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In vehicle entertainment (IVI) has always been an important feature for car manufactures and owners alike, improving the overall car ownership and driving experience. Till early 2000s, IVI in most cars was limited to just radio and music until GPS became accurate enough for drivers.
By 2010, many standard, mid and high segment cars had 2-Din systems, which had Bluetooth connectivity, navigation and multi-media display. In early 2010s, the car industry saw the advent of in-car Wi-fi with smartphone app integration as a major selling point.
To know more about Global Automotive Display Market, read our report
Fast forward 2021, and now touchscreen infotainment system is a quintessential feature of almost every passenger car sold globally.
To know more about Global Electric Vehicle Infotainment Market, read our report
The global smartphone penetration as of September 2021 stands at 73% and >82% for car buyers, thus car entertainment cannot be secluded from smartphone connectivity. This is also the reason why Smartphone connectivity using CarPlay or Android Auto is becoming a default feature in most cars. These features allow users to have the same interface with their cars as their phone, allowing higher degree of personalization.
Among the lower B&C segment vehicles, infotainment from VW Golf and BYD Song Pro standout. BYD has one of the best voice recognition tech whereas Golf`s infotainment looks very premium for the segment.
Mercedes in a statement earlier in May 2020 said that over 80% of their users say Voice is the most important control element in the car and an equal number of its users also believe voice commands make searches easier and fast. The screen size segments XX” and XX” will continue to dominate the market until 2025. Around XX M units will be sold in this category by 2025 growing at 7.2% CAGR
The Pillar to Pillar (P2P) display integrated into the MBUX Hyperscreen that spans the whole width of the dashboard will be a prominent element of the Mercedes-Benz EQS EV sedan, which is the latest premium in-vehicle infotainment (IVI) system from LG Electronics (LG). With the curved, panoramic form factor needed by the ultra-sleek car, LG’s IVI system was specifically created to fulfill the needs of Mercedes-Benz AG.
Third Generation Snapdragon Cockpit Platforms will be used to improve infotainment systems in upcoming completely electric cars sold under the Volvo and Polestar brands. It was announced by Qualcomm Technologies, Inc. and Volvo Car Group.
Volvo Car Group, Qualcomm Technologies, and Google have created a long-term plan using Qualcomm Technologies’ advancements in automotive technologies to deliver value for Volvo customers while providing a quick, highly responsive, and engaging user experience.
Since the cluster system in an EV requires new design, OEMs are choosing to integrate the entire cockpit for a single display interface to enable simplicity and reduced mechanical parts Touchscreen infotainment systems are now also seen as “the enabler” for auxiliary means of revenue generation from car sharing, vehicle subscription etc. But in Post COVID-19 world, we believe there will be a consumer shift from sharing services to personal mobility.
With the blistering growth of EV market, touchscreen infotainment market got a major boost as it is a must to find nearest charging station, vehicle range status, drive mode and other important vehicle parameters. As discussed earlier, consumers are now looking for higher degree of personalization and that is where Artificial intelligence (AI) has started to make a world of difference.
AI can completely personalize the user experience by predicting his/her next choice in a few seconds which would otherwise require a physical effort. The growth of AI could also allow cloud-based content to be monetized to a greater degree.
The importance of AI in automotive touchscreen infotainment systems can be judged by the fact that more than 10 partnerships between auto and tech companies have been struck in past 12 months alone. Amazon`s Echo voice assistant will be available on Volvo and BMW whereas Alibaba`s version will be available in the Chinese market on Audi, Renault and Honda.
Among the 400+ EV start-ups in China, the Byton M-Byte has e a 48-inch display, running the entire length of dashboard, but it is one of the first casualty of COVID-19 in EV market. It suspended its domestic operations in June 2020 and furloughed staff. The company recently said it is making efforts to obtain funding to pay salaries owed. Qualcomm in September 2021 announced the development of an in-vehicle infotainment system in collaboration with Google for Renault’s new Megane E-Tech Electric, the next generation electric vehicle.
The automaker will incorporate the 3rd generation Snapdragon automotive cockpit platform to power the vehicle’s advanced infotainment system. The system is a portrait sized touchscreen display for multimedia, visual and navigation features. It will come with built-in Google assistant, maps as well as Play. General Motors in partnership with AT&T technologies have announced plans to develop 5G cellular connectivity for GM vehicles for the next decade for the US market. The 5G connectivity will be available in the infotainment systems of the vehicles to be produced by 2024.
