. Nine people now make up Volkswagen AG's Board of Management. Oliver Blume, MD, is the company's chairman. Each Board Member is in charge of a single or more Volkswagen Group operations.

At the Volkswagen Group, autonomous, connected driving will fundamentally alter customers' mobility experiences and pave the way for new data-based revenue models. In June 2023, to boost profitability and cash flow, Volkswagen Group focuses on strategy alignment and introduces performance programmes across all brands.

General Motors is an organisation with a global scope and capabilities, with its corporate headquarters in Detroit, Michigan, and employees all over the world. The company serves six continents and employs over 165,000 employees. General Motors supports local economies with more than 92,000 employees and hundreds of millions of dollars in economic activity.  Since 2010, GM has invested more than $1 out of every $4 made by American automakers in the country (26%)13. The company delivers 2,274,088 vehicles. The company’s comprehensive strategy for engineering safety via a human perspective is informed by research, technology, and activism.

In June 2023, General Motors expands charging access to the Tesla Supercharger Network and strengthens its commitment to a unified charging standard.