Global Automotive Infotainment Market Size, Share, Growth Analysis, By Product Type(Audio unit, Display unit), By Fit Type(OE Fitted, and Aftermarket), By Vehicle Type(Passenger Cars, and Commercial Vehicles) - Industry Forecast 2024-2031

Global automotive infotainment market size was valued at around USD 7.42 billion in 2022 and is expected to rise from USD 8.14 billion in 2023 to reach a value of USD 17.07 billion by 2031, at a CAGR of 9.7% over the forecast period (2024-2031).

The increase in disposable incomes among consumers, along with the availability of easy financing options in emerging markets, has enabled more people to purchase passenger vehicles. This has led to a higher demand for technologically advanced vehicles equipped with practical entertainment systems. To enhance the functionality of existing infotainment systems, major vehicle manufacturers are focusing on incorporating advanced technologies such as driver assistance and real-time data collection through augmented reality, made possible by the Internet of Things (IoT). The integration of these technologies into automobiles aims to improve driver safety and experience, consequently driving the demand for automotive infotainment systems and fostering market growth. Although various favorable factors are expected to contribute to market expansion, the recent pandemic presented challenges. Disruptions in the supply chain of equipment and raw materials caused the automotive sector to halt manufacturing operations. Following the lifting of lockdowns, increased demand for vehicles encountered a shortage due to the interruption in manufacturing. Shortages of crucial semiconductor components, like chipsets, further exacerbated the situation. Chipsets are essential for enabling navigation, communication, and control functions in vehicles. The scarcity of chipsets significantly impacted automobile production. To mitigate the effects of chipset shortages, automakers began producing models with reduced features. For example, BMW started delivering vehicles without CarPlay, Android Auto capabilities, and built-in Wi-Fi in several countries, including the United States, the United Kingdom, Spain, Italy, and France, in May 2022. Advancements in technology, particularly in driver safety, have led automakers to integrate advanced driver assistance systems (ADAS) and digital monitoring systems (DMS) into vehicles. These systems offer drivers additional benefits such as regulatory compliance and monitoring services, as well as features like traffic updates and parking assistance, enhancing the overall driving experience. The evolving landscape of driver safety technology is expected to create new growth opportunities in the vehicle infotainment market. Furthermore, infotainment systems gather real-time data about the vehicle, which can be utilized by auto insurers and law enforcement agencies for accident investigation and resolution. This data plays a crucial role in providing digital evidence for accident cases, highlighting the significance of infotainment systems beyond entertainment purposes.

Top-down and bottom-up approaches were used to estimate and validate the size of the global automotive infotainment market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Automotive Infotainment Market Segmental Analysis

The global automotive infotainment market is segmented based on product type, fit type, vehicle type, and region. By product type, the market is segmented into audio unit, display unit, heads-up display, navigation unit, communication unit. By fit type, the market is segmented into OE fitted, and aftermarket. By vehicle type, the market is segmented into passenger cars, and commercial vehicles. By region, the market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.

Drivers of the Global Automotive Infotainment Market

A key factor propelling the automotive infotainment market forward is the growing desire for in-car entertainment systems. Consumers seek entertainment systems within their vehicles that provide top-notch audio and video quality, smooth connectivity, and easy-to-use interfaces.

Restraints in the Global Automotive Infotainment Market

A significant obstacle for the automotive infotainment market is the steep price of advanced infotainment systems. The development and integration of cutting-edge technologies like AI and AR come with substantial costs, rendering these systems financially out of reach for many consumers.

Market Trends of the Global Automotive Infotainment Market

The rising prominence of connected cars is driving up the demand for advanced infotainment systems. Automotive manufacturers are prioritizing the development of connected cars that seamlessly integrate with a variety of entertainment and communication services.