Auto Infotainment Market

Auto Infotainment Market Outlook (2024 to 2034)

Revenue in the global auto infotainment market is projected at US$ 9 billion in 2024 and has been forecasted to rise at 9.7% CAGR to increase to US$ 22.7 billion by the end of 2034.

An infotainment system enhances the driving experience by bringing technology, entertainment, and connectivity to the car. It functions as a multimedia interface. Fundamentally, a central processing unit (CPU) serves as the brains of the system, carrying out instructions and guaranteeing its operation. The system has an intuitive user interface that is usually shown on a touchscreen, making it simple to navigate through features.

Rising sales of low-end cars have led to cost optimization of Android-based chipsets integrated into infotainment systems, driving the Android OS market for automotive infotainment. Advanced smartphone integration is a growing trend in the automobile industry.

Key Market Growth Drivers

• With the integration of multimedia and smartphones in infotainment systems, multiple features have become possible, for instance, tracking systems, telematics, and navigation that are revolutionizing the auto infotainment market.
• Increasing consumer focus on entertained driving and demand for car customization supported by high per capita income are expected to fuel the sales of auto infotainment systems. The growing awareness regarding safety and security in the functioning of vehicles is increasing the auto infotainment market size.
• Carmakers have gone over the edge concerning automation in automotive infotainment. Recent innovations and developments include voice control for infotainment systems that carmakers are offering. They are turning to Google (Android Auto), Amazon, and Apple (CarPlay) to provide seamless solutions. For example, Toyota has incorporated Amazon’s Alexa, a cloud-based voice control model, in a few of its new models.
• With Alexa, passengers or drivers can control the movement of the car as well as infotainment systems, including selecting songs, playing movies, changing destinations, as well as controlling smart home devices from far afield. Such innovations are supporting the adoption of auto infotainment systems, making consumers integrate them into their vehicles.

Report Attribute	Detail
Auto Infotainment Market Size (2024E)	US$ 9 Billion
Forecasted Market Value (2034F)	US$ 22.7 Billion
Global Market Growth Rate (2024 to 2034)	9.7% CAGR
East Asia Market Share (2024E)	29.5%
North America Market Share (2024E)	33.1%
Revenue from Passenger Cars (2034F)	US$ 4.22 Billion
Revenue from Entertainment Systems (2024E)	US$ 6.05 Billion
Key Companies Profiled	Continental AG; HARMAN International; Denso Corporation; Delphi Automotive LLP; Fujitsu Ten Limited; Garmin Ltd.; Media Tek Inc.; NXP Semiconductors N.V.; Texas Instruments Incorporated; Intel Corporation; Infineon Technologies Inc.; Qualcomm Technologies Inc.; Renesas Electronics Corporation; NVIDIA Corporation; Microchip Technologu Inc.; STMicroelectronics N.V.

Why Has Integration of Microelectronics Become Crucial in Auto Infotainment Systems?

“Microelectronics Enhancing Functionality and Output of Auto Infotainment Systems”

High-tech electronics is offering passengers and drivers various systems within the vehicle, for instance, in-car navigation systems. In addition, all information and entertainment can be delivered through wireless technology making it convenient for the vehicle occupant.

Microelectronics has enhanced auto infotainment systems by improving their functionality and output. Auto infotainment is the ongoing megatrend that is gaining traction in modern vehicles and is fueling the ubiquity of microelectronics. Consumers are more eager to get connected and access their content at any point in time and at any place on their devices with convenience.

Connected cars are highly safe, energy-efficient, and comfortable provide information on weather, traffic and, road accidents. Growing demand for autonomous cars is projected to be a potent cause that can drive the auto infotainment market growth during the forecasted period. Increasing R&D is expected to further fuel the market significantly.

What are the Key Challenges Related to Auto Infotainment Systems?

“Complex System Design and Risk of Driver Distraction”

Although the auto infotainment market has numerous end-uses, some obstacles are expected to hinder the expansion of the auto infotainment market size during the forecasting period. Drivers’ distraction in handling auto infotainment systems while driving and the economic crisis in certain regions are leading to a subsequent fall in the sales of vehicles. These factors are likely to restrict the growth of the market during the forecast period.

Manufacturer continuously introduce new models and features in the automotive industry, which can pose challenges due to the short product lifecycles of the latest vehicle models. The advanced automotive infotainment system is not specifically designed for vehicles, which makes the advancement of infotainment systems challenging and quite complex.

Country-wise Insights

North America is poised to hold a global market share of 33.1%, followed by East Asia, which is estimated to account for 29.5% of the global auto infotainment market share in 2024. The global market is experiencing growth driven by the expanding automobile sector, which is boosting sales of auto infotainment systems. Factors such as technological advancements, rising vehicle sales, and increasing demand for high-quality vehicle interiors are also playing a key role in driving market growth in the region.

What are the Opportunities for Manufacturers of Auto Infotainment in the United States?

