The global automotive rear seat entertainment (RSE) market will reach $361 million and is projected to grow at a CAGR of 10% during the forecast period as the automobile industry is undergoing rapid innovations in protection devices, infotainment systems, engine structure electrification, and propulsion technology. The industry is expected to observe competition in self-driving cars for sophisticated in-vehicle entertainment systems. Europe and North America are expected to witness high demand for RSE systems during the forecast period. The adoption of luxury vehicles has constantly increased in these regions.
Global rear seat entertainment market trends have been immensely affected by the outbreak of the COVID-19. Car sales in China declined 80% in February 2019 after the virus emerged. Globally, the sector has canceled major events such as the Geneva Motor Show due to the fear of transmitting the infection. China's manufacturing sector is anticipated to contract by around 2% in 2020 due to the outbreak of COVID-19. The automotive industry in the European Union is expected to observe a decline of $2.5 billion due to a reduction in automobile and spare-parts exports from China.
- The passenger car segment is expected to grow at a CAGR of over 10% during the period 2019–2025.
- The overhead systems segment is likely to grow at a CAGR of over 11% as a majority of existing fleets with legacy DVD entertainment systems are shifting toward better replacement models with advanced features.
- The aftermarket segment is projected to grow at the highest CAGR during the forecast period. This is due to the adoption of stringent safety regulations and the demand for vehicle modification across the globe.
- The Europe rear sear entertainment market revenue is expected to reach over $130 million by 2025.
- Growth Opportunities in the rear seat entertainment system market in India as the country is expected to grow at a CAGR of over 11% during 2019–2025.
AUTOMOTIVE REAR SEAT ENTERTAINMENT MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Sales Channels
INSIGHTS BY VEHICLE
The passenger car segment consists of premium, compact, and mini vehicles. The segment is expected to reach over 95 million units by 2025, marking sustainable improvements and major impetus to the segment growth. Europe is likely to retain its dominance in the segment with North America closely following it.
The premium RSE systems segment is likely to observe growth on account of increased consumer focus on luxurious and premium cars. As measurable luxury options in automobiles are growing, market tastes change from sedan to SUVs, with increased disposable incomes boosting the competition for luxury cars and car entertainment across the world.
The increase in per capita disposable incomes in APAC countries has propelled the spending sentiment among buyers for mini cars. The increasing demand for sophisticated rear seat infotainment systems among end-users and the rising investment by vendors is expected to augur well for the global automotive infotainment market.
INSIGHTS BY PRODUCT
Headrest monitor systems are one of the popular choices among end-users in the automotive rear seat entertainment market. This segment constituted over 40% market share in revenue in 2019. Vendors are also offering upgraded monitors to enable high-definition audio and video content delivery and viewing. These factors are likely to drive the demand for both OEM-fitted and aftermarket rear seat entertainment sales during the forecast period.
Overhead systems are expected to add over $60 million incremental revenue to the market between 2019 and 2025. Growing at a CAGR of over 11%, these systems are mostly incorporated at factory levels. Plug and play systems are popular in the aftermarket segment, and these devices are witnessing high market growth in developing countries. These systems are available at a low cost, and thus, they offer end-users with cost-effective solutions for entertainment while traveling.
INSIGHTS BY SALES CHANNELS
The global automotive market was driven by the rapid electrification of engine components and the promotion of sustainable technologies by governments globally. Meanwhile, strategic partnerships between suppliers and OEMs are helping to reduce operational costs endured by OEMs. Services and diagnostics sectors in the aftermarket segment are expected to witness higher growth.
Revenues related to digital services are expected to increase three-fold during the forecast period. The sudden shift toward the digitization of automotive processes and lack of strategic planning has put a lot of pressure on aftermarket players. A major challenge for suppliers is to minimize the negative impact and devise strategies for growth opportunities.
INSIGHTS BY GEOGRAPHY
The introduction of connected cars is a major reason for the growth in the European automotive rear seat infotainment market. The demand for the automotive RSE system in the European market is growing, with upgrades in automotive cars providing a better customer experience. Western European countries are witnessing maturity due to low product differentiation. However, the new demand is expected to emerge from Central and Eastern European countries. The demand for automobiles in Europe observed a decent spike in 2019.
The global automotive rear seat entertainment system market is fragmented in nature due to the presence of local as well as global market players. Alpine Electronics, HARMAN International, Panasonic, and Pioneer are the leading manufacturers in the vehicle infotainment market. The key players are implementing new business models and focusing on developing the portfolio of their established products to drive growth.
HARMAN offers integration services of complete multimedia entertainment, 3-D navigation systems, information and communication systems with premium audio (digital radio, DVD players, USB, Bluetooth, and touch screen user interface functionality), speech recognition, and telematics solutions in the market. The shift toward luxury cars and car infotainment is likely to provide vast opportunities to vendors during the forecast period.
The global automotive rear seat entertainment market research report includes revenue and forecast insights for the following segments:
Segmentation by Product
- Headrest Monitor Systems
- Overhead Systems
- Plug and Play Systems
- Passenger Cars
- Premium Cars
- Compact Cars
- Mini Cars
- Commercial Vehicles
By Sales Channel
- North America
- South Korea
- Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia