Microelectronics breaking into auto infotainment market
According to a study carried out by Fact.MR on the Auto Infotainment Market, as the automotive sector continues with its shift towards mobility and software services, use of advanced electronics coupled with IoT integration has accelerated the development of in-vehicle entertainment systems.
Bluetooth connectivity and traffic updates on a real time basis is just the tip of the iceberg. Advanced memory solutions specially tailored for auto infotainment systems provide extra storage space for rich multimedia and enhanced software applications. For example, the Embedded Multimedia Card Device, it provides all features that support infotainment and navigation applications, for instance e-call, car radio, traffic monitoring, voice recognition and 3D maps.
Increasing consumer attraction towards entertained driving, growing sales of modern cars and rising demand for customisation of car systems has pushed the adoption of auto infotainment. Moreover, growing per capita expenditure of people enabling them to spend on high tech car solutions, increasing awareness on security and safety of vehicles, rising penetration of smartphones and their integration with infotainment systems has triggered the growth of the auto infotainment market.
With expansion of semiconductor and automotive industry, the use of microelectronics consequently developing advanced vehicle systems has risen. To name few developments, such as voice control and advanced mapping and navigation, in infotainment systems have increased their preference among customers. This is expected to further trigger adoption of infotainment systems in the coming years.
The adoption auto infotainment is anticipated to reach a value higher than $36bn by the end of 2026, with a volume CAGR of 6.0% during 2017-2026, fuelled by growing demand for advanced in-vehicle entertainment systems such as head-up display, connectivity systems and driver assistance systems.
Key highlights in the global auto infotainment market
- Asia Pacific excluding Japan (APEJ) is anticipated to showcase increased adoption of auto infotainment systems. With growing automotive industry in this region coupled with increasing volume sales of modern cars, APEJ reflects high lucrativeness for auto infotainment manufacturers. On the other hand, sales of auto infotainment in North America are higher as compared to other regions.
- Within the auto infotainment domain, the demand for entertainment and connectivity systems is higher. Sales of entertainment systems is estimated to reach a value of around $24.4bn in 2026. However, the demand for connectivity systems is projected to grow at a relatively higher rate of 7.4% through 2026.
- Installation of auto infotainment in passenger cars is higher than other vehicles. However, light commercial vehicle segment is also booming and use of auto infotainment systems in this category is expected to significantly increase in the coming years. But passenger cars segment is highly attractive from sales point of view.
- With respect to sales channel, the OEM segment is the largest with a high value share and is expected to lead the global market. On the contrary, aftermarket for auto infotainment is also expanding at a higher rate and is expected to register a value CAGR of 7.8% through 2026.