Global Personalized In-Vehicle Market 2022-2028

Global Personalized In-Vehicle Market 2022-2028

Vehicle owners and drivers have always wanted to customize their vehicles, however, until about a decade ago, this customization was made possible mainly through in-vehicle accessories, custom wheels, and paint jobs. These aftermarket products and services created a personalized exterior that gave owners an opportunity to customize their vehicle beyond these. Vehicles include more technology than ever before, allowing for further levels of customization such as the advent and inclusion of interior cameras, biometric sensors, and smart keys leveraging Ultra-Wide Band (UWB) frequencies, Vehicle-to-Infrastructure, and more. The global personalized in-vehicle market was valued at $1.3 billion in 2021, which is projected to exceed $8.5 billion in 2028, growing at a CAGR of 30.7% during the forecast period.

A number of innovations were already focused on people’s safety when driving. For instance, camera-based solutions that can evaluate the state of the driver in real-time based on facial verification, facial attribute recognition, drowsiness detection, and other technologies. It can detect driver’s fatigue and attentiveness by analyzing the driver's facial expression and alert the drivers and passengers. This will also be necessary as EU regulations require that systems monitoring drivers’ attention such as drowsiness or attentiveness detection to be incorporated into vehicles. OEMs have to pivot quickly to integrate them as EU rules require them to be part of all cars sold within their borders from 2022 or 2028 onwards. The goal is to lower the number of accidents due to driver drowsiness. Such regulation by the government coupled with the continuous efforts made by OEMs drive the growth of the global personalized in-vehicle market.

Apart from safety, rising adoption of in-car entertainment is another factor that drives the growth of the market. The personal assistant powered by AI and learn to differentiate between voice profiles as well as personal preferences. A number of smart displays in new vehicles are also powered by AR. In the future, AR will also be used to increase driver and passenger comfort and safety, for instance enabling test safety features. Smart displays and interactive features powered by AI and AR/VR (augmented reality and virtual reality) play an integral role of offering more interactive features, which enables a human-vehicle interaction.

The global personalized in-vehicle market is segmented on the basis of system product and application. Based on product, the market is segmented into artificial intelligence (AI), virtual reality (VR), and digital verification methods. Based on application, the market is bifurcated into passenger cars and commercial vehicles.

Among these, AI dominated the market with 67.4% of share and generated $914 million in 2021. This value is further projected to exceed $6.0 billion in 2028, growing at a CAGR of 31.7% during the forecast period. Moreover, the segment is projected to exhibit the highest growth rate among all products during the forecast period. Automakers have collaborated with tech companies to incorporate many features for users in the recent years such as automatic emergency braking, lane crossing alerts, driver and passenger monitoring, blind spot elimination, side collision warning, and even optional self-driving capabilities.

For instance, the BMW 3 Series includes an intelligent personal assistant, which aims to improve the safety and comfort of the driver. A simple, “I’m cold,” spoken out loud will heat the passenger’s seat and adjust the car’s temperature accordingly. In addition, when the passenger is tired, it will trigger the vitalization program which makes the interior light brighter, plays music, lowers the temperature, and more. These features are just a few of many that are currently tempting new automotive businesses.

Among application, passenger car dominated the market with 68.7% of share and generated $934 million in 2021. This value is further projected to reach around $4.9 billion in 2028, growing at a CAGR of 27.5% during the forecast period. The dominance of the segment is attributed to the fact that there is comparatively large fleet of passenger cars globally than commercial vehicles. In addition, the individual choses personalization as one of the selection criterion to buy the vehicle. Increasing efforts by the OEMs to enhance passengers’ safety and their personalized experience with added in-car infotainment further gives a boost to the segmental growth of the market.

Geographically, the study of the global personalized in-vehicle market report covers the analysis of four major regions including North America (US and Canada), Europe (UK, Germany, Italy, Spain, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), and the rest of the world (RoW). North America held a major market share of 46.3% in the global personalized in-vehicle market in 2021. The market in North America was valued at $628 million in 2021 which is projected to exceed $3.9 billion in 2028, growing at a CAGR of 31.0% during the forecast period. North America is home to key industry players and technology giants which is one of the regions for the region being dominating.