In-vehicle Infotainment Market By Component, By Connectivity, By Operating System, By Location, By Form Factor, By Display Size, By Vehicle Type, By Propulsion, By Application, By Sales Channel, By Region - Global Market Analysis & Forecast, 2024 to 2032

Market Overview

In-vehicle infotainment (IVI) systems are integrated multimedia systems installed in vehicles to provide entertainment, information, connectivity, and navigation services to drivers and passengers. These systems often combine audio and video interfaces, touchscreens, keypads, and other user inputs with services such as GPS navigation, voice control, smartphone integration, and internet connectivity, enhancing the driving experience through interactive technology. The in-vehicle infotainment market is witnessing significant growth, driven by consumer demand for enhanced in-car experiences and technological advancements in automotive electronics. Modern IVI systems are pivotal in distinguishing vehicle offerings in the automotive industry, where connectivity and interactive features are increasingly influencing buyer choices. The market growth is supported by trends such as the rise of autonomous vehicles, increased vehicle connectivity, and consumer expectations for seamless integration of mobile devices with vehicle systems. Manufacturers are continuously innovating to integrate advanced features like artificial intelligence, voice recognition, and real-time data streaming into their systems to improve user interaction and safety while driving. The market for in-vehicle infotainment is projected to grow at a Compound Annual Growth Rate (CAGR) of 11.0% during the forecast period. This robust growth can be attributed to several factors including the proliferation of electric vehicles (EVs), which often incorporate advanced IVI systems to enhance user interface and functionality. Additionally, the global shift towards more connected and autonomous vehicles is likely to further fuel the demand for sophisticated infotainment solutions, as these technologies become standard features in new car models. With automakers focused on delivering enhanced in-car experiences, the IVI market is poised for significant expansion in the coming years.

Integration of Advanced Technologies in Vehicles

A major driver propelling the in-vehicle infotainment market is the integration of advanced technologies such as artificial intelligence (AI), voice recognition, and connectivity features into modern vehicles. The automotive industry's shift towards more connected and intelligent vehicles has significantly increased the demand for sophisticated infotainment systems. These systems not only enhance the user experience by enabling more interactive and personalized features but also improve safety through integration with advanced driver-assistance systems (ADAS) that provide real-time data and alerts. For example, voice-activated controls allow drivers to keep their hands on the wheel while operating the system, reducing distractions and increasing safety. The rise of autonomous driving technology further underscores the importance of advanced infotainment systems that can provide passengers with entertainment and connectivity during commutes.

Expansion into Emerging Markets

An opportunity in the in-vehicle infotainment market lies in its expansion into emerging markets. As economic growth in regions like Asia-Pacific and Latin America accelerates, a growing middle class is showing an increased propensity to spend on cars equipped with modern technologies, including advanced infotainment systems. Car manufacturers are tapping into these new consumer segments by offering scaled versions of their infotainment products that maintain core functionalities at a reduced cost, making them more accessible to a broader audience. The increased automotive sales in these regions, combined with a rising demand for luxury and connected features, provide a fertile ground for the growth of the in-vehicle infotainment market.

High Costs and Complexity of IVI Systems

A significant restraint in the in-vehicle infotainment market is the high cost and complexity of IVI systems. These systems require substantial investment in research and development to integrate cutting-edge technologies and ensure compatibility with multiple devices and software platforms. Additionally, the manufacturing and integration of such advanced systems into vehicles increase the overall cost of production, which can translate into higher prices for consumers. The complexity also extends to maintenance and updates, which need to be managed throughout the vehicle's lifecycle to ensure functionality and security, adding to the total cost of ownership.

Cybersecurity Threats

A critical challenge facing the in-vehicle infotainment market is the threat of cybersecurity breaches. As IVI systems become more connected and integrated with other vehicle functions and external networks, they become more vulnerable to hacking and other cyber threats. Ensuring the security of these systems is paramount, as breaches could not only compromise personal data but also vehicle safety and functionality. Manufacturers must continuously invest in securing these systems, which involves regular updates, the use of advanced encryption methods, and robust testing against potential security threats, all of which require substantial resources and expertise. This ongoing need for security measures poses a significant challenge in the development and maintenance of secure and reliable in-vehicle infotainment systems.

