Embedded In-Vehicle Infotainment Market: Current Analysis and Forecast (2023-2030)

The embedded in-vehicle infotainment system is a sophisticated technology integrated into automobiles to provide a wide range of entertainment, information, and connectivity features for the driver and passengers. This system typically includes components such as a touchscreen display, audio system, navigation tools, Internet connectivity, smartphone integration, and access to various apps and services. It allows users to control and interact with various functions of the vehicle, such as music playback, phone calls, messaging, climate control, and navigation, all through a centralized interface. The goal of the embedded in-vehicle infotainment system is to enhance the overall driving experience by providing entertainment, communication, and convenience features while ensuring minimal distraction to the driver.

The Embedded In-Vehicle Infotainment Market is expected to grow at a strong CAGR of around 11.8% owing to the growing demand for vehicles and in-vehicle connected features. Furthermore, the proliferation of smart and connected cars is reshaping the automotive landscape, as consumers seek enhanced connectivity and convenience features in their vehicles. The increasing penetration and speed of the internet, coupled with advancements in IoT technology, are fueling the demand for intelligent infotainment systems. Moreover, the global shift towards sustainable mobility and the increasing adoption of electric vehicles have further catalyzed the growth of in-vehicle infotainment systems. With EVs becoming increasingly popular, there is a rising need for advanced infotainment solutions tailored to the unique requirements of electric vehicles. Additionally, the growing urbanization and increasing disposable income levels of the population are also contributing to the expansion of the in-vehicle infotainment market. Urban dwellers, who spend a significant amount of time in traffic, are seeking entertainment and productivity features in their vehicles. Moreover, rising affluence levels have made premium infotainment systems more accessible to a broader consumer base.

Based on vehicle type, the market is categorized into passenger car, light commercial vehicle (LCV), and heavy commercial vehicle (HCV). Passenger cars generate the maximum demand for embedded in-vehicle infotainment systems. The primary factor responsible for this includes the need to enhance the consumer experience in the cockpit. As consumers spend more time in their cars for daily commuting and travel, they seek entertainment and connectivity options. Embedded infotainment systems provide access to music, navigation, communication, and other features, enhancing the overall driving experience. Furthermore, passenger cars are increasingly incorporating advanced technologies to improve safety, convenience, and entertainment. Embedded infotainment systems are a key feature that adds value to the vehicle and their presence has become a deal breaker for consumers during the buying process. Factors like these are playing a pivotal role in driving the demand for embedded in-vehicle infotainment systems even in low-end passenger cars, which was once the luxury that only high-end car users had access to.

Based on components, the market is segmented into infotainment units, passenger displays, instrument cluster displays, and head-up displays. The component that holds the majority share of the market in embedded vehicle infotainment systems is infotainment units. Several factors contribute to this domination, such as the critical function of the infotainment unit. Infotainment units act as the central control hub for various functions within the vehicle, including navigation, entertainment, climate control, and connectivity features. Furthermore, many infotainment units are designed to seamlessly integrate with smartphone technology, allowing for features such as Apple CarPlay and Android Auto. Additionally, infotainment units provide enhanced connectivity options, such as Bluetooth and Wi-Fi connectivity, for seamless integration with other devices. Factors like these are some of the primary reasons that have translated to this market-dominating position of the infotainment unit among the other components of the embedded in-vehicle infotainment system.

Based on connectivity, the market is bifurcated into 3G/4G and 5G. The 5G connectivity for the embedded in-vehicle infotainment system is expected to experience substantial growth in the predicted timeframe. One of the standout features of 5G connectivity is its ability to deliver blazing-fast speeds and ultra-low latency, drastically enhancing the in-car infotainment experience. With download speeds surpassing 1 Gbps and latency as low as 1 millisecond, 5G enables seamless streaming of high-definition content, real-time navigation updates, and uninterrupted connectivity for various smart devices within the vehicle. Furthermore, the exponential growth of connected devices and in-car applications necessitates a connectivity solution that can support the increasing bandwidth requirements. 5G networks offer significantly enhanced bandwidth and capacity compared to their predecessors, enabling multiple devices to stay interconnected simultaneously without compromising performance. Additionally, 5G connectivity opens up a realm of possibilities for advanced features and innovations in embedded vehicle infotainment systems. From augmented reality (AR) navigation and immersive entertainment experiences to personalized content delivery and vehicle-to-everything (V2X) communication, 5G technology paves the way for a new era of smart mobility.

Based on application, the market is segmented into navigation, virtual private assistant (VPA), app store, system control, and vehicle diagnostics. The virtual private assistant (VPA) has emerged as the powerhouse behind the widespread adoption of embedded systems in-vehicle infotainment. This application encompasses intelligent voice recognition, natural language processing, and contextual understanding capabilities, enabling users to perform a plethora of tasks hands-free while on the road. From setting up navigation routes to playing music, making calls, sending messages, and even controlling various vehicle functionalities, VPAs have become an indispensable part of the modern-day driving experience. Furthermore, VPAs leverage artificial intelligence and machine learning algorithms to continuously improve their performance and capabilities. This ensures that users have access to the latest features and functionalities, keeping their driving experience fresh and engaging, and hence are one of the most sought-after applications of the embedded-in-vehicle infotainment systems.

For a better understanding of the market adoption of embedded in-vehicle infotainment systems, the market is analyzed based on its worldwide presence in countries such as North America (The U.S., Canada, and the Rest of North America), Europe (Germany, The U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The Asia Pacific region has swiftly emerged as one of the fastest-growing embedded in-vehicle infotainment markets globally, showcasing exponential growth driven by a multitude of factors. One of the key factors responsible for the rapid growth of the automotive market in the Asia Pacific region is the substantial increase in economic activity across various countries. According to recent data from the Asian Development Bank, countries in the Asia Pacific region have been experiencing robust economic growth, leading to a rise in consumer purchasing power and an increased inclination towards vehicle ownership. This economic prosperity has significantly boosted the demand for automobiles, fostering a conducive environment for market expansion. Moreover, the escalation in public and private investments in infrastructure development and transportation systems has also played a pivotal role in propelling the automotive market in the Asia Pacific region. Governments across the region are heavily investing in building and upgrading transportation networks, including roads, bridges, and highways, to accommodate the growing urban population and facilitate smoother mobility. Additionally, private sector investments in automotive manufacturing facilities and technological advancements have further catalyzed the sector's growth trajectory. Furthermore, the phenomenon of growing urbanization in the Asia Pacific region has been another crucial driver boosting the automotive market. As cities expand and populations concentrate in urban areas, the need for personal transportation has escalated, leading to a surge in vehicle sales. Moreover, the rise in disposable income levels across various demographics in the Asia Pacific region has been a significant contributor to the burgeoning automotive market. With more consumers experiencing a higher standard of living and increased purchasing power, the desire to own personal vehicles has intensified, leading to a surge in automotive sales. Notably, the growing demand for automobiles in the Asia Pacific region has also catalyzed the market for embedded in-vehicle infotainment systems. As consumers seek enhanced connectivity, entertainment, and convenience features in their vehicles, the demand for sophisticated infotainment systems has also surged.

Some of the major players operating in the market include HARMAN International; Panasonic Holdings Corporation; ALPS ALPINE CO., LTD; Robert Bosch GmbH; Continental AG; Clarion; Phinia Inc.; DENSO CORPORATION.; JVCKENWOOD Corporation; and Visteon Corporation