In-vehicle Payment Services Market Growth, Size, Trends, Analysis Report by Type, Application, Region and Segment Forecast 2021-2025

The in-vehicle payment services market share is expected to increase by USD 23.06 billion from 2020 to 2025, at a CAGR of 89.94%.

This in-vehicle payment services market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers in-vehicle payment services market segmentation by type (RFID and bluetooth) and geography (North America, Europe, APAC, South America, and MEA). The in-vehicle payment services market report also offers information on several market vendors, including BMW AG, Daimler AG, Ford Motor Co., General Motors Co., Gentex Corp., Honda Motor Co. Ltd., Hyundai Motor Co., JAGUAR LAND ROVER AUTOMOTIVE PLC, Volkswagen AG, and ZF Friedrichshafen AG among others.

What will the In-vehicle Payment Services Market Size be During the Forecast Period?

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In-vehicle Payment Services Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The high correlation between consumer electronics and connected car solutions is notably driving the in-vehicle payment services market growth, although factors such as low adoption of in-vehicle payment services may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the in-vehicle payment services industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key In-vehicle Payment Services Market Driver

The high correlation between consumer electronics and connected car solutions is a major driver fueling the in-vehicle payment services market growth. When any technology is adopted in the consumer electronics segment, its volume grows, which results in the decline of prices in the market. The automotive segment can also benefit from it. For instance, the cost of liquid crystal display (LCD) panels had reduced owing to their adoption in smartphones, as the number of smartphones shipped worldwide is in millions. This allowed the suppliers to reduce the cost of LCD in the overall infotainment segment. Similarly, smartphones use technologies like graphics, haptics, and speech recognition that are also used in connected car solutions such as in-vehicles payment services. Hence, the evolution of the product leads to the development of new features. With the growing popularity of these features, connected car suppliers are focusing on integrating these technologies into their offerings.Earlier, automotive OEMs created confusion among customers by offering different conventions that were different from consumer electronics. They adopted this process to increase the cost for suppliers of this system as they provided solutions to both segments. However, discussion with OEMs regarding the design of the vehicle interior to make fitment of system efficiency allowed the suppliers to benefit from their consumer electronics development efforts and come up with user interfaces that are easy to use and develop. Therefore, the reduction in complexity and price of the systems mutually benefits both OEMs and suppliers. We expect this to be a crucial driver for the connected car market during the forecast period. This driver will allow new technology such as in-vehicle payment services to gain wide adoption.

Key In-vehicle Payment Services Market Trend

Increasing demand for mobile device-based payment services is a major trend influencing the in-vehicle payment services market growth. Smartphones have evolved from being just texting machines to mini-computers, personal assistants, and virtual shopping carts. With the rapid advance of technologies, smartphones have become an essential part of how people lead their lives. Technologies such as mobile wallets, on-demand apps, digital assistants, and enhanced connectivity through Bluetooth and near-field communications have transformed the way consumers interact and rely on their smartphones. Almost all the major players in the mobile device industry have delivered their own version of mobile wallets such as Apple Pay, Android Pay, Samsung Pay, and others. Apple Pay alone has been registering a growth of over one million new users per week. In addition, consumers are looking to satisfy their needs on-demand. Consumers want their purchases to be delivered in a much faster timeframe (say few hours) than the long-term delivery provided by services like Amazon Prime.  The increasing dependence on smartphones and their vital role in connected car technology will have an affluent effect on the global in-vehicle payment services market. The in-vehicle payment is the next step in the development of mobile wallets as the smartphone integration with the car's infotainment system is on the rise. 

Key In-vehicle Payment Services Market Challenge

Low adoption of in-vehicle payment services is a major hindrance to the in-vehicle payment services market growth. Consumers are not always willing to make payments through their cars; they may continue to do the same through an app on their smartphone. In addition, security and privacy concerns among consumers might be a hurdle for the take-off of in-vehicle payment services. For an OEM, understanding and prioritizing user needs will be the first step toward creating a successful experience. The adoption of the system depends on how well the solutions meet consumer needs for a smooth and seamless experience. For instance, electronic tolling systems are widely prevalent as they do not require active driver engagement. Hence, deciding on the right solution for the user will depend on understanding the user expectations, satisfying the existing pain points that the user faces, and uncovering requirements unknown to the user. 

This in-vehicle payment services market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global in-vehicle payment services market as a part of the global specialized consumer services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the in-vehicle payment services market during the forecast period.

Who are the Major In-vehicle Payment Services Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

• BMW AG
• Daimler AG
• Ford Motor Co.
• General Motors Co.
• Gentex Corp.
• Honda Motor Co. Ltd.
• Hyundai Motor Co.
• JAGUAR LAND ROVER AUTOMOTIVE PLC
• Volkswagen AG
• ZF Friedrichshafen AG

This statistical study of the in-vehicle payment services market encompasses successful business strategies deployed by the key vendors. The in-vehicle payment services market is fragmented and the vendors are deploying growth strategies such as organic and inorganic strategies to compete in the market.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The in-vehicle payment services market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

In-vehicle Payment Services Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the in-vehicle payment services market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of specialized consumer services market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for In-vehicle Payment Services Market?

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36% of the market’s growth will originate from Europe during the forecast period. Germany, France, Italy, Spain, and the UK are the key markets for in-vehicle payment services market in Europe. Market growth in this region will be faster than the growth of the market in regions.

Rise in penetration of luxury cars and improving economic conditions will facilitate the in-vehicle payment services market growth in Europe over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The COVID-19 pandemic negatively affected the market in Europe, especially in countries such as Germany, the UK, and France in 2020. Many automobile companies announced a temporary shutdown of production and restricted their R&D spending owing to the outbreak of COVID-19. For instance, in March 2020, Renault and Fiat Chrysler Automobiles NV (Fiat Chrysler Automobiles) cut production at their European plants. Similarly, in March 2020, Bayerische Motoren Werke AG (BMW) announced the halt of production in many of its European plants. Further, BMW’s R&D expenses for FY2020 showcased a decline of 4.4% over FY2019. Hence, these factors negatively impacted the demand for in-vehicle payment services, restricting the potential growth of the market in H1 2020. However, in H1 2021, most automobile manufacturing facilities resumed operations with social distancing regulations in place and have started investing in the latest technologies such as in-vehicle payment services, with the ramping up of COVID-19 vaccination programs in the region. Thus, the demand for in-vehicle payment services is expected to increase in the region during the forecast period. 

What are the Revenue-generating Type Segments in the In-vehicle Payment Services Market?

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The in-vehicle payment services market share growth by the RFID segment will be significant during the forecast period. Several vendors in the market are using RFID technology for in-vehicle payment services. For instance, Daimler AG uses an electronic payment platform, Mercedes pay, that supports in-vehicle payment for parking as well as payment for fuel conveniently via app. Mercedes pay operates using RFID technology. Furthermore, the RFID technology in new vehicles ensures payment of toll plazas digitally and also avoids the vehicle’s waiting time. Due to this, governments of different countries have asked vehicle manufacturers to provide RFID tags in the new vehicles.

This report provides an accurate prediction of the contribution of all the segments to the growth of the in-vehicle payment services market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this In-vehicle Payment Services Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive in-vehicle payment services market growth during the next five years
• Precise estimation of the in-vehicle payment services market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the in-vehicle payment services industry across North America, Europe, APAC, South America, and MEA
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of in-vehicle payment services market vendors

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