Automotive Infotainment Market Size

Automotive Infotainment Market Size

Automotive Infotainment Market size was valued at USD 27.3 billion in 2023 and is estimated to register a CAGR of over 6.5% between 2024 and 2032. The market is expected to witness significant growth as consumers, particularly the younger generation, are increasingly looking for cars that offer a variety of entertainment and connectivity features such as navigation, music streaming, hands-free calling & internet access. Some modern entertainment systems including bigger touchscreens, high-resolution displays & immersive sound systems improve entertainment possibilities and turn automobiles into entertainment hubs.

To get key market trends

  Download Free Sample

For instance, in June 2023, Mercedes incorporated OpenAI's conversational AI agent into its MBUX infotainment system, providing an extra luxury amenity to U.S. vehicle buyers. This move provided the owners with the MBUX system and the extra option to participate in a beta program to enable ChatGPT capabilities. Mercedes introduced this option to the list of earlier infotainment capabilities including driver assistance, navigation, and media control.

The growing adoption of electric vehicles and autonomous vehicles presents a significant opportunity for the autonomous infotainment market. EVs generally require more powerful infotainment systems due to complex battery management, charging infrastructure integration, and Advanced Driver Assistance Systems (ADAS). These systems benefit from the high-performance computing platforms that are often found in autonomous infotainment solutions. During autonomous driving, passengers will have more time for entertainment and productivity. The flexibility and customization capabilities of autonomous infotainment systems also cater to this evolving usage pattern.
 

In January 2024, Google unveiled enhancements to both Android Auto and Original Equipment Manufacturer (OEM) infotainment systems with Google Built-In. These upgrades include the launch of new applications for all Google Built-In systems along with specialized enhancements for EV users within Android Auto.
 

The automotive infotainment market is facing several restraints that are impacting its growth trajectory. Consumers demand high-resolution displays, powerful processors, advanced connectivity, and AI-powered features, all of which add complexity & cost to development. Along with this, integrating infotainment systems with other vehicle systems including ADAS and telematics further increases complexity and requires specialized expertise. High development and specialization costs create barriers to entry for smaller players, potentially hindering market competition and innovation. Automobile manufacturers need to balance the desire for advanced features with cost constraints, potentially leading to compromises in functionality or quality.