Automotive infotainment providers working towards state-of-the-art features for the entire car, including the driver


Owing to technological advancements, growing disposable income, demand for fully automated cars and increasing electrification of automotive mechanics the global automotive infotainment SoCs market, an amalgamation of information and entertainment, has witnessed a massive adoption worldwide, in both passenger and commercial vehicles segment. According to a recent research, the global automotive infotainment SoCs market is projected to exhibit a CAGR of 6.9% from 2018 to 2028 and touch a valuation of US$ 18,485.9 Mn by the end of 2028 from the market worth US$ 9,035.0 Mn in 2017.

Automotive sector marred by challenges

However, even though the adoption is increasing steadily across the world, automotive manufacturers are facing the heat of the ever-changing global industry trends that are eventually disrupting the existing operations. Changes in consumer pattern, especially among the younger demographic, is putting OEMs under pressure to develop in-vehicle infotainment and communications technology, that provides greater digital connectivity–as customers are now seeking holistic in-car experiences. Since automotive OEMs is an evolving market, product innovation is the need of the hour for the incumbent players to defend their market leadership through product innovation.

Innovation is the way ahead

Talking about innovation, studies have indicated that drivers are more likely to choose a car based on in-vehicle technology options as compared to its performance. Also, this noticeably high interest in sophisticated in-car technologies and the expectation to access connected services in their vehicles could prove to be a means of sustained revenue stream for the automotive industry.

Eventually, everyone would be a passenger! The driver too

Research has shown that automotive giants are increasingly dealing with the passenger, luxury, and sedan cars and making the private automobile more connected. As a result of which, the passenger segment that accounts for nearly 80% in the fully occupied car has caught the in-car infotainment providers’ attention.  The providers are constantly working on ways to keep the passengers engaged as they constitute a very large market for apps and content consumption. For the car OEMs, this is an opportunity to enhance their brand by providing state-of-the-art infotainment for the entire car.

Futuristically speaking, the content consumption and the occupancy share of passengers would increase considering, the automobile is slowly, but certainly, heading towards autonomy. In probably a decade or two from now, the person occupying the driver’s seat would only occasionally check the instrument cluster and purchase gas, petrol electricity or whatever will be powering cars then—making everyone in the car, a passenger!

Work in progress: Smarter options to keep the driver attentive

Infotainment system providers will have to eventually use strict mechanism for any such in-vehicle feature that may be unsuitable to use when the car is in motion. Driver distraction is a very big issue right now as a result of which only the most common navigation and music-related applications are explored presently- for the more affordable private vehicles. For the rich – and costly – top-end systems, NGT5 was delivered by Harman for Mercedes that allowed each passenger to have a personalized in-vehicle experience. What’s next? The Harman is now working on Active Noise Cancellation (ANC) technology and General Motors asked it designers to develop apps that would transform the windows into interactive screens.

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By Nikhil Kaitwade

With over 8 years of experience in market research and consulting industry, Nikhil has worked on more than 250 research assignments pertaining to chemicals, materials and energy sector. He has worked directly with about 35 reputed companies as lead consultant for plant expansion, product positioning, capacity factor analysis, new market/segment exploration, export market opportunity evaluation and sourcing strategies.

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