The global in-car entertainment and information systems market is one of the most revered currently because it seeks to integrate advanced functionality into the driving experience. Product innovations, new tech gadgets and quality standards are the things that will keep this market thriving and they are doing a lot to prove that they have something new every year. This market is so competitive that no one can really point to one company and say that they have the lion’s share. This market stood at $11.42 billion in 2014 and rose steadily. We now expect it to reach $28.64 by the end of 2021.
New Technologies Entering the Market to Stir Consumer Interest
The latest technologies have boosted the market to new heights and this paradigm shift is the one that is responsible for taking the basic driving experience and turning it into something of an infotainment joy. The automotive market is expanding and going into newer technologies, which will see this market soar. The latest in cars is Wi-Fi, Bluetooth, navigation, telematics and audio-video technology. These have been the standard but they were less than functional when they launched. Now, they are a crucial part of the driving experience.
The production of vehicles in Latin America, Asia Pacific regions, the Middle East and Africa has seen the demand for these features go up. The positive growth in developing countries has seen th purchasing power increase, creating a bigger market for people who want cars that have these features included. The market for them subsequently continues to go up. That is expected to go even higher in coming years.
String Regulations Dampening Sales and Killing Small-Scale Manufacturers
The regulatory requirements have changed in recent years and this has created a bottleneck for the in-car entertainment and information system makers. OEMs (original equipment manufacturers) find it hard to toe the line when it comes to the standards that have been strictly put in place by the governments that have consumers of such products. This means that the production costs have gone up to cope with this and it negatively affects the consumer demand.
In addition, research and development is suffering too and that makes it hard for small players who do not have that kind of money to invest in the market too. Developing this kind of tech require that one have state-of-the-art equipment and that is not cheap. Another issue is that tech changes so fast that keeping up requires some money too. This has led to the buyout and death of many manufacturers.
Rise of Purchasing Power From Emerging Economies
The rising demand in countries that used to have lower purchasing power is going to make this market lucrative for these small manufacturers. Countries like India, South Africa, Russia, Saudi Arabia and Brazil will add fuel to this market for years. The entertainment sector for cars will continue to see growth for years. The hottest tech now is telematics followed by navigation. Who knows what is next.