Global Next-Generation In-Vehicle Infotainment Market 2021
The global next-generation in-vehicle infotainment market is projected to reach $155.2 billion by 2031, growing at a CAGR of 22.1% from $21.1 billion in 2021. This growth is primarily driven by advancements in infotainment systems and the increasing sales of electric vehicles worldwide.
The automotive industry has experienced significant changes in recent years due to various factors such as lower fuel prices, slow industry growth, the rise of electric and hybrid vehicles, improved access to automotive credit, aging vehicle fleets, and disruptive trends like car-sharing and ride-hailing services. To stay competitive, stakeholders in the automotive ecosystem have adapted their strategies. Technological innovations are one approach adopted by major OEMs to gain market share. In-vehicle infotainment systems have gained popularity among consumers due to their entertainment and information capabilities. These systems consist of navigation systems, head units (driver information interface), in-car video systems, rear-seat entertainment, and in-car audio systems. Shifting consumer behavior and preferences, including connectivity requirements and safety concerns, have contributed to the adoption of infotainment systems as a major interior feature in modern cars. Surveys have shown that car buyers are now more concerned about dashboard features than under-hood features, providing opportunities for automotive manufacturers in this domain.
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USD 21.1 billion in 2020
Component, Vehicle Type, Sales Channel, Operating System, Region
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Connected vehicles have access to 4G-enabled services such as telematics, infotainment, navigation, and fleet management. The upcoming deployment of 5G technology with low and controllable latency, coupled with edge cloud deployments, is expected to enhance these services in the future. Ongoing research and development efforts focused on manufacturing efficient and durable vehicles, along with rising demand for electric vehicles, will further drive market growth.
The global next-generation in-vehicle infotainment market is currently in the growth phase, with increased implementation in electric vehicles. This trend is expected to continue during the forecast period.
Several factors are driving the growth of the global next-generation in-vehicle infotainment market, including increasing production and sales of passenger cars, higher smartphone penetration, and declining costs of advanced wireless connectivity. Additionally, growing awareness of infotainment systems and connected cars, as well as rising safety concerns, are expected to drive global adoption. However, safety and distraction issues associated with infotainment systems, along with data safety and privacy concerns, are currently limiting market growth.
The COVID-19 pandemic has inevitably affected the global next-generation in-vehicle infotainment market due to the impact on car production and sales caused by lockdowns and shutdowns of manufacturing facilities worldwide.
Demand drivers for the next-generation in-vehicle infotainment market include the emergence of technologies like 5G and AI, the shift towards location-based advertising and e-commerce, and increasing demand for in-vehicle displays. However, the market also faces challenges such as safety and security issues.
The market is segmented based on various factors, including component, vehicle type, sales channel, operating system, and region.
Segmentation by Vehicle Type
Internal Combustion Engines (ICEs)
Segmentation by Sales Channel
Original Equipment Manufacturers (OEMs)
Segmentation by Component
Hardware – Infotainment/Display Unit, Control Panel, Telematics Control Unit, Automotive Sensors, and Others
Segmentation by Operating System
Segmentation by Region
Asia-Pacific and Japan
The Next-generation In-vehicle Infotainment market is divided by vehicle type, including Electric Vehicles (EVs) and Internal Combustion Engine vehicles (ICEs). In 2021, the ICEs segment dominated the market. Over the past decade, automobile entertainment systems have evolved, offering drivers and passengers easy access to information, enhanced convenience, safety features, and wireless connectivity. This progress is mainly due to the development of smaller and lighter electronic components that enable high-speed data transmission and power connections in IC vehicles.
In terms of sales channel, Original Equipment Manufacturers (OEMs) are projected to dominate the global next-generation in-vehicle infotainment market. In 2021, the OEMs segment held the highest market share of 71.2%. The increasing demand for connected vehicles, shifting consumer preferences, and affordable offerings from OEMs have contributed to the strong growth of in-vehicle infotainment systems. To attract customers, OEMs in the competitive automotive market have adopted strategies such as providing better infotainment systems at affordable prices in entry-level and compact cars. The Aftermarket segment is also expected to grow at a significant rate, with a forecasted compound annual growth rate (CAGR) of 23.3% in the coming years.
