Market Trends of Automotive Infotainment Systems Industry
This section covers the major market trends shaping the Automotive Infotainment Systems Market according to our research experts:
Growing Advancements in Infotainment Systems
Smartphone functions are increasingly being integrated into in-vehicle infotainment systems. Over 90% of adults in North America and Europe have access to the internet via their mobile phones, which is one of the highest rates among other regions. As the use of mobile phones has increased, so has the use of smartphones in cars for the same purposes.
Automobile manufacturers are also opting for modular hardware design. This allows them to lower the cost of purchasing infotainment systems. They are developing technologies that allow smartphone functions to be integrated into in-vehicle infotainment systems at a low cost. Manufacturers are working to combine processing power and system competitiveness. For car manufacturers to improve the performance of connected vehicles, digital services generate massive amounts of data.
- In August 2021, Hyundai Motors selected QT, a global software technology company, as its human-machine interface (HMI) technology partner for Hyundai, Kia, and Genesis. This technology would allow Hyundai Motors to develop a connected car operating system across its vehicle infotainment systems.
- In September 2021, LG Electronic unveiled their in-vehicle infotainment system in IAA Mobilityheld in Munich, Germany. The in-vehicle infotainment system was based on Google Android automotive and Android 10 to optimize connectivity and convenience. The in-vehicle infotainment system's software was developed with Renault's partnership, and it is equipped with the Renault Megane E-TECH electric, launched in February 2022.
The automotive infotainment system is undergoing massive technological transformations. With growing smartphone usage, there is an increase in the adoption of ADAS and Autonomous driving technology (self-driving cars). Technologies like Automotive systems vehicles, especially for passenger seating, have become excessively familiar. As engineers develop innovative versions of in-vehicle infotainment systems, these features will become essential contributors to the vehicle's electronic system.
The introduction of AI and cloud services is expected to drive technological advancements in automotive infotainment systems. Most companies rely on the existing Google and Apple ecosystems for their infotainment systems. Although some players prefer to develop their infotainment system OS in-house,
China is Driving the Asia-Pacific Market
China occupied a significant share of the Asia-Pacific automotive industry among Asia-Pacific countries due to its highest vehicle sales over the past decade. The country is anticipated to continue to see positive vehicle sales during the forecast period, owing to the growing focus on new energy vehicles (NEV) among automakers.
The shift from simple audio systems to touchscreen infotainment systems that support multiple features, such as navigation, Apple CarPlay, Android Auto, and telematics, is driving the demand for infotainment systems in the country.
China is one of the world's largest automotive markets, with over 20.17 million passenger cars sold in the country in 2020, and overall car sales in China reached around 21.48 million vehicles in 2021. However, Chinese automakers are pioneering the development of the intelligent cockpit, which is quickly becoming an essential component of the modern driving experience. Intelligent cockpits combine smart technologies with various driving functions, such as voice recognition for vehicle commands and entertainment and navigation systems. For instance,
- In September 2022, NVIDIA Corporation (NVIDIA) announced the development of Drive Soar, a centralized in-vehicle computer capable of integrating autonomous driving/advanced driver assistance systems (ADAS) and in-vehicle infotainment systems.
Further, In July 2021, World artificial intelligence conference, China's automobile market was leading in the development of smart cockpits with more than 82,300 patents application related to intelligent cockpits, followed by Japan and the United States at 31,900 and 19,300, respectively. Intelligent cockpits are becoming a critical technology in the modern driving experience; voice recognition and multiple drive functions navigation systems are some of the prime technologies integrated into intelligent vehicle cockpits.
