Research and Markets in its new report forecasts the global electric vehicle (EV) infotainment market to reach USD 225.0 billion by 2025.
Increasing demand for in-car infotainment systems has been a major factor driving market growth. In addition, increasing adoption of small and medium sized EV has led to the increased utilization of infotainment systems said the research firm.
EV multimedia systems accounted for maximum revenue generation in 2016. Also, there is an increased demand for EV infotainment with heads-up and rear seat entertainment. Increasing demand for head-up and rear seat entertainment in electric vehicles is anticipated to drive the overall market. High installation and maintenance cost for the rear seat entertainment system has led to slower market adoption, however, these systems are projected to witness a high growth over the next eight years.
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Heads-up display is fastest growing technology, mainly due to advantages such real-time projection of data on wind shield, reduced driver distraction and low cost. The multimedia system market is projected to decline over the forecast period. This can be attributed to increasing penetration of smartphones. Driver information and communication system market is anticipated to grow at moderate rate over the forecast period, the market accounted for more than 20% market share in 2016.
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EV infotainment with wireless connectivity accounted for over 38% market share in 2016, largely driven by its wide scope of application in passenger electric vehicle. The demand for EV infotainment systems with cellular connectivity is anticipated to grow at a CAGR of 69.7% from 2017 to 2025. The EV infotainment system with wired connectivity category will witness a slow growth over forecast period mainly due to changing preference of customers from wired to wireless connectivity.
The infotainment system market for passenger EV is expected to slow down owing to increasing demand for heavy duty commercial EV. Commercial EV infotainment is anticipated to grow at fastest growth rate of over 71.0% by 2025.
Further key findings from the report suggest:
- The global EV infotainment demand exceeded USD 2.4 Billion in 2016 and is expected to grow at a CAGR of 69.0% from 2017 to 2025
- Rear seat entertainment and heads up display system emerged as most prominent systems for EV infotainment in 2016 and are anticipated to grow exponentially over the forecast period.
- The Latin America region is projected to witness substantial growth over the next decade owing to various technological developments, especially in the automotive industry. The regional market is expected to grow at a CAGR of 77.8% from 2017 to 2025.
- The key players in the EV infotainment market include Continental AG, Aisin Seiki Co., Ltd., Panasonic Corporation and Harman International Industries Inc.
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