In-Vehicle Payment Services Market Size, COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3198
In-Vehicle Payment Services Market size is likely to experience significant growth over 2021-2027. This can be ascribed to the rising demand for in-vehicle connectivity systems.
Escalating trends toward autonomous vehicles, aligned with technological advancements, such as connected vehicles technologies, and IoT are impelling the demand for in-vehicle payment services. This would eventually prompt OEMs to partner with vivid retailers and payment conglomerates to provide in-vehicle payment services. In August 2021, Parkopedia announced collaborating with CarPay-Diem to strengthen the formers recently launched integrated multi-domain payment platform. According to official sources, the partnership would expand the coverage of Parkopedia’s in-car fueling payment solution, to emerge as the largest facilitator across the European continent.
In-vehicle payment services are known to allow drivers to order and pay for food, fuel, groceries, tolls, parking slots, and coffee, without having to step out of the vehicle, thus enhancing the luxury and effectiveness of drivers and riders.
Onset of the cyberattacks and online fraud and thefts are expected to slow down the expansion of in-vehicle payment services market through 2027.
The growing prominence of digital payment methods and ease of use associated with wallet payments are encouraging individuals to adopt in-vehicle payment services, thus contributing to market growth.
In-vehicle payment services industry is slated to register notable growth from the parking management segment owing to the rising number of passenger and commercial vehicles worldwide. The increasing number of these vehicles will potentially drive the demand for parking spaces. Adapting in-vehicle payment services in the parking spaces would assist in reducing long queues at these spaces.
The toll collection application segment is likely to surge to a notable valuation in the overall in-vehicle payment services market, given the advancements in toll collection processes and intervention of governments in streamlining the procedure. For instance, the Indian Government had in February 2021, announced mandating the use of FASTag for all vehicles. The move was taken up to encourage fee payment via digital mode, reduce the fuel consumption and waiting time, and offer a seamless way through fee plazas.
Global in-vehicle payment services industry is diversified. The growth, in this regard, is anticipated to come from Asia Pacific. APAC in-vehicle payment services market is anticipated to grow significantly through 2027 owing to the expanding population and increasing levels of disposable income. Furthermore, rising sales and production of passenger vehicles in the region would add to the growth of the regional market in the years to come. Alongside, adoption of advanced technologies and constant innovation in the way payments are processed would play a key role in fueling the growth of APAC market.
Eminent companies functioning in the overall in-vehicle payment services business space include Hyundai Motor Corporation (Hyundai Motor Group), Alphabet, Inc., General Motors Company, IBM Corporation, Ford Motor Company, Daimler AG, Tesla, and more. These conglomerates have been taking up strategic initiatives like partnerships, acquisitions, collaborations, and product launches to gain a competitive edge in the global market while bolstering the market space.
For instance, Hyundai had in May 2021, declared developing an in-car payment system, which will be embedded in its latest all-electric Ioniq 5. The product will offer drivers the ability to track and pay for food, EV charging, and parking.
Likewise, in March 2021, General Motors announced speculating on its plans of accepting cryptocurrency as a mode of in-car payment and services.
COVID-19 influence on in-vehicle payment services market outlook
The global coronavirus pandemic outbreak has had a devastating impact on the global automotive industry, with a temporary halt in production, disruptions in supply chain, and shortage in workforce. With these shortcomings, the number of automobiles being rolled out in the global markets remained low, thus affecting the market dynamics. This brought a negative impact to the overall in-vehicle payment services market during 2020. However, the rising prominence of contactless payments would further stimulate the demand for in-vehicle payment services.
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