Government mandates on telematics and e-call services and the emergence of various technologies such as 5G and AI will create growth opportunities for the in-vehicle infotainment market to reach $ 38.4 billion by 2027.
According to the new research report - In-Vehicle Infotainment Market by component, service, connectivity, form, location, vehicle type, region - Global Forecast to 2027,published by MarketsandMarkets, the global in-vehicle infotainment market size is projected to grow at a CAGR of 10.8% till 2027, from $ 20.8 billion in 2021.
Some of the key players in the in-vehicle infotainment market include Harman International, Panasonic, Alps Alpine, Robert Bosch and Continental.
Embedded Segment
Driven by regulatory mandates in the EU, which stipulated that all new car models in member states must have embedded technology as part of its European eCall system, the embedded segment is estimated to account for the largest market share of ~48-50% in 2021. The integrated segment is estimated to be the second-largest form segment with about 32% market share in 2021.
The embedded form type is prevalent in Europe and North America, while the integrated form type grows in popularity in the Asia Pacific and RoW.
The primary driver for this trend is the cost-sensitive nature of the regions (Asia Pacific and RoW), which prefer integrated connectivity as it is more economical than the embedded form. The market for the combined form type, whose adoption is growing rapidly in these regions, is projected to register a CAGR of 12.4% globally.
Android Automotive OS
The operating system segment of the in-vehicle infotainment market is driven by Linux OS at present. However, Android Automotive OS is an open-source platform that reduces the cost of using it to zero, and it is cheaper to install than most other systems. Presently, it provides access to a series of services with millions of users worldwide and is expected to register the highest growth in the OS segment during the forecast period.
Moreover, many automotive suppliers and OEMs are working on the development and commercialisation of Android Automotive OS; for instance, in August 2021, Renault announced to install Android Automotive in some of the models launched by its brands, and Renault Megane E-Tech would be the first to be introduced. Audi and Volvo have partnered with Google to use upgraded versions of infotainment systems. General Motors and Stellantis announced that they would use Google's new Android operating system to power infotainment systems in all their vehicles by the end of 2023. Hence, Android Automotive OS is expected to emerge as a key OS for in-vehicle infotainment companies and register the highest growth rate of 36.4% during the forecast period, MarketsandMarkets observed.
Asia Pacific To Lead The Pack
According to the research company, Asia Pacific is estimated to be the largest global market for IoT in terms of revenue and connections by 2025. For the in-vehicle infotainment market analysis, Asia Pacific includes China, India, Japan, South Korea, and the Rest of Asia Pacific.
In addition, factors such as increasing GDP, infrastructure investments, rising per capita income, growing inclination toward comfort and leisure, and government initiatives for FDIs have created more opportunities for advanced infotainment services in the Asia Pacific. The tech-savvy population in these countries demands a better and more connected driving experience.
China has been a dynamic power for the global economy and an established ground in connectivity. As a result, theAs a result, the country is expected to show tremendous growth opportunities and steadily growing production capacity.
According to MIIT, in April 2021, China built a 5G high-speed mobile network with 260 million 5G mobile connections. The connected car market is growing rapidly in China. As per CAAM's report of November 2021, 228 connected cars and new startups were recorded in China. China is an important member of the 5GAA, a cross-industry association of vehicle manufacturers and telecom companies. Key manufacturers are focusing on entering strategic partnerships with market players for market expansion, R&D, and product advancement to keep up with the changing needs of passengers, the report said.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Continental.