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The automotive rear seat infotainment market size is forecast to increase by USD 8.79 billion at a CAGR of 13.39% between 2023 and 2028. The market is experiencing significant growth due to the increasing consumer demand for enhanced in-car entertainment. This trend is driven by the availability of advanced features such as AI-powered systems, streaming media, and gaming consoles. However, the high initial costs of these advanced infotainment systems remain a challenge for market growth. Manufacturers are addressing this challenge by offering financing options and bundling these systems with other features to make them more affordable for consumers. Additionally, the integration of these systems with smartphones and other personal devices is also increasing their popularity and adoption rates. Overall, the market is expected to grow steadily due to these trends and continuous innovation in technology.
The market is experiencing significant growth due to the increasing consumer interest in advanced in-vehicle infotainment systems. These systems offer features such as smartphone connectivity, high-resolution touch screens, and Bluetooth connectivity, allowing passengers to stream music, make calls, and access navigation systems using their mobile devices. Moreover, the integration of cloud-enabling syncing, predictive navigations, and parking recommendations caters to the needs of luxury vehicle owners and long-distance travelers. The availability of HDMI ports and wifi hotspots enables video game enthusiasts to connect their devices and enjoy their favorite games during journeys. The OEMs are focusing on providing touchscreen infotainment displays in luxury crossover SUVs, offering advanced infotainment systems with dual-ESIM connectivity for uninterrupted internet access.
Further, the integration of these features enhances the overall driving experience and provides convenience and entertainment to passengers. Infotainment technology continues to evolve, with the integration of wireless connectivity, enabling seamless integration of smartphones and tablets, further expanding the market's growth prospects.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The aftermarket segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to the increasing consumer interest in advanced infotainment systems. These systems offer features such as smartphone connectivity via Bluetooth and Wi-Fi hotspot, enabling users to mirror their multimedia devices onto high-resolution touchscreen displays. Japanese carmakers are leading the way, integrating these technologies into luxury crossover SUVs and even third-row seating. High-resolution touchscreens provide superior audio fidelity and user interface for navigation systems, parking recommendations, pre-trip planning, and predictive navigations. Advanced infotainment systems are cloud-enabling syncing, allowing users to access their music, videos, and apps on the go. Consumers can also enjoy wireless connectivity for their smartphones/tablets and mobile devices, while video game enthusiasts can connect their devices via HDMI.
Dual-eSIM connectivity and LTE modems ensure reliable internet access for seamless streaming and browsing. OEMs are continuously innovating to meet consumer demands, offering advanced features such as touchscreen infotainment displays, smart device integration, and voice recognition.
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The Aftermarket segment accounted for USD 3.49 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is witnessing significant growth due to the increasing demand for enhancing the passenger experience in both light and heavy vehicles. Multimedia players, including video, TV, DVD, and digital radio systems, are increasingly being integrated into rear seats to provide passengers with entertainment options. These systems often come with advanced operating systems that support various multimedia formats and offer user-friendly interfaces. The integration of such systems not only improves the overall passenger experience but also adds value to the vehicle. The market is expected to continue its growth trajectory as automakers focus on providing more advanced and customizable infotainment solutions for rear seat passengers.
Our automotive rear seat infotainment market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing consumer demand for enhanced in-car entertainment is the key driver of the market. The market is experiencing substantial growth due to the increasing demand for enhanced in-car entertainment experiences from passengers. Automotive Original Equipment Manufacturers (OEMs) are prioritizing the integration of advanced infotainment systems in their vehicles, featuring high-resolution touchscreens, smartphone connectivity, and multimedia devices. These systems offer functions such as parking recommendations, pre-trip planning, and predictive navigations, enhancing the overall passenger experience. Moreover, the trend of smart and connected vehicles is driving the market's expansion. These systems enable features like Bluetooth connectivity, Wi-Fi hotspot, and dual-eSIM connectivity, allowing passengers to stay connected to their smartphones and tablets. High-resolution touchscreen displays, audio fidelity, and user-friendly interfaces are also essential features of these advanced systems.
Moreover, luxury vehicle manufacturers, including Japanese carmakers, are focusing on providing these advanced infotainment systems even in third-row seating. These systems offer HDMI connectivity, enabling video game enthusiasts to connect their devices and enjoy their favorite games during long trips. Wireless connectivity and cloud-enabling syncing are also essential features, providing internet access and enabling seamless integration with mobile phones and other smart devices. In conclusion, the market is poised for significant growth due to the increasing consumer interest in interactive in-vehicle infotainment systems. These systems offer a wide range of features, including multimedia streaming, gaming, internet access, and interactive displays, making for more engaging and entertaining trips.
