Automotive Infotainment Systems Market Analysis, Segments, Growth and Value Chain

The Automotive Infotainment Systems Market was valued at USD 25 billion in 2020 and is expected to reach USD 41 billion by 2026 registering a CAGR of around 8% during the forecast period (2021 – 2026).

The impact of the COVID-19 pandemic on the Automotive Infotainment Systems Market is inevitable as the market is primarily driven by increasing vehicle sales and production. As there were continuous lockdowns and shutting of manufacturing unit’s production and sales of vehicles experienced slow growth in various regions of the world.

However, the market is expected to register an optimistic growth during the forecast period as Automakers are strongly competing to deploy advanced infotainment systems for their upcoming vehicle models. For instance, Mitsubishi Motors Corporation, Nissan Motor Co. Ltd, and Groupe Renault decided to adopt Google Inc.’s Android operating system (OS) for their next-generation infotainment systems from 2021.

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Additionally, in Japan, Toyota Motor Corporation added software applications, like Line to its T-Connect infotainment system, starting from the new Crown model in 2018.Additionally, rising focus on driver comfort and safety, particularly in commercial vehicles with high travel time, has led to the rapid installation of automotive infotainment systems in these vehicles.

Key Market Trends

Growing Advancement in Infotainment Systems

There is a rise in smartphone functions to be built into in-vehicle infotainment systems. In North America and Europe, over 90% of adults have access to the internet through their mobile phones, which is also one of the highest among other regions. As mobile phone use has risen, the usage of smartphones for the same purposes in their cars has also increased.

Car manufacturers are themselves opting for modular hardware design. This helps them reduce the purchase price of infotainment systems. They are working on technology to let smartphone functions to be built into in-vehicle infotainment systems at a low cost. Manufacturers are working to combining processing power and the competitiveness of their system. The digital services generate large quantities of data sets for car manufacturers to improve the performance of the connected vehicles. For instance,

– In January 2020, Land Rover announced that its Defender family would showcase its 21st-century dual-eSIM connectivity at CES 2020 in Las Vegas, the world’s largest consumer electronics show. New Defender is the first vehicle with two embedded LTE modems for enhanced connectivity, while Jaguar Land Rover’s new Pivi Pro touchscreen infotainment has an industry-leading design and shares electronic hardware with the latest smartphone.

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Christophe Rude
Christophe Rude
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