PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1919589
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1919589
The in-vehicle infotainment market is projected to grow from USD 23.07 billion in 2025 to USD 40.49 billion by 2032 at a CAGR of 8.4%. The increasing demand for connected and premium vehicles from European countries, such as Germany, Italy, and the UK, combined with the expanding integration of advanced driver information and entertainment features, as well as stronger customer preference for enhanced in-cabin digital experiences, will accelerate market growth.
| Scope of the Report | |
|---|---|
| Years Considered for the Study | 2021-2032 |
| Base Year | 2024 |
| Forecast Period | 2025-2032 |
| Units Considered | Volume (000 Units) and Value (USD Million) |
| Segments | By Component, Operating System, Application, Location, Connectivity, Form Factor, Display Size, Retrofit by Vehicle Type, ICE Vehicle Type, and Electric Vehicle by Vehicle Type |
| Regions covered | Asia Pacific, North America, Europe, and the Rest of the World |
The Asia Pacific market for in-vehicle infotainment is expanding as China, South Korea, and Japan scale premium and premium EV products. In addition, the rapid deployment of 5G, strong consumer adoption of connected services, and government-backed intelligent mobility programs are accelerating infotainment adoption across vehicle segments, particularly in passenger cars, driven by the growth in in-vehicle infotainment.

"The infotainment unit segment is projected to lead the in-vehicle infotainment market during the forecast period."
By component, the infotainment unit segment is projected to remain the dominant segment as OEMs accelerate the move toward mid- to large-size integrated digital displays across medium to high-end passenger and light-duty vehicles. In developing Asian markets, display sizes typically scale with vehicle price bracket: 3-5 inches in entry-level cars, 8-10 inches in the mid-segment, and above 12 inches in premium models. Larger central screens (> 10") are gaining strong traction because they enable a richer, more smartphone-like interface while supporting the growing shift of navigation, media, vehicle functions, smart apps, and even specific ADAS overlays into digital form. For mid-priced cars, offering an 8-10.25" display unit also delivers a cost-effective 'premium feel', boosting perceived value without major interior redesigns. Furthermore, premium and luxury models are simultaneously driving growth in multi-screen cabins, especially rear-seat infotainment systems. These high-resolution displays enable streaming, gaming, and seamless device integration, and their adoption is quite prominent in regions with higher premium-vehicle penetration, such as Europe and North America. The rising adoption of digital fleet-management systems is prompting OEMs to integrate larger, more capable displays in the pickup, van, and heavy truck segments.
Pillar-to-pillar displays are becoming a key cockpit trend in premium vehicles, enabled by centralized computers and high-performance automotive SoCs. By integrating the instrument cluster and infotainment systems into a single, continuous screen, OEMs can enhance HMI richness, real-time visualization, and software-led differentiation. Examples include Mercedes-Benz MBUX Hyperscreen and next-generation panoramic display concepts from BMW (Panoramic iDrive) and leading Chinese EV OEMs. Additionally, passenger displays are evolving as a distinct in-cabin experience layer, supporting media consumption, gaming, and digital services while remaining compliant with driver-distraction regulations. OEMs such as Mercedes-Benz, Audi, and Hyundai-Kia are positioning these displays as revenue-generating interfaces through connected services and OTA-enabled feature upgrades.
As larger and more numerous screens in vehicles are increasingly viewed as an extension of a connected, digital lifestyle, and rear-seat infotainment systems are designed for intuitive control, multi-functionality, and enhanced passenger comfort, the infotainment unit segment is projected to continue dominating the components market by 2032.
"The embedded segment is projected to grow at the highest rate in the in-vehicle infotainment market during the forecast period."
By form factor, the embedded segment is poised to be the fastest-growing segment in the in-vehicle infotainment market during the forecast period. This is primarily due to the increasing integration of OEM-fitted units in SUVs and mid-range passenger vehicles. Automakers are increasingly standardizing embedded platforms across their vehicle lineups, offering features such as 4G/5G connectivity, ADAS-linked human-machine interfaces, head-up displays, and manufacturer-grade navigation systems. This approach ensures consistent performance, seamless integration, and secure delivery of infotainment functions across models.
