Global Automotive Rear Seat Entertainment Market Overview

Global Automotive Rear Seat Entertainment Market was valued at USD 12.63 Billion in 2023 and is expected to reach USD 33.08 Billion by the year 2032, at a CAGR of 11.29%.

Automotive Rear Seat Entertainment systems act as a differentiation tool and are scheduled to extend the trend in mid-segment cars. The wide application of this system includes entertainment, location-based services, navigational services (GPS), internet (games, sports scores, surfing, social networking, movies, traffic conditions, weather forecast, etc.), communication functions such as making and receiving calls via smartphone integration and value-added services.  

The global automotive entertainment systems market has been poised for swift growth since the advent of the 21st century, appropriate to the early adopters and innovators' adoption of these sophisticated systems. Entertainment systems predominantly rear-seat entertainment systems, MP3 players, and satellite radio are rapidly surfacing into a preference attribute of today's automobile system elucidation. The automotive entertainment industry is foreseen to witness a surge in the number of new entrants to get a piece of the nascent market. Although the Automotive Rear Seat Entertainment market is still in the preliminary stage, major market collaborators pushing the growth of the market during forecasted period.

Market Dynamics and Factors:

Drivers

Rising penetration of cloud technologies and smartphones in the automotive sector.
Cloud technology is being used in a variety of ways in automobiles. Cars will be able to interact with one another through the cloud to avoid accidents and update traffic information and maps. The use of cloud technology in automobiles is not new, but it is rapidly growing due to collaboration and partnerships between the automotive sector and software companies. Volvo gives its customers a fantastic illustration of how cloud services are applied to a car for significant purposes other than enjoyment. The user may operate the car using a smartphone and the Volvo On-Call software and cloud-based services. The smartphone may then be used to unlock and start the vehicle using a digital key. It can also produce and distribute temporary digital keys to the driver's family and friends when they need to share the car, remotely pre-heat or pre-cool the cabin, provide route directions, or check the fuel level. Another example of cloud technology combined with infotainment systems is Ford Motor Company's partnership with Microsoft Azure to create Ford Services Network, which provides automated software solutions. I2V also known as Invisible-to-Visible is a future Nissan Intelligent Mobility technology that combines the real and virtual worlds. It lets drivers "see the unseen" by merging data from sensors outside and within the car with data from the cloud. This includes what is further down the road, behind a building, or around the corner.

Restraints

Automotive Rear Seat Entertainment systems also including Infotainment services such as navigation, satellite radio, vehicle diagnostics, Wi-Fi hotspot, roadside assistance, and live traffic data require an annual subscription. Initially, those services start with a free trial, grow accustomed to these conveniences, and are chargeable later on. Although the price of the basic subscription is not much, it can add up over time. Furthermore, the upgrade of software and subscription models requires additional costs as well. For instance, Audi Connect PLUS, including Wi-Fi hotspot, online radio, and Amazon Music, costs around USD 10 a month while unlimited data is USD 25 per month, on the other hand, the next version, the Audi Connect PRIME, which includes Amazon Alexa, natural voice recognition, Google Earth, traffic information, traffic light information, myAudi Destinations, and parking information costs around USD 199 for 6 months and USD 499 for 18 months.

Opportunities

New value streams will develop as the automotive Rear Seat Entertainment ecosystem are expected to expands. Potential business prospects that will attract new entrants to the market. Cloud-managed platforms will enable the distribution of over-the-top (OTT) content such as Netflix, Disney+, and Hulu in the vehicle. For automobile owners' comfort and monetization, IoT, analytics, and intuitive mobile apps and solutions will have greater opportunities. Conveniences such as grocery shopping or booking a table at a restaurant or coffee shop while on the road will be part of the new value stream options. Click analytics will aid in the comprehension of use trends as well as the collecting of data for targeted advertising. An example of the expanding RSE ecosystem is Amazon Fire OS integration. Companies are progressing with ambitious plans to capture the RSE market through Fire OS which is a customized version of Android running on Amazon's flagship devices. Amazon is expanding its Fire TV program to automakers and has announced partnerships with BMW and Fiat Chrysler Automotive. Amazon's focus has been enabling a living-room experience in the car, including support for Alexa, a touchscreen interface, and offline playback features specially designed to improve user experience.

Challenges

Despite significant advancements in in-vehicle entertainment technology, cybersecurity remains a significant problem. Each component of in-vehicle infotainment, including hardware, software, mobile applications, and Bluetooth, is vulnerable to hackers. Amico, a car privacy and cybersecurity advocate, alerted the Automotive Information Sharing and Analysis Center (Auto-ISAC), an industry-run group that shares and analyses intelligence on potential cybersecurity threats. Amico spent months working with Auto-ISAC to educate those who were affected to understand how an attacker may gain access to data contained in automotive infotainment systems. There have been several situations where cybersecurity has caused a problem. For example, in the case of Chrysler's Jeep, two researchers were able to hack into a Jeep, resulting in the software being upgraded in 1.4 million cars. Similarly, the Tesla S and Nissan Leaf are examples of in-vehicle entertainment systems that are vulnerable to hacks.

Market Segmentation

By Component, Headrest Display dominates the component segment in Automotive Rear Seat Entertainment Market. Headrest monitors are positioned in the back of the front seat headrests for rear-seat passengers to observe. The screen is, of course, restricted by the size of the headrest, which is often 5" or 7". The most often fitted back seat entertainment systems in manufactured automobiles are headrest monitors, which are typically provided by OEMs. In comparison to folding devices, the integrated screen in the headrest of the seat gives simple accessibility, longer life, and attractiveness to the interiors. Thus, it presents as a growth driving factor for Automotive Rear Seat Entertainment Market.

By Operating System, Android is dominating the operating system segment in Automotive Rear Seat Entertainment Market. Currently, Android users are dominating the market. Android has over 2.8 billion active users, it has a global market share of 75 percent. Android holds over 85% market share in Brazil, India, Indonesia, Turkey, and Vietnam. Easy user interface and multi-connectivity with various IoT devices, easy transfer of data, and larger consumer base put android as the best operating system to integrate into the automobile rear-seat entertainment market. The brands like Qualcomm and its automobile cockpit platform enable high-performance functions with cloud technology integration allowing high-tech automotive rear-seat entertainment solutions which are driving the market.

By Sales Channels, Aftermarket segment is dominating the Automotive Rear Seat Entertainment Market. Because aftermarket items are less expensive than OEM ones, many buyers are likely to choose the latter. As manufacturers install entertainment systems in the factory, aftermarket items are expected to enjoy a significant increase in product exposure, resulting in increased product awareness. There are many aftermarket players which provide high-quality components and products such as Pioneer, Herman, and Continental AG. Automotive customization is a growing industry that has a massive market including after-market rear-seat entertainment systems with custom modification. This attracts a large customer base and therefore pushes the growth of the Automotive Rear Seat Entertainment Market.

Players Covered in Automotive Rear Seat Entertainment market are :

• Harman International
• Panasonic Corporation
• Alps Alpine Co Ltd
• Robert Bosch GmbH
• Continental AG
• JVC-Kenwood
• Delphi
• Denso
• Alpine
• Pioneer and others major players.

Regional Analysis of Automotive Rear Seat Entertainment Market

The Asia Pacific is dominating the Automotive Rear Seat Entertainment Market. Due to its largest car sales over the last decade, China occupies a substantial portion of the Asia-Pacific automotive sector among Asia-Pacific countries. Due to automakers' increasing focus on new energy vehicles (NEV), the country is expected to continue to have favorable vehicle sales over the projection period. The country's need for infotainment systems is being driven by the change from simple audio systems to touchscreen infotainment systems that enable numerous functions like navigation, Apple CarPlay, Android Auto, telematics, and so on. According to the China Automobile Dealers Association, the country's luxury automobile dealers sold 277,000 vehicles in April 2020, a rise of 11.1 percent over April 2019. In April 2020, luxury automobile sales accounted for 18.7% of the market, a 3.6 percent increase over April 2019 and a 0.4 percent gain over the market share in March 2020. ONE, a smart electric luxury SUV, was unveiled by CHJ Automotive, a Chinese electric vehicle manufacturer. A four-screen infotainment system with a smart speaker system is included in the car. The ONE has a dual-chip system and a dual-system structure, as well as an Android automotive compatible system and a Qualcomm Xiao Long 820A-class CPU.

North America is expected to be the fastest-growing region in Automotive Rear Seat Entertainment Market. The large size of the market in the region is mainly due to large-scale domestic manufacturing, due to the government initiative toward disruptive technologies and technological innovation in informatics. The emergence of information technology and the increased usage of IoT in automotive applications have added new dimensions in the manner of conducting business operations in this region. Many automobile manufacturers from the US such as Tesla, Ford, and Corvette enabling the rear headrest screen for passenger entertainment and multi utilities. The combination of IoT, Cloud Technology, and entertainment sets in the car can allow doing the various task from the back. Tesla Model X, 2, and S include an entertainment module at back without disturbing the design. The large customer base of such vehicles is used for family mobility vehicles which makes it ideal to install such entertainment systems. Therefore, rising demand from family-based customers is driving the Automotive Rear Seat Entertainment Market in North America.

Key Developments of Automotive Rear Seat Entertainment Market

• In January 2024, HARMAN unveiled its latest lineup of automotive products that will equip OEMs with the ability to quickly and efficiently introduce the new in-cabin features and content that consumers desire, and ultimately empower drivers and passengers with enhanced safety and entertainment experiences that will be in-market as soon as this year.

Covid19 Impact on Automotive Rear Seat Entertainment Market

The COVID-19 epidemic has had a significant impact on the automobile industry's whole supply chain. Raw material providers were impacted by the production and logistical stop. The pandemic hampered the industry's overall development in 2020 and early 2021, as major automakers including Fiat, Volkswagen, PSA Group, General Motors, and BMW were forced to halt production. Because the expansion of the in-car entertainment system industry is strongly tied to vehicle manufacturing, this situation influenced the market, particularly in European and North American nations. According to the European Automobile Manufacturers Association, the pandemic had a significant influence on Europe's automobile sector. In 2020, the passenger automobile market in the area will have shrunk by 23.7 percent to 9.9 million units. This is a decrease of 3 million units from the previous year. Vehicle exports in Europe fell in 2020 as well, with the EU exporting passenger cars worth USD 130 billion from January to November last year, about USD 24.9 billion less than the previous year. The United States saw a 19 percent reduction in automobile production in 2020, somewhat more than the global average; it produced a total of 8,822,399 passenger cars and commercial vehicles. As lockdown restrictions are being put at ease, a gradual recovery is expected in the automotive market which can reflect on the growth of the Automotive Rear Seat Entertainment Market.