In-Car Entertainment And Information System Changing Basic Driving Experience To More Advanced Infotainment Solutions


In-car entertainment involves a collection of hardware and software components in automobiles that provide audio or video entertainment. The earliest in-car entertainment systems were car audio systems that consisted of radio and cassettes or CD player. Today’s in-car entertainment systems comprise video players, automotive navigation systems, Bluetooth connectivity, USB, in-car internet, and WiFi.

A recent market study published by Transparency Market Research presents a comprehensive overview of the growth trends, forecast analysis, and technological developments in the global in-car entertainment and information system market for the 2015-2021 period. The report says that the global in-car entertainment and information system market will display a CAGR of 14.2% from 2015 to 2021, enabling the market’s valuation to increase from US$11.42 bn in 2014 to US$28.46 bn by 2021.

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The report says that technology and innovation have been the major forces driving the in-car entertainment and information system market. With the application of technology, vehicular infotainment systems have undergone a complete transition over the years. In present times, automobile users look for several features in addition to the driving performance of a vehicle. Entertainment features such as audio-video devices and speaker capabilities are in high demand among consumers. In addition, navigation systems and Internet-on-the-go have been of great significance for automobile users. With further advancements and innovation in infotainment systems, the demand for entertainment and information systems in automobiles is expected to surge. In today’s dynamic business environment marked by technological advancements each day, companies involved in automotive entertainment and information systems need to align business strategies to keep up with consistent technological shifts.

Some of the major technologies that automobile users demand are: Advanced driver assistance systems (ADAS), Internet, audio and video systems, navigation solutions, and WiFi. With economic development in Asia Pacific, Latin America, and the Middle East and Africa the automotive industry and its ancillary industries are witnessing a boom. Countries such as China, India, Saudi Arabia, Russia, South Africa, and Brazil have displayed considerable growth in the automotive market. This has opened tremendous opportunities for manufacturers of in-car entertainment and information systems to penetrate in the automotive sector and equip automobiles with high-end add-ons.

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By connectivity, the in-car entertainment and information system market is segmented into 4G, 2G, WiFi, 3G, Bluetooth, and near field communications. Of all, Bluetooth contributed the largest revenue to the overall market in 2014; the segment held a share of close to 30% in the global market.

The application segments of the in-car entertainment and information system market are telematics, navigation, and entertainment. The entertainment segment contributed the largest revenue in 2014 with a share of close to 40% in the global market.

Some of the top players in the global in-car entertainment and information system market are Harman International, JVC Kenwood Corporation, Alpine Electronics Inc., TomTom International B.V., Denso Corporation, Delphi Automotive PLC, Pioneer Corporation, and Blaupunkt GmbH.

Key Takeaways:

  • Driven by sustained technological developments, Europe in-car entertainment and information system market to reach US$8.5 bn by 2021.

  • Holding over 39.3% of the market in 2014, the entertainment sector emerged as a key application segment in 2014.

  • Demand for in-car entertainment and information systems to rise in response to increasing demand for automobiles.

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