Market Segmentation by Propulsion

The in-vehicle infotainment market is segmented by propulsion into IC Engine and Electric categories. Electric vehicles (EVs) are expected to exhibit the highest Compound Annual Growth Rate (CAGR) from 2024 to 2032, as the global shift toward electrification continues to accelerate. EVs typically incorporate more advanced and integrated infotainment systems to enhance the user experience, partly to offset range anxiety with features that engage and inform users about vehicle performance and energy consumption. Despite the rapid growth of the EV segment, the IC Engine category still accounted for the highest revenue in 2023. This dominance is due to the vast existing base of internal combustion engine vehicles that continue to demand upgraded and sophisticated infotainment solutions, especially in emerging markets where the transition to electric vehicles is slower.

Market Segmentation by Application

Segmentation by application includes Navigation, Virtual Personal Assistant (VPA), App Store, Music, Rear Seat Entertainment, and Others. The Navigation segment is anticipated to grow at the highest CAGR due to the increasing reliance on real-time GPS technologies and the integration of advanced navigation services with traffic and location-based data in IVI systems. However, the Virtual Personal Assistant (VPA) category generated the highest revenue in 2023. VPAs enhance user interaction with the vehicle through voice commands and are becoming an essential feature in new vehicle models, driving significant sales as consumers seek more intuitive and hands-free operations within their vehicles.

Market Segmentation by Sales Channel

In terms of sales channels, the in-vehicle infotainment market is divided into OEM and Aftermarket segments. The OEM segment is expected to continue growing at the highest CAGR, driven by the increasing integration of advanced infotainment systems in new vehicles directly from manufacturers. OEMs are incorporating these systems as standard features in an increasing range of models, not just in high-end vehicles but also in mid-range and even entry-level offerings, to meet growing consumer expectations for connectivity and entertainment features. The Aftermarket segment, while growing, commanded the highest revenue in 2023. This high revenue reflects ongoing consumer investments in upgrading older vehicles with new infotainment technologies, especially in regions where people tend to keep cars longer and may seek to add modern infotainment features without purchasing a new vehicle.

Geographic Trends in the In-Vehicle Infotainment Market

The in-vehicle infotainment market is witnessing diverse geographic trends, influenced by regional advancements in automotive technologies and consumer preferences. Asia-Pacific is expected to experience the highest Compound Annual Growth Rate (CAGR) from 2024 to 2032, driven by the rapid growth of the automotive industry in countries like China, Japan, South Korea, and India. This region's market expansion is supported by increasing vehicle production, high adoption rates of advanced technologies, and growing consumer demand for vehicles equipped with sophisticated infotainment systems. However, in 2023, North America accounted for the highest revenue percentage in the in-vehicle infotainment market. This dominance was primarily due to the high penetration of premium and luxury vehicles, which are typically equipped with state-of-the-art infotainment systems, coupled with strong consumer demand for connectivity and entertainment features.

Competitive Trends and Key Strategies Among Top Players

In 2023, the competitive landscape of the in-vehicle infotainment market featured major players such as ALPS ALPINE CO., LTD., Aptiv, Continental AG, DENSO Corporation, DESAY Industry, Foryou Corporation, Fujitsu, Garmin Ltd., HARMAN International, HYUNDAI MOBIS, JVCKENWOOD Corporation, Marelli Holdings Co., Ltd., Mitsubishi Electric Corporation, Panasonic Corporation, and Pioneer Corporation. These companies concentrated on enhancing their technological capabilities and expanding their product portfolios to include more integrated and advanced infotainment solutions. For example, Continental AG and DENSO Corporation focused on innovations that integrate seamlessly with autonomous driving systems, offering more interactive and user-friendly interfaces. HARMAN International and Panasonic Corporation, known for their strong focus on connectivity and personalized user experiences, invested heavily in research and development to push the boundaries of what in-vehicle infotainment systems can offer. From 2024 to 2032, these players are expected to further intensify their efforts in innovation, particularly in areas such as AI-enhanced voice control systems and cloud-based services. Strategic partnerships with tech companies and automakers will likely be crucial, as these collaborations can facilitate the integration of the latest technologies into a wide range of vehicles. Mergers and acquisitions are also anticipated to play a key role in strategy, allowing companies to quickly enhance their technological capabilities and market reach. These strategies will be essential for companies aiming to stay competitive in a market that is increasingly driven by rapid technological advancements and changing consumer expectations.