Enhanced Connectivity and Improved Computing Power to Drive 15 Million Global Shipments of Video-On-Demand Embedded Cars in 2030

Automotive Original Equipment Manufacturers (OEMs) are focused on integrating immersive Video-on-Demand (VoD) and gaming to fill the vehicle with digitally native experiences that generate engagement and revenue among their customers. Global technology intelligence firm ABI Research forecasts worldwide shipments of cars with VoD will reach 15.09 million by 2030, driven by improved connectivity, higher screen size and resolution, and enhanced computing power of today’s vehicles.

“We are seeing these digitally native experiences emerge within electrification and rear-seat entertainment use cases, where bite-sized content up to the length of an Electric Vehicle (EV) charging session or morning school run will fit perfectly into the vehicle environment. The proliferation of autonomous driving will create more opportunities for immersive digital experiences to thrive as a driverless future becomes more of a reality,” says Abu Miah, Smart Mobility and Automotive Analyst at ABI Research.

OEMs are addressing these emerging opportunities through partnerships with Tier 1 suppliers, middleware companies, and content providers that can share expertise in consumer electronic domains on issues such as Digital Rights Management (DRM). For example, Cinemo provides flexible middleware solutions to deliver impressive digital media experiences in the car, and Harman fills a key role for OEMs through its Ignite Store, which offers its customers access to an existing ecosystem of multimedia, gaming, and productivity applications that would otherwise require a significant allocation of an OEM’s resources to build.

Utilizing the unique environment of the vehicle to offer unique experiences will also allow companies to best monetize the improved technology of the automotive industry. Companies such as Holoride and 4screen have made waves in the in-car VR gaming and advertising market by adding value to the vehicle experience.  

“Adaptation is required from all levels of the supply chain if the in-vehicle infotainment industry wants to take full advantage of technological strides across connectivity, computing power, and, in the future, automation. Unlocking additional revenue streams in infotainment will help to drive software-defined vehicle proliferation and innovation,” Miah concludes.

These findings are from ABI Research’s Infotainment-Driven Differentiators for Software Defined Vehicles: Video-On-Demand, Gaming, and Productivity application analysis report. This report is part of the company’s Smart Mobility and Automotive research service, which includes research, data, and ABI Insights. Application Analysis reports present an in-depth analysis of key market trends and factors for a specific technology.