Strategic Forecast for the In-Car Infotainment Industry: Market Outlook 2025-2034

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In-Car Infotainment Market Size Growth Forecast: What to Expect by 2025?
There has been a robust expansion of the in-car infotainment market size over the past few years, and it is forecasted to rise from $21.49 billion in 2024 to $23.51 billion in 2025, charting a compound annual growth rate (CAGR) of 9.4%. The growth observed in the historical phase is credited to rising demand for amalgamated GPS navigation systems, the enhanced usage of cloud services, a surge in the attractiveness of infotainment systems that offer augmented reality, an escalation in the requirement for connected car services, and a swelling availability of in-car internet access.

How Will the In-Car Infotainment Market Size Evolve and Grow by 2029?
Over the next couple of years, the in-car infotainment market is set for strong growth, with the market size projected to reach $33.44 billion by 2029 at a CAGR of 9.2%. This growth in the predicted period is associated with a surge in demand for advanced driver assistance system, the diffusion of electric vehicles, increasing demand for high-resolution displays, multi-modal connectivity requirements, and a boost in the number of infotainment systems. Technological innovation, artificial intelligence integration, application of advanced voice recognition system, connectivity through 5G, and augmented reality are the major trends expected during this forecast period.

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What Drivers Are Propelling the Growth of In-Car Infotainment Market Forward?
The surge in electric vehicles' popularity is projected to fuel the expansion of in-car entertainment markets in the future. Electric vehicles (EVs) are cars that rely on battery-powered electric motors, distinguishing themselves from conventional vehicles that use gasoline or diesel-fueled internal combustion engines. The growth in electric vehicle demand is influenced by multiple elements, such as improvements in artificial intelligence that bolster self-navigation features and escalating alertness about climate change. The enhancement of electric vehicles through in-car infotainment involves the seamless integration of advanced connectivity and user interface technologies. These technologies are pivotal for self-driving systems and the enhancement of user experience in electric vehicles. For example, as of September 2022, the International Energy Agency, an autonomous intergovernmental organization based in France, reported that electric vehicles' sales nearly doubled, surging to 6.6 million in 2021 from 3 million in 2020. This accounts for almost 9% of all sales and contributes to a 4.1 percentage-point increase in 2021. Consequently, the growing demand for electric vehicles is steering the progress of the in-car entertainment market.

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Which Emerging Trends Are Transforming the In-Car Infotainment Market in 2025?
Major corporations in the in-car infotainment market are emphasising on inventing new technologies like the Android automotive infotainment system to improve the consumer's interaction and incorporate modern features into the vehicles they offer. An Android automotive infotainment system is an operative system incorporated into vehicle infotainment systems. For instance, in November 2023, Snapp Automotive, a German infotainment systems manufacturer, launched SnappOS, an automotive infotainment system created using the Android automotive OS. This cutting-edge system efficiently merges with Google's Android platform, providing drivers with convenient access to a range of applications via the infotainment display. Featuring sophisticated voice recognition, it allows hands-free navigation, music, and communication control. The system accepts live updates and personalized suggestions as per the user's preferences and patterns of driving, guaranteeing a customised experience.

What Are the Key Segments in the In-Car Infotainment Market?
The in-car infotainment market covered in this report is segmented -

1) By Product: Display Unit, Head-Up Display, Navigation Unit, Communication Unit
2) By Component: Hardware, Software
3) By Installation: Original Equipment Fitted, Aftermarket
4) By Application: Passenger Cars, Commercial Vehicles

Subsegments:
1) By Display Unit: Touchscreen Displays, Lcd Or led Displays, Oled Displays, Heads-Up Display (HUD) Integration
2) By Head-Up Display (HUD): Windshield Projection Systems, Augmented Reality (AR) Huds, Conventional Huds
3) By Navigation Unit: Gps Navigation Systems, Route Planning And Traffic Updates, 3d Navigation Systems, Voice-Activated Navigation
4) By Communication Unit: Bluetooth Connectivity, Smartphone Integration, Wi-Fi Connectivity, Vehicle-To-Everything (V2X) Communication, Voice Assistants

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Who Are the Key Players Shaping the In-Car Infotainment Market's Competitive Landscape?
Major companies operating in the in-car infotainment market are Mitsubishi Electric Corporation, Sony Corporation, Intel Corporation, Panasonic Corporation, Continental AG, Denso Corporation, Qualcomm Technologies, Inc., Hyundai Mobis, Pioneer Corporation, Texas Instruments Incorporated, Faurecia SA, DXC Technology Company, Harman International, Garmin Ltd., Visteon Corporation, Fujitsu Ten Ltd., LG Electronics Inc., TomTom International BV, Alpine Electronics Inc., Valeo, JVCKenwood Corporation, Robert Bosch GmbH, Clarion Corporation, Huawei Technologies Co. Ltd., Blaupunkt GmbH

What Geographic Markets Are Powering Growth in the In-Car Infotainment Market?
North America was the largest region in the in-car infotainment market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the in-car infotainment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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