by The In-Vehicle Payment Services Market is estimated to be valued at US$ 6.28 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
In-vehicle payment services allow payment for goods and services directly through the vehicle’s infotainment system. Drivers can make contactless payments at retail stores, pay for fuel, parking, tolls, and subscription services directly through their vehicle’s dashboard. Major applications enabled include food delivery, drive-through restaurants, fuel payments, parking, toll collection, and EV charging among others.
Market Dynamics:
Growing demand for contactless payment solutions: The COVID-19 pandemic has accelerated the shift towards digital and contactless payment methods for safety and convenience. In-vehicle services allow drivers to make payments for various in-car and out-of-car services without direct physical contact, driving the demand for such solutions.
Rising proliferation of connected vehicles: Automakers are increasingly integrating advanced connectivity and infotainment features in vehicles. This allows integration of digital payment applications and services into the vehicle’s system. The rising sales of luxury and premium vehicles with enhanced connectivity and autonomous driving capabilities will support the growth of in-vehicle payment market over the forecast period.
Segment Analysis
The in-vehicle payment services market is dominated by the OEM infotainment systems segment. Most of the leading automakers like BMW Group, Daimler Ag, Volkswagen Ag, Honda Motor Co., Ford Motor Company etc. are integrating advanced infotainment systems with in-built payment functionalities in their luxury and premium vehicles. The growing demand for connected car experience among consumers is driving the adoption of OEM infotainment systems with in-vehicle payment services.
PEST Analysis
Political: The governing bodies are coming up with regulations to ensure data privacy and security in connected vehicles. This is positively impacting the growth of in-vehicle payment services.
Economic: The rising disposable income of the middle-class population is increasing their spending on luxury vehicles and digitally advanced features including in-vehicle payment services.
Social: Younger generations and early adopters of new-age technologies have higher acceptance of connected car technologies and in-car payment solutions for convenience.
Technological: Integration of secure digital payment gateways with automotive-grade software solutions is enabling seamless transaction capabilities for drivers directly through in-car dashboards.
Key Takeaways
The global In-Vehicle Payment Services Market Share is expected to witness high growth, exhibiting CAGR of 17% over the forecast period, due to increasing demand for convenience and seamless mobility experience among drivers and riders. The market size is projected to reach US$ 10.72 Bn by 2030 from US$ 6.28 Bn in 2023.
The North America region is expected to dominate the in-vehicle payment services market during the forecast period. The presence of prominent automakers and technology players focusing on developing connected vehicle platforms and infotainment systems with digital payment capabilities is driving the North America market.
Key players operating in the in-vehicle payment services market are BMW Group, Mastercard, Daimler Ag, Amazon, Ford Motor Company, Volkswagen Ag, Honda Motor Co., Ltd., General Motors Company, and Hyundai Motor. These players are integrating advanced digital payment solutions to provide enhanced mobility experiences to their customers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
