SAN FRANCISCO, Aug. 26, 2021 /PRNewswire/ -- The global automotive infotainment marketsize is expected to reach USD 12.57 billion by 2028, registering a CAGR of 8.7% from 2021 to 2028, according to a new report by Grand View Research, Inc. The increasing demand for autonomous vehicle technology, automotive cockpit electronics, and advanced safety features such as advanced driver assistance systems is anticipated to drive the growth. The growing demand for enhanced in-vehicle experience and shifting consumer buying behavior and the worldwide expansion of the luxury and premium car segments are also likely to fuel the growth of the market.
Key Insights & Findings:
The head-up display segment is expected to expand at the highest CAGR of around 10% over the forecast period owing to the integration of augmented reality for enhanced safety and driving experience
The OF fitted segment dominated the market in 2020 and is anticipated to generate over USD 9.6 billion by 2028 owing to the benefits such as easier servicing and maintenance
The passenger car segment accounted for the largest revenue share of around 80% of the overall market in 2020. The increasing demand for connected car features in passenger vehicles and the onset of autonomous vehicles are expected to drive the growth of this segment
Asia Pacific accounted for the largest market share in 2020. The regional market growth can be attributed to the increased production and sales of passenger vehicles in the region
The growing number of millennials opting for small and medium-sized cars is expected to boost the growth of the market growth. Furthermore, consumers are inclined to buy these cars, compared to premium cars, owing to their cost-effectiveness. In addition to this, the introduction of medium-sized SUVs has further encouraged the market growth as consumers can buy a bigger-sized vehicle at a lower cost.
Automotive infotainment technology is expected to gain significant demand as major automotive components and solution providers are engaging in developing complete automotive infotainment solutions. For instance, in May 2021, BMW AG announced iDrive 8, the latest infotainment system for its vehicles. The new iDrive 8 provides enhanced voice-recognition software and a massive touchscreen with multiple new features. It will be initially debuted on the new electric i4 sedan and iX SUV.
The introduction of Artificial Intelligence (AI)-based infotainment systems is also expected to contribute to the market growth. However, the market is characterized by a negligible regulatory framework regarding product manufacturing, resulting in counterfeit and low-quality products. Such negative trends are expected to hinder the market growth.
Emerging economies such as China and India are expected to contribute significantly to the growth of the market for automotive infotainment. The development is characterized by the increase in the adoption of mid-sized cars, which enables automotive companies to offer infotainment products for this car segment.
Grand View Research has segmented the global automotive infotainment market on the basis of product type,fit type,vehicle type, and region:
Automotive Infotainment Product Type Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)
Automotive Infotainment Fit Type Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)
Automotive Infotainment Vehicle Type Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)
Electric Vehicle Infotainment Market– The global electric vehicle infotainment market size was estimated at USD 2.4 billion in 2016. Increasing demand for rear-seat entertainment is anticipated to be a key factor in driving the market growth.
In-car Infotainment Market– The global in-car infotainment market size was valued at USD 17,181.7 million in 2018 and is expected to register a CAGR of 12.6% from 2019 to 2025.
Automotive Digital Cockpit Market– The global automotive digital cockpit market size was valued at USD 19.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.8% from 2021 to 2028.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.