New York, United States, March 04, 2024 (GLOBE NEWSWIRE) -- The in-vehicle payment services enable the vehicle's driver to simultaneously shop for groceries, order meals, and coffee, and pay for tolls, parking, and gasoline at petrol stations. Automobile manufacturers are progressively incorporating new technology for innovative infotainment solutions as the automotive industry evolves around the Internet of Things (IoT). The market is driven by increasing trends in a contactless payment following the COVID outbreak, a growing consumer base seeking convenience in automobiles, and a rise in technological innovation. The demand for in-car payment services is anticipated to increase in the coming years because it allows drivers to order and pay for food and beverages, groceries, and gasoline without having to exit the vehicle and make payments for parking and tolls. Manufacturers' increased adoption of IoT technology in automobiles will drive market expansion in the coming years.
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Growing Mobile Payments Adoption to Drive the Global In-Vehicle Payment Services Market
Currently, infrastructures for regular payments are being upgraded. The payments industry is undergoing a necessary infrastructure shift to compete with nonbank innovators and meet evolving customer needs effectively. More than 15 nations have upgraded their payment infrastructures in the past few years, and many more are planning to do so in the near future. As infrastructure improvements are expensive for the system and the bank, banks must develop ways to construct products and services on top of the infrastructure that provides value to end-users and speed up cash transactions to recoup these expenditures as quickly as feasible.
According to Straits Research, “The global in-vehicle payment services market size was valued at USD 4930 million in 2021 and is estimated to reach an expected value of USD 19500 million at a CAGR of 16.5% during the forecast period (2022–2030).” The combination of digital disruption in the money transfer ecosystem and the growing need for speedy money transfer methods has altered the payment gateway paradigm. As a result of digital money transfer techniques, consumers today require secure digital transaction processing systems for transferring funds to merchants and people. With the rise of digital financial transactions, platform providers have a more critical requirement for secure cloud-based architecture. The cloud-based money transfer platforms allow industry participants to manage larger transaction volumes with greater efficiency and at a lower cost.
Increasing Technological Innovation in Automotive to Provide Opportunities for the Global In-Vehicle Payment Services Market
MasterCard and General Motors collaborated to develop an in-vehicle payment system. Visa and SiriusXM have announced plans to establish a vehicle-based payments network. Other manufacturers, including Honda, Volkswagen, and Ford, have created payment platforms and solutions for in-vehicle use. Manufacturers are creating built-in solutions such as voice-activated controls to enable safe shopping while driving. Drivers must keep their eyes and hands on the roads and highways while attending to their shopping demands. The voice-activated dashboard may cause driver distraction. According to a study conducted at the University of Utah, speech-to-text technology creates a higher level of a cognitive distraction than any other activity since speaking to the dashboard requires more effort than speaking to a real person. However, the growth of connected and autonomous vehicles is anticipated to drive market expansion in the upcoming years.
Key Highlights
- By mode of payment, the global in-vehicle payment services market is segmented into NFC, QR Code/RFID, App/Wallet Based, and Credit /Debit Card based. The Credit /Debit Card based segment accounted for the largest market share and is estimated to grow at a CAGR of 15.9% during the forecast period.
- By application, the global in-vehicle payment services market is segmented into parking, gas stations & charging stations, shopping, food & coffee, toll collection, and others. The gas stations & charging stations segment accounted for the largest market share and is estimated to grow at a CAGR of 17.4% during the forecast period.
Regional Insights
By region, the global in-vehicle payment services market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East & Africa.
North America's in-vehicle payment services industry share is estimated to grow at a CAGR of 15.9% during the forecast period. Demand for these services is anticipated to increase in the coming years due to the rising popularity of connected vehicles. As the population of the Asia-Pacific area is predicted to increase, so will the region's demand. Additionally, the discretionary income of the residents of these places has increased. Constant research and development efforts have yielded advanced technology and novel payment solutions, which will play a crucial part in the market's expansion in the future years. The use of in-vehicle payment services is anticipated to increase in the North American region as governments invest more in road infrastructure and the telecommunications industry during the forecast period. Increasing investments in these two industries would assist improve the connectivity and communication in automobiles. It will be able to establish the automobile market positively. Major corporations worldwide are expanding their emphasis on partnerships, which will be crucial in enhancing their market presence and product portfolios.
Europe is the second largest region. It is estimated to reach an expected USD 3395 million at a CAGR of 16.4% during the forecast period. A robust automotive sector and the increasing adoption of new-generation connected vehicles are anticipated to drive market growth during the projected period. Germany has the highest penetration rate of linked automobiles in Europe, followed by France and the United Kingdom. In addition, the focus of manufacturers on deploying in-car payment services in major European nations is projected to fuel industry expansion. For instance, Mercedes said in March 2021 that it would spread its in-car payment services throughout Europe by the end of 2021.
The Asia Pacific is the third largest region. The market for in-vehicle payment services is predicted to grow at the highest CAGR in the Asia-Pacific region due to the region's expanding population and rising disposable income. Over the projected period, technological advancements and innovations in the payment industry are anticipated to fuel demand.
Competitive Landscape
The key players in the global in-vehicle payment services market are BMW Group, Ford Motor Company, Daimler AG, Honda Motor Co., Ltd., Hyundai Motor, General Motors Company, Volkswagen AG, Amazon, Mastercard, Visa, Google, and IBM
Market News
- August 2022 - Leipzig. Today marks the opening of the second battery module production line at BMW Group Plant Leipzig. The new system further expands e-component production in the German state of Saxony by producing modules for the completely electric BMW i4 manufactured in Munich. In May 2021, the BMW iX battery modules were manufactured on the first production line at the Leipzig plant.
- July 2022 - In the first half of 2022, the BMW Group sold 75,891 fully-electric BMW and MINI vehicles globally, doubling its all-electric sales compared to the same period in 2021 (+110.3%). This rise demonstrates the company's commitment to advancing electromobility and reflects the global demand for its pure electric cars.
- October 2022 - Honda Aircraft Company today revealed the "HondaJet Elite II" at the 2022 National Business Aviation Convention and Exhibition (NBAA-BACE), a newly upgraded aircraft with a host of critical advancements in performance and comfort. The company also announced the introduction of automation technologies.
Global In-Vehicle Payment Services: Segmentation
By Mode of Payment
- NFC
- QR Code/RFID
- App/Wallet Based
- Credit /Debit Card based
By Application
- Parking
- Gas Stations & Charging Stations
- Shopping
- Food & Coffee
- Toll Collection
- Others
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Get Detailed Market Segmentation @ https://straitