Report Overview

Increasing adoption of electric vehicles (EVs) and rising disposable income are expected to drive the United Kingdom Automotive Infotainment Market during the forecast period between 2024 and 2030.

United Kingdom Automotive Infotainment Market – Industry Trends & Forecast Report, 2030

The United Kingdom Automotive Infotainment Market size was estimated at USD 1.88 billion in 2023. During the forecast period between 2024 and 2030, the United Kingdom Automotive Infotainment Market size is projected to grow at a CAGR of 7.61% reaching a value of USD 2.92 billion by 2030. A prominent driver of market growth is the increasing demand for sophisticated infotainment systems in vehicles. The automotive sector, in its commitment to meeting changing consumer preferences, considers the integration of state-of-the-art infotainment technologies as a pivotal factor influencing purchasing choices. Also, the market experiences growth supported by a rise in disposable income, indicating a heightened willingness among consumers to invest in vehicles equipped with advanced add-ons. Another driving force is the expansion of automotive sales across diverse segments, including passenger cars, EVs, commercial vehicles, and two-wheelers, which serves as a catalyst for further market augmentation. Consequently, this is expected to drive the expansion of the market over the period in analysis.

Automotive Infotainment – Overview

Automotive infotainment typically refers to a combination of hardware and software designed to provide audio and video services within a vehicle. This encompasses features, such as car radio broadcasting, audio and video streaming facilitated through wireless (LTE, Wi-Fi, Bluetooth) or wired networks (HDMI, Ethernet), and playback from CDs or USB devices. As technology progresses, touch screen-enabled infotainment systems have gained popularity and are now prevalent in personal and passenger vehicles. Car rental services leverage automotive infotainment to engage passengers, influencing their preferences for future rides and rentals.

United Kingdom Automotive Infotainment Market

Growth Drivers

Increasing Adoption of Electric Vehicles (EVs)

The escalating demand for sophisticated and intelligent vehicles has led automobile manufacturers to incorporate advanced infotainment systems, contributing to the surge in electric vehicle (EV) adoption. These systems enhance the in-vehicle experience by offering a seamless blend of entertainment and information. Technologically advanced infotainment companies are introducing features, such as predictive navigation, parking recommendations, and cloud-enabled syncing to cater to the evolving preferences of consumers. Additionally, the integration of smartphones with car infotainment, facilitated by Wi-Fi hotspot or Bluetooth connectivity, allows users to access various phone features, including call management. Maruti Suzuki's recent introduction of the Baleno, equipped with the Smart Play Pro+ touchscreen infotainment system, exemplifies the continuous advancements in automotive infotainment technology, further fueling the growth of United Kingdom Automotive Infotainment Market.

Challenges

High Cost of Advanced Infotainment Systems

The utilization of advanced infotainment systems can pose a sophisticated challenge that enthusiasts eagerly anticipate, yet several new-vehicle purchasers encounter complexities in their usage. Some perceive these systems as less informative and more cumbersome, particularly when neglecting the guidance provided in the owner's manual. These systems encompass climate controls, outdated entertainment systems, and AM/FM radio, alongside music, phone, navigation, and internet features. Due to the multitude of features, users may need to tap the screen multiple times to transition between functions, contingent on the screen's responsiveness. The complexity contributes to the perceived high cost of advanced infotainment systems, deterring some potential buyers.

Impact of Escalating Geopolitical Tensions on United Kingdom Automotive Infotainment Marke

The United Kingdom Automotive Infotainment Market is impacted by geopolitical tensions in several ways. The conflict has disrupted the energy supply to Europe, threatening the continent's industrial ambitions, including the development and adoption of electric vehicles (EVs). The EU, previously expected to be a major player in the EV sector, now grapples with potential delays and challenges. Additionally, the nearshoring narrative gains traction as Western governments seek to reduce reliance on foreign suppliers, responding to both the war and the recent pandemic. The ongoing geopolitical shift, trade constraints, and security concerns signal a complex landscape, impacting manufacturers' decisions on production locations. However, the automotive industry remains vulnerable to the broader geopolitical game, with the uncertainty posing challenges to business operations.

United Kingdom Automotive Infotainment Market

Segmental Coverage

United Kingdom Automotive Infotainment Market – By Product

Based on product, United Kingdom Automotive Infotainment Market is divided into Audio Unit, Display Unit, Heads-Up Display, Navigation Unit, and Communication Unit segments. The navigation unit segment holds the highest share in the United Kingdom Automotive Infotainment Market by product. The segment’s prominence can be attributed to the growing consumer demand for advanced navigation features in vehicles. As technology evolves, the integration of sophisticated navigation systems becomes increasingly crucial for enhancing the overall driving experience. The trend reflects a consumer preference for vehicles equipped with innovative navigation capabilities, contributing significantly to the robust market presence of navigation units in the automotive infotainment sector.

United Kingdom Automotive Infotainment Market – By Fit Type

Based on fit type, the United Kingdom Automotive Infotainment Market is bifurcated into OE Fitted and Aftermarket segments.

United Kingdom Automotive Infotainment Market – By Vehicle Type

Based on vehicle type, the United Kingdom Automotive Infotainment Market is split into Passenger Cars and Commercial Vehicles segments. The commercial vehicles segment holds a higher share in the United Kingdom Automotive Infotainment Market by vehicle type. It is primarily driven by rising demands across various end-use sectors. Increased freight movement needs and a surge in truck leasing and rental services contribute to the segment's growth, bolstering the United Kingdom automotive infotainment market. Meanwhile, the passenger cars segment is expected to witness a faster growth rate during the forecast period. It can be primarily due to a surge in passenger car sales. Growing demands for individual car rentals and rising disposable income, supporting car ownership, further propel the segment's growth, contributing to the overall expansion of the United Kingdom Automotive Infotainment Market over the forecast period.

Competitive Landscape

Major players operating in United Kingdom Automotive Infotainment Market include Clarion Co., Ltd, Continental AG, Delphi Automotive PLC, Denso Corporation, Harman International, JVC Kenwood Corporation, Panasonic Corporation, Pioneer Corporation, and Visteon Corporation. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In December 2023 - The 2024 Maruti Suzuki Swift, unveiled in the United Kingdom after its debut in Japan, exhibits similarities to the Japan-spec model. The fourth-gen Swift boasts a refreshed exterior with a new grille and updated bumper, reminiscent of the Mini Cooper style. Interior features include a 9-inch infotainment system, wireless phone charger, and ADAS for safety. The UK Swift houses a new 1.2-liter three-cylinder petrol engine with a 12V mild-hybrid system. Anticipated to launch in India in 2024, it will compete with rivals like the Hyundai Grand i10 Nios and Tata Punch.

Scope of the Report

By Product

• Audio unit

• Display unit

• Heads-Up display

• Navigation unit

• Communication unit

By Fit Type

• OE Fitted

• Aftermarket

By Vehicle Type

• Passenger Cars

• Commercial Vehicles