According to the new research report published by The Insight Partners, titled "Automotive Infotainment SoC Market - Global Analysis and Forecasts to 2027", the global automotive infotainment SoC market is expected to reach US$ 16.08 Bn by 2027, registering a CAGR of 7.2% during the forecast period of 2019-2027.
In 2018, Asia Pacific is estimated to account to hold the largest market share, growing at a CAGR of 8.9%.
Major countries considered in the Asia Pacific region include China, India, Japan, South Korea and Rest of APAC. The Asia Pacific is one of the world's rapidly growing passenger car markets, with China accounting for close to 30% of the global passenger car production. The continuous economic growth in developed and developing countries like India and China, coupled with the presence of huge disposable incomes with individuals in countries like Japan and Australia, has facilitated the rapid growth of the automotive industry in this region. Increasing disposable incomes of the consumers has translated into the purchase of a large number of medium-range cars. In addition to this, China and India are considered among the largest manufacturing hubs globally on account of several factors, such as lower labor wages compared to other countries and supportive favorable Government policies. The Asian countries have attracted several foreign direct investments in many industrial fields, including automotive. The rapidly growing economies have translated into rising per-capita incomes and consumer expenditures. As a result of this, the APAC region witnessed very high growth in the sales of automobiles in recent times. The higher number of automobiles on the road demand for higher production and thus present large potentials for automotive infotainment SoC producers to expand their business base in APAC.
The Asia Pacific region comprises of both developed and developing economies and the automotive sector is one of the crucial industry of the region, which contributes a significant portion in the Asia Pacific's GDP. The Asia Pacific region is one the world's biggest producers of motor vehicles and also, automotive sector in one of the largest private sector in R&D. China has already seen massive growth in vehicle production as well as sales in the country. Therefore, the high production of vehicles in the region is projected to propel the automotive infotainment SoC market.
Key findings of the study:
With the adoption of open source operating systems in in-vehicle infotainment, the automotive infotainment SoC market is anticipated to see a substantial boost in its growth. 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. Open source software helps OEM in reducing costs and opening up the supply chain. From a long time, proprietary operating systems have been ruling the in- vehicle infotainment market space. However, with 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.
Players that are operating successfully in global automotive infotainment SoC market space are Infineon Technologies AG, Intel Corporation, NEC Corporation, NVIDIA Corporation, NXP Semiconductors N.V., Qualcomm Incorporated, Renesas Electronics Corporation, STMicroelectronics N.V., Texas Instruments Incorporated, and Semiconductor Components Industries, LLC (ON Semiconductor).
