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Automotive Infotainment Market worth USD 44.73 billion by 2027, registering a CAGR of 8.51% - Report by Market Research Future (MRFR)

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New York, July 27, 2021 (GLOBE NEWSWIRE) -- Automotive Infotainment Market Overview: According to a comprehensive research report by Market Research Future (MRFR), Automotive Infotainment Market Research Report, Operating System and Region - Forecast till 2027” the market is projected to be worth USD 44.73 billion by 2027, registering a CAGR of 8.51% during the forecast period (2021 - 2027), The market was valued at USD 23.47 billion in 2020.

The automotive infotainment market is garnering significant traction. Factors such as the surging demand and AI evolutions integrated with infotainment systems assistant systems drive the market growth. Besides, the rising uptake of infotainment systems in high-end cars boosts the market size. With the proliferation of on-the-go entertainment channels, the automotive infotainment market value is projected to reach significant heights.

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Competitive Analysis:

List of the Key Companies Profiled in the Automotive Infotainment Market Research Report are:

  • Alpine Electronics Inc. (Japan)

  • Continental AG (Germany)

  • Harman International (US)

  • Panasonic Corporation (Japan)

  • Pioneer Electronics (US)

  • DENSO Corporation (Japan)

  • Delphi Automotive PLC (UK)

  • Garmin Ltd. (Switzerland)

  • ALLGo Embedded Systems Pvt. Ltd. (India)

  • KENWOOD Corporation (Japan), among others.

Highly competitive, the automotive infotainment market appears fragmented, with several well-established players forming a competitive landscape. These players incorporate approaches such as strategic partnerships, mergers & acquisitions, expansion, collaboration, and product/technology launch to gain a larger competitive share.

For instance, on July 20, 2021, Renesas Electronics Corporation, a leading supplier of advanced semiconductor solutions, announced the addition of a new system-on-chip (SoC) - R-Car Gen3e with up to 20 percent higher CPU speed for automotive infotainment, cockpit, and digital cluster systems. R-Car Gen3e series of SoCs offers a scalable lineup for entry- to mid-range automotive applications that require high-quality graphics renderings, such as in-vehicle infotainment (IVI), digital instrument cluster, and others.

Browse In-depth Market Research Report (134 pages) on Automotive Infotainment

Increasing Spending on Personalized Comfort Features Boost Market

Additional factors bolstering the market growth include improved AI capabilities and social media recommendations, and extensions of voice recognition capabilities inside vehicles. Impressive machine learning capabilities have brought immense improvements in automotive infotainment systems.

Similarly, stringent government norms for automotive safety features impact the adoption trends positively. Additionally, technological advances in human-to-machine and machine-to-human integration influence the automotive infotainment market growth.

The automotive infotainment market is assessed to witness tremendous demand in the recent future due to artificial intelligence-powered systems. Automotive infotainment systems are also used to operate multiple features, including navigation control, weather & climate information, media control, control, calendar, and holiday & ticketing information, all through voice commands.

Technical Complexities Obstruct the Market Growth

Despite demonstrating vast prospects, the market still faces some underlying setbacks, such as intellectual challenges, such as difficulties in understanding bilinguals and recognizing the commands whenever drivers try to perform a hands-free action. Also, the limited integration of voice assistants with automotive infotainment systems acts as significant headwinds for the market.

The high cost of automotive infotainment systems is an additional key factor challenging the market growth. Simultaneously, the slow adoption rate of the technology and shortages of various small components required for the production hamper the market's growth.

Advances in machine learning that enable next-generation cognitive systems to detect & sense the environment, learn independently, and initiate decisions and intelligence-based recommendations impact the market growth. Advanced automobile industries and luxury car industries worldwide provide an additional impetus to the regional market's growth. With consumers increasingly demanding personalization and prioritizing comfort in a vehicle, the market is expected to register a high growth rate.

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COVID- 19 Impacts on the Automotive infotainment Market

The COVID- 19 pandemic severely affected the automotive infotainment industry. Pandemic-led logistics problems led to posing major challenges to industry players, such as obtaining raw components required to develop an automotive voice recognition system, attracting workforces from quarantine, and delivering end products. However, the automotive infotainment market is gradually picking up and forecasted to grow exponentially further during the assessment period.

The COVID-19 outbreak has prompted industry players to vie effective strategies to deal with the post-pandemic challenges. Industry players have used the lockdown period wisely to upgrade their systems for open-source and standard platforms for application and integration with IVI systems and smartphones. They are investing substantially to increase production and develop high-performance system technology.

Many automobile manufacturers have started integrating these systems in entry-level vehicles to broaden their customer base. Resultantly, the automotive infotainment market is estimated to demonstrate significant growth opportunities. The market would also witness many innovative product launches during 2021 and years to come.


The market is segmented into vehicle types, technologies, applications, and regions. The vehicle type segment is divided into passenger and commercial vehicles. The technology segment is sub-segmented into embedded and hybrid. The application segment is divided into AI and non-AI. The region segment is sub-segmented into Europe, Americas, Asia Pacific, and rest-of-the-world.

Regional Analysis

North America leads the global automotive infotainment market. Factors such as the rising demand for passenger cars and significant investments in advancing the technology drive the market growth.

Besides, the availability of a wide range of innovative infotainment products and substantial investments in the automotive industry, undergoing a massive transformation, currently influence the market rise. The US, with the strong presence of major automotive infotainment providers and high spending on automotive systems, dominates the regional market.

Segmentation of Market covered in the research:

Information By Operating System (QNX, Linux, Microsoft and others) and Region (North America, Europe, Asia–Pacific and RoW) - Forecast till 2027

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