Global Automotive Infotainment Systems Market - Growth, Trends, and Forecast (2018 - 2023)
Alpine Electronics, Panasonic, Continental, Pioneer, and Harman International have been the top five market leaders in the automotive infotainment industry for the past few years, and they have been the driving force in the APAC region, along with the other players. The global smartphone-based automotive infotainment system market is expected to grow at a CAGR of over 12% during the forecast period. Automotive infotainment systems, which were previously factory-fitted only in luxury and business-segment cars, have become increasingly popular even in the entry-level or budgeted vehicles. These systems have the highest penetration in the North American and Asian markets, where most new cars come fitted with these systems. With the rise of car production in the APAC region, the infotainment industry has seen a sharp rise in demand for the last three years, particularly India, China, and Africa. Car manufacturers in this region usually offer such systems in their premium models.
The Digital-enabled Market
The infotainment systems in cars now feature entertainment, connectivity, as well as Global Positioning Service (GPS), which have made them a vital piece of hardware for cars. The prices of the latest systems have also come down in recent times with the increase in demand, which has made them more affordable and cheap and hence, increased their penetration in the market. The technology is rapidly changing, which ensures that the growth rate, even in the saturated markets, will be healthy.
As per the researchers at Mordor Intelligence, the availability of low-cost data plans for high-speed connectivity such as 4G services has revolutionized the infotainment industry. This high-speed connectivity is providing systems with the capability to remain connected through real-time data transfer and streaming. Consequently, smartphone integration with car dashboards allows automotive OEMs to provide robust navigation support in cars in a cost-effective way.
There has been an increased usage of infotainment services, such as live music and cloud services, in the last few years because of the rapid development of the smartphone and IT industry. Earlier, the infotainment systems were used to play the media available on the local device. However, the need for internet connectivity and connected cars technology have led to increased demand for connected infotainment systems. The infotainment technology has stepped further by introducing smart infotainment systems that use data analytics based on inputs such as interactive voice recognition, among others.
The Emerging Market
The highest rate of growth in the forecast period is expected to be seen in the Asian region, as a higher number of vehicles are likely to feature these systems with decreasing cost. The share of aftermarket suppliers in the market is expected to reduce gradually, as a higher number of systems are predicted to come factory-fitted with the cars. Car companies are building business relationships with infotainment equipment companies to provide them with the systems. The sales and share of sole audio and navigation units are projected to come down and comprehensive infotainment systems are anticipated to register the strongest sales. Post-2021, Africa is expected to overtake the Asia-Pacific region and grow the fastest because of the rising sales of passenger cars in the market.
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