September 2024
The global in-vehicle apps market size is estimated to reach USD 157.02 billion by 2033, up from USD 60.47 billion in 2023, at a compound annual growth rate (CAGR) of 10.12% from 2024 to 2033.
Unlock Infinite Advantages: Subscribe to Annual Membership
The automotive industry is undergoing a transformative shift fueled by technological advancements, changing consumer preferences, and regulatory mandates. Central to this transformation is the proliferation of in-vehicle apps, which are software programs designed for use within a vehicle's infotainment system or integrated into the vehicle's operating system. These apps offer a wide range of functionalities, from navigation and entertainment to safety and convenience features.
The increasing demand for connected services in automobiles, driven by consumer expectations for seamless integration between their digital lifestyles and their vehicles, is a significant growth catalyst. Furthermore, the integration of popular smartphone platforms such as Apple CarPlay and Android Auto into vehicles expands the accessibility of apps, enhancing user convenience and driving market growth.
In today's increasingly connected world, consumers expect their vehicles to offer more than just transportation; they desire an extension of their digital lives seamlessly integrated into the driving experience. Consumers prioritize driving convenience features and productivity amenities, including smart parking assistance, in-vehicle payment systems, and on-board Wi-Fi connectivity, as key aspects of connectivity and digital services.
According to the International Trade Administration, by 2025, it's projected that more than 50% of new vehicle sales in China will comprise partially and conditionally automated vehicles. Additionally, the Chinese government has established specific targets for the Intelligent Connected Vehicles (ICV) market by 2030. These targets entail partially and conditionally automated ICVs constituting over 70% of new vehicle sales, highly automated ICVs representing over 50% of new sales, and nearly all new vehicles being equipped with the Cellular Vehicle-to-Everything (C-V2X) system by 2030.
In the year 2020, connected vehicles accounted for more than 85% of all new car sales in the United States alone, while it's anticipated that 5G-enabled vehicles will make up over a quarter of global connected car sales by 2025. Car manufacturers are turning to connected car technologies as a means to gain a competitive edge and distinguish themselves in a rapidly evolving and highly competitive market landscape.
These developments highlight the significance of connected services in driving innovation and shaping the future of the automotive industry on a global scale. In-vehicle apps are at the forefront of meeting this demand for connected services by providing drivers and passengers with access to navigation, entertainment, communication, and other essential functionalities directly through the vehicle's infotainment system.
As mobile apps govern various critical functions within connected vehicles, they add an additional layer of centralized application servers, expanding the potential attack surface and simplifying the task for hackers to remotely manipulate individual vehicles or entire fleets. Breaching original equipment manufacturer (OEM) mobile systems could lead to car theft, while attacks on car-sharing services have already assisted hackers in perpetrating identity theft, fraudulent activities, or misuse. A poignant illustration of the risks associated with smart mobility is the well-documented hacking incident involving the Australian GoGet car-sharing service, where a hacker pilfered user credentials to exploit the service without authorization.
The potential outcomes of cyber-attacks targeting OEM mobile systems and car-sharing apps involve technical, business, and safety difficulties that can be disastrous. These consequences range from tarnished brand reputation and extensive recalls to increased company liability exposure, intellectual property and customer data loss resulting in regulatory fines and legal expenses. Furthermore, the risk extends to the substantial and tangible peril posed to human lives.
The integration of 5G technology presents a transformative opportunity within various sectors, including automotive, due to its unparalleled speed, low latency, and high bandwidth capabilities. In the automotive industry specifically, the adoption of 5G technologies opens up a plethora of possibilities, ranging from enhanced connectivity and communication to the realization of advanced driver assistance systems (ADAS) and autonomous driving capabilities. With its lightning-fast data transfer rates and minimal latency, 5G enables real-time communication between vehicles, infrastructure, and other connected devices, paving the way for safer and more efficient transportation systems.
5G facilitates the seamless integration of high-definition multimedia streaming, augmented reality (AR) navigation, and immersive in-vehicle entertainment experiences, thereby enhancing the overall driving experience for consumers.
The infotainment apps segment held largest market share of 40.33% in 2023. The increasing consumer demand for enhanced entertainment and connectivity options in vehicles has propelled the adoption of infotainment apps. These apps provide drivers and passengers with a wide range of entertainment features, including music streaming, video playback, and access to social media platforms, thereby enhancing the overall driving experience. Additionally, the growing trend towards connected and autonomous vehicles has further fueled the demand for infotainment apps, as manufacturers seek to offer differentiated and personalized experiences to consumers.
The passenger car segment captured a substantial market share of 70.09% in 2023. The increasing urbanization and rising disposable incomes worldwide have led to a surge in personal vehicle ownership, particularly in densely populated urban areas where public transportation may be less convenient or reliable. Additionally, the growing trend towards mobility as a service (MaaS) and ride-hailing platforms has primarily focused on passenger vehicles, further bolstering their market share.
North America dominated the market with 39.92% of shares in the global in-vehicle apps market. The region is a hub for technological innovation, with many leading automotive manufacturers and tech companies headquartered in the region. This concentration of innovation drives the development of advanced in-vehicle technologies and app ecosystems, attracting consumers who are eager to adopt the latest innovations in automotive technology. Furthermore, consumers in the region have a strong appetite for connectivity and digital experiences, both in their personal lives and in their vehicles. As a result, there is significant demand for in-vehicle apps that offer features such as navigation, entertainment, communication, and productivity tools, enhancing the overall driving experience.
Asia Pacific is expected to grow at a fastest CAGR of 11.59% during the forecast period. The expanding middle-class population in countries like China, India, and Southeast Asian nations has led to an increase in vehicle ownership and demand for advanced automotive technologies. In-vehicle apps that offer convenience, entertainment, and productivity features appeal to this growing consumer segment, driving market growth in the region. Furthermore, the region has seen a significant rise in ride-hailing and car-sharing services, particularly in densely populated urban areas. In-vehicle apps that support these services, offering features such as booking, payment, and navigation assistance, cater to the needs of urban commuters and contribute to the overall growth of the in-vehicle apps market.
Some of the key players in in-vehicle apps market are Audi AG, Ford Motor Company, Garmin Ltd., Nvidia Corporation, General Motors, Apple Inc., Google LLC, Harman International Industries, Inc., Continental AG, Microsoft Corporation, Renesas Electronics Corporation, Siemens AG, Tesla Inc., and Toyota Motor Corporation, among others.
By Type
By Connectivity Technology
By Operating System
By Vehicle Type
By Region
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.
We offer automotive expertise for market projections and customizable research, adaptable to diverse strategic approaches.
Contact Us