Automotive Infotainment Market to be Worth $37.6B by 2025


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The global automotive infotainment market is expected to reach $37.6 billion by 2025, according to a new study by Grand View Research Inc. The increasing adoption of smartphones is anticipated to have a significant impact on the in-car infotainment market, as they are the most prominently used connectivity gateways of an infotainment system.

The demand for enhanced driving experience is also predicted to drive the market over the forecast period. The increased focus on driver comfort and convenience has led to the development of various automotive infotainment systems, which offer innovative features such as voice control, Bluetooth connectivity, real-time traffic updates, and navigation information. These features provide comprehensive vehicle information to the driver and thereby, enhance safety and driving experience. However, these systems involve high costs of integration and are primarily integrated in premium and luxury vehicles. Inadequate infotainment security and privacy are predicted to hinder the growth of the automotive infotainment market.

The use of infotainment systems in commercial vehicles is mainly driven by the widespread adoption of navigation units. The implementation of navigation and communication units in a commercial vehicle has increased operational efficiency and enabled a reduction in response time during emergency situations. As commercial vehicles have high travel time, compared to passenger cars, improving safety and driver experience is very essential.

Other key findings from the study suggest:

  • The communication unit dominated the product segment and was valued at $3.9 billion in 2016.
  • The head-up display segment is expected to be the fastest-growing segment with an anticipated CAGR of 13.5% over the forecast period.
  • The key success factor for various participants to gain traction in the market is building cost-effective and driver-centric automotive infotainment systems.
  • Automotive infotainment aftermarket products are cost-effective, as compared to OE fitted, and are much preferred by price sensitive consumers.
  • The passenger car segment is expected to grow at the highest CAGR of 11.4% over the forecast period, owing to the growing trend of low-cost passenger cars.
  • The Asia Pacific region is predicted to witness a CAGR of 11.3% during the forecast period, owing to the presence of prominent OEMs such as Hyundai Motor Co. and Toyota Motor Corp.

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