Despite the potential benefits of in-car media, there are also challenges that automakers will need to overcome. Credit: Ground Picture / Shutterstock.com

The automotive industry has seen a surge in the development of in-car media technology, and this market is set to become even more competitive in 2023. With the rise of connected cars and onboard infotainment systems, automakers are beginning to see new opportunities to differentiate their products and generate revenue in this increasingly saturated industry.

Fresh opportunity in an over-saturated market

The development of in-car media presents a significant opportunity for automakers to enhance the customer experience and build brand loyalty. Connected car technology offers a wide range of benefits for drivers and passengers, including improved navigation, entertainment options, and safety features. By providing real-time traffic updates and other safety information, infotainment systems can help drivers make more informed decisions and avoid accidents, thus also helping to improve brand image. As such, it is likely to become an essential part of the modern vehicle. Automakers will be expected to invest heavily in this area to stay competitive.

In addition to providing enhanced safety features to customers, in-car media also serves as a key differentiator for automakers in a crowded market. By offering a superior infotainment experience, manufacturers create a more personalised and engaging driver experience, setting their vehicles apart from the competition and appealing to a wider range of consumers.

Expect to see large growth in this theme in 2023

According to GlobalData’s recent forecasts, revenue in the global infotainment market is expected to reach $49.6 billion by 2030, up from $29.7 billion in 2021. This growth will be partly driven by the increasing popularity and convenience of connected in-car media, which can now be sold to customers as a subscription service. This model will allow manufacturers to generate ongoing revenue throughout the life of the vehicle, providing a new source of profit despite the uncertain economic climate.

New threats on the horizon

Despite the potential benefits of in-car media, there are also challenges that automakers will need to overcome if they want to lead in this theme. With the increasing amount of personal data being transmitted through in-car media, manufacturers will need to invest in robust security measures to ensure the security and privacy of connected car systems, protecting their products against cyber threats and data breaches.

Another challenge is the need to navigate a complex regulatory landscape. As in-car media becomes more prevalent, governments and industry regulators will need to establish clear guidelines and standards to ensure the safety and reliability of connected car systems.

In-car media will be a key theme for manufacturers in 2023

The rise of connected car technology has already begun to change the automotive industry. GlobalData’s TMT Predictions report for 2023 expects automotive infotainment to be a key theme that leading companies will be investing in. More manufacturers are offering infotainment systems as standard in their vehicles. As the market becomes more crowded, competition will intensify, and automakers will need to invest in developing innovative and differentiated products to stand out from the competition.

This market has encouraged interest from key Big Tech brands, such as Apple and Alphabet. However, automakers have been keen to maintain control over this real estate, encouraged by the opportunity for growth and product differentiation. The key players will also need to keep investing in cybersecurity and ensuring their data privacy policies are robust in order to remain market leaders. As such, we can expect to see continued investment in these technology themes in the coming years.

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