The global automotive infotainment market was valued at USD 14.99 billion in 2023 and is projected to experience robust growth at a compound annual growth rate (CAGR) of 9.9% from 2024 to 2030. This growth can be attributed to the ongoing integration of various features such as on-demand music, smartphone connectivity, and live audio streaming. These features are increasingly being incorporated into vehicles to meet the rising consumer demand for comfort, safety, and convenience while driving.
In addition to these integrations, continuous advancements in infotainment features are also playing a crucial role in market expansion. As vehicles become more affordable, a wider range of consumers can access these enhanced infotainment systems. Major automotive manufacturers are now focusing on incorporating advanced technologies such as driver assistance systems, augmented reality, real-time data collection, and the Internet of Things (IoT) to elevate the functionality of infotainment systems. The integration of these technologies not only improves the overall driver and passenger experience but also significantly enhances safety, which in turn fuels the growing demand for automotive infotainment systems.
Automakers are placing a strong emphasis on the incorporation of IoT technologies into their vehicles to facilitate comprehensive end-to-end connectivity. Automotive Original Equipment Manufacturers (OEMs) are increasingly collaborating with software solution providers to create low-latency, high-bandwidth systems that can withstand the rigors of low temperatures and high vibration conditions found in both light-duty and heavy-duty vehicles. The implementation of IoT simplifies access to information for vehicle occupants, thereby enhancing both convenience and security during travel.
Gather more insights about the market drivers, restrains and growth of the Automotive Infotainment Market
Fit Type Insights Segmentation
Within the automotive infotainment market, the OEM-fitted segment commanded the largest revenue share, accounting for 72.99% in 2023. This dominance can be attributed to the ease of service and lower maintenance requirements associated with OEM systems. These systems are integrated as part of the vehicle's warranty, meaning that customers do not incur additional costs for the original equipment (OE) systems. This warranty assurance makes OEM-fitted systems more appealing than aftermarket alternatives, thereby contributing to the growth of this segment. Additionally, by incorporating OEM systems, manufacturers can access valuable data stored within the vehicles. This data can then be utilized by sales and marketing teams for targeted campaigning and improved customer engagement.
On the other hand, the aftermarket segment is anticipated to witness significant growth during the forecast period. Several factors are likely to contribute to this expansion. Aftermarket automotive infotainment systems typically come at a lower cost compared to OEM-fitted systems, making them an attractive option for budget-conscious consumers. Moreover, aftermarket systems can often be customized to meet the specific needs and preferences of individual customers, offering a level of personalization that OEM systems may not provide.
Aftermarket suppliers cater to a wide range of consumers, offering basic infotainment systems for entry-level car models that often include fundamental features such as audio units. Additionally, these suppliers have the flexibility to replace existing infotainment systems with more advanced options within the same price range, providing consumers with greater choices and enhancements to their in-car entertainment experience.
In summary, the automotive infotainment market is poised for substantial growth driven by technological advancements and changing consumer preferences. The ongoing emphasis on safety, convenience, and connectivity will continue to shape the market landscape, presenting opportunities for both OEM and aftermarket segments to thrive in the coming years.
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