Automotive Infotainment SoC Market Dynamics and Trends by 2027

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.

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Automotive Infotainment SoC Market: Strategic Insights

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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.

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 Regional Insights

The regional trends and factors influencing the Automotive Infotainment SoC Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Automotive Infotainment SoC Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Automotive Infotainment SoC Market Report Scope

Automotive Infotainment SoC Market Players Density: Understanding Its Impact on Business Dynamics

The Automotive Infotainment SoC Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Automotive Infotainment SoC Market are:

1. Infineon Technologies AG
2. Intel Corporation
3. NEC Corporation
4. NVIDIA Corporation
5. NXP Semiconductors N.V.

Disclaimer: The companies listed above are not ranked in any particular order.

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)