In-Car Infotainment Global in-car infotainment market worth $21.53 billion by 2026
In 2018, the global in-car infotainment industry was pegged at $11.14 billion. As the market gains impetus from a rise in the adoption of smartphones and a surge in the use of cloud technology, it's expected to reach $21.53 billion by 2026.
Learning is fun, there's even a word proving it: infotainment. Infotainment systems are systems that provide a combination of entertainment and information for an enhanced in-vehicle experience. With the growing demand for smart, safe, and entertaining vehicles, manufacturers are increasingly developing automobiles with integrated infotainment systems.
The global in-car infotainment industry was pegged at $11.14 billion in 2018, and is expected to reach $21.53 billion by 2026, growing at a CAGR of 8.3 percent from 2019 to 2026, according to a recent report by Allied Market Research titled "In-Car Infotainment Market by Installation Type (OEM and Aftermarket) and Component (Hardware and Software): Global Opportunity Analysis and Industry Forecast, 2019–2026".
Cloud technology driving the in-car infotainment market growth
Two of the main drivers for the in-car infotainment market are the growing adoption of smartphones and the increase in the use of cloud technology.
High cost and lack of uninterrupted and seamless connectivity, on the other hand, are factors hampering the growth of the global in-car infotainment market. That said, the number of connected cars on our roads is expected to rise steadily during the foreseeable future, resulting in lucrative opportunities for suppliers of in-car infotainment systems.
The aftermarket segment dominates the in-car information market
By installation type, the aftermarket segment held the largest share in 2018, contributing to nearly three-fifths of the global in-car infotainment market. The constant technological advancements and innovation in the automotive industry propels the growth of the segment. That said, the segment forecasted to grow the most over the next years is the original equipment manufacturer (OEM) segment. It's expected to manifest a CAGR of 10 percent between 2019 and 2026. The substantial growth is attributed to the rise in technological advancements and customers ' rising concerns for high-quality and reliable in-car infotainment systems.
The software infotainment segment is growing fast
The software segment is the segment expected to register the fastest CAGR, 9.1 percent, in the period 2019 to 2026. In their report, Allied Market Research points out the easy compatibility of in-car infotainment software as one of the main drivers of the segment's projected rapid growth. The hardware segment did, however, still hold the largest share of the in-car information market when the study on which the report In-Car Infotainment Market is based was conducted in 2018.
Asia-pacific leads the infotainment market
The infotainment market is dominated by one strong region: Asia-Pacific. In 2018, the region contributed to nearly two-fifths of the global in-car infotainment market. Two of the main factors behind Asia-Pacific's strong grip on the in-car information market is the enhancement in the automotive sector and the increase in the number of consumers and commercial cars in this region. While Asia-Pacific is expected to remain the dominating in-car information market throughout this decade, Europe is expected to maintain the largest CAGR of 9.9 percent from 2019 to 2026. This can be compared with the North American region, which is expected to manifest a CAGR of 7.8 percent from 2018 to 2026.