Electric Vehicles (EV) have crept into consumer minds since the launch of the Tesla Roadster in 2008. The shift towards sustainable vehicles and changing consumer preferences will lead to a surge in the production of these vehicles. Automotive manufacturers will naturally proceed to develop EV infotainment units to entice consumer decision in buying these vehicles. Integrated Circuits (ICs) and graphic card manufacturers are collaborating with automakers to provide an enjoyable experience to consumers. Human Machine Interface (HMI), touchscreen dashboards and displays, and Augmented Reality (AR) are the technologies, which can evolve further and offer new opportunities to the industry players.
Smooth Driving Experience
Major types of infotainment systems include heads-up, navigation, multimedia, rear seat entertainment, and driver information & communication systems. The heads-up segment is projected to witness high demand due to real-time projection of data and capacity to reduce accidents. It is expected to display a CAGR of 75 % during the forecast period (from 2018 to 2025). Emergence of connected technologies and evolution of haptic feedback has led to the integration of Heads-Up Displays (HUDs) in upcoming cars. In 2017, Volkswagen declared to implement AR in HUDs in its upcoming EVs. The good response afforded to self-driving cars can facilitate segment demand.
On the other hand, the multimedia segment may witness a decline in demand due to its high installation costs. However, compatibility with connected technologies such as Wi-Fi and Bluetooth can augur the demand for these systems. This is exemplified by the Open Infotainment Platform developed by Continental AG for its consumers. In addition, companies are collaborating with the on-demand providers to offer various channels for consumers on their custom-built multimedia platforms.
The global electric vehicle (EV) infotainment market valuation is expected to reach USD 225.0 billion by 2025, according to a report by Grand View Research, Inc. The market demand is expected to grow at a CAGR of 69 % from 2018 to 2025 due to rising demand for in-car entertainment. Adoption of small and medium EVs can also augur market growth over the coming years. Rising demand for HUDs can also open up novel opportunities for expansion. Key market players include Harman International Industries Inc.; Aisin Seiki Co., Ltd.; Panasonic Corporation; and Continental AG.