Regulatory changes are further driving the adoption of embedded infotainment systems across regions. For example, in Europe, requirements like eCall expansion, cybersecurity compliance (UNECE R155), and updated software update mandates (UNECE R156) encourage OEMs to implement embedded systems capable of managing emergency services, over-the-air updates, and safety-critical applications reliably. Similarly, in North America, the 2024 NHTSA mandate for automatic emergency braking (FMVSS 127) underscores the importance of seamless integration between infotainment and safety alerts.
With consumer demand for connected, digitally rich cabins on the rise, advances in embedded technology, including 5G connectivity, AI-driven voice control, and cloud-based navigation, are expected to drive the strong growth of embedded infotainment units during the forecast period.
"North America is projected to be the second-largest market for in-vehicle infotainment during the forecast period."
North America remains the second-largest regional market, supported by strong demand for mid- and full-size SUVs and pickup trucks in the US and Canada, higher disposable incomes, and rapid adoption of connected-vehicle features. Automotive OEMs, such as Ford, General Motors, Toyota, Hyundai-Kia, and Tesla, are integrating advanced HMIs, cloud-based navigation, voice-driven interfaces, and OTA-enabled cockpit systems into their mainstream models. The regulatory framework is also shaping this growth, with the 2024 NHTSA mandate requiring automatic emergency braking with pedestrian detection for all light vehicles. As a result, OEMs are accelerating the integration of enhanced digital displays, sensor-fusion alert layers, and real-time ADAS feedback into their infotainment clusters. Additionally, the increasing amount of time drivers spend in vehicles, averaging nearly an hour per day in the US, further reinforces the demand for more capable, intuitive, and connected in-car systems. Moreover, newly launched electric and premium models, such as the Ford F-150 Lightning, Mercedes-Benz GLC, Hyundai Ioniq 6, and BMW i7, demonstrate the shift toward multi-screen layouts, AI-enabled voice assistants, app-store-style ecosystems, and seamless phone-to-vehicle continuity.
Furthermore, the region is witnessing a more substantial uptake of larger central displays, fully digital clusters, co-passenger screens, and integrated infotainment-ADAS interface-features that are increasingly expected, even in mid-segment SUVs. Together, these technological and regulatory forces will continue to strengthen the demand for the in-vehicle infotainment market across the region through the forecast period.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and strategy directors, and executives from various key organizations operating in this market.
The in-vehicle Infotainment market is led by established players, such as Harman International (US), Panasonic Corporation (Japan), Alps Alpine Co., Ltd. (Japan), Robert Bosch GmbH (Germany), and Continental AG (Germany).
The study segments the in-vehicle infotainment market and forecasts the market size based on ICE Vehicle Type (Passenger Car, Light Commercial Vehicle, and Heavy Commercial Vehicle), Component (Infotainment Unit, Passenger Display, Display Instrument Cluster, and Head-Up Display), Operating System (Android, Linux, QNX, Microsoft, and Others), Application [Navigation, Virtual Personal Assistant (VPA), App Store, Music, and Rear Seat], Location (Front Row and Rear Row), Connectivity (3G/4G and 5G), Form (Embedded, Tethered, and Integrated), Display Size (< 5", 5"-10", and > 10"), Retrofit by Vehicle Type (Passenger Car and Commercial Vehicle), Electric Vehicle by Vehicle Type (Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, and Fuel-Cell Electric Vehicle), and Region (Asia Pacific, North America, Europe, and the Rest of the World).
The study includes an in-depth competitive analysis of the significant In-vehicle infotainment manufacturers, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
The report will help market leaders/new entrants with information on the closest approximations of revenue numbers for the overall In-vehicle infotainment market and its sub-segments. This report will help stakeholders understand the competitive landscape and gain valuable insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market's pulse and provides information on key market drivers, restraints, challenges, and opportunities.