They will be equipped with Microsoft’s scalable and secure cloud services. Stellantis NV in collaboration with Hon Hai Precision Industry commonly named Foxconn company and its subsidiary FIH Mobile have signed a non-binding memorandum of understanding to develop a mobile drive innovative to the existing in-vehicle infotainment systems which will be enabled by advanced electronics, HMI interfaces and services.
Globally, the automotive operating system is gearing from single function towards the intelligent tiered, modularized and platform-based development. For example, in future, Volkswagen will have one uniform software platform (consisting of vehicle operating system “vw.os” and the Volkswagen Automotive Cloud) for all vehicles throughout the Group. By 2025, all new models from the VW group are to run on this software platform.
In future, we expect further evolution of domain controllers like cockpit domain controller to integrate ADAS, connected car gateway and heads-up display resulting in cost optimization and reduced weight.
Cinemo’s innovative “Infotainment to Go!” is the first fully cloud-based IVI-as-a-Service, decoupling infotainment from the vehicle so that automakers can continuously offer their most up-to-date infotainment experiences, in any car, on any device, extending the lifetime of the vehicle and avoiding the need for an in-vehicle update.
Owners of Polestar 2 vehicles can now enjoy the latest version, which includes Android R for the infotainment system running the Android Automotive OS, as Polestar continues to provide evolving digital car connectivity. The most recent software upgrade will gradually roll out to owners and includes greater app and feature potential for the future.
The most recent in a long line of Over-the-Air (OTA) software releases is the P2.0 software update. Polestar can utilize digital connectivity to hasten the integration of new features, performance, and personalization for Polestar 2 owners by downloading and installing software upgrades remotely.
The automotive touchscreen infotainment system offered in budget, A- segment cars cost <$200 per unit, offer a 6-7-inch touch screen, less responsive- resistive touch screen, Bluetooth connectivity, low power processors and low pixel density display.
In the mid, B-C segment cars, a 7-8-inch capacitive touch- screen, with smartphone connectivity is standard with optional on-board connectivity and navigation.
In Europe, Volkswagen has equipped its cars with e-Sim on higher trim cars like Golf, Polo, Tiguan, T-roc and Passat. These cars are equipped with 8-inch Centre console touch display as standard and Passat gets 9.2-inch touch display as Option and smartphone connectivity features like Android auto and Apple car Play are provided on higher trim. In the premium segment, 10-15-inch screens can be commonly found with voice recognition display, AI assistant, augmented-reality navigation,20+ remote controlled features (enabled via e-sim).
The global automotive infotainment system market size is estimated at $XX Billion in 2021, growing at –% CAGR till 2025. Due to COVID-19, the global automotive infotainment market declined by at-least 18% worldwide in 2020. Need for integration of advanced features as well as the instrumentation is driving OEMs to consider consolidation of entire cockpit for better user experience and reduced parts.
In US almost every top selling vehicle among top 30 is equipped with at least a screen size of 7”. However, Ford’s Edge and Fusion are exception as they are fitted with 4.2” and 6.5” respectively.
The Harman occupied the top spot in terms of market share with ~27% penetration in the infotainment systems, followed by Panasonic with ~19%
The below list is of top selling vehicles in the region and the type of infotainment system incorporated in them
The infotainment systems are based on the type of display incorporated in the vehicles. The most common types of display are the 7 inch, 8-10 inch and greater than 10 inch display.
Honda has the highest number of vehicles whose screen size is 7 inch size however, as new developments take place the penetration of this industry in the automotive market is increasing. Mazda car line-up was mostly equipped with an infotainment system whose screen size is greater than 10 inch. The trend is followed by RAM and Hyundai which mostly use greater than 10 inch display screens.
The CAGR predicted for the years 2020-2025 for the growth of infotainment systems in the US is XX%.
8-10” screen size is the most popular type in the region as almost 50% of the vehicles in the region is fitted with screen of this size. Among top 30 sellers there are 5 models whose screen size is sub-5” i.e., 4.2”, which is also the lowest in the region.
Visteon acquired the highest market share in the European Union with ~14%, followed by Harman. Across Europe, the number of vehicles adopting the 8-10 inch displays is higher as compared to that in USA where 7 inch displays have the higher market penetration.