“High Demand for Connected Car Technology and Integration of Voice Recognition”

Attribute	United States
Market Value (2024E)	US$ 1.37 Billion
Growth Rate (2024 to 2034)	10.7% CAGR
Projected Value (2034F)	US$ 3.81 Billion

The United States is estimated to account for nearly half of the share in North America in 2024 and is analyzed to occupy 67.8% by 2034. Opportunities for manufacturers of auto infotainment in the United States include the growing demand for connected car technology, the integration of advanced features such as voice recognition and gesture control, and the increasing focus on user experience and infotainment content. The shift towards electric and autonomous vehicles is contributing to auto infotainment market trends.

How is the Market for Auto Infotainment Faring in China?

“Market Benefitting from Rapidly Growing Interest in Connected Cars”

Attribute	China
Market Value (2024E)	US$ 1.21 Billion
Growth Rate (2024 to 2034)	11.6% CAGR
Projected Value (2034F)	US$ 3.63 Billion

China is expected to hold a 45.7% share of the East Asia market in 2024. Demand for auto infotainment systems is projected to increase at a substantial pace during the forecast period in the country due to the rising adoption of advanced vehicle technology and the growing interest in connected car features. Preference for in-car entertainment and connectivity is driving demand for more infotainment vehicles. Apart from this, incorporating advanced features such as navigation, communication, and multimedia entertainment in auto infotainment systems is likely to enhance the market in China further.

Category-wise Insights

The market is divided into passenger cars, light commercial vehicles, and heavy commercial vehicles, with passenger vehicles expected to capture 46.9% market share in 2024. In terms of system, entertainment systems are set to hold a market share of 67.3% in 2024, followed by drive assistance systems with a market share of 22.6% in 2024. After passenger cars, another category that is expected to gain a sizable share is commercial vehicles. These are trucks and buses used for commercial purposes.

Why are Auto Infotainment Systems Extensively Used in Passenger Cars?

“Increase in Passenger Car Ownership Boosting Demand for Stylish and Comfortable Features”Top of Form

Attribute	Passenger Cars
Segment Value (2024E)	US$ 4.22 Billion
Growth Rate (2024 to 2034)	9.7% CAGR
Projected Value (2034F)	US$ 10.67 Billion

The surge in travel and a growing population are driving the widespread rise in passenger cars. The use of various passenger vehicles, including SUVs, sedans, and others, for public transportation is expanding. These vehicles are gaining popularity due to their stylish, comfortable, and practical features, which is bolstering market growth. In addition, electric vehicles have been increasingly popular over the past few years, thanks to government initiatives aimed at promoting sustainability and controlling air pollution.

Which Type of Auto Infotainment System is Most Popular?

“Inclination toward Music and Video Streaming Driving Sales of Entertainment Systems”

Attribute	Entertainment System
Segment Value (2024E)	US$ 6.05 Billion
Growth Rate (2024 to 2034)	9.7% CAGR
Projected Value (2034F)	US$ 15.31 Billion

Growing inclination of consumers toward safety, comfort, and entertainment services is the primary reason for the growth of infotainment systems in automobiles. Long road trips by consumers and growing urban traffic congestion cause people to spend more time in their cars. This raises the average commute time of passengers on global roadways and adds to the amount of time spent in the car. This has made passenger safety and necessary entertainment services-such as music and video streaming, navigation features, etc.-necessary. Additionally, infotainment systems provide voice commands, multimedia features, interactive touch screens, and a variety of connectivity options via smartphones or tablets.

Large touchscreen displays, intuitive UIs, voice recognition, and cutting-edge driver-assistance systems are also available on front-row infotainment systems (ADAS). For drivers and passengers, these features greatly enhance the overall user experience, making it safer and more convenient. The standard for in-car entertainment is expected to rise as augmented reality (AR) and virtual reality (VR) continue to advance. During long trips, passengers can use these technologies to play interactive games and explore virtual worlds.

Competitive Landscape

Key players in the auto infotainment industry are attempting to deliver comprehensive solution ideas to clients, particularly end users, which is fostering market growth.

• In November 2022, the technology company Continental developed a new generation of its compact two-channel ABS for motorcycles. In this system (MK 100 MAB PYA), a new type of sensor was optionally integrated directly into the circuit board of the ABS. Integrating the sensor onto the circuit board is significantly more cost-effective than using a separate box, which is particularly relevant for volume models.
• In 2021, Qualcomm Technologies introduced the Snapdragon Automotive Cockpit, a new product that included multiple cameras along with features such as artificial intelligence and fast connectivity.
• The Skoda Slavia, which was launched in November 2021, came with a choice of two advanced infotainment systems. Both systems supported smartphone pairing via SmartLink technology and provided access to mobile online services. These systems were controlled via a 7-inch central color touchscreen in the active specification.

Fact.MR provides detailed information about the price points of leading manufacturers of auto infotainment systems positioned across the world, sales growth, production capacity, and technological advancements, in this updated market report.

Segmentation of Auto Infotainment Market Research

• By System Type :

  • Entertainment Systems
  • Connectivity Systems
  • Driver Assistance Systems

• By Vehicle Type :

  • Passenger Cars
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles

• By Sales Channel :

  • OEMs
  • Aftermarket

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa