By on August 24, 2017

fordces_sygic_2

A report by industry analysis firm Hexa Research is positing that the market for automotive infotainment systems will be worth more than $40 billion by 2024.

That’s thanks to rising consumer demand, improved technological capabilities, and improved incomes, according to the report. As it stands, the North American market accounted for a hair over 35 percent of the revenue from the infotainment industry in 2016.

It’s no secret that the market is expected to continue to expand. Every OEM offers infotainment of some sort, and there are more models available with infotainment than not. And smartphone-mirroring systems like Apple CarPlay and Android Auto have quickly become available in more and more vehicles in a very short time.

The report says consumer demand for infotainment is high. It also points out fairly reasonable (and fairly obvious) corollaries – consumers want their infotainment systems to be better automated to cut down on distractions (and thus, the potential for accidents), especially now that just about everyone has a mobile phone, and so many of those phones interact with infotainment systems in one way or another.

The use of Bluetooth, in-car wi-fi, cloud data storage, and USB ports for both work and entertainment will also drive the growth. It’s not stated in the firm’s media release, but one wonders if infotainment systems won’t become even more prevalent as cars offer some level of autonomous driving – passengers will need a way to keep themselves busy while along for the ride.

Commercial vehicles will fuel the growth of nav systems, says the report, as more and more delivery services come to rely on them.

This is hardly earth-shattering news. We all know that infotainment systems are here to stay, at least for a while. It’s crazy to see such a dollar figure put on the market, though. Most of us don’t think of infotainment systems being that big of an industry, but the numbers don’t lie.

[Image: Ford Motor Company]

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36 Comments on “Infotainment Market Will Be Worth Over $40 Billion by 2024: Report...”


  • avatar
    Detroit-X

    What is the lost productivity from all that “infotainment?” Worse than the eclipse?

    >>sarcasm off

  • avatar
    S197GT

    traded in my 2006 mustang gt of 11 years this week for a 2017 fusion se with the technology package (and driver assistance package) which included the 8″ touchscreen that you see in the above picture.

    like the article said, i wanted android auto or don’t bother. i used to care about hp and rwd and now it is sound system, comfort, amenities, LEDs, and just technology in general.

    • 0 avatar
      DeadWeight

      You’re dying inside.

      Get help.

      When I’m in traffic, I can’t help but think that 94%+ of the vehicles around me might as well be Oster Blenders or Toasters on wheels.

      • 0 avatar
        PrincipalDan

        A few years ago my then fiance and I traveled a significant distance down I-40. I was bemused by all of the people driving BMWs, Porsches, etc whom were driving slower and more cautiously than I was driving her 2005 Vibe.

        Ultimate Driving Machine, my a$$. Go get a Toyota!

        TL;DR – I agree with DW. Most people might as well be driving a car made by Maytag.

        • 0 avatar
          DeadWeight

          I was half-teasing, as I realize life’s priorities change with age and family status, and this impacts one’s preferences and priorities in a vehicle.

          There can never be a rational excuse for the travesty that is a biblical plague-like proliferation of the demonic vehicle type known as the CUV, however. They are ghastly, ungaingly, offensive on every level, and their infestation like a cloud of locusts blotting out the sunforecasts the fall of empires.

          • 0 avatar
            S197GT

            i didn’t even crack open the hood when I bought this car.

            it is exactly an appliance. i’m just living in other ways now.

            besides, still have my wife’s Z3 to drive for fun and my beater ranger to wrench on and went off roading for the first time this summer.

  • avatar
    gmichaelj

    Like ALL Valuations you hear about in the press – sports teams, Jeep, etc., you never hear about the assumptions/cash flow forecasts that back these numbers up.

    Just for comparison, $40 Billion is roughly Ford’s market capitalization

  • avatar
    zip89123

    There is infotainment, Uconnect, Sync3, Android, IOS, and then there is Entune. Avoid the last one.

  • avatar
    Rnaboz

    They ALL SUC*!

    • 0 avatar
      MBella

      Agreed. I don’t know why people pretend that any of these systems work well. There’s bad and worse. Android Auto, and CarPlay are even worse than many of the OEM systems. You have to be very focused on the system. A few easy to use buttons would make things so much more intuitive, and less distracting. And on the subject of Android Auto, why is it so much worse than CarPlay? And I am saying this as an Android user that hates Apple products. If it’s supposed to be screen mirroring, why doesn’t it do that, instead of giving you menus and sub menus?

      • 0 avatar
        ACCvsBig10

        Well there used to be Mirrorlink which gave you full access of mirroring your phone(which was the best), but that got changed real quick and now you have to use approved certfied apps which makes mirrorlink defunct due to availabe apps

    • 0 avatar
      iNeon

      *Except uConnect.

      uConnect spanks every premium/luxe brand’s interface so very hard. Especially Audi. Audi’s UI is terrible. Who even uses the hot corner? I feel like even Apple abandoned the concept.

    • 0 avatar
      Big Al From 'Murica

      I think Android Auto, like most things Android is 90 percent there. I run it on an aftermarket Kenwood deck in my 15 F150. 700 bucks all in for the deck and the electronics and dash kit (I waited for the dash kit that retains the stock ac controls).

      It replaced the base sync system that was terrible for any sort of smartphone integration. I would have gone with sync 3 which seems solid but for 2015 it was still MFT which sucked.

      Anyway, the display washes out a bit in direct light but is still readable. A couple hundred extra bucks would have gotten me the Alpine unit with capacitive a touch (glass) screen and remedy this. Also could do a tilting screen but I don’t like those. Not a big deal though and I have a true double din dash opening now so I can change as tech evolves.

      As for the interface, most of my gripes, which are minimal, are with the Kenwood portion, not car play/Android auto. Like I said Android Auto isn’t quite there. The hard 6 press limit before locking the interface is frustrating at times and voice is up to the app so ymmv depending on what you use. Still Waze in the dash is nice, texting via voice is seamless, and if you use the right apps it works well enough.

      Apple Car Play is polished to an OEM level imho. It just works and has none of the frustrations Android does. Too bad I use an Android phone. You are locked into apple maps though for nav which sucks but is still better than oem nav suites. They both work as well on the aftermarket deck as they do on my wife’s factory equipped Hyundai.

      What they both do that sync wouldn’t is truly integrate the phone with the in car stuff. Waze will interrupt the radio or xm for example. The base set up wouldn’t with Android and it was clunky with the iPhone.

      I like them both though.

    • 0 avatar
      S197GT

      i am pretty happy with sync 3 and android auto; though still getting used to it. i already preferred google maps to the oem nav unit in our cx-9. probably just because i use it more often at work.

      so far the voice activation has worked very well.

  • avatar
    Prado

    Interesting … I would have thought the value of the Infotainment market would be going down. Essentially most consumers just want good smart phone integration, which is Android Audio & Apple Carplay. Not much room for or value added from proprietary systems and applications. And once the consumer has good reliable phone mirroring integration, automakers are going to have a hard time getting the consumer to pay extra for anything else. Maybe they will go back to actually building and trying to sell a genuine premium sounding audio upgrade. But I doubt it, since younger generations seem less interested in high fidelity.

  • avatar
    SunnyvaleCA

    Will this infotainment stuff be priced like consumer electronics? If so, today’s $1000 infotainment system will soon be priced at $200. Unfortunately, that probably means automakers will keep rolling out more and more complicated system so they can keep the prices up. Ugh.

    • 0 avatar
      BuzzDog

      Or we can hope that the retrofit equipment will be reasonably priced. See my comment below…it’s just a matter of time before the systems need to be replaced, or thoroughly updated beyond the limits of the existing hardware.

      • 0 avatar
        Big Al From 'Murica

        I added a car play/Android auto deck to a 2015 F150 retaining all the factory controls, backup camera, mic, and USB/aux connections. It was 700 all in. I could have spent more on the deck but I was on a strict budget for this project. The dash kit and electronics to retain the factory stuff was around 300. It was an intense install but I didn’t have to cut anything so I can reverse it. The good thing here is that when the tech evolves in a few years I can change it out easy since the heavy lifting to adapt the dash to aftermarket is done.

        Some cars will get better support than others. Full sized trucks are a no brainier since they sell so many. Not so much with something like a Dodge Dart. Also not all of the kits are created equal. Some of the F150 kits replace the stock HVAC controls with a cheap looking touch screen that has given people issues. Mine retained the stock knobs but this made the install much more involved. Still totally reversable though, no cuts to the harness.

    • 0 avatar
      scent tree

      More complicated systems cost more to develop, and car companies are usually allergic to adding cost. There’s a few exceptions to that but generally everyone is aiming at economizing their infotainment so they can beat the aftermarket suppliers on cost and maybe capture some of their sales.

  • avatar
    BuzzDog

    I was skeptical of touchscreens, even after I bought my first vehicle with one (in 2007). Now, 10 years later, I have touchscreen infotainment systems in two of my three vehicles, and within the next five years I foresee a cottage industry developing as a) touchscreens start to die, and b) 2022 smartphone tech doesn’t play well with 2012 infotainment tech.

    While one can get by without phone compatibility, having no display for some functions may be more difficult to bear. The market will ultimately determine the outcome, and perhaps the replacement screen industry will become competitive and efficient, much like we’ve seen with replacement glass for smartphones. The big question is if there will be a way to update the “brains” of the system; that’s a little more involved than merely producing replacement parts.

    • 0 avatar
      newenthusiast

      I agree that there will likely be some sort of retroactive upgrade industry that will rise up to bridge the gap between the phones that update software incessantly and car systems that some may or may not be upgraded ever over the life of a vehicle.

      “While one can get by without phone compatibility, having no display for some functions may be more difficult to bear.”

      – my concern is the opposite in that I’m not concerned about manufacturers being behind in smartphone compatibility, but that they will simply stop offering any other option than AM/FM/satellite radio and allow Apple and Android phones to do everything else. As a non-smartphone user, I increasingly get rentals that are lacking an AUX input jack, with the assumption that everyone plays music through their phones via USB or Bluetooth. I have taken to traveling with a 32GB thumb drive to play music, since I can never tell if my little .mp3 player can be used (needs said aux jack). With streaming and Bluetooth becoming the way that more and more people consume music, I hope that these possible retrofit companies can keep people like me in mind so that we’re not left with local terrestrial radio as my only option on my next purchase. Hopefully they will offer period-accurate retrofit systems for vehicles. Or at the very least, write software patches and installation of AUX and USB retrofits for systems that don’t have either.

      • 0 avatar
        Big Al From 'Murica

        Alpine does a true dash restyle for a few models. It is high end and looks OEM, but runs around 2 grand. There are cheaper solutions on high volume models.

  • avatar
    Bill Wade

    I like my Challenger. Stick shift and knobs for the radio, I don’t have to look at anything.

    It’s a 2014, can you still get that on new ones?

  • avatar
    mchan1

    The infotainment system better have a knob and button for the radio as it’s not safe or easier to use the touchscreen while driving.

    Also, how the heck do the radio companies create an infotainment system that’s compatible with Every vehicle esp. when the infotainment system is linked up to the car’s operations itself?

    Can’t use the rearview camera if the new system is Not compatible!
    Can’t start up the car if the new system is not synced to the security system!

    The darn automakers made it difficult ON PURPOSE so people do not upgrade their infotainment systems!

  • avatar
    2manycars

    “Infotainment” is not even a real word. It’s not in my Funk & Wagnalls.

    I’m perfectly happy with an AM/FM radio and tape player. Maybe a CB radio for road trips.

  • avatar
    wsn

    “A report by industry analysis firm Hexa Research is positing that the market for automotive infotainment systems will be worth more than $40 billion by 2024.”

    This statement is hard to understand.

    Exactly what does it mean to say “X market is worth Y dollars by year Z?” It could mean:
    1) Combined annual gross revenue.
    2) Accumulated gross revenue (multi year) valued at that instant.
    3) Combined market capitalisation of all the vendors.
    4) Replacement cost of the said market.

    • 0 avatar
      gmichaelj

      “This statement is hard to understand.”

      That is a very good point.

      I read it as a market cap amount. But after looking at your comment, I think it is probably just an industry revenue estimate for the year 2024.

      But that’s just my interpretation.

    • 0 avatar
      rpn453

      I think it’s the annual profit from selling twelve $1 speakers with a $2 “subwoofer” and $5 amplifier as a $1500 premium audio package to people who have never heard anything better than their smartphone speaker.

  • avatar
    28-Cars-Later

    I’m ready for nuclear annihilation now. Bring it Kim!

  • avatar
    SearMizok

    Hopefully with $40Billion they can get it right.

    My next car, I’m going to have to insist on Android-Auto.

    Both my 2015 Mazda CX-5 Touring and my 2017 Nissan Rogue SL, the infotainment SUCKS ROYALLY!!!!

  • avatar
    incautious

    Oh great. Just what we need. Ever more distractions for soccer moms driving their Mercedes or BMW.

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