Published: April 27, 2016
The world in-car infotainment market is expected to grow at a CAGR of 13.3% during the forecast period (2016 – 2022), according to a report published by Allied Market Research. The market has witnessed a double-digit growth rate and is expected to see this trend during the forecast period. Advanced infotainment systems are equipped with connectivity options like Bluetooth and Wi-Fi, interactive voice recognition services, live media streaming service and smart technology for mobile integration, among others.
These systems manage audio & video content while providing updates and information on traffic conditions and weather forecast. Advanced in-car infotainment systems offer information, communication, and entertainment with mobile integration technology. In addition, it also offers navigation services and driver assistance by using high-performance interfaces, such as control units, human machine interfaces (HMI), and operating controls. These advanced features have fostered the adoption of in-car infotainment systems; thereby driving the growth of the market in future.
In addition, booming smartphone industry and aggrandized use of cloud technology have significantly boosted the growth of the world in-car infotainment systems market. Cloud technology has improved system response time of in-car infotainment systems. However, lack of seamless connectivity and complexity of in-car infotainment devices have restrained the growth of the market. Integration of cloud services in in-car infotainment systems facilitates the streaming of media, online system software update and information access.
The in-car infotainment systems market is segmented into OEM and aftermarket installations on the basis of type of installation. OEM installation segment comprises pre-installed in-car infotainment systems delivered by car manufacturers to customer. For instance, Ford motors offer already installed in-car infotainment systems in its cars. The aftermarket in-car infotainment system providers include third party vendors of in-car infotainment systems. Moreover, the aftermarket installation market offers low-cost customization and upgradation of obsolete in-car infotainment systems.
The component market is segmented into hardware and software. Hardware market is further sub segmented into four different types namely, audio unit, display unit, connectivity and others. The other segment includes climate control, Bluetooth and interactive voice recognition (IVR). Software market is expected to grow at a significant rate, since it offers a wide range of advanced features pertaining to in-car infotainment systems.
The world in-car infotainment market is segmented on the basis of geographical regions, encompassing North America, Europe, Asia-Pacific and LAMEA. Europe is anticipated to be the largest market for in-car infotainment systems. The in-car infotainment market in Asia-Pacific region accounted for 28.1% share of the overall in-car infotainment market revenue and is estimated to grow at a prominent CAGR of 16.4% during 2016–2022.
Increasing purchasing power of consumers, ease-of-access and technological advancements in Asia-Pacific would foster the adoption of in-car infotainment systems in this region. This region would witness the highest growth rate; whereas, LAMEA is expected to grow at a moderate growth rate during the forecast period. The key market players profiled in the report include Panasonic Corp., Harman International Industries, Bayerische Motoren Werke AG (BMW), Fujitsu Ten Ltd., Delphi Automotive PLC, Denso Corporation and others.
Source: Allied Market Research