In-Vehicle Payment Services Market Size By Mode of Payment (Wallet, and Debit/Credit Card), Application (Fueling/EV Charging, Smart Parking, Automated Toll Payments, E-commerce), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Ma

In-Vehicle Payment Services Market Size By Mode of Payment (Wallet, and Debit/Credit Card), Application (Fueling/EV Charging, Smart Parking, Automated Toll Payments, E-commerce), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 - 2028

The in-vehicle payment market is anticipated to showcase robust growth by 2028 on account of rising consumer preference for advanced car infotainment systems across key regions. The rapidly growing adoption of digital payment systems and connected cars around the globe would also outline the industry landscape over the study period.

In recent years, increasing demand for autonomous and connected vehicles equipped with 5G and the latest Wi-Fi technologies has boosted industry uptake. Apart from that, increasing initiatives by industry leaders and the rapid rollout of innovative products has also propelled market expansion.

Several industry players have been focusing on refining this vehicle feature to capitalize on the emerging trend in the market. For instance, in May 2021, Cerence Inc., a leading provider of AI-powered virtual assistants for automobiles, inked a partnership with CarPay-Diem, an innovative fuel payment platform, to enhance contactless in-vehicle payments through Cerence Pay. Cerence Pay uses voice-powered AI to provide a safe, contactless payment experience in the car, allowing drivers to make essential purchases.

To cite another instance, in February 2021, Xevo Inc., a prominent provider of connected car technology, entered into an agreement with CITGO, a U.S.-based fuel company, to enable consumers to access over 4,500 CITGO-branded retail locations via an in-vehicle CITGO app. The Xevo Market mobile commerce platform powers the CITGO app, which allows customers to connect with popular brands via embedded ordering and transactions via the in-vehicle touchscreen.

The in-vehicle payment services market has been segmented on the basis of application, mode of payment, and region.

With respect to application, the market landscape has further been bifurcated into E-commerce, fueling/EV charging, automated toll payments, smart parking, and others. The automated tool payments sub-segment is speculated to garner a notable valuation by 2028, progressing at a CAGR of more than 45% through the forecast period. Mounting demand for reducing long queues at toll plazas is estimated to fuel product adoption over the next few years.

From the regional point of view, the Latin America in-vehicle payment services market is set to witness staggering growth by 2028, expanding at a CAGR of more than 50% through the projected timeline. Rising demand for connected vehicles is likely to drive regional market development.

The Middle East & Africa in-vehicle payment services market is poised to attain a significant revenue share in the overall market, registering at around 50% CAGR over the assessment period. This growth is attributed to the increasing prevalence of digital payments across the region.