The integration of smartphone connectivity, high-resolution touchscreens, and other advanced technologies is driving the market's expansion, with leading automotive OEMs at the forefront of this innovation.
The AI-powered rear seat infotainment systems is the upcoming trend in the market. The market is experiencing significant growth due to the integration of advanced infotainment systems in vehicles. These systems offer features such as high-resolution touch screens, smartphone connectivity via Bluetooth and wifi hotspot, and cloud-enabling syncing for personalized experiences. Consumers are increasingly interested in luxury vehicles equipped with touchscreen infotainment displays, advanced navigation systems, and audio fidelity. Japanese carmakers are leading the way with these innovations in their luxury crossover SUVs, offering third-row seating passengers access to these features. These systems use AI algorithms to provide personalized content recommendations based on user preferences, such as music, movies, and even temperature settings.
Further, high-resolution displays, user interface, and touchscreen technology are essential components of these systems, allowing for smartphone mirroring, multimedia device compatibility via HDMI, and even video game capabilities for enthusiasts. Automotive OEMs are also exploring the use of dual-eSIM connectivity and LTE modems for improved internet access and mobile phone integration. These advancements in rear seat infotainment technology enhance the overall passenger experience, making lengthy trips more enjoyable and entertaining for all.
The high initial costs of advanced infotainment systems is key challenge affecting market growth. The market faces a challenge due to the high starting costs of advanced infotainment systems, which may hinder their adoption, particularly in price-sensitive markets. Modern features such as high-resolution touchscreens, smartphone connectivity, Bluetooth, Wi-Fi hotspot, and cloud-enabling syncing are common in these systems, significantly increasing their cost. In emerging economies in Asia and Africa, where consumers prioritize affordability, the adoption of such expensive entertainment systems may be slower due to spending restraints. Even in developed economies, cost-conscious consumers might opt for less expensive options or rely on smartphone integration solutions instead of investing in high-end infotainment systems. Automotive OEMs continue to introduce sophisticated infotainment systems with advanced features like parking recommendations, pre-trip planning, predictive navigation, and audio fidelity in luxury vehicles.
However, these systems often include touchscreen infotainment displays, navigation systems, and multimedia devices. For instance, a Japanese carmaker recently introduced a third-row seating system with high-resolution displays, allowing passengers to enjoy movies or play video games during long journeys. Such systems cater to consumer interest in in-vehicle infotainment systems, providing Internet access, mobile phone integration, dual-eSIM connectivity, and LTE modems. However, the high cost of these systems may limit their widespread adoption. These systems offer numerous benefits, including smartphone mirroring, wireless connectivity, and HDMI ports for multimedia devices. They enhance the user experience by providing a sleek and intuitive user interface, making them popular among luxury vehicle buyers and tech-savvy consumers.
Despite the high cost, the demand for these systems continues to grow as consumers seek more advanced and convenient features for their vehicles.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AISIN CORP: The company offers automotive rear seat infotainment solutions such as ultrasonic parking sensors and cameras.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing consumer interest in advanced infotainment systems. These systems offer features such as smartphone connectivity through Bluetooth and Wi-Fi hotspot, enabling users to connect their mobile devices for multimedia streaming and internet access. High-resolution touchscreens are becoming standard in vehicles, providing better audio fidelity and user interface for navigation systems and media playback. Moreover, OEMs are integrating parking recommendations, pre-trip planning, and predictive navigations to enhance the driving experience. Cloud-enabling syncing and dual-SIM connectivity with LTE modems allow seamless integration of smartphones and tablets, making the infotainment system more versatile.
Consequently, Japanese carmakers are focusing on luxury crossover SUVs with third-row seating, integrating large touchscreen displays for the rear seats, offering features like HDMI for video game enthusiasts and wireless connectivity for smart devices. The market for automotive infotainment systems is expected to grow significantly as consumers demand more advanced technology in their vehicles.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.39% |
Market growth 2024-2028 |
USD 8.79 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.55 |
Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 33% |
Key countries |
US, Germany, China, Japan, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AISIN CORP., Alps Alpine Co. Ltd., Aptiv Plc, Continental AG, DENSO Corp., Faurecia SA, Garmin Ltd., Hyundai Motor Co., JVCKENWOOD Corp., LG Corp., Mitsubishi Electric Corp., NSV LLC, Panasonic Holdings Corp., Pioneer Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Sony Group Corp., TomTom NV, Valeo SA, and Visteon Corp. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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