Industry Insights
The global automotive infotainment market size was valued at USD 15.93 billion in the 2016 and is expected to register robust growth owing to factors such as a rise in the sales of integrated infotainment services including smartphone connection on demand music. The rising sales of automobiles are expected to augment the growth of the automotive infotainment market.
Global automotive infotainment market, by operating system, 2014 - 2024 (USD Billion)
Growing disposable income in developing economies, especially in countries of Asia Pacific and the Middle East, is a major factor for the rising of sales automotive infotainment systems. Furthermore, advancements in technology such as improved graphic user interface, USB ports, Bluetooth connectivity, touch screen, voice recognition and navigation are the primary driving factor for the automotive infotainment industry.
Strong prevalence of the aftermarket in the emerging economies such as China, U.S and India will further upsurge the demand owing to its low price in comparison with the originally equipped market (OE). Automotive infotainment system’s provision of connecting smartphones to the system has made it possible to work on the go making it easy for consumers to make calls, view messages and work while in the conveyance. Furthermore, additional infotainment services such as cloud based services and data storage services are expected to add to further growth to the in vehicle infotainment market.
Segmentation by Operating System (OS)
• Linux
• QNX
• Microsoft
• Others
Linux, Microsoft and QNX were the most widely used OS in infotainment systems. QNX dominated the market with a revenue share of 43.3% in the year 2016. However, the segment is anticipated to lose it market share to Linux on account of the robust security and safety offered by the operating system.
Development of open source platforms, integration of infotainment systems with smartphones are expected to be the key drivers for the market. Excellent compatibility of Linux with other operating systems and software is projected to bolster its growth.
Segmentation by Vehicle
• Passenger Car
• Commercial vehicles
Passenger cars are anticipated to contribute more in the in vehicle infotainment market owing to their rise in the production and sale. The rising sales of passenger vehicles are attributed to the increase in the disposable incomes and increasing demand for compact cars.
Asia Pacific is expected to contribute to over than half of the market share with regard to spending capacity of consumer class by the year 2030. Furthermore, Asia Pacific is projected to lead the market of passenger vehicles with a CAGR of 14.9% owing to increasing urban population.
Growing manufacturing activities and the rising investments in transportation segment has increased the sales of the commercial vehicles. Asia Pacific region registered a strong growth in the sales of commercial vehicles owing to maximum sale in countries such as Japan, India and China. The provision of navigational facilities to find the fastest routes for efficient and quick transit is expected to propel growth.
Segmentation by Region
• North America
• U.S.
• Europe
• Russia
• Germany
• Asia Pacific
• China
• India
• Rest of the World
The North American region dominated the global industry with a share of 35.1% in 2016 owing to the easy availability of innovative products. There has been an increase in the sales of head-up displays and Bluetooth connectivity devices owing to stringent norms for road safety.
Asia Pacific region is estimated to grow at the fastest CAGR owing to the rising population, disposable income and improving infrastructure. China being the largest consumer of high-end luxury cars, is expected to show above average growth at a CAGR of 15.1% over the forecast period.
Competitive Landscape
The market comprises several prominent players including Harman International, Denso Corporation, Alpine Electronics Inc, and Nuance Communications. Aftermarket infotainment vendors are associating themselves with large scale manufacturing companies to bring about innovations in the existing products. However, stiff competition is expected between aftermarket and OEMs owing to price, availability and quality. Other prominent vendors in the automotive infotainment market include Bosch, Continental, Aisin AW, Fujitsu Ten, and Clarion.