Mercedes Benz models are mostly fitted with an infotainment system of screen size greater than 10 inch, followed by Skoda and Peugeot. Ford and Volkswagen’s top sellers mostly had infotainment systems with display size between 8-10 inch.
China commonly makes use of the 8-10 inch displays as part of the infotainment systems, followed by the >10 inch displays. OEMs such as BAIC, Jetour & HYundai among top sellers had infotainment systems of >10 inch display but also incorporated 8-10 inch displays in smaller vehicles.
Hangsheng Electronics occupied the highest market share with ~17% penetration, followed by Harman with 12%. The company CHJ Automotive which is an electric vehicle manufacturer based in China launched a smart electric SUV named ONE. The vehicle is incorporated with a four-screen infotainment system which includes a smart voice system.
The vehicle features a dual chip system as well as a dual system structure which is equipped with a Qualcomm Xiao Long 820A-class chip as well as with an android automotive compatible system.
BAIC Yinxiang Automobile company recently collaborated with ADAYO which is a subsidiary of Foryou corporation. The company specialises in the development and design of infotainment systems for vehicles, GPS, Beidou as well as GLONASS, the company’s single/dual-mode navigation system and ADAS. The partnership is set to develop new platforms for BAIC’s product restructure with a platform of infotainment systems.
The Japanese market mostly incorporates 8-10 inch displays as infotainment systems except for Subaru which had models mostly with 7 inch displays. The market is dominated by 7 and 8-10 inch displays, where the companies using > 10 inch displays are found in very few models of Nissan, Volkswagen and Toyota.
The Asia-Pacific market is estimated to grow at a fast pace with growing demand for luxury, high end vehicles with infotainment systems and other digital services. However, the penetration of the market in the Indian market is relatively less, major automakers in India are now focusing on developing infotainment systems.
For instance, Maruti Suzuki launched the Smartplay infotainment system in the new model of WagonR, Hyundai launched the new model of Santo with an infotainment system with smartphone connectivity. Renault has also announced plans to launch the new model of Kwid with Apple CarPlay as well as Android Auto-across.
The infotainment system market in India was very basic & the is miles behind the global trends. It is only now that the automakers are developing new technologies creating a sustainable market for infotainment systems.
Most of the automakers make use of 7 inch displays with very less penetration of >10 inch displays in the market. Very few OEMs among the top sellers equip >10 inch displays in India such as Hyundai followed by Toyota which is set to launch new vehicles including such displays.
The market is dominated by use of 7 and 8-10 inch displays with little or no penetration of >10 inch displays. The OEM that had most models with >10 inch display is Volkswagen. The OEMs that are mostly into 7 inch displays are Kia, Honda and Fiat.
The impact of the COVID-19 pandemic on the infotainment system for the automotive industry is primarily driven by the sales of vehicles and their production. The sales of the vehicles during the pandemic decreased due to the lockdowns put in place by governments across the globe. Due to the lockdowns and halt in production and manufacturing activities, the sales of vehicles experienced a slow growth.
The major hit for the automotive industry is due to the shortage of semiconductor components and chips. The shortage was created mainly due to the lockdown in China and Taiwan.
The industry is now trying to recover the market but due to the excessive backlog, the shortage is affecting the automotive industry the most. Many OEMs including BMW, Audi and Tesla have announced the delay in the launch of new models and delivery of existing orders due to component shortage. Some companies have started to use analog meters and devices from the old models to be incorporated in their vehicles.
With the development of new technologies in the automotive industry the demand for semiconductors in smaller size ranges is increasing. The most advanced microcontrollers and processors with size around 7-14 nanometers or even smallers are used in the leading-edge technology applications. With the development of 5G technology, the rollout for a larger number of radio-frequency semiconductors is increasing.
Feb 2021
Ford
Nov 2021
LG Electronics
LG Electronics’ (LG) next-generation In-Vehicle Infotainment (IVI) system will make its debut in the new Renault Mégane E-TECH Electric in 2022
June 2021
Pioneer
Pioneer and Cerence Enter Strategic partnership to develop conversational AI infotainment solutions that transform mobility experiences
The whole automotive sector is working to develop novel technologies that will improve connection, vehicle safety, and the in-car user experience. The In-Vehicle Infotainment System is one of the essential technologies that serves as the hub for all current automobile systems, allowing them to be managed and monitored from a single location.
