Automotive Infotainment Market Size, Share, Growth Analysis, By Product Type(Audio unit, Display unit), By Fit Type(OE Fitted, and Aftermarket), By Vehicle Type(Passenger Cars, and Commercial Vehicles) - Industry Forecast 2024-2031

Global Automotive Infotainment Market size was valued at around USD 7.42 billion in 2022 and is expected to rise from USD 8.14 billion in 2023 to reach a value of USD 17.07 billion by 2031, at a CAGR of 9.7% over the forecast period (2024–2031).

The rise in disposable incomes of consumers coupled with the advent of simple financing alternatives in emerging nations have made it possible for people to purchase passenger automobiles. This in turn has increased the demand for technologically advanced vehicles installed with practical entertainment systems. In order to improve the functionality of existing infotainment systems, significant vehicle manufacturers are concentrating on collaborative sophisticated technologies such as driver assistance, augmented reality real-time data collection, and this has all been possible with thh advent of the Internet of Things (IoT). The improvement of drivers' safety and experience brought about by the incorporation of the aforementioned technologies into automobiles is projected to augment demand for automotive infotainment systems, thereby boosting market growth.

The recent pandemic proved to be a barrier, despite the fact that a number of favorable aspects are anticipated to fuel market expansion. Due to a disturbance in the supply of equipment and raw materials brought on by the pandemic, the automotive sector was forced to completely cease manufacturing. The automobile industry had increased demand after the lockdown was lifted, which was met by a shortage of vehicles due to halted manufacturing. The demand for crucial semiconductor parts, such as the chipset, caused the manufacture of automobiles to further stop.

The entire automotive industry needs a chipset because it makes it possible for cars to navigate, communicate, and control. Due to their use in automobiles, chipset shortages have become a significant constraint. However, in order to control output during the chipset scarcity that occurred, the automakers started making replacement models with fewer features. For instance, BMW started delivering its vehicles to consumers without CarPlay and Android Auto capabilities in their infotainment systems and built-in Wi-Fi in a number of nations, including the United States, the United Kingdom, Spain, Italy, and France, in May 2022.

Technology has progressed as a result of a growing focus on driver safety, as automakers have begun incorporating advanced driver assistance systems (ADAS) and digital monitoring systems (DMS) into vehicles. Drivers can avail an added advantage of using regulation and monitoring services in a vehicle with the latest technology. Additionally, their traffic update feature and parking assistance features of DMS and ADAS will improve the overall driving experience. The market for vehicle infotainment is projected to witness new growth opportunities as a result of these technical developments in driver safety.

Additionally, the infotainment system collects data about the car in real-time. It returns it to the maker because data is a crucial component of the digital proof that auto insurers and law enforcement officials use to solve accident cases.

US Automotive Infotainment Market is poised to grow at a sustainable CAGR for the next forecast year.