How In-Vehicle Infotainment is Revolutionizing Connected Cars

In-Vehicle Infotainment (IVI) systems are at the forefront of revolutionizing the connected car experience, transforming vehicles into sophisticated hubs of entertainment, communication, and information. These systems integrate with smartphones, cloud services, and advanced car sensors to offer seamless connectivity, personalized entertainment, and real-time navigation. As a result, drivers and passengers can enjoy a more intuitive and engaging experience, with voice-activated controls, high-definition touchscreens, and a wide array of apps enhancing convenience and safety. The evolution of IVI is not just changing how we interact with our vehicles but also paving the way for the future of autonomous driving, where in-car experiences will become increasingly central to the overall journey.

The in-vehicle infotainment market is projected to grow from USD 16.4 billion in 2023 to USD 28.3 billion by 2028, at a CAGR of 11.6%.

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The growth of the in-vehicle infotainment market can be attributed to the rising demand for entertainment, safety & security, navigation services, and rear-seat entertainment. Additionally, factors such as government mandates for electronic logging devices (ELD), growth in the smartphone industry, 5G infrastructure, and use of cloud technologies with artificial intelligence would create promising growth opportunities in the In-vehicle infotainment market.

Embedded systems are estimated to be the largest in-vehicle infotainment systems during the forecast period in terms of value. Embedded infotainment systems were earlier available in premium cars owing to the high cost of these systems. However, the growth of the SUV segment and the adoption of these systems in mid-range passenger vehicles has increased the demand for embedded systems. Mid-range vehicle producers such as MG, Hyundai, Kia, and Honda actively add the latest features, such as embedded connectivity, HUD, and ADAS, in their vehicle models. In Europe, regulatory mandates are the prime factor that drives the embedded system market growth. Starting on March 31, 2018, it became mandatory to be installed EU-wide 112 emergency assistance in all newly manufactured passenger car models. This system connects the vehicle to emergency services following a collision and provides location and impact information to the nearest emergency response center.

Android is speculated to grow fastest during the forecast period. The adoption of Android OS is an open-source platform gaining traction due to its cost advantages, higher flexibility while developing programs, and increasing availability of services with a large user base worldwide. This platform offers a cost-effective solution compared to other systems, making implementing it more affordable. The development and commercialization of Android Automotive OS have attracted the attention of numerous automotive suppliers and original equipment manufacturers (OEMs). For example, prominent automakers such as General Motors and Stellantis have made significant announcements regarding adopting Google’s new Android operating system for powering infotainment systems across their entire vehicle lineup by the end of 2023. Also, Ford and Lincoln cars will switch to the same platform in two years, while others, including some Dodge models and the Lucid Air, use an Android-based system without Google Automotive Services. Collaborations between companies like Audi and Volvo with Google have resulted in the utilization of upgraded versions of infotainment systems. This widespread adoption indicates the growing prominence of Android OS and positions it as a key operating system for in-vehicle infotainment companies in the upcoming years.