Digital instrument clusters receive data from the vehicle’s ECU unit through OBD port-II and present it on the infotainment system’s display screen. The instrument cluster is integrated with various digital interfaces of the vehicle, including as the Head Unit, Heads-up Display (HUD), HVAC, and Infotainment systems, as part of the digital cockpit system.
Infotainment systems give manufacturers an opportunity to stand out — a way to add luxury amenities like larger screens and customised audio, as well as the future promise of being able to tap into revenue sources..
Future infotainment systems will be simple to operate and personalize. The notion of automotive digital cockpits will not be limited to small head-units or small displays on the windscreen, but will also include big infotainment systems and connected screens embedded into the vehicle’s dashboard and even on the roof.
We will have AI-based maps, virtual assistants to aid autonomous functions in a car, and more as novel technologies based on AI and machine learning evolve in the automotive industry.
HMG launches NVIDIA DRIVE ‘connected car’ infotainment and AI platform. Hyundai Motor Group will be able to develop high-performance ‘connected car’ computing systems for its next-generation cars thanks to a technological partnership with NVIDIA, the world leader in accelerated computing. In-vehicle infotainment (IVI) systems powered by NVIDIA DRIVE will be standard on all future models, from entry-level to luxury. NVIDIA DRIVE is a hardware and software stack that allows Hyundai Motor Group’s IVI systems to integrate audio, video, navigation, connection, and AI-based ‘connected car’ services.
The Group’s brands will be able to provide customers with seamless and continuously enhanced in-vehicle AI user experiences by using the high-performance, energy-efficient NVIDIA DRIVE platform for future models. Customers of Hyundai, Kia, and Genesis will benefit from a feature-rich, software-defined AI user experience that is constantly updated.
The startup Holoride, which has the support of Audi, is prepared to introduce its in-car virtual reality entertainment system to the general public. A device the size of a smart speaker that can be put into any vehicle to make it VR compatible was unveiled by the business at CES 2023. The retrofit pack attaches to a vehicle’s windscreen using suction cups and weighs less than half a pound. The hardware comes with a USB-C to USB-A adapter that fits into the car and a lithium-ion battery that lasts for 14 hours on a single charge.
The MG4 EV is already offered by MG on the international market. The Modular Scalable Platform (MSP) of the brand, which belongs to MG’s parent firm SAIC, serves as the foundation for the electric hatchback.
The electric hatchback is equipped with a tonne of goodies, including a 10.25-inch touchscreen infotainment system that utilises the iSmart UI, a wireless charger, a multi-function steering wheel, automated climate control, and a 7-inch digital instrument cluster. Advanced Driver Aids System and linked automobile technology are also available.
The Japanese manufacturers Honda and Sony unveiled their first concept car, the Afeela, during the CES 2023 trade show for technology in the US. While Sony will be in charge of the car’s image, sensing, telecommunication, network, and entertainment technology, Honda will be in charge of managing the production of the vehicles. At CES 2023 in Las Vegas, Amazon unveiled the “Ring Car Cam,” a new dashboard camera designed to deter auto theft. The gadget can capture motion and activity both inside and outside the car. Additionally, it features a sensor to pick up outside disturbances.
Piech Automotive’s first market-ready electric vehicle model will use software developed by Incari, which will allow it to update its digital dashboard system far faster than its competitors, the two businesses announced on Wednesday.
Piech will be able to update the design of its infotainment system and other software components 70 percent faster than its competitors thanks to the software. German automakers are pouring money into top-tier engineers to create competitive software, as imminent competition from Tesla and software behemoths like Apple enter the market threatens to smear the country’s reputation as a technology research and development leader.
The vehicle has already attracted notice due to its use of Desten Group’s battery technology, which allows for an 80 percent charge in 5 minutes, eliminating the issue of sluggish charging time, which is frequently cited by potential electric vehicle purchasers as a deterrent to purchase.
Incari Studio, Incari’s software, allowing people to create digital interfaces in 3D without knowing how to code, eliminating the need to rely on software professionals for design revisions or edits. Piech is the first automaker to utilise the software on a large scale, although Incari, a German software startup, is testing prototypes with a number of major European transportation companies.
