Next-gen cars will create new forms of entertainment 

According to MarketsandMarkets, the in-vehicle infotainment (IVI) market is projected to grow from US$20.8bn in 2021 to US$28.4bn by 2027, at a CAGR of 10.8%. Research suggests that the IVI market is driven by the increase in vehicle production, technological advancements, telematics regulations, and increasing demand for luxury vehicles. 

 In the wake of these trends, the entertainment offering is constantly evolving. "Infotainment in cars is approaching a critical inflexion point where many of the traditional forms of in-car entertainment are on the precipice of becoming extinct," says Iliya Rybchin, Partner at Elixirr, a consulting firm which has advised automotive and entertainment companies. Rybchin specialises in customer experiences, particularly how changing consumer expectations and business model disruption impact various industries.  

 "If you consider the history of in-car entertainment, it began with the AM radio, moved to FM, then 8-track, tapes, CDs, MP3, and more recently satellite and internet services such as Spotify, Pandora and YouTube," he says. Although the underlying technologies have changed, the core product was typically the same—audio content, including music, talk, news and podcasts. He believes that while some audio content will continue, two major innovations are creating fundamentally new entertainment needs: driverless cars and electric vehicles (EVs) requiring lengthy charging. 

Many of the traditional forms of in-car entertainment are on the precipice of becoming extinct