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In-vehicle Payment Services Market worth around $10 Bn by 2028
- Published Date: January 27, 2022
In-Vehicle Payment Services Market size is set to surpass USD 10 billion by 2028, according to a new research report by Global Market Insights Inc.
Increasing demand for connected vehicles across the globe in likely to drive the in-vehicle payment services industry growth. The growing emphasis on improved in-vehicle experience with advanced infotainment systems across the automotive industry is fueling the market demand. The rapid proliferation of digital wallets during the COVID-19 pandemic for seamless contactless payments is another factor supporting the market expansion. In-vehicle payment services enable vehicle owners to pay bills at restaurants and fuel stations without stepping out of the vehicle.
The major automotive companies and OEMs are partnering with payment service providers to offer in-vehicle payment services. For instance, in August 2021, Parkopedia partnered with CarPay-Diem to offer in-car fuel payment services. This partnership helped Parkopedia to provide in-vehicle payment services at 3,500 stations in six countries across Europe.
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Rising usage of digital wallets is boosting the in-vehicle payment services market growth
The wallet mode of payment is expected to grow at over 50% CAGR through 2028 owing to the growing popularity of digital wallets. Digital wallets help users to perform seamless contactless payments as they do not involve physical cards. Digital wallet companies offer various rewards to attract customers to use their e-wallet for in-vehicle payments. Major players are integrating with automotive companies to support digital in-vehicle payments at restaurants and fuel stations.
Browse key industry insights spread across 200 pages with 163 market data tables and 28 figures & charts from the report, “In-Vehicle Payment Services Market Size By Mode of Payment (Wallet, and Debit/Credit Card), Application (Fueling/EV Charging, Smart Parking, Automated Toll Payments, E-commerce), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028”, in detail along with the table of contents:
Strategic partnerships of automotive manufacturers with fuel stations
The fueling and EV charging application held around 40% of the in-vehicle payment services market share in 2021 led by the growing emphasis on digital payments at fuel stations. The increasing demand to reduce long queues at fuel and EV charging stations is enabling automotive companies to integrate payment features in their vehicle infotainment systems. The major automotive companies, such as Jaguar, General Motors & Hyundai, have partnered with several gas stations to enhance in-vehicle payment services in their vehicles.
The growing demand for connected vehicles is another factor augmenting the adoption of in-vehicle payment services. Connected vehicles are connected with the road infrastructure, which provides information related to fuel stations and other essential service providers to the drivers. Connected vehicles also allow drivers to pay their fuel bills without any physical contact with the fuel station infrastructure.
Rising adoption of connected vehicles across APAC
Asia Pacific in-vehicle payment services market size is poised to generate more than USD 1 billion by revenue 2028 impelled by increasing investments in the automotive sector. The growing proliferation of digital wallets in major countries, such as India, Japan & China, is another factor spurring the market revenue.
APAC is a highly lucrative market for the adoption of connected vehicle technologies due to numerous government initiatives for large-scale digitalization of urban infrastructure in countries including China, South Korea, and India. Moreover, consistently increasing smartphone penetration in the region is another critical factor facilitating the growing awareness of modern vehicle communication technologies.
Leading market players are focusing on strategic partnerships and collaborations to gain a competitive advantage
Companies are focusing on strategic partnerships to meet the demand. For instance, in November 2021, Daimler partnered with Visa to integrate digital payment platforms into its cars, conveniently and seamlessly. This partnership enabled Mercedes-Benz customers in Europe to use in-vehicle payment services for goods & services.
Some of the key players operating in the in-vehicle payment services market are BMW AG, CarPay Diem Cerence Inc., Daimler AG, General Motors Company, Gentex Corporation, Harman International Industries, Inc., Honda Motor Company, Ltd., Hyundai Motor Company, Jaguar Land Rover Automotive PLC, Mastercard Inc., Telenav Inc., ThinxNet GmbH, Visa Inc., Xevo Inc., and ZF Friedrichshafen AG.