As a consequence of the development of new technology, consumers today favour more contemporary, networked analytics vehicles. With the advent of electric cars and partially or fully driverless vehicles, the automobile industry has undergone a paradigm shift. As a result, demand for auto infotainment system with greater connection, safety, and security capabilities has skyrocketed. Another important aspect boosting market expansion is the rising average selling price (ASP) of automobiles. Customers are willing to spend more money on safety and security features for vehicles as they become more aware of these characteristics. Additionally, buyers are now choosing higher-end models over entry-level ones due to OEMs' increased availability of value-added features in these models.

The Auto Infotainment Market is required since it can offer precise and timely information about the automobile sector. Consumers can use it to make well-informed decisions about buying cars. The Auto Infotainment Market can also assist automakers in monitoring market trends so they can better plan their production schedules. The market can also serve as a conversation forum for automakers and suppliers as well as for automakers and customers.

Drivers and passengers can access information and entertainment content in their cars thanks to a system called auto infotainment. The devices normally come with a touchscreen display, voice control, and assistance for well-liked programmes like music streaming, navigation, and movie streaming. Additionally, auto infotainment system might provide capabilities like Wi-Fi, cellular connectivity, and auto diagnostics. These are a collection of in-car information and entertainment systems made to offer the driver and passengers a thorough, integrated experience. These systems often offer a wide range of features and capabilities, including hands-free calling, hands-free video and music playback, climate control, and much more. As they provide a multitude of functions and capabilities that can significantly improve the driving experience, Auto infotainment systems are becoming more and more common in new cars.

At a CAGR of 8.3%, the automotive infotainment market is anticipated to grow from USD 38.2 billion in 2021 to USD 62.9 billion by 2031.

The increasing demand for improved automatic transmissions with cutting-edge features such as connectivity, navigation, and recreation is one of the key drivers behind the rise of the vehicle infotainment industry. In addition, throughout the projection period, it is anticipated that government regulations for infotainment systems, the development of driverless vehicles, and rising sales of electric vehicles would provide market participants with significant potential prospects.

The demand for modern, connected automobiles is driving a rapid expansion of the automotive infotainment sector. The market must, however, overcome a number of obstacles. The high price of entertainment systems is one of the main obstacles. It can be difficult for mass-market manufacturers to include these technologies as standard features because the hardware and software needed for them can be extremely pricey. The possibility of driver distraction is another issue the vehicle infotainment business must deal with. Connected and sophisticated entertainment systems can divert a driver's focus from the road, which increases the risk of collisions. To address this issue, automakers must make sure that their infotainment systems are easy to use, simple to understand, and don't ask too much of the driver. Another challenge facing the industry of in-vehicle infotainment is data security and privacy concerns. Despite these challenges, it is anticipated that the market for automotive infotainment will grow over the coming few years due to the various benefits it offers, including internet functionality, accessibility, and amusement.
The number of companies in the worldwide auto infotainment industry is dispersed. The major companies on the market are Continental AG (Germany), Harman International (US), Panasonic Corporation (Japan), Delphi Automotive PLC (UK), Robert Bosch GmbH (Germany), and Alpine Electronics Inc. (Japan). Due to their ongoing R&D investments in the creation of cutting-edge infotainment systems that can be combined with conventional vehicles, these marketplace players currently account for a sizeable portion of the auto market and expand.

Segment Analysis

The Linux Segment emerged as the Most Lucrative Type

Due to the rise in popularity of a variety of open-source programmes created under the GPL licence, the Linux Segment became the Most Lucrative Type. Because of its improved capabilities and growing acceptance across a wide range of segments, including educational institutions and government organisations, which are increasingly deploying Linux OS for their data security requirements, it is also anticipated that the Linux segment will grow rapidly during the forecast period.

The Most Prominent Application is the Passenger Cars Segment

The market is divided into Passenger Cars and Commercial Vehicles based on Application. Due to the rise in demand for passenger vehicles, the segment for passenger cars is among those rising at the greatest CAGR during the projection period of 2021–2031. The surge in consumer spending on vehicles is another element boosting this market sector.
The Large Enterprise Segment to emerge as the Most Promising Organization Size
Due to large companies' increased supply of open-source Hadoop platforms as a result of their significant investments in data-driven initiatives to enhance their decision-making capabilities, the Large Enterprises Category has emerged as the dominant organization size segment. These tactics enable them to streamline their corporate processes while assisting them in understanding consumer trends.

The Asia Pacific Region to render Ample Financing Opportunities

The Asia Pacific region is expected to grow rapidly between 2021 and 2031. Rapid industrialization and brisk economic expansion are the primary causes of this tremendous increase. Additionally, the automotive industry is making significant investments in R&D in this area. This region has developed significantly faster than other locations worldwide as a result of the investment made by a variety of industries and businesses operating there.

COVID-19 Impact and Market Status

Due to supply chain interruptions and decreased demand, the COVID-19 pandemic has had a substantial effect on the automotive sector, causing numerous automakers to halt production. Similar effects are anticipated for the auto infotainment sector, with shipments predicted to fall by about 20% in 2020. The market is anticipated to soon rebound, with shipments predicted to reach pre-pandemic levels by 2022. Additionally, as automakers look for ways to save costs and boost efficiency, the epidemic is anticipated to speed the adoption of advanced infotainment technologies like over-the-air updates and wireless connectivity.

Recent Developments in the Auto Infotainment Market

• In Europe, Panasonic Corporation debuted its brand-new "Ginetta" infotainment system in March 2019. Together with Ginetta Cars Ltd., a British producer of high-performance automobiles, Ginetta was created. Based on the Android operating system, the system provides a number of capabilities, including integrated navigation, hands-free calling, music streaming, and social networking connectivity.

• The "Ignite" automobile entertainment system from Harman International Industries Incorporated was introduced in November 2019. The system, which is based on Android Automotive OS, provides a variety of capabilities, including social network connectivity, hands-free calling, music streaming, and built-in navigation.

• The "Conti Connect" automobile entertainment system was introduced by Continental AG in October 2020. The system, which is based on Android Automotive OS, provides a variety of capabilities, including social network connectivity, hands-free calling, music streaming, and built-in navigation.

• The new "Bosch My Connected Car" entertainment system for cars was released by Robert Bosch GmbH in December 2020. The system, which is based on Android Automotive OS, provides a variety of capabilities, including social network connectivity, hands-free calling, music streaming, and built-in navigation.

Auto Infotainment Market Scope

Key Segments of the Auto Infotainment Market

Type Overview, 2021-2031 (USD Billion)
    • Linux
    • QNX
    • Microsoft
    • Others

Application Overview, 2021-2031 (USD Billion)
    • Passenger Cars
    • Commercial Vehicles

Regional Overview, 2021-2031 (USD Billion)

North America
    • U.S
    • Canada

Europe 
    • Germany
    • France
    • UK
    • Rest of Europe

Asia Pacific
    • China
    • India
    • Japan
    • Rest of Asia Pacific

South America
    • Mexico
    • Brazil
    • Rest of South America 
    • Middle East and South Africa