The global automotive infotainment market was valued at USD 14.99 billion in 2023 and is anticipated to grow at a strong compound annual growth rate (CAGR) of 9.9% from 2024 to 2030. The market is expected to experience robust growth due to the ongoing integration of advanced features like on-demand music, smartphone connectivity, and live audio streaming, which meet the rising demand for comfort, safety, and convenience in modern vehicles. These features are being continuously improved, and their affordability is increasing, making them more accessible to a broader customer base, thus further driving market expansion.

In addition to enhanced entertainment options, automotive manufacturers are increasingly incorporating advanced technologies like driver assistance systems, augmented reality (AR) for real-time data collection, and Internet of Things (IoT) into infotainment systems. These technologies are not only enhancing the entertainment and navigation experience but also significantly improving driver safety, which is a key factor fueling demand for these systems.

Automakers are focusing heavily on IoT integration to boost vehicle connectivity. This connectivity enables seamless access to critical information for both drivers and passengers, increasing both convenience and security during travel. Automotive Original Equipment Manufacturers (OEMs) are partnering with software solution providers to develop low-latency, high-bandwidth solutions that can withstand the harsh conditions found in light-duty and heavy-duty vehicles, such as extreme temperatures and strong vibrations. The IoT’s ability to streamline access to important data is expected to drive further adoption of infotainment systems.

Gather more insights about the market drivers, restrains and growth of the Automotive Infotainment Market

Moving forward into the forecast period, major automakers are anticipated to continue equipping new vehicles with cutting-edge infotainment systems. Companies such as Nissan Motor Co. Ltd., Mitsubishi Motors Corporation, and Groupe Renault are looking to integrate Google Inc.'s Android OS into their upcoming models. This reflects the growing trend of pairing infotainment systems seamlessly with smartphones, responding to evolving consumer preferences for connected, user-friendly experiences. To meet this demand, many automotive manufacturers are forming partnerships with technology companies specializing in display units, audio systems, and navigation technologies to deliver innovative infotainment solutions. The rise in luxury vehicle sales and the increasing consumer preference for dashboard-integrated infotainment systems are also creating new avenues for growth within the market.

Product Type Segmentation Insights

Among the various product types, the navigation unit segment led the market, accounting for 37.1% of the market share in 2023. Consumers are increasingly drawn to advanced onboard features such as 3D navigation, hands-free calling, satellite radio, and media streaming, which are motivating automakers to incorporate communication units into even basic vehicle models. Additionally, the advent of 5G networks is set to further enhance the speed and accuracy of real-time data collection, making infotainment devices more effective and more widely adopted across different car models.

Meanwhile, the heads-up display segment is expected to record the highest growth rate during the forecast period. This surge in demand can be attributed to the growing application of Augmented Reality (AR) technology in automotive infotainment systems. AR technology provides real-time information, such as vehicle speed, directional indicators, and warning signals, which are displayed directly on the vehicle’s windshield. The heads-up display presents these details in a way that minimizes distraction, as the information is visible with just a glance from the driver, without having to look away from the road. The heads-up display also assists with parking and displays critical steering wheel data, making it highly preferred by customers worldwide.

In conclusion, the automotive infotainment market is undergoing rapid evolution, driven by the integration of advanced technologies and an increased emphasis on vehicle connectivity. The growing consumer preference for sophisticated entertainment and navigation systems, along with advancements in AR and 5G technologies, will likely continue to fuel market growth in the coming years.

Order a free sample PDF of the Market Intelligence Study, published by Grand View Research.