Automotive Infotainment Market Size - By Product (Audio Unit, Display Unit, Heads-up Display, Navigation Unit, Communication Unit), Vehicle (Passenger Cars, LCV, HCV), Installation Type, Operating System, Distribution Channel & Global Forecast, 2024 - 2032

Automotive Infotainment Market Size

Automotive Infotainment Market size was valued at USD 27.3 billion in 2023 and is estimated to register a CAGR of over 6.5% between 2024 and 2032. The market is expected to witness significant growth as consumers, particularly the younger generation, are increasingly looking for cars that offer a variety of entertainment and connectivity features such as navigation, music streaming, hands-free calling & internet access. Some modern entertainment systems including bigger touchscreens, high-resolution displays & immersive sound systems improve entertainment possibilities and turn automobiles into entertainment hubs.
 

For instance, in June 2023, Mercedes incorporated OpenAI's conversational AI agent into its MBUX infotainment system, providing an extra luxury amenity to U.S. vehicle buyers. This move provided the owners with the MBUX system and the extra option to participate in a beta program to enable ChatGPT capabilities. Mercedes introduced this option to the list of earlier infotainment capabilities including driver assistance, navigation, and media control.
 

The growing adoption of electric vehicles and autonomous vehicles presents a significant opportunity for the autonomous infotainment market. EVs generally require more powerful infotainment systems due to complex battery management, charging infrastructure integration, and Advanced Driver Assistance Systems (ADAS). These systems benefit from the high-performance computing platforms that are often found in autonomous infotainment solutions. During autonomous driving, passengers will have more time for entertainment and productivity. The flexibility and customization capabilities of autonomous infotainment systems also cater to this evolving usage pattern.
 

In January 2024, Google unveiled enhancements to both Android Auto and Original Equipment Manufacturer (OEM) infotainment systems with Google Built-In. These upgrades include the launch of new applications for all Google Built-In systems along with specialized enhancements for EV users within Android Auto.
 

The automotive infotainment market is facing several restraints that are impacting its growth trajectory. Consumers demand high-resolution displays, powerful processors, advanced connectivity, and AI-powered features, all of which add complexity & cost to development. Along with this, integrating infotainment systems with other vehicle systems including ADAS and telematics further increases complexity and requires specialized expertise. High development and specialization costs create barriers to entry for smaller players, potentially hindering market competition and innovation. Automobile manufacturers need to balance the desire for advanced features with cost constraints, potentially leading to compromises in functionality or quality.
 

Automotive Infotainment Market Trends

The automotive infotainment industry is witnessing increased AI integration and personalization. Various features including intuitive voice assistants, predictive maintenance, personalized recommendations, and biometric authentication are being added to these systems. Automakers are offering more intuitive and personalized experiences by integrating AI effectively to differentiate themselves, thereby attracting users and driving market share. AI-powered features create opportunities for subscription-based services, such as personalized navigation packages or music recommendations, generating additional revenue streams.
 

For instance, in January 2024, Volkswagen, a German carmaker, announced plans to incorporate ChatGPT into its IDA voice assistant. IDA automatically decides whether to conduct a vehicle function, search for a location, or regulate the temperature. ChatGPT allows the IDA voice assistant to handle the infotainment, navigation, and air conditioning systems as well as answer general knowledge inquiries. Volkswagen will be the first volume manufacturer to provide ChatGPT as a standard feature in numerous production vehicles beginning in Q2 2024.
 

Automotive Infotainment Market Analysis

Based on distribution channel, the OEM segment accounted for 75% of the market share in 2023. OEM infotainment systems are often well integrated with the vehicle, providing smooth compatibility and dependable performance. Established automakers benefit from existing brand trust and customer loyalty, giving them an edge in the market compared to aftermarket wholesalers.
 

Also, the rise of electric vehicles (EVs) and autonomous driving technologies reshapes the automotive infotainment landscape. OEMs integrate infotainment systems with EV-specific features such as energy management, charging station navigation, and vehicle-to-grid (V2G) connectivity. In autonomous vehicles, infotainment systems play a crucial role in providing entertainment, productivity, and connectivity options to passengers.
 

Based on vehicle, the passenger cars segment recorded around 78% of the automotive infotainment market share in 2023. The passenger cars segment accounts for the highest production and a larger sales volume compared to other segments, boosting demand for infotainment systems. Passenger cars are often associated with a more premium and feature-rich experience with infotainment being a key element as it offers extra functionalities. Passenger cars offer features, such as navigation, hands-free communication, driver assistance features including ADAS, and music & entertainment integration, propelling the market growth.
 

Asia Pacific automotive infotainment market accounted for 45% of the revenue share in 2023. The region will witness rapid economic growth, giving rise to disposable income and increasing vehicle ownership. These factors raise the demand for in-car features such as infotainment systems. Also, with the wide adoption of smartphones across Asia Pacific, consumers expect seamless integration between their mobile devices and in-car infotainment systems. This creates a demand for infotainment solutions that support various features, such as smartphone mirroring, app integration, and voice control, enabling drivers to access their favorite apps and services while on the road.
 

Automotive Infotainment Market Share

Denso Corporation and Harman International Industries Inc. hold a significant market share of over 15% in 2023. With the growing demand for connected automobiles, Denso invests heavily in innovative connectivity solutions that enable smooth communication between infotainment systems and external devices such as smartphones & IoT devices. This involves working with communication companies to improve network coverage and speed.
 

Harman works closely with manufacturers to better understand market trends and customer preferences as well as ensure that its infotainment solutions are easily incorporated into car design & manufacturing processes. Creating solid collaborations with top car brands also aids Harman's brand recognition and credibility in the industry.
 

Automotive Infotainment Market Companies

Major companies operating in the automotive infotainment industry are:

• Alpine Electronics Inc.
• Continental AG
• Denso Corporation
• Garmin Ltd.
• Harman International Industries Inc.
• LG Electronics
• Magnetic Marelli S.p.A
• Mitsubishi Electric Corporation
• Panasonic Holdings Corporation
• Pioneer Corporation
   

Automotive Infotainment Industry News

• In January 2024, Ford and Lincoln launched an enhanced infotainment system, transforming their digital interface. The upgraded Ford and Lincoln Digital Experience offers consumers seamless access to their digital ecosystem, incorporating popular Google and Amazon applications & services. This integrated native experience, combined with Apple CarPlay functionality, delivers a user-friendly interface that enhances connectivity and convenience for customers.
   
• In January 2023, Volvo Cars and Polestar integrated Google HD Maps into their vehicles. This collaboration enabled Volvo to leverage its advanced sensor technology in the Volvo EX90 alongside Google's highly precise lane-level & localization data. This integration empowered Volvo Cars to offer enhanced assisted driving features including lane change assistance and Volvo Cars' Pilot Assist technology, providing customers with a seamless & sophisticated driving experience.
   

The automotive infotainment market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and Volume (Units)from 2018 to 2032, for the following segments:

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Market, By Product

• Audio unit
• Display unit
• Heads-up display
• Navigation unit
• Communication unit

Market, By Installation Type

• In-dash infotainment
• Rear seat infotainment

Market, By Vehicle

• Passenger cars
• Light Commercial Vehicles (LCVs)
• Heavy Commercial Vehicles (HCVs)

Market, By Operating System

• QNX
• Linux
• Microsoft
• Others

Market, By Distribution Channel

• OEM
• Aftermarket

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA