Automotive Infotainment SoC Market to Reach US$ 16.08 Bn at a CAGR of 7.2% in 2027

Automotive Infotainment SoC Market to 2027 - Global Analysis and Forecasts by Installation Type (In-dash and Rear Seat); Application (Head Unit, eCockpit, Sound System, and Others); Vehicle Type (Passenger Vehicle and Commercial Vehicle)

Publication Month : Dec 2019

  • Report Code : TIPRE00005572
  • Category : Automotive and Transportation
  • Status : Published
  • No. of Pages : 154
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The Automotive Infotainment SOC market was valued at US$ 8,694.6 Mn in 2018 and is projected to reach US$ 16,077.6 Mn by 2027; it is expected to grow at a CAGR of 7.2% from 2019 to 2027.

The automotive infotainment SoC is an integrated chip designed for information, phone, and entertainment services in passenger cars and commercial vehicles. It is a complete electronic substrate system containing analog, digital, mixed signals, and radio frequency functions. Automotive infotainment SoC consumes lesser space and area than multi-chip designs. SoC is extensively used in embedded systems and the Internet of Things for automotive computing. The industry operates in a competitive marketplace as leading companies in this market continue to broaden their addressable market by expanding their current product portfolio, diversifying their client base, and developing new applications and markets. New developments and mergers and acquisitions are the two noteworthy market trends seen in the past few years. Companies in the value chain are acquiring and entering into partnerships with other players in the market to maintain their market position and provide efficient solutions to their customers. Major market players of the automotive infotainment SoC market are based in the US and other European countries such as Germany. The automobile industry in developed and developing economies is undergoing a digital makeover. Many industrial players in the automotive industry are investing considerable resources in the R&D of vehicle automation so as to meet the changing demands and enhance the driving experience of customers. Next-generation automobiles such as audiovisual sensing, speech recognition, image compatibilities, advanced driver assistance, GPS and radar capabilities, next-level security and safety, and IC-integrated LED front lighting. Automotive infotainment SoC plays a key role in vehicle automation as it is used in automobiles to incorporate various advanced features in vehicles. Therefore, various automakers are adopting automotive infotainment SoC to provide optimal driving experience to their customers, and thereby, encouraging the demand for automotive infotainment SoC. During the forecast period, the automotive industry is expected to drive the demand for automotive infotainment SoC worldwide, which is propelling the Automotive Infotainment SOC market.

APAC is projected to maintain its dominating position in the global automotive infotainment SoC during the forecast period. Currently, the automotive infotainment SoC market in APAC is experiencing staggering growth that is attributed to numerous factors. The most significant factors that have impacted the growth of this industry are more disposable incomes of consumers and the consequently increase in the number of passenger cars; higher traffic density leading to higher congestions and average time spent by travelers, and parallel advancements made in the consumer electronics industry. The consumer spending on automotive electronics and other allied accessories have changed drastically, which currently offer huge opportunities for businesses. Touchscreen systems have been immensely used many consumer electronics, such as smartphones, and its potentials have been translated to this industry. These factors are propelling the demand for automotive infotainment SoC in APAC. Moreover, Europe accounted for 32.59% share in the global automotive infotainment SoC market. A key factor leading to the growth of the automotive infotainment SoC market in Europe is the high adoption of infotainment systems in premium cars, and low- and mid-segment cars. Other factors, such as growing safety and security concerns coupled with subsequent government regulations, are also expected to drive the growth of the automotive infotainment SoC market. Furthermore, the rapid growth in the manufacturing of electric vehicles is projected to boost the demand for automotive infotainment systems, as these systems can alert the electric vehicle users about nearby charging stations. Therefore, increase in the demand for automotive infotainment systems propels the demand for automotive infotainment SoC.

Lucrative Regions for Automotive Infotainment SOC Market

Lucrative Regions for Automotive Infotainment SOC Market
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Market Insights

Increasing disposable incomes and living standards in developing countries driving car sales

The developing regions of the world such as Asia-Pacific, Middle East, Africa and South America are characterized by positive global economic outlook, increasing middle class population, and rising disposable incomes. All these factors are driving the sales of passenger cars in these regions. Despite some downtime in the automotive industry sales in recent times, the overall growth outlook is estimated to be positive during the forecast period of 2019 to 2027. The ownership of cars vary significantly across developing markets, however, the passenger cars per household saw a constant increase during the past decade. Increasing disposable incomes and rising middle class population are the major factors that are driving the sales of passenger cars in emerging markets of the world. Developing economies have witnessed a steady growth in the post-recession era and thus there was rise in the disposable incomes of the consumers

Installation Type-Based Market Insights

The automotive infotainment SOC (PV) market, by installation type has been segmented into in-dash and rear seat installations. The in-dash segment accounted for the largest share of the automotive infotainment SOC market in 2018. Moreover, the rear seat segment is projected to grow at a faster pace during the forecast period. The automotive infotainment SOC are increasingly being used in dashboards to offer ease in driving experience. Although, with the growth of the industry, they are increasingly being demanded in rear seat installations.

Application – Based Market Insights

The global automotive infotainment SOC market, by applications has been segmented into head unit, eCockpit, sound system, and others. The head unit segment dominated the global automotive infotainment SOC market in 2018. With the growing advancement of technology and incorporation of improved designs, the automotive infotainment are used across several application base.

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Automotive Infotainment SoC Market: Strategic Insights

automotive-infotainment-soc-market
Market Size Value inUS$ 8,694.6 Million in 2018
Market Size Value byUS$ 16,077.6 Million by 2027
Growth rateCAGR of 7.2% from 2019-2027
Forecast Period2019-2027
Base Year2019
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Product development is the commonly adopted strategy by companies to expand their product portfolio. Texas Instruments Incorporated, Intel Corporation, Qualcomm Incorporated, NVIDIA Corporation and Infineon Technologies AG, among others are the key players implementing strategies to enlarge the customer base and gain significant share in the global Automotive Infotainment SOC market, which in turn permits them to maintain their brand name. A few of the recent key developments are:

  • In 2019, Polestar, a new, standalone electric car performance brand in which Volvo Cars constitutes a 50 percent ownership stake, which is integrating in-vehicle infotainment system (IVI), running on an Intel Atom® Processor A3900 Series.
  • In 2019, Infineon Technologies has acquired Cypress Semiconductor for $10 billion, the latest in a series of acquisitions of connectivity chip suppliers in the last few months. Most of Cypress' automotive business is generated from infotainment microcontroller and connectivity solutions which would add on to its strength.

Automotive Infotainment SOC Market Segmentation:

By Installation Type

  • In-dash
  • Rear Seat

By Application

  • Head Unit
  • eCockpit
  • Sound System
  • Others

By Vehicle Type

  • Passenger Vehicle
  • Commercial Vehicle

Company Profiles

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

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Installation Type ; Application ; Vehicle Type

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina

Frequently Asked Questions


What are reasons behind Europe Automotive infotainment SoC industry growth?

The growth of the automotive infotainment SoC market in the Europe region is primarily driven by the presence of a huge automotive industry in this region. The region is a leading producer of motor vehicles and several premium automotive manufacturers are based in this region. Automotive companies located in Europe are focusing on security technologies, infotainment, and connected car segments. French and German companies are mainly investing in security technologies, while the UK-based companies are emphasizing more on connected car technologies. Hence, the presence of a robust automotive industry and investments in technological integration in cars are the few factors that are forecasted to positively impact the growth of the automotive infotainment SoC market in the region.

What are market opportunities for automotive infotainment SoCs?

With the growing complexity of in-vehicle systems and increasing consumer demands for advanced features in infotainment systems, automotive OEMs are becoming more adaptive to new approaches. The open-source software is transforming various industries especially the mobile devices sector and it has a huge potential to do the same in the automotive infotainment industry. The availability of open-source software is already changing the way customers interact with their cars. The advantages offered by open-source software over proprietary software such as flexibility, customization, and extra features are anticipated to drive the innovation and growth in the global automotive infotainment SoC market during the forecast period of 2019 to 2027.

Which vehicle type hold the major share in automotive infotainment SoC market?

The passenger vehicle segment dominated the automotive infotainment SoC market in the year 2018. The passenger car segment is undergoing a substantial technological shift, owing to the changing consumer interests, emerging new technologies, and stringent government rules and regulations related to emission reductions and other automotive-related factors. The demand for intelligent and connected passenger cars is increasing at an impressive rate and this trend is anticipated to drive the growth of the automotive infotainment SoC market during the forecast period of 2019 to 2027.

The List of Companies

 

  1. Infineon Technologies AG
  2. Intel Corporation
  3. NEC Corporation
  4. NVIDIA Corporation
  5. NXP Semiconductors N.V.
  6. Qualcomm  Incorporated
  7. Renesas Electronics Corporation
  8. STMicroelectronics N.V.
  9. Texas Instruments Incorporated
  10. Telechips, Inc.
  11. Semiconductor Components Industries, LLC (On Semiconductor)

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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