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Global Automotive Infotainment Market Anticipated to Generate a Revenue of $17,564.8 Million, Growing at a CAGR of 8.8% from 2021 to 2028

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The global automotive infotainment market size is estimated to be valued at $17,564.8 million by 2028, surging from $9,318.2 million in 2020, at a CAGR of 8.8%.

COVID-19 Impact on the Automotive Infotainment Market

During the COVID-19 pandemic, the global automotive infotainment market trend is projected to be negatively impacted. Various automotive firms in emerging countries like India and Japan have closed due to a drop-in demand for vehicles. The automotive infotainment market has risen dramatically in recent years, but it has been predicted that it might face a modest fall in 2021 as a result of the COVID-19 pandemic. This is due to the implementation of curfews by government agencies in most countries, as well as a rise in business insurance prices.

Global Automotive infotainment Market Trend

The whole automotive industry is working to build and develop new technologies that will improve connectivity options, vehicle safety, and the in-car user experience. In addition, ivi (in-vehicle infotainment) automotive allows modern automobile systems to be monitored and handled from a single location as it is a significant technology that acts as a central hub for all modern automobile systems. To make the ride as enjoyable and painless as possible, manufacturers are putting more efforts in order to offer more functionality to their infotainment systems. All smart automotive technologies are integrated into contemporary car automotive infotainment, including 2X networking solutions, ADAS systems, and others. These factors are said to drive the automotive infotainment industry.

The connected infotainment market, on the other hand, has a variety of obstacles. OEMs have failed to offer systems that meet the high consumer expectations set by the parallel consumer electronics industry for many years. Furthermore, audiovisual experiences are becoming increasingly standardized, a tendency that, when combined with the expanding use of smartphone integration, threatens to turn linked infotainment from a key brand differentiator into a fundamentally commoditized technology.

The whole automotive industry is working to create and develop novel technologies that will enable improved connectivity, improve vehicle safety, and enhance the in-car user experience. The demand for integrated infotainment solutions is growing in the automotive industry. Furthermore, throughout the forecast period, the popularity of android infotainment system for car is expected to grow, resulting in a promising market growth opportunity. OEMs have been pushed to design customized tablets for their vehicles as the use of tablets in cars has grown. Audi, for example, has created a 10.1-inch automotive-grade tablet just for their vehicles.

Global Automotive Infotainment Market, Segmentation

The global automotive infotainment market is segmented based on system type, distribution channel, vehicle type, and region.

System Type:

The system type sub-segment is further classified into entertainment system, connectivity system, and driver assistance system. The entertainment system sub-segment is predicted to have a dominating market share in the global market and register a revenue of $9,300.8 million during the forecast period.

Improved transportation and communication infrastructure, as well as decreased operating costs, are predicted to boost demand for in-car entertainment systems. The global expansion of the in-car entertainment systems business is predicted to be boosted by continuous advancements in in-vehicle entertainment devices and wireless communication services.

Distribution Channel:

The distribution channel segment is further divided into OEMs and aftermarket sub-segments. The aftermarket sub-segment is anticipated to have the fastest market growth during the forecast period. It is predicted that the market shall generate a revenue of $6,335.1 million by 2028, growing from $3,290.9 million in 2020, with a CAGR of 9.1%.

The aftermarket infotainment segment is expected to grow fast in this business due to growing production and use of base model automobiles without electronics by vehicle manufacturers. These factors are fueling the global expansion of the automotive infotainment industry, which is predicted to grow at a significant CAGR over the next few years. Car entertainment system aftermarket suppliers offer these items at a reasonable price, which is anticipated to enhance demand for these systems.

Vehicle type:

The vehicle type segment is further bifurcated into passenger and commercial vehicle type. The passenger sub-segment is predicted to have a dominating market share in the global market and register a revenue of $13,296.9 million during the forecast period.

The passenger car market encompasses the country's growing demand for passenger cars, government program to promote electric vehicle adoption, emission limits, used-car market changes, and OEM market shares. Maruti is carefully testing its electric vehicles in light of the present trend and growing demand for electric automobiles. At the same time, Tata and Morris Garages have launched their electric vehicles in India. During the forecast period, these factors are expected to fuel market expansion.

Region:

The automotive infotainment market share in Asia-Pacific is anticipated to be the fastest growing market during the forecast time period and reach $5,408.2 million by 2028, with a CAGR of 9.7%.

During the forecast period, it is likely to maintain its supremacy with the highest CAGR. This expansion can be attributed to the increased sales and production of passenger cars in the region. Rising income levels and robust demand for automobiles have been credited with the rise of the luxury and mid-sized premium car industries in the region. Furthermore, consumers with higher disposable income are more likely to purchase passenger automobiles with the most up-to-date amenities.

Key Players in the Global Automotive Infotainment Market

  1. Alpine Electronics
  2. Clarion Co., Ltd.
  3. Continental AG
  4. Denso Corporation
  5. Harman International
  6. JVC KENWOOD Corporation
  7. Panasonic Corporation
  8. Pioneer Corporation
  9. Robert Bosch
  10. Mitsubishi electric corporation

Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.

Porter’s Five Forces Analysis for the Global Automotive Infotainment Market:

  • Bargaining Power of Suppliers: automotive infotainment market contains huge concentration of distributors and suppliers and hence, the distributors and supplier controls are expected to be moderate, resulting in moderate bargaining power of dealers.
    Hence, the bargaining power of the supplier is moderate.
  • Bargaining Power of Buyers: Buyers will have reasonable bargaining power, significantly because of modest number of players operating in the automotive infotainment market.
    Hence, the bargaining power of the buyer is moderate.
  • Threat of New Entrants: In the modern world, new entrants may face multiple new barriers, like legal and government policies.
    Hence, the threat of the new entrants is moderate.
  • Threat of Substitutes: There are few alternate products for automotive infotainment.
    Thus, the threat of substitutes is moderate.
  • Competitive Rivalry in the Market: Robust presence of key players such as raspberry pi car infotainment and Harman Car Infotainment System is creating massive rivalry in the local as well as international market. Also, high spending on business expansion and strategic tie-ups are some of the main factors rising competitive rivalry among the companies.
    Thus, the competitive rivalry in the market is high.
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