Automotive Infotainment Market - Global Outlook and Forecast 2018-2023

INDUSTRY INSIGHTS

The global automotive infotainment market size is expected to generate revenues of more than $22 billion by 2023 and is expected to grow at a CAGR of over 5% during the forecast period. The advancement of automobile audio systems resulted in the advent of the infotainment systems or in-vehicle infotainment (IVI) systems. These systems were designed to address the needs of both entertainment and information for the driver and the passengers, thereby, promoting the growth of the global automotive infotainment market. The leading vendors are leveraging advanced technology to introduce sophisticated IVI systems that offer embedded video playing and additional functions such as parking assist, navigation, traffic assistance, control functions, and internet connectivity. The integration of smartphones and multimedia in these systems will enable key companies to occupy a larger share. The adoption of smart systems that enable a host of multiple applications such as navigation, telematics, and tracking systems will revolutionize the global market.

The growing trend of integrating digital design solutions will encourage prominent players to launch innovative technological systems. The development and launch of advanced interactive entertainment systems will intensify the level of competition.  

MARKET DYNAMICS

The increasing focus on developing automotive safety electronics systems and the launch of advanced driver assistance systems (ADAS) will propel the global automotive infotainment market growth. These innovative systems are already commercially available and gaining immense popularity in the luxury car segment. The leading OEMs are actively investing in the innovation of effective manufacturing process that helps to reduce the cost of this technology to integrate it in the mid-priced and economy car segment. The implementation of mandatory safety regulations by various government regulatory bodies across the world will boost the adoption of ADAS systems. The demand for these innovative systems will create lucrative opportunities for vendors.

AUTOMOTIVE INFOTAINMENT MARKET SEGMENTATION

This research report includes a detailed segmentation by

1. Products
2. Vehicle type
3. Geography

INSIGHTS BY PRODUCTS

Embedded infotainment systems are the fastest growing segment of the automotive infotainment market during forecast period

The global automotive infotainment market share by products is segmented into audio-only, display audio, and embedded infotainment - navigation. Embedded infotainment systems occupied more than half of the total market share in 2017 and are expected to grow at a CAGR of approximately 8% during the forecast period. The increasing availability of ready-to-use IP and customization solutions is augmenting the growth of this segment in the global market. The vendors are offering consumers the ability to customize the information on the display unit and systems with superior graphics to gain a larger market share and attract new end-users. The rising penetration of high-end systems in the luxury car segment in Europe and North America will encourage companies to launch innovative systems during the forecast period.

INSIGHTS BY VEHICLE TYPE

Increased adoption of advanced systems in mid-priced cars to boost automotive infotainment market sales during forecast period

The vehicle type segment in the global automotive infotainment market is categorized into economy cars, luxury cars, and mid-priced cars. The mid-priced cars segment dominated the total market share in 2017 and is projected to grow at a CAGR of over 3% during the forecast period. The increase in per capita income disposable income worldwide and especially in the emerging countries in APAC is driving the demand for mid-priced cars. The growing demand for sophisticated systems is encouraging vendors to invest in technology to fulfill the dynamic consumer demands. The declining price trends for LCD and TFT will enable leading players to incorporate cost-effective systems in the mid-priced and economy car segment. The introduction of innovative systems equipped with navigation and communication units will revolutionize the global market.

INSIGHTS BY GEOGRAPHY

APAC to dominate the global automotive infotainment market share during the forecast period

The automotive infotainment industry by geography is divided into APAC, Europe, Latin America, North America, and MEA. APAC dominated to total market share in 2017 and is expected to grow at a CAGR of more than 5% during the forecast period. Countries such as China, Japan, South Korea, and India are the leading automotive producers in the APAC region. Rapid urbanization and changing quality of lifestyle are the primary factors driving the growth of these systems in the APAC region. China accounts for the major industry share in the APAC region. Additionally, the government initiatives to promote safety systems in the automotive industry in the region will boost the demand for these systems in the APAC region during the forecast period.

INSIGHTS BY VENDORS

The global automotive infotainment industry is currently witnessing intense competition, and the top vendors occupy 50% of the total market share. The leading international players are offering advanced systems with high functionality and design to sustain the intense competition in the market. The prominent players are focusing on innovation in terms quality, technology, and price to attract new consumers and retain the old end-users. The large international companies are setting facilities in emerging countries such China, South Korea, Japan, and Taiwan to cater to growing demand in the region and expand their distribution channels.

The global automotive infotainment market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

By Product

• Audio-Only
• Display Audio
• Embedded Infotainment - Navigation

By Vehicle Type

• Economy Cars
• Mid-Priced Cars
• Luxury Cars

By Geography

• APAC
• China
• Japan
• South Korea
• North America
• US
• Europe
• Germany
• Latin America
• Brazil
• Middle East & Africa