Automotive Infotainment Market Size - By Product (Audio Unit, Display Unit, Heads-up Display, Navigation Unit, Communication Unit), Vehicle (Passenger Cars, LCV, HCV), Installation Type, Operating System, Distribution Channel & Global Forecast, 2024 - 203

Automotive Infotainment Market Size - By Product (Audio Unit, Display Unit, Heads-up Display, Navigation Unit, Communication Unit), Vehicle (Passenger Cars, LCV, HCV), Installation Type, Operating System, Distribution Channel & Global Forecast, 2024 - 2032

Automotive Infotainment Market size is poised to expand at over 6.5% CAGR between 2024 and 2032, driven by increasing adoption of EVs spurring manufacturers to focus on equipping these vehicles with advanced systems to enhance user experience. Infotainment in EVs includes features like energy monitoring, range estimations, and charging station locators, that are crucial for drivers. With EVs often considered as technologically advanced and futuristic, consumers are expecting the alignment to cutting-edge infotainment options. Additionally, EVs are increasingly attracting environmentally conscious buyers who value connectivity, smartphone integration, and digital assistants in their vehicles.

Furthermore, manufacturers are constantly introducing new features, such as augmented reality navigation, wireless connectivity, and integration with smart home systems. Regular software updates provide users with latest apps, services, and security enhancements for ensuring a seamless user experience. To cite an instance, in January 2024, Google announced multiple upgrades to Android Auto as well as OEM infotainment systems, including the introduction of new applications for all Google Built-In systems and new EV-specific enhancements to Android Auto. Such ongoing advancements and upgrades will augment the industry outlook through 2032.

The automotive infotainment industry is segmented into product, installation type, vehicle, operating system, distribution channel, and region.

Based on product, the market value from the navigation unit segment is set to witness high demand from 2024-2032 as consumers are increasingly prioritizing convenience and connectivity while driving. Navigation units offer real-time traffic updates, voice-guided directions, and points of interest for enhancing the driving experience. The integration of advanced technologies, such as GPS, augmented reality, and AI-driven route optimization will further boost the segment growth.

In terms of vehicle, the automotive infotainment market from the heavy commercial vehicle (HCV) segment is slated to depict considerable growth through 2032. Fleet operators and drivers are prioritizing connectivity and productivity, further surging the demand for advanced infotainment systems in HCVs. These systems offer features, such as GPS navigation, real-time traffic updates, and fleet management tools for optimizing logistics and operational efficiency. Additionally, the integration of entertainment options and connectivity for on-the-go work will add to the technology adoption.

Regionally, the Europe automotive infotainment industry is set to exhibit robust growth during 2024-2032. The tech-savvy consumers across the region have increased the demand for advanced infotainment systems with seamless connectivity and intuitive interfaces. Stricter regulations on distracted driving is fueling the need for hands-free communication and voice-activated controls. Automakers in Europe are also prioritizing the integration of innovative features, such as smartphone integration, digital assistants, and high-definition displays to cater to the growing demands while providing potential growth opportunities to industry participants. For instance, in June 2023, Xpeng, a Chinese EV firm, chose the ACCESS Twine4Car in-car entertainment system to provide applications and games for its new line of EVs, including popular streaming services, to enter the European EV market.