Automotive Infotainment SoC Market Size, Share, Growth and Industry analysis, By Type (In-dash, Rear Seat), By Application (Passenger Vehicle, Commercial Vehicle) and Regional Forecast to 2034

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AUTOMOTIVE INFOTAINMENT SOC MARKET OVERVIEW

The global automotive infotainment soc market size was valued at USD 8.36 billion in 2025 and is expected to reach USD 17.76 billion by 2034, growing at a compound annual growth rate (CAGR) of about 8.74% from 2025 to 2034.

The United States Automotive Infotainment SoC Market size is projected at USD 2.62 Billion in 2025, the Europe Automotive Infotainment SoC Market size is projected at USD 2.21 Billion in 2025, and the China Automotive Infotainment SoC Market size is projected at USD 2.45 Billion in 2025.

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.

AUTOMOTIVE INFOTAINMENT SOC MARKET KEY FINDINGS

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.

• According to the International Telecommunication Union (ITU), over 75% of new vehicles produced in 2024 integrated voice-command infotainment powered by AI-enabled SoCs, significantly improving hands-free interaction and reducing driver distraction risks.

• In 2023, more than 8 million vehicles globally featured infotainment systems equipped with OLED-based System on Chip (SoC) platforms, enabling ultra-thin display integration and higher resolution performance in mid-range and luxury models.

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AUTOMOTIVE INFOTAINMENT SOC MARKET SEGMENTATION

 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.

• According to the European Commission's Mobility and Transport Department, 100% of new EU vehicles are mandated to include eCall and IVI (In-Vehicle Infotainment) compatibility, fueling demand for powerful SoCs with integrated connectivity and multimedia features.

• As per the U.S. Department of Transportation (NHTSA), over 92% of new vehicles sold in the U.S. in 2023 were equipped with connected infotainment systems, significantly increasing the volume of SoC units supporting LTE, 5G, and cloud-based media services.

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.

• Data from Japan Automobile Manufacturers Association (JAMA) highlights that integrating SoC-based infotainment adds an average of $450–$800 to the vehicle cost, limiting adoption in entry-level vehicles in cost-sensitive markets.

• According to SAE International, SoCs exceeding 15W power consumption in compact dashboards have led to increased heat generation, requiring costly thermal solutions that restrict their deployment in small-sized EVs and hatchbacks.

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AUTOMOTIVE INFOTAINMENT SOC MARKET REGIONAL INSIGHTS

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 vehicle 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.

• In 2023, Qualcomm's Snapdragon Ride and Digital Cockpit SoCs were embedded in over 50 million vehicles, enabling immersive infotainment and autonomous navigation functions.

• Renesas supplied SoC solutions for 32 automotive OEMs globally in 2023, particularly supporting mid-tier infotainment systems with real-time multimedia and CAN-FD capabilities.

List of Top Automotive Infotainment SoC Companies

• Qualcomm Incorporated
• Renesas Electronics Corporation
• STMicroelectronics N.V.
• Texas Instruments Incorporated
• Intel Corporation
• NEC Corporation
• Infineon Technologies AG
• Semiconductor Components Industries, LLC (On Semiconductor)
• NVIDIA Corporation
• Telechips, Inc.
• NXP Semiconductors N.V.

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.