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The in-vehicle infotainment (IVI) market is expected to grow from $23.07 billion in 2025 to $40.49 billion by 2032. This growth is expected to happen at a compound growth rate of 8.4%.
The report says that the market is growing because more people are using software-defined vehicles. There is also use of connected-car technologies. People are also using screens and getting updates over-the-air. As car makers add digital features to cars infotainment systems are becoming more than just entertainment. They are turning into computers that work with navigation, driver help and other parts of the car.
Software-Defined Vehicles Change Infotainment
Software-defined vehicles are changing the way car makers create, update and fix technology, inside cars. Of depending only on hardware that does one job companies are using software that can get updates and add new features during the life of the car.
Zonal electrical and electronic setups, Ethernet connections and computer chips that help with user interfaces are making this possible. Android Automotive OS and ways to run software in containers are also helping build app systems and make development easier.
These changes could let car makers add digital services after the car is sold. They might also create chances to make money from software and connected services.. Whether this works will depend on what customers want how much things cost and how useful the services are.
5G and Larger Displays Drive Demand
Connected services are another factor expected to drive growth. The report highlights 5G connectivity as the growing category with a projected compound annual growth rate of 25.9% over the forecast period.
High-bandwidth connections make it possible to support cloud-connected navigation, video streaming, real-time data access and vehicle-to-everything communication. Over-the-air updates also let manufacturers roll out software improvements without requiring drivers to visit a dealership each time.
At the time display technology is evolving along with connectivity. Forecasts that the head-up display segment will see the growth rate among in-vehicle infotainment components at 15.6%. Displays larger than 10 inches and multi-screen setups are also becoming more common as automakers design cockpits for passenger vehicles.
The battery electric vehicle segment is expected to grow at a compound growth rate of 14.2% reflecting rising demand for electric vehicles and their increasingly advanced digital interfaces. These numbers are projections and not guaranteed results.
Asia-Pacific Expected to Lead the Market
Asia-Pacific is expected to stay the regional market holding more than 45% of global in-vehicle infotainment revenue in 2025 according to the report.
This dominance comes from the region’s vehicle manufacturing base and high demand across both economy and luxury vehicle segments. Countries like China, India and Thailand play a role in producing affordable and mid-range cars. Meanwhile Japan, China and South Korea are markets for high-end features such, as advanced navigation, voice assistants, high-resolution displays and connected cockpit systems.
For manufacturers and suppliers the expected growth brings chances to expand in infotainment hardware, automotive electronics, display systems, connectivity solutions and vehicle software. However automotive manufacturers and suppliers also need to balance feature development with vehicle affordability, system reliability and strong cybersecurity protections.
Cybersecurity Becomes a Critical Requirement
As infotainment systems become closely linked to advanced driver‑assistance systems (ADAS) telematics and other vehicle functions cybersecurity becomes a complex engineering challenge.
Notes that shared vehicle‑network infrastructure creates a need for gateways, intrusion detection and safeguards for communication between electronic domains. Automotive manufacturers must also account for cybersecurity and software‑update requirements, including those linked to UNECE WP.29.
For automakers and Tier‑1 suppliers the challenge is to deliver experiences while maintaining separation and protection between systems. Security vulnerabilities could affect not entertainment features but also broader vehicle operations depending on system architecture and access controls.
The market’s growth will therefore depend on more than display size or connectivity speed. Integration, software support, cybersecurity and regulatory compliance are likely to remain considerations as infotainment becomes a more deeply embedded part of vehicle architecture.
Also Read: Jackery and Pebble Add Solar Power to Electric RVs
Market Outlook
The projected increase to $40.49 billion by 2032 shows how technology is playing a role in vehicle design. Infotainment systems are now expected to support services offer customizable interfaces and allow software updates. These systems are also being integrated with the vehicles computing platforms.
This shift brings opportunities for businesses in hardware, software, connectivity and cybersecurity.. Automotive manufacturers and suppliers will need to show that new features are worth the cost. They must also meet standards, for reliability and safety.
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