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The burgeoning requirement for human machine interface (HMI) systems and booming sales of passenger vehicles are fueling the demand for automotive infotainment systems across the world. For instance, Nissan has announced it has started the development of self-driving cars for replacing human requirement for operating the vehicle. These systems provided various advantages such as improved scheduling and routing, reduced operating costs, and enhanced driver productivity. According to the India Brand Equity Foundation (IBEF), the production of automobiles in India grew at a CAGR of 2.36% from FY16 to FY20 and reached 26.36 million units in FY20. 

Apart from this, the surging deployment of small and medium-sized cars is also propelling the sales of automotive infotainment systems. Additionally, the rapid advancements being made in wireless technologies are also fueling the development of automotive infotainment products and services. The adoption of voice interface systems in vehicles is also creating lucrative growth opportunities for the players operating in the automotive infotainment market. Automotive infotainment systems basically refer to information and entertainment systems such as software platforms, digital versatile disc (DVD) players equipped with video screens, and audio systems such as rear sear entertainment and its accessories, radio, and navigation devices like GPS.

Besides, these systems also provide better connectivity and improved user experience. The usage of these systems is surging rapidly, largely because of the increasing manufacturer demand for highly sophisticated head units in low-cost car models, and they are rapidly becoming unavoidable because of rapid technological advancements. Moreover, the soaring requirement for smaller, less expensive, and compact cars, on account of the escalating fuel prices and increasing traffic, is also positively impacting the worldwide sales of automotive infotainment systems. 

Many original equipment manufacturers (OEMs) have began working with suppliers for developing low-cost and feature-packed infotainment systems, which are particularly priced for low to medium segment cars. Furthermore, many automobile manufacturers are providing software updation kits to their customers for saving cost and time and improving customer experience. The other major factor propelling the demand for automotive infotainment systems is the surging deployment of electric vehicles across the world, as per the observations of the market research company, P&S Intelligence.

According to the International Energy Agency (IEA), the sales of electric cars all over the world increased to 2.1 million in 2019, thereby boosting the global electric car stock to 7.2 million units. Moreover, in 2019, the sales of these cars accounted for 2.6% of the worldwide car sales and around 1% of the global car stock, recording a 40% year-on-year growth. Honda Motor Co. Ltd., Ford Motor Company, General Motors Company, Bose Corporation, Flextronics International, and Volkswagen AG are some of the major automotive infotainment manufacturers. 

Hence, it can be safely said that the demand for automotive infotainment systems will soar in the coming years, mainly because of the increasing deployment of electric vehicles, surging passenger car sales, and growing requirement for HMI systems in vehicles.