According to a new report published by Allied Market Research titled, “World In-Car Infotainment-Market Opportunities and Forecasts, 2015-2022”, the world in-car infotainment market is expected to reach $33.8 billion by 2022, registering a CAGR of 13.3% during 2016 – 2022.
Europe has emerged as the most promising region, exhibiting a huge demand for in-car infotainment within the automotive car sector. In 2015, the market for in-car infotainment in Europe was valued at $4.6 billion in 2015. However, Asia-Pacific would be the fastest growing region during the forecast period owing to the burgeoning automotive production and sales coupled with the increasing disposable income of the consumers in the region.
Market is analyzed with regards to revenue contribution made by different segments in world in-car infotainment market. In global market, in-car infotainment installation type segment is mainly driven by aftermarket sub segment, which accounted for around 54% of the market revenue in 2015. Aftermarket installation is less expensive as compared to OEM installation, thereby driving the growth of aftermarket. However, OEM installation market is expected to grow faster in the near future since OEM manufacturers are increasingly offering personalized infotainment systems as well as standard infotainment systems in the mid-car segment.
Within the components segment, hardware accounted for the maximum revenue share in 2015, owing to its high cost and wide-deployment. However, efficient and effective development of infotainment software applications is expected to drive the market in the near future. The software market is estimated to register a CAGR of 14.4% during 2016 -2022.
- Hardware component segment accounts for the larger share and is expected to dominate the market during the forecast period. The segment is anticipated to lead the market with over 60% revenue share throughout the analysis period.
- Asia-Pacific would be the fastest growing region over the forecast period.
- OEM installation segment of in-car infotainment market has exhibited a strong growth potential, accounting for a higher CAGR as compared to the aftermarket segment.