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The automotive rear-seat infotainment market size is estimated to increase by USD 6.85 billion and grow at a CAGR of 11.92% between 2022 and 2027. Market growth hinges on rising consumer interest in upgraded in-car entertainment, along with progress in display tech, connectivity features, software functionalities, and integration of IoT with rear seat infotainment systems. Challenges in this domain encompass steep initial expenses for advanced infotainment setups, concerns about distracted driving and safety implications, as well as compatibility issues with AAA systems.
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This market report extensively covers market segmentation by end-user (aftermarket and OEM), technology (multimedia player and navigation systems), and geography (Europe, APAC, North America, South America, the Middle East, and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The aftermarket segment is estimated to witness significant growth during the forecast period. One of the dominant segments in the global automotive rear-seat infotainment market is the aftermarket segment. But the rising penetration of OE-fitted rear seat infotainment is expected to have a negative impact on the growth of this segment. When the trend for rear seat entertainment took off about a decade ago, OEMs were on top of remote system explorer (RSE)
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The aftermarket segment was the largest segment and was valued at USD 3.18 billion in 2017. However, several offerings from the aftermarket revolutionized the global automotive rear-seat infotainment market and became the dominant segment. Some of the popular market players in the global automotive rear-seat infotainment market such as Pioneer and Alpine are offering aftermarket rear-seat infotainment. Furthermore, ride-hailing companies are partnering with rear-seat infotainment system manufacturers to integrate aftermarket rear-seat infotainment systems. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the global automotive rear-seat infotainment market during the forecast period.
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Europe 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. Some of the key countries which have significantly contributed to the growth of the global automotive rear-seat infotainment market include Germany, France, Italy, Spain, and the UK. The increasing economic conditions in Europe are also fuelling the growth of the market in the region. Furthermore, the European region is the base for many luxury cars OEMs such as Audi, BMW, and Mercedes-Benz which adopt high-end infotainment systems in their vehicles. The rear seat infotainment is one of the key innovations in the vehicle which is used to enhance mobility and entertainment in the car while traveling long distances. thus the region positively responded to the advancement in this technology. Furthermore, the automotive manufacturers in the region are increasingly focusing on enhancing comfort and safety features and satisfying regulatory standards. Hence, such factors are expected to drive market growth in the region during the forecast period.
The market is witnessing significant growth propelled by consumer demand for sophisticated in-car entertainment and connectivity features. With advancements like high-resolution touch screens and safe, luxurious vehicles, infotainment technology offers features such as parking recommendations, pre-trip planning, and cloud-enabled syncing. These systems boast predictive navigation, Bluetooth connectivity, and Wi-Fi hotspots, ensuring seamless integration with smartphones and tablets. Luxury crossover SUVs and high-end vehicles increasingly incorporate touchscreen infotainment displays with LCD and TFT technologies. OEMs are prioritizing wireless connectivity and HDMI ports to cater to the needs of video game enthusiasts and mobile device users, driving consumer interest in these advanced in-vehicle infotainment systems. Our researchers analyzed the data with 2022 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 demand for advanced in-car entertainment is a significant driver of the market. Consumers increasingly seek enriched entertainment experiences during their journeys, prompting manufacturers to integrate cutting-edge rear seat infotainment systems in vehicles. These systems offer features like multimedia streaming, gaming, internet access, and interactive displays, catering to passengers' desire for engaging trips. With the rise of smart and connected vehicles, the adoption of such technologies is expected to surge. Key functionalities include smartphone connectivity, high-resolution touch screens, predictive navigation, and seamless integration with mobile devices, reflecting the market's evolution towards safe, luxurious, and intelligent vehicles.
A key factor shaping the market growth is the AI-powered rear-seat infotainment systems. There is an emerging trend of AI-powered systems that analyze passenger preferences and behavior to offer customized content recommendations which are expected to significantly contribute to the market growth. These cutting-edge entertainment systems leverage AI algorithms to analyze unique tastes in music, movies, and even temperature preferences.
Moreover, these AI-driven entertainment systems enhance the overall passenger experience by personalizing the material to each user, making long trips more pleasurable and entertaining for all passengers. Hence, automotive manufacturers are utilizing this technology constantly to design their vehicles differently differentiate themselves apart from the competition, and attract customers looking for individualized in-car entertainment. Hence, such factors are expected to drive market growth during the forecast period.
High initial costs of advanced infotainment systems are one of the key challenges hindering market growth. The high initial cost of advanced infotainment systems can pose a significant threat to market growth as it prevents their widespread acceptance, especially in price-sensitive markets. These sophisticated systems are often equipped with modern features such as high-resolution screens, touchscreen interfaces, and a wide range of networking choices which significantly contribute to their overall cost.
Thus, the adoption of such expensive entertainment systems gets constrained in price-sensitive countries where consumers value the price over the features. For example, in emerging economies such as Asia and Africa, it is expected to have a slower adoption due to the general price-conservative attitude of the population. Hence, such factors are negatively impacting the market which in turn will hinder the market growth during the forecast period.
The market research 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 growth strategies.
Global Market 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 research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing rapid growth driven by consumer demand for smart, luxurious vehicles equipped with cutting-edge technology. Key features include smartphone connectivity, high-resolution touch screens, and advanced infotainment systems offering parking recommendations and pre-trip planning. Cloud-enabled syncing and predictive navigations enhance user experience, along with Bluetooth connectivity and Wi-Fi hotspots for seamless connectivity. Touchscreen displays, LCD, and TFT screens provide high-quality audio and video entertainment, while smartphone mirroring and multimedia devices cater to diverse preferences. As automotive OEMs focus on enhancing passenger experience, luxury vehicles with third-row seating and dual-eSIM connectivity are gaining prominence, setting trends in the industry.
The market is witnessing a surge in demand driven by the increasing preference for safe, lavish, and smart vehicles. Infotainment technology has evolved significantly, incorporating features like cloud-enabling syncing and touchscreen displays using LCD and TFT technology. Luxury crossover SUVs, particularly those from Japanese carmakers, are leading this trend with high-resolution displays and multimedia players for DVD, TV, and digital radio. With a focus on audio fidelity and user interface, these systems cater to the needs of passengers, including video game enthusiasts, by offering wireless connectivity to smartphones, tablets, and other mobile devices. Original equipment manufacturers (OEMs) are showcasing their latest innovations at events like the Consumer Electronics Show (CES), introducing advanced features like LTE modems and the Android operating system (OS) to enhance the passenger's experience in both light and heavy vehicles.
Automotive Rear Seat Infotainment Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.92% |
Market growth 2023-2027 |
USD 6.85 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
10.84 |
Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
Performing market contribution |
Europe at 33% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AISIN CORP., Alpine Electronics Inc., Aptiv Plc, Continental AG, DENSO Corp., Faurecia SA, Garmin Ltd., Hyundai Motor Co., JVCKENWOOD Corp., LG Corp., Mitsubishi Electric Corp., Panasonic Holdings Corp., Pioneer Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Sony Group Corp., TomTom NV, Valeo SA, Visteon Corp., and NSV LLC |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, 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 report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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