About In-vehicle Payment Services
Continuous advances in the connected vehicle technologies and IoT has led to the movement of mobile wallets to the dashboards as OEMs are now partnering with the card networks and various retailers to equip their vehicle offerings with in-vehicle payment technology. This technology enables the driver to pay for certain services and products without even having to get down from the car, which include payment for parking services, fuel, various drive-thru restaurants, and many others. In addition, tech giants such as Amazon and Google are bringing their popular voice assistants in vehicles, which further facilitates the driver to buy products while they are behind the wheels.
Technavio’s analysts forecast the global in-vehicle payment services market to grow at a CAGR of 195.39% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global in-vehicle payment services market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global In-vehicle Payment Services Market 2017-2021
Technavio recognizes the following companies as the key players in the Global In-vehicle Payment Services Market 2017-2021: Jaguar Land Rover + Royal Dutch Shell, Honda Motor + Visa + IPS Group + Gilbarco Veeder-Root, and GM + MasterCard + IBM.
Other Prominent Vendors in the market are: Amazon + Ford Motor, Volkswagen, Daimler, Hyundai + Google, BMW, and Alibaba + SAIC.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is increasing demand for mobile device-based payment services. Smartphones have evolved from being just texting machines to mini-computers, personal assistants, and virtual shopping carts. With the rapid advance of technologies, smartphones have become an essential part of how people lead their lives. Technologies such as mobile wallets, on-demand apps, digital assistants, and enhanced connectivity through Bluetooth and near-field communications have transformed the way consumers interact and rely on their smartphones.”
According to the report, one driver in the market is high correlation between consumer electronics and connected car solutions. Economies of scale play an important role in today’s market to leverage the use of technology. For instance, the adoption rate of smartphones across the world increased significantly in the past 4-5 years owing to the decline in their price, and this was fueled by the advantage of economies of scale that the manufacturers gained by increasing the production. Hardware cost remains a primary consideration for automotive OEMs, and by keeping a close eye on consumer electronics, they can adopt new technology in a cost-effective manner. Basically, when any technology is adapted in the consumer electronics segment, its volume grows and that results in the decline of prices in the market.
Further, the report states that one challenge in the market is Design complexity and technological challenges. Vendors and suppliers are facing a challenge in terms of designing a user interface that is affordable, less distracting, simple, and accessible. As connectivity solutions become more and more integrated into the vehicles, the complexity of the system required to manage these features has also increased. Technological advances, an immense range of features, and diverse connectivity options have made telematics and infotainment systems highly sophisticated. The automotive segment has seen the adoption transformation from radio/audio systems in the early years to the advanced driver assistance systems in the recent years and is on-course toward fully autonomous vehicles which will further add to the sophistication.
Jaguar Land Rover + Royal Dutch Shell, Honda Motor + Visa + IPS Group + Gilbarco Veeder-Root, and GM + MasterCard + IBM, Amazon + Ford Motor, Volkswagen, Daimler, Hyundai + Google, BMW, and Alibaba + SAIC.
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