Automotive Infotainment SoC Market Size, Share, Growth, and Industry Analysis, By Type (Instrument Panel, Back Seat), By Application (Passenger Vehicles, Commercial Vehicles), Regional Forecast To 2032

Updated On: 22 April 2024

Automotive Infotainment SoC Market Report Overview

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global Automotive Infotainment SoC market size was USD 8037.1 million in 2022 and market is projected to touch 16559.8 Million By 2032, exhibiting a CAGR of 7.5% during the forecast period.

The COVID-19 pandemic has been unprecedented and staggering, with the automotive infotainment SoC market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Automotive infotainment Systems-on-Chip (SoCs) play a pivotal role in modern vehicles, enhancing the driving experience through multimedia, connectivity, navigation, and more. These integrated circuits power instrument panels and back seat infotainment systems, enabling advanced features and services for passengers. Their applications span across passenger vehicles and commercial vehicles, catering to a wide range of users.

The market is experiencing substantial growth due to the increasing demand for connected and interactive in-car entertainment experiences. Consumers now expect seamless integration of smartphones, voice recognition systems, advanced navigation, and real-time information services within their vehicles. This has driven automakers to invest heavily in developing sophisticated infotainment solutions, thus boosting the demand for SoCs that can support these features effectively.

COVID-19 Impact: Demand Declined Due to Economic Uncertainties and Mobility Constraints

The global pandemic had far-reaching consequences for the automotive industry, leading to a notable decline in vehicle production and sales throughout 2020. This downturn reverberated across the demand landscape for Automotive Infotainment SoC market share, crucial components employed in various vehicle applications including infotainment systems, navigation systems, and telematics systems.

The diminished vehicle manufacturing and sales directly translated into reduced demand for the product. As consumer spending waned amid economic uncertainties and mobility restrictions, automakers curtailed production and temporarily shuttered manufacturing facilities. This resultant effect rippled through supply chains, contributing to a distinct decrease in the need for sophisticated technology components like infotainment SoCs.

The drop in demand for these SoCs can be linked to both the hiatus in vehicle production and the subdued consumer sentiment. With automotive manufacturers grappling to sustain operations amidst lockdowns, the integration of novel technologies and advanced infotainment features took a backseat. Additionally, the temporary closure of dealerships and restricted mobility curtailed enthusiasm for vehicle purchases, thereby further influencing the demand for progressive infotainment solutions. Despite this period of subdued demand, it spurred market participants to strategize anew, focusing on innovation and cutting-edge solutions that would reignite consumer interest as the automotive industry embarked on recovery from pandemic-induced challenges.

Latest Trends

"Emergence of Connected and Autonomous Vehicles to Shape Mobility's Future"

The automotive sector is in the midst of a significant shift, with a noticeable rise in the popularity of connected vehicles. These modern cars come equipped with advanced sensors and communication technologies, enabling them to communicate with other vehicles, infrastructure, and cloud services. This transition necessitates robust systems-on-chip (SoCs) capable of quickly processing and understanding large amounts of data in real time. The growing demand for connected vehicles is a key driving force behind the increasing need for these SoCs.

Simultaneously, the automotive landscape is witnessing the emergence of autonomous vehicles. This sector holds great promise for automotive infotainment SoCs. Autonomous vehicles heavily rely on these SoCs to efficiently process and analyze extensive data from various sensors, enabling them to make real-time decisions about their operations. The development of autonomous vehicles is projected to significantly boost the demand for the product in the foreseeable future.

Automotive Infotainment SoC Market Segmentation

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•  By Type Analysis

The market can be segmented into two key types: instrument panel and back seat infotainment systems.

• By Application Analysis

The market is divided into two main applications: passenger vehicles and commercial vehicles.

Driving Factors

"Rising Consumer Demand for In-Car Entertainment Amplifies Product Demand"

The increasing demand for in-car entertainment experiences and the integration of advanced features are major drivers behind the growth of this market. Consumers are seeking a seamless blend of technology and comfort within their vehicles, driving automakers to invest in innovative infotainment solutions. This fusion of technology and comfort not only caters to modern consumer preferences but also creates opportunities for differentiation and competitive advantage in the rapidly evolving automotive landscape.

"Increased Emphasis on Vehicle-to-Everything (V2X) Fuels Market Growth"

With the advent of 5G technology and increased emphasis on vehicle-to-everything (V2X) communication, the demand for powerful SoCs capable of handling high data loads and ensuring low-latency connectivity is surging. This technological shift is driving the growth of the market. As vehicles become increasingly interconnected, the need for sophisticated infotainment solutions is compelling industry players to engineer adaptable SoCs that can seamlessly manage the intricate web of data exchange, thus solidifying their role in reshaping the future of driving experiences.

Restraining Factors

"Prolonged Development Cycles Hindering Market Adaptation and Technological Agility"

A significant limiting factor in this market pertains to the protracted duration required for the development and market introduction of novel solutions. The intricacies of crafting and launching a fresh automotive infotainment SoC often extend over several years, posing a challenge for companies striving to keep pace with the rapid pace of technological evolution within the automotive industry. These extended development cycles can impede companies' ability to swiftly adapt to emerging technological shifts, potentially leading to a mismatch between innovation timelines and the swiftly changing market landscape.

Automotive Infotainment SoC Market Regional Insights

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"Asia-Pacific Holds the Dominant Share Due to the Region’s Growing Demand for Connected Vehicles"

The Asia-Pacific region, particularly China, is at the forefront of this market. The region boasts a robust automotive industry, rising disposable incomes, and a growing demand for connected vehicles. Moreover, the increasing adoption of electric vehicles in this region is also contributing to the Automotive Infotainment SoC Market growth.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage"

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Renesas (Japan)
• Texas Instruments (U.S.)
• Infineon Technologies (Germany)
• Qualcomm (U.S.)
• NXP Semiconductors (Netherlands)
• Intel (U.S.)
• NVIDIA Corporation (U.S.)
• STMicroelectronics (Switzerland)
• ON Semiconductor (U.S.)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.