Global Automotive Infotainment Systems Market Is Projected to Reach $49.5 Billion by 2025

Automotive infotainment is an exciting industry, and it’s only getting better as time goes on. If you need to hire engineers for your team, knowing more about the market’s future direction can help. You’ll be able to make more strategic hiring decisions with up-to-date industry knowledge.

First, you need to know the size of the market. The global automotive infotainment systems market is huge, and it’s only getting bigger. In 2016, the global market was worth $33.78 billion. By 2025, the value of the market is projected to reach $49.5 billion. Those numbers should be exciting to anyone working in the automotive infotainment industry.

What’s driving the growth of the automotive infotainment systems market, and how is the market changing? These are interesting questions for people in the industry. Knowing the answers will give you the information you need to build a solid infotainment team.

Here’s what you need to know about the growth of the automotive infotainment systems market.

What’s Driving Market Growth?

There are many factors driving the impressive growth of the global automotive infotainment systems market. The increasing production and sale of cars is one of these factors. By 2021, global automobile production is projected to increase by 21 million units. Those new cars will need infotainment systems.

Emerging markets are driving the increase in production. About half of the increase in production is due to increased demand in China. Incomes are rising quickly in China. In 2000, only four percent of China’s urban population was considered middle class, but by 2022, 76 percent will make up the middle class. That means many more people will have money to buy cars.

Changing customer preferences are also contributing to the growth of the automotive infotainment systems market. It’s no longer enough for a car to just be a vehicle that gets people from point A to point B. Now, cars need to be entertaining. They need to be customizable. Infotainment systems make the driving experience more fun for today’s customers.

A rising awareness of safety is another factor. In the past, only higher-end cars had backup cameras. They were an extra feature that could make backing up into parking spaces easier, but they weren’t common. Now, there’s more awareness of the dangers of backover accidents: Every year, about 200 people are killed when drivers accidentally reverse over them. Another 14,000 are injured in these accidents. By May 2018, all new cars sold in the United States need to have backup cameras. This new awareness of safety is helping to drive growth in the infotainment market.

Segments of the Global Market

There are five main segments of the infotainment market. North America, Latin America, Asia-Pacific, Europe, and Middle East and Africa. As of 2016, the North American market had a market share of 26 percent. The market share in other regions is steadily increasing, though.

In Europe, the market is projected to grow at a compound annual growth rate of 5.4 percent. By the end of 2024, the European market should make up nearly 20 percent of the global infotainment market. Asia-Pacific is growing fast, too. That market is projected to grow at a compound annual growth rate of 5.9 percent. With that growth rate, the Asia-Pacific market will make up 26.3 percent of the global market by 2024.

Trends in the Industry

One of the trends in the infotainment industry is the growth of smartphone-enabled infotainment systems. These systems are connected to the drivers’ smartphones to provide additional features. For example, when systems and smartphones are connected, drivers can use apps on their smartphones to locate their cars in busy parking lots. Or, they can tell their infotainment systems to run regular diagnostic checks on their cars, using smartphone apps.

Rear-seat entertainment systems are also picking up growth momentum. Between 2015 and 2022, rear-seat systems are projected to grow with a compound annual growth rate of 24.6 percent. These systems are getting better, and they’re competing with tablets. They now offer features like gaming, Wi-Fi, and connectivity.

On-board infotainment systems are becoming mainstream. While they used to be reserved for higher-end cars, they’re now starting to be seen as a more standard feature. That means there’s an opportunity to expand into lower market tiers. Infotainment system manufacturers have the opportunity to expand into the economy car market.

Recent Developments

As you know, the infotainment industry is always moving forward. Talented engineers develop new technologies to make their systems better and easier to use. The development of navigation systems with holographic technology is one of these exciting new technologies. These systems display virtual indicators on the road ahead of the car, so drivers can navigate without having to look at a distracting navigation screen.

Another recent development is the pupil-based driver monitoring system. This system monitors increases in drivers’ pupil dilation. This helps determine drivers’ mental workloads. If the system determines drivers are tired or distracted, it tells the cars’ other safety systems to adapt. For example, if drivers are distracted, these systems can automatically put their mobile devices in do-not-disturb mode.

Audio systems with active noise cancelling technology are another recent development in the infotainment market. These systems let drivers use their infotainment systems even in noisy environments. For example, if they’re driving with the windows down, they’ll still be able to use the voice controls of their infotainment systems.

For your company to make these kinds of exciting innovations, you need the very best engineers on your team. To be competitive, it’s not enough to have a team that’s merely good enough. You need top talent. How can you find the innovative engineers you need? You need an essential guide to hiring engineers.

Factors Restraining the Industry’s Growth

While safety concerns are helping to fuel the growth of the industry, they’re also holding it back. Car infotainment systems can be distracting for drivers. For example, drivers could adjust their navigation systems while they’re driving down the highway. Less user-friendly systems could require a lot of adjustment, not a simple click of a button. When drivers are looking at their screens, they could get into accidents. Making these systems less distracting is an important goal for infotainment teams.

Surprisingly, even infotainment systems that use voice commands are distracting to drivers. After making a voice command, drivers need up to 27 seconds to return their full attention to the road. Even the most user-friendly systems, with clear commands and good voice detection, distract drivers for at least 15 seconds. A big challenge for people working in the infotainment industry is figuring out how to make voice command systems less distracting.

Privacy concerns are another factor holding back the infotainment industry. Infotainment systems are capable of gathering information about cars, drivers, occupants, and even other vehicles on the road. Drivers may worry that there’s no way for them to wipe the information stored by the infotainment system. If they sell their cars or return their rentals, they may worry the next driver will be able to access sensitive information. This is a big problem that people working in the industry need to solve. Solutions may include making it easy for drivers to wipe their data or turning off collection of some types of data.

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