North America Automotive Infotainment System Market - Growth, Trends, and Forecasts (2022 - 2027)

The North American automotive infotainment system market was valued at USD 5.15 billion in 2021 and is expected to surpass a net valuation of USD 7.64 billion by 2027 end, registering a solid CAGR growth of 6.78% during the forecast period.

Although during Covid-19, demand for automotive displays witness a steep fall amid the reduce automotive sales and production across the United States and Canada. Since automotive infotainment system demand is deeply linked with automotive sales including passenger and commercial vehicles, North America showcased a shrinking in demand from Q1 2021 to Q4 2021. Although after Q4 2021, demand for automotive resumed globally and production houses in the United States also began at a faster pace.

Over the medium-term forecast period, demand for the automotive infotainment system is driven by vehicle sales. North America is exhibiting impressive passenger car sales which have consistently driven the market demand. The North America Automotive infotainment system can be classified into two types. Firstly, Advanced Navigation comprises services including those that contain regular map updates and information about traffic jams or real-time traffic information (RTTI). Secondly, Comfort Services aims for the comfort and personal convenience of the passenger.

The improved technology in terms of in-house carbon experience including sound system, IoT, and AI-enabled infotainment system expected to elevate the demand marginally. Automakers are strongly competing to deploy advanced infotainment systems for their upcoming vehicle models during the forecast period. For instance, Mitsubishi Motors Corporation, Nissan Motor Co. Ltd, and Groupe Renault have adopted Google Inc.'s Android OS (operating system) for their next-generation infotainment systems. In addition, demand for IVI (In-Vehicle Infotainment) is expected to witness a steep rise with changing consumer behavior and demand for seamless connectivity of phones with the systems.

Further, automotive sales in the United States and Canada are showcasing prominent growth which is a quite good sign for automotive infotainment system demand in North America. With overall automotive navigation and connectivity characterizing the cars of this generation, automotive visualization technologies are becoming the most vital components of in-vehicle interactions. As a result, the incorporation of an interactive infotainment system has become a key feature of the vehicle manufacturing processes among a few prominent automakers like General Motors and Tesla.

Key Market Trends

Increasing Demand for In-Dash Infotainment System to Enhance Market Growth

In-dash infotainment systems have been consistently upgrading with more user-friendly and responsive features, which provide sharp graphics, easy to see, reach, and control while driving. Most new cars, trucks, and SUVs offer updated infotainment technology far superior to past systems.

Many pickup trucks, minivans, and mainstream SUVs also come standard with feature-rich in-dash infotainment systems and smartphone app integration. For instance, In 2022, Rivian launched its new electric pickup truck considering all the requirements of key consumers. This newly launched pickup truck is well equipped with decorated ash wood in the dash infotainment system board. The system comprises of 12.3 landscape-oriented screen inbuilt placed just above the HVAC vents of the car.

Rise in smartphone functions to be built into in-dash infotainment systems and demand for entertainment is on arise. 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.

Nowadays, manufacturers are working to combining processing power and 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 March 2022, General Motors introduced new in-vehicle technology, this will integrate Google's Voice Assistant, Navigation, and App Ecosystem. ​

The United States Has the Largest Automobile Infotainment Market Worldwide

The United States is the bedrock for the automotive sector in North America. Demand for automotive is consistently witnessing a steady increase thus making a strong demand for the automotive display market.

Moreover, during the 2020 Covid-19 United States automotive industry witnessed a steep decline of 27.9% in its cars segment sales. Although with ease in supply chain and logistics activities sooner after Q1 2021, industry get back again towards recovery phase and during FY21 the United States automotive sales stood at 15,560,740 units. During Q1 2022 automotive sales stood at around 32,21,014 units. January 2022 sales witnessed a decline of 8.7% compared to January 2021. Key challenges automakers facing are Semiconductor shortage, higher inflation, and expenses for restructuring thus finding a way to get around.

Although, as of now the automotive sector of the United States has again regained its growth phase soon after Q42021, the country is witnessing elevated sales figures in its auto sector.

In Silicon Valley, improvements in semiconductors in the automotive industry, large-scale microelectronic chips have enabled automotive infotainment, which can integrate with smartphones. Most of the largest tech firm like Google, Amazon, and Tesla is developing useful software in the market of Audio Unit, Display Unit, Navigation Systems, and Comprehensive Systems

Manufacturers are introducing infotainment system which has now completely changed the in-house cabin experience. Today, after several new advancements seen by touch screen infotainment systems, manufacturers have introduced predictive display features enabled with AI that shall follow the instruction without touching the screen. This has improved drivers' comfort and ease thus gaining momentum. For instance:

• In August 2022, BMW brought its refreshed X3 model to the Philippines which was launched in late 2017 globally. In addition, the X3 is equipped with a freestanding centrally controlled display touchscreen which is measuring about 10.25 inches. The display performs various functions as the infotainment display and can be easily controlled via the vehicle's touch controller.
• In March 2022, General Motors introduced new in-vehicle infotainment technology, this will integrate Google's Voice Assistant, Navigation, and App Ecosystem.
• In January 2022 - The OpenR Link interface is offered by Renault in the Megane E-Tech vehicle. OpenR displays are supplied by Continental AG, and the OpenR Link interface comprises of two big screens that work similarly to a smartphone. The first screen is a 12.3-inch digital instrument cluster, with a 12-inch vertical infotainment system attached to it.

Considering this development and increased vehicle sales in the United States, demand for automotive displays is expected to witness a high growth rate during the forecast period. The United States has also reported the highest number of the in-car personal assistant system like the Amazon Alexa and other real-time traffic software systems. Companies like the Continental AG and Harman International are working on augmented reality navigation system. For instance, Denso Corp is one of the leading manufacturers of ADAS technology in the United States. It provides automotive infotainment systems such as voice-ADAS, customized touch-screen layout, and the ability to download apps that are used in automobiles such as Ford and General Motor. Alpine Electronics Inc.is from the Alps Group.

Considering these developments and factors, demand for North America automotive infotainment system is expected to witness high growth rate during the forecast period.

Competitive Landscape

The North America Automotive Infotainment Market is moderately consolidated with existing players such as Denso, Bosch, Harman International, Delphi Automotive LLP, Delphi Automotive LLP, Continental AG, Panasonic Corp, and Kenwood. As the demand for infotainment is growing in the region, the infotainment manufacturers are trying to have an edge over their competitors by making joint ventures, partnerships, and launching new products with advanced technology. For instance,

• In February 2022, HARMAN, a wholly-owned subsidiary of Samsung Electronics Co. Ltd, announced two new acoustic innovations, Ready Together and Software Enabled Branded Audio, during the HARMAN EXPLORE 2022 event. Both innovations help to enhance in-vehicle communication and entertainment.
• In June 2021, Visteon Corporation, ECARX and Qualcomm Technologies Inc. jointly developed the Intelligent Cockpit Solution. Integrating Visteon's SmartCore cockpit domain controller with the 3rd Generation Qualcomm Snapdragon Automotive Cockpit Platforms into ECARX's intelligent cockpit system has established a new benchmark for integrated cockpit solutions in the automotive industry.

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