The “Global Automotive Infotainment Market, by System (Entertainment System (Audio System & Video System), Connectivity System (Hands Free Call, USB Bluetooth,& Wifi Router ) and Driver Assistance(Traffic Message Channel (TMC), Adaptive Cruise Control (ACC) &GPS Navigation System (GPS))), by Vehicle Type (Passenger Car (Compact & Mid-size, Premium, Luxury), Light Commercial Vehicle and Heavy Commercial Vehicle (Buses, Trailers, Trucks) ), by Sales Channel (OEM and Aftermarket) and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Global Forecast to 2027”, is expected to exhibit a CAGR of 7.8% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights
Auto infotainment systems have changed significantly over the years due to gradual innovation and inventions and reinventing vehicle dashboards from only music consoles to a wide range of applications that help the driver and passengers stay connected with their surroundings and the world outside of the vehicle along with entertainment while on move. An auto infotainment system may include playing and managing audio and video content, navigation for driving, and rear-seat entertainment such as music, video, games, social networking, and more. Auto infotainment system has enabled drivers to perform any sort of virtual activity while driving or traveling. These systems enable an individual to work or connect in a similar manner as he or she would have been able to while outside a vehicle.
The global automotive infotainment market is estimated to account for US$ 24.06 Bn in terms of value by the end of 2019
High growth of commercial vehicle business is expected to propel growth the global auto infotainment market during the forecast period
Commercial vehicles are used for the delivery of goods, machines, etc., which has witnessed excellent growth in the recent past. Such vehicles need to stay connected and informed about consumer data, weather updates, traffic, and more. Infotainment system provides vital information and makes travel time convenient, productive, and entertaining. According to Coherent Market Insights’ analysis, in 2015, commercial vehicle sales in India reached 650,993 units, an increase of 9% from sale in 2014. According to a report by Ram brand’s CEO, the sales figure for Ram pick-up trucks has increased from about 200,000 units in 2010 to 451,000 units in 2015 in the U.S. Therefore, growth of commercial vehicle business is expected to boost the market growth in the near future.
Increasing demand for personalized infotainment system is expected to offer excellent business opportunities during the forecast period
Generally, luxury segment cars are offered with high-performing, personalized infotainment system. Carmakers are offer dashboards, control panels, and entertainment systems according to consumers’ needs. Moreover, some consumers demand special features such as automatic head-up display, voice control recognition, and similar other facilities, which in turn, is expected to pose significant business opportunities for market players over the forecast period.
Design complexity in infotainment system is expected to restrain growth of the global auto infotainment market over the forecast period
Key companies in the market are focused on incorporating novel features to auto infotainment system, in order to enhance the driving experience. However, designing such complex infotainment system is extremely challenging with compact measurements and limited budget. Moreover, even after investing heavy funds, there is no assurance whether the system will be able to deliver the expected results and performance. Furthermore, rapidly changing market dynamics and consumer demands are few other obstacles in the development of infotainment system. Therefore, such challenges are expected to restrain the market growth during the forecast period.
Constant growth of Russian automotive market is expected to boost the demand for auto infotainment system
According to Coherent Market Insights’ analysis Eastern Europe automotive aftermarket, specifically Russian aftermarket is expected to witness a CAGR of 5%-15% in the near future. The Eastern European market is expected offer lucrative growth opportunities for manufacturers with better distribution networks and sales. Moreover, new car launches have supported growth of Russian automotive market in the recent past. Automotive company LADA Automotive in Russia launched 3 to 4 different models of cars between 2014 and 2015. However, car sales are anticipated to regain its pace by the end of 2017 and flourish by 2021, which in turn will witness the demand for auto infotainment systems in the region.
Policy for domestic production of cars in Nigeria is expected to boost the demand for auto infotainment system
In 2013, the government of Nigeria launched the National Automotive Policy, in order to encourage domestic production of cars. According to Standard Bank, the African middle-class population has tripled in the last 14 years and is expected that around 25 million households will become middle-class by the end of the forecast period. According to the same source, Nigeria, out of the eleven countries, will register the highest number of middle class population. Thus, booming domestic car production and economy, the regional infotainment market is expected to offer significant growth opportunities for manufacturers, suppliers, and retailers in the region.
Key players operating in the global auto infotainment system market are Continental AG, Garmin Ltd., DENSO Corporation, Delphi Automotive LLP, Fujitsu Ten Limited, HARMAN International, Pioneer Corporation, Panasonic Corporation, Visteon Corporation, Robert Bosch GmbH and Clarion.