The BMW Group and AirConsole recently announced a partnership that will start next year and offer casual gaming to new BMW automobiles. The gaming platform AirConsole has a sizable and varied selection of titles and works flawlessly with the BMW Curved Display. The video gaming console in the car is where the games are really played.
Games may now be rapidly supplied over the air and controlled with cellphones thanks to AirConsole technology. We will make use of cutting-edge technologies along with a wide selection of entertaining multiplayer games with AirConsole. This will make every waiting situation inside the car comfortable, even charging
In a joint effort to give customers everywhere the best music experience, Apple and Mercedes-Benz today announced that Apple Music’s highly acclaimed Spatial Audio, which supports Dolby Atmos, is now available as a native experience in Mercedes-Benz vehicles for the first time.
The MBUX infotainment system in Mercedes-Maybach models, including the EQS and EQS SUV, as well as the EQE and the S-Class, fully integrates Apple Music with Spatial Audio, providing these vehicles with studio-quality sound better than in any concert hall and providing drivers with a fully immersive listening experience with unmatched, multidimensional sound and clarity.
The advanced vehicle infotainment systems that may stream video or play games or communicate with drivers using artificial intelligence will be powered by technology developed in partnership by Nvidia Corp. and MediaTek Inc. Under the terms of the partnership, MediaTek will incorporate an Nvidia graphic processing unit chiplet and Nvidia software into the system-on-chips it offers to automakers for infotainment displays. The agreement was unveiled at the Computex technology trade conference in Taipei.
Automated driving systems based on Nvidia technology would work with MediaTek systems running Nvidia software. While cameras keep an eye on the driver, dashboard screens might highlight the surroundings of the car. Through a new joint venture, Swedish automaker Volvo and software company EcarX will work together to develop an infotainment system platform that will be based on Volvo Cars’ current infotainment architecture.
Both businesses and the larger Geely Group will eventually be able to move on with their development plans more quickly, cut costs more effectively, and generate new sources of income. One of the best on the market, the entertainment system in the most recent Volvo vehicles rivals mobile phones in terms of usability.
Through this joint venture, the system’s development is accelerated, providing high-quality infotainment to more vehicles, and maximizing incentives for businesses and developers to produce top-notch services and apps for platform users. The technology will initially be incorporated into Volvo and Polestar vehicles with distinctive user interfaces. The whole Geely Group and its associate brands as well as third parties will then have access to it. For the global integration and commercialization of the platform into other cars, EcarX will be the sole partner.
It will be made available in China with other vehicle services from EcarX’s service range. The use of EcarX’s hardware with the infotainment system is being explored by Volvo and EcarX. Hyundai Motor Group and Vodafone Business are strengthening their collaboration to offer customers in Europe more in-car entertainment options.
In order to offer customers cutting-edge in-car linked streaming and infotainment services in more than 40 countries throughout Europe, the Hyundai Motor Group (HMG) and Vodafone Business recently announced the extension of their current strategic collaboration for a number of years. Millions of Hyundai, Kia, and Genesis models sold in Europe will now have access to Vodafone Business’ global internet of things (IoT) connectivity for connected car service thanks to the extension of their collaboration.
This statement highlights the Group’s commitment to establishing itself as a pioneer in cutting-edge mobility solutions.Customers of Hyundai, Kia, and Genesis in Europe can gain quick and dependable access to capabilities like audio/video streaming and Wi-Fi hotspots thanks to Vodafone Business’ IoT Connectivity. Harman and Luxoft will collaborate on developing next-generation in-vehicle infotainment systems.For many consumer A/V businesses and Harman, who made public their ongoing partnership that produces some of the top infotainment systems, the car industry remains the last untapped market.
More than a hundred “development experts” are employed by Luxoft and Harman, mostly in a development facility in Ukraine where they create systems, at least in part, for BMW and Daimler. It is now a recognized alliance that over the past few years has produced the industry’s top infotainment systems. Developing cutting-edge entertainment systems for the automobile sector will be a joint effort between Luxoft and Harman International, a top global provider of advanced application and product development services.
Embedded real-time operating systems, sophisticated navigation systems, in-car Internet capabilities, and the incorporation of social networks into the driving experience are just a few of the automotive projects on which Luxoft and Harman are collaborating. Several automakers, including BMW and Daimler, use infotainment technology that are the outcome of this collaboration.