In 2021, the hardware segment dominated the global next-generation in-vehicle infotainment market in terms of component. The demand for touch screen displays, button panels, voice commands, and digital cockpits drove the growth of the hardware segment. Among the components, the Hardware segment held the highest market share of 65.8% in 2021. This was achieved through the utilization of audio/video (A/V) interfaces and control components like touch screen displays and voice commands. On the other hand, the Software segment is expected to grow at the highest CAGR of 23.3% in the forecast period.
The Android segment is anticipated to exhibit the highest CAGR of 24.5% throughout the forecast period. Android Automotive enables manufacturers to build robust infotainment systems for the digital age. Among the operating systems, the QNX segment held the highest market share of 32.0% in 2021. Automakers are developing vehicles with integrated infotainment systems and QNX OS to meet the rising demand for elegant, safe, and intelligent vehicles providing an enhanced in-vehicle experience. The Android segment’s growth is driven by the ability to harness Android’s power in automobiles.
Europe generated the highest revenue in the next-generation in-vehicle infotainment market in 2021, amounting to $6,375 million. This is primarily due to the increased sales of electric vehicles and the relatively higher cost of infotainment solutions in the region. Europe offers diverse market segments and presents substantial opportunities for the global market.
The Next-generation In-vehicle Infotainment market holds a significant share in North America, China, and Europe, owing to the availability of fast commuting options in these regions. China is expected to generate the highest revenue in 2021, as it leads the Asian market and has made significant investments in smart transportation infrastructure. There are plans for further investments to improve urban transportation in the country. The demand for Next-generation In-vehicle Infotainment varies across regions depending on the specific demands of the end-use application segments.
The next-generation in-vehicle infotainment market is characterized by a competitive landscape where manufacturers employ various strategies to establish their presence. These strategies include new product launches and developments, partnerships, collaborations, joint ventures, and mergers and acquisitions. Among these strategies, partnerships, joint ventures, and collaborations have emerged as the dominant and most widely adopted approach among automotive infotainment systems manufacturers. In this multidisciplinary market, the active involvement of all key stakeholders is crucial for widespread market presence.
To establish a significant market presence on a global scale, most in-vehicle infotainment manufacturers rely on collaborations and partnerships with original equipment manufacturers (OEMs), solutions providers, and content providers. These collaborations allow them to leverage the expertise and resources of their partners. Additionally, manufacturers from Asian countries, particularly Japan and South Korea, hold a strong position in the competitive landscape due to their global market presence and established relationships with major automotive OEMs worldwide. Furthermore, the Asia-Pacific region serves as the largest producer and market for passenger cars and commercial vehicles, further solidifying the role of Asian companies in this domain.
Key companies profiled in this report include Denso Corporation, Harman International Industries Inc., Continental AG, Visteon Corporation, Panasonic Corporation, Pioneer Corporation, Robert Bosch GmbH, TomTom International B.V., JVCKENWOOD Corporation, Mitsubishi Electric Corporation, Sasken Technologies Ltd., Embitel, HERE Technologies, Avnet Inc., EInfochips, Inc., CY Vision GmbH, Cinemo GmbH, Basemark, Vehicle.software, Consenz.
Recent Industry Developments
Denso Corporation and Qualcomm Technologies, Inc. announced their collaboration in January 2022 to develop advanced cockpit systems that utilize external cloud services and introduce new human-machine interface (HMI) products. This partnership aims to enhance car connectivity and introduce cutting-edge safety features, including driver status monitoring and driver/passenger authentication, while also improving display operability.
In November 2021, Harman International Industries Inc. delivered the next generation of infotainment modules to BMW, showcasing their ongoing commitment to the automaker in developing various in-car technologies and entertainment solutions for their models.
Continental, in November 2021, secured orders valued at approximately $5.3 billion for high-performance computers used in vehicle cockpits. These orders encompass a range of applications, including data management, vehicle connectivity, driving safety and dynamics, and automated driving technology.