September 2024
The global automotive infotainment systems market was value at USD 26.42 bn in 2023 and estimated to reach USD 42.24 billion by 2032, growing at a CAGR of 5.35% from 2023 to 2032.
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The impact of the covid-19 pandemic on the automotive infotainment system market is significant, primarily due to its correlation with automobile sales and production growth. In 2020, vehicle production and sales witnessed a decline as manufacturers suspended operations. However, global vehicle production and sales began to recover in the first half of 2020, with continued growth in 2021. Despite this, the market has not fully rebounded to 2019 levels, largely due to the global semiconductor shortage. Post-pandemic, industry stakeholders are collaborating to develop new products to mitigate the pandemic's effects.
Car manufacturers are exploring the integration of IoT into vehicles to enhance end-to-end connectivity. Automotive OEMs are partnering with software solution engineers to develop cost-effective, high-bandwidth solutions capable of withstanding harsh environmental conditions in both light and heavy-duty vehicles. IoT facilitates safer and more convenient travel by providing passengers with easier access to information.
Looking ahead, major automobile manufacturers will persist in integrating infotainment systems into their new vehicles.
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Additionally, the demand for vehicle infotainment systems is rising as consumers' preferences shift towards smartphone-system connectivity. Consequently, vendors are collaborating with technology companies to develop new infotainment systems, leveraging advancements in equipment, audio systems, integrated systems, and navigation systems. Sales of luxury products and increasing consumer preference for dashboard-integrated infotainment systems are also creating new business opportunities.
Automobile manufacturers are prioritizing IoT integration to offer seamless vehicle connectivity. Collaboration with software companies has led to the development of high- and low-latency cables capable of operating in challenging environments. The Internet of Things enhances the accessibility of information for drivers and passengers, thereby enhancing travel safety and convenience. For instance, Renesas Electronics Corporation expanded its partnership with VinFast to collaborate on infotainment systems for electric SUVs.
The Asia-Pacific market is poised for rapid growth, followed by North America and Europe. This growth can be attributed to the high adoption of automobile infotainment systems in countries such as China, Japan, and India, which host major automotive manufacturers and drive technological innovation throughout the supply chain. For example, Rohm Co., Ltd. announced the development of the BD9S402MUF-C DC/DC converter IC for in-car cameras for infotainment systems and advanced driver assistance systems.
Smartphone functionalities are increasingly being integrated into vehicle infotainment systems. With more than 90% of adults in North America and Europe having internet access, smartphones have become ubiquitous, leading to increased usage of similar tools for comparable purposes.
Governments worldwide prioritize passenger safety and are implementing numerous laws and regulations to enhance it. Consequently, there is a growing trend toward upgrading vehicles with government-approved driver assistance systems (ADAS) features. These driver safety systems, including blind spot detection, collision warning, cruise control, and reverse alert, are crucial for driving business growth.
Currently, there are various direct or alternative methods for vehicle infotainment systems. However, the market faces threats from emerging technologies and solutions offering comparable or superior performance. These threats include smartphone integration, voice assistants, and augmented reality (AR) heads-up displays.
Automakers are also opting for hardware to reduce the purchase price of infotainment systems. They are developing technology capable of integrating smartphone functionality into vehicle infotainment systems at a lower cost. Manufacturers are striving to combine performance with competitive pricing. For automakers, digital services will generate more data to enhance the performance of connected vehicles.
Automobile infotainment systems are significantly impacting heavy traffic. These systems, particularly in passenger vehicles, have become popular alongside smartphones, while the adoption of ADAS and autonomous vehicles continues to rise. Designers have integrated these features into new infotainment models, making them integral components of electric cars.
The integration of artificial intelligence and cloud services is expected to drive advancements in vehicle infotainment system technology. Although many companies rely on the existing Google and Apple ecosystem to develop their infotainment systems, some prefer to develop their own operating systems.
China plays a significant role in the Asia-Pacific automotive market among other countries in the region, boasting the highest automobile sales over the past decade. The country is poised to sustain strong vehicle sales during the forecast period, fueled by automakers' emphasis on new energy vehicles (NEVs).
This growth is spurred by the surge in passenger car sales and production in the region. Increasing income levels and robust demand for automobiles have propelled the growth of the luxury and mid-size premium automobile market in the region. As electric vehicles gain traction in Asia Pacific, the demand for in-car entertainment is expected to rise. Key benefits of in-car entertainment include enhanced connectivity, improved user experience, hands-free operation, and a wider array of entertainment options.
From basic audio systems to touchscreen infotainment systems supporting multiple functions like navigation, Apple CarPlay, Android Auto, and remote data processing, the demand for infotainment systems in China is on the rise.
China stands as one of the world's largest automobile markets, with passenger car sales surpassing 20.17 million units in 2020. In 2021, total automobile sales in China are estimated to reach around 21.48 million units. Chinese automakers lead in the development of smart cockpits, which have become integral to modern driving. Smart cockpits offer intelligent features encompassing various driving functions such as voice recognition for car commands, entertainment, and navigation systems.
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Moreover, at the World Intelligence Conference in July 2021, China's automobile industry emerged as a frontrunner in smart cockpit development, with over 82,300 registered intellectual property applications related to smart cockpits, surpassing Japan and the United States with 31,900 and 19,300 applications, respectively. Smart cockpits have become essential technology in contemporary driving, with features like voice recognition and multifunctional navigation integrated into them.
The period of economic growth is experiencing rapid acceleration, accompanied by significant innovation driven by the integration of new technologies such as the Internet of Things (IoT), Advanced Driver Assistance Systems (ADAS), and Augmented Reality (AR). These advancements are aimed at enhancing driving safety and overall driving experience.
Among these innovations, the head-up display segment is poised for remarkable growth during the forecast period. This surge is primarily fueled by the increasing adoption of augmented reality (AR) technology. AR facilitates the real-time display of critical information such as speed, directional cues, and warning signs, enabling drivers to easily access and analyze essential data without diverting their attention from the road. By projecting graphics onto the windshield and providing details on the steering wheel, head-up displays assist in various driving tasks, including parking, without necessitating the driver to shift focus away from the road. Consequently, head-up display systems are highly favored by automotive customers worldwide.
The vehicle infotainment system, another integral component, enriches the driving experience by offering entertainment and information to both drivers and passengers. This system encompasses integrated audio/video (A/V) interfaces, touch screens, keyboards, and other features to deliver navigation services, hands-free phone connectivity, voice control, parking assistance, climate control, two-way communication, internet access, and additional security services. By incorporating these functionalities, vehicle infotainment systems not only enhance vehicle performance but also contribute to improved safety and driving comfort.
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September 2024
September 2024
September 2024
September 2024
Dr. Arjun Patel is a distinguished expert in the automotive industry, holding advanced degrees in Automotive Engineering and Mechanical Engineering. His expertise spans automotive market dynamics, technological advancements, and sustainable practices. Dr. Patel excels in conducting in depth research and analysis on market trends, consumer preferences, and the economic implications within the automotive sector. He is renowned for his insightful publications on topics such as electric vehicles, autonomous driving technologies, and the evolution of sustainable transportation solutions. Dr. Patels research contributions have significantly advanced understanding in the field, earning him recognition as a leading authority in automotive research and analysis.
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