The below infographic shows the market share of major players in the automotive infotainment industry
The global automotive infotainment system market value chain is comprised of four categories of vendors i.e., touchscreen display providers, technology providers, chip/processor/storage providers and ultimately the integrators (complete system providers) who work closely with the car manufacturer to deliver the complete infotainment system to be fitted on the vehicle assembly line.
The average B-2-B prices can range anywhere between $200-$800 per unit and is highly dependent on annual volumes. All suppliers look to secure Long term, Multi-Million dollar deals from OEM for increased cashflow. The gross margins vary for suppliers between 22-27% and the EBITDA levels are at 10-12% i.e. at par with Automotive lighting market suppliers
HARMAN is World`s market leader with 26% market share of infotainment system in 2019.It is a complete end to end provider including sound system ranging from JBL to Mark Levinson. Continental is one of the biggest innovators in automotive electronics, powertrain and ADAS. It has already partnered with Pioneer (May 2020) for Asian markets.
In China, many domestic vendors have developed their own operating system to be deployed across all vehicles in the portfolio. For Ex- In February 2020, NIO launched the NIO OS 2.5.0 version in-car system and upgraded three important aspects of its vehicles i.e , NIO Pilot automatic assisted driving, digital instrument cluster and suspension. ARCFOX(BAIC`s upcoming EV brand launched in May 2020) has new generation 5G chip from Huawei which is Industry’s first 5G-V2X hardware module.
Alpine Electronics announced the integration of the management with Alps Electric in the year 2019. Alpine is the leading system design and software development company and Alps electric develops core device technologies incorporating advanced electronic components such as EHI, sensing devices, mobile devices as well as communication device technologies. The collaboration is all set to incorporate new technologies such as the HMI cockpit.
In the year 2020, LG Electronics and Cerence incorporation which is an automotive voice recognition solution provider based in the US signed a partnership to develop an infotainment system based on the web OS auto based IVI system. The system is set to be equipped with voice recognition features.
Continental AG recently released the half-yearly financial report for the first half of the year 2021 with the sales worth $23.7 billion which was an increase from the previous year which reported $19.5 billion for H1 of 2020. The sales of the automotive technology department was $9.2 billion for the same term, an increase from the H1 of 2020 which reported $7.9 billion worth sales.
The company received a major order to develop and manufacture a pillar-to-pillar display from a leading automaker. The display system is set to go into production by the year 2024 which will enhance the visual interface between driver and passenger digital driving experience. The company has also become a strategic business partner with Pioneer to develop new user experience infotainment systems.
Denso Corporation recently released the first quarter results for the fiscal year 2022 with the total consolidated revenue of $12.3 billion which was a 77.3% increase from the previous year same quarter. The company also stated that the revenue has significantly increased due to the recovery in sales of vehicles and production activities from the COVID-19 pandemic.
One of the leading manufacturers of this sector, Visteon recently announced the fiscal results for the second quarter of the year 2021. The company recorded net sales worth $610 million which was a whopping 59% year on year increase from the Q2 of 2020 reporting net sales worth $371 million. The company also announced that Geely Auto’s new Xingyue L flagship SUV will be the first production vehicle to incorporate the intelligent cockpit system developed with Qualcomm technologies and ECARX.
Qualcomm Incorporated announced the acquisition of NUVIA, a leading CPU and technology design company, by its subsidiary Qualcomm Technologies for $1.4 billion. With the acquisition, the company has plans to integrate the next generation CPUs across a wide variety of products such as digital cockpits, smartphones, laptops as well as ADAS systems. The company also announced the third quarter financial results for the year 2021, with revenue worth $8,060 million which was a whopping 65% increase from the revenue of the same quarter of the year 2020 recorded as $4,893 million.
As vehicle Facelift and upgrade(next gen) timeline continue to decline over past 8-9 years and is now 28-32 months for facelift and 60-66 months for new gen, R&D lead time is also shrinking. As infotainment systems are now an important selling point for many OEMs, they are updated in a facelift as well as generation update. One common aspect for every facelift and generation change is upgraded infotainment system
To know more trends , Please read our report Global Automotive Infotainment OS Market
At the CES 2021, premium car manufacturers Mercedes-Benz unveiled the MBUX Hyperscreen
To know more about car Audio developments, read our Car speaker market report
