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In-Car Infotainment Shifts to APAC

The Volvo XC90 has its own infotainment system, complemented with third-party productsThanks to a rapid expansion of connected navigation systems and in-car Wi-Fi, ABI Research predicts that Connected Automotive Infotainment Systems (CAIS) will grow at a 33.8% CAGR over the next five years. More than 342 million systems will have shipped between 2015 and 2020.

Developed regions represented more than 60% of CAIS shipments last year. However, by 2020 they will only have a 37.4% shipment share. APAC will dominate at this point, taking just over 50% of shipments.

Consumers are largely driving the growth. ‘Many’ OEMs have said that they will fit their consumer vehicles shipping in 2020 with embedded connectivity. However, a large number will still rely on smartphone integration, which is lower-cost. Telematics supporting this integration will grow at a 60.6% CAGR between 2015 and 2020. Both low- and high-end vehicles are expected to offer this connectivity.

ABI does not expect systems such as Android Auto and Apple Carplay to serve as a vehicle’s sole infotainment platform; instead, they will complement a proprietary system.