In 2018, the global automotive infotainment System-on-Chip (SoC) market was valued at approximately US$ 8.69 billion and is projected to expand at a compound annual growth rate (CAGR) of 7.2% from 2019 to 2027, reaching an estimated US$ 16.08 billion by the end of the forecast period.
Emerging regions such as Asia-Pacific, the Middle East, Africa, and South America are experiencing a favorable economic climate, characterized by a growing middle class and increasing disposable incomes. These elements are significantly contributing to the rise in passenger car sales in these areas, thereby enhancing the automotive infotainment SoC market. Although there have been some recent declines in automotive sales, the overall growth trajectory for the market remains optimistic throughout the 2019 to 2027 period. Ownership rates of vehicles differ widely across developing nations, yet there has been a consistent increase in the number of passenger cars per household over the last ten years. The surge in disposable income and the expanding middle class are pivotal in propelling passenger car sales in these emerging markets.
Post-recession, developing economies have shown steady growth, leading to an increase in consumer disposable incomes. In contrast, Western nations, where consumers typically enjoy higher disposable incomes, have seen car sales driven by a demand for advanced features and technological innovations in vehicles. The luxury and autonomous vehicle segments are particularly influential in boosting sales in developed markets like North America and Europe. Infotainment systems and the technologies embedded within vehicles are becoming increasingly vital to modern consumers. Consequently, automotive manufacturers are prioritizing the integration of advanced in-vehicle infotainment systems to offer unique services to their clientele. The intense competition within the global automotive sector is further propelling the growth of the automotive infotainment SoC market worldwide. Major automotive brands such as Audi, BMW, General Motors, Mercedes-Benz, and Jaguar-Land Rover are at the forefront, providing some of the most sophisticated infotainment systems in their vehicles, particularly in established markets. As disposable incomes and living standards rise, these luxury brands are also experiencing heightened demand in developing countries. These dynamics are expected to significantly contribute to the growth of the automotive infotainment SoC market during the forecast period from 2019 to 2027.
The automotive infotainment SoC market is categorized based on installation type, application, vehicle type, and geographical region. In terms of installation type, the market is divided into in-dash systems and rear-seat systems. Regarding application, the market is segmented into head units, ecockpits, sound systems, and other applications. When considering vehicle type, the market is classified into passenger vehicles and commercial vehicles.
Key players in the automotive infotainment SoC market include Infineon Technologies AG, Intel Corporation, NEC Corporation, NVIDIA Corporation, NXP Semiconductors N.V., Qualcomm Incorporated, Renesas Electronics Corporation, STMicroelectronics N.V., and Texas Instruments Incorporated.
As the automotive industry continues to evolve, the integration of infotainment systems is becoming a critical factor for manufacturers aiming to enhance user experience and stay competitive. The demand for innovative technologies that provide connectivity, entertainment, and information is driving the development of more advanced SoCs. This trend is expected to persist, with manufacturers investing in research and development to create cutting-edge solutions that meet the needs of modern consumers.
Furthermore, the rise of electric and autonomous vehicles is likely to influence the automotive infotainment SoC market significantly. As vehicles become more connected and automated, the need for sophisticated infotainment systems that can handle complex data and provide seamless user interfaces will increase. This shift presents both challenges and opportunities for manufacturers as they adapt to the changing landscape of the automotive industry.
In conclusion, the automotive infotainment SoC market is poised for substantial growth, driven by various factors including rising disposable incomes, technological advancements, and changing consumer preferences. The ongoing developments in the automotive sector, particularly in emerging markets, will play a crucial role in shaping the future of this market. As manufacturers continue to innovate and enhance their offerings, the automotive infotainment SoC market is expected to thrive in the coming years.