The global automotive infotainment SoC market accounted for US$ 8.69 Bn in 2018 and is expected to grow at a CAGR of 7.2% during the forecast period 2019 – 2027, to reach US$ 16.08 Bn by 2027.
The automobile industry in developed and developing economies is undergoing a digital makeover. Many industrial players in the automotive industry are investing considerable resources in the R&D of vehicle automation so as to meet the changing demands and enhance the driving experience of customers. Next-generation automobiles such as audiovisual sensing, speech recognition, image compatibilities, advanced driver assistance, GPS and radar capabilities, next-level security and safety, and IC-integrated LED front lighting.
Major countries considered in the Asia Pacific region include China, India, Japan, South Korea and Rest of APAC. The Asia Pacific is one of the world’s rapidly growing passenger car markets, with China accounting for close to 30% of the global passenger car production. The continuous economic growth in developed and developing countries like India and China, coupled with the presence of huge disposable incomes with individuals in countries like Japan and Australia, has facilitated the rapid growth of the automotive industry in this region.
Increasing disposable incomes of the consumers has translated into the purchase of a large number of medium-range cars. In addition to this, China and India are considered among the largest manufacturing hubs globally on account of several factors, such as lower labor wages compared to other countries and supportive favorable Government policies.
The Asian countries have attracted several foreign direct investments in many industrial fields, including automotive. The rapidly growing economies have translated into rising per-capita incomes and consumer expenditures. As a result of this, the APAC region witnessed very high growth in the sales of automobiles in recent times.
The higher number of automobiles on the road demand for higher production and thus present large potentials for automotive infotainment SoC producers to expand their business base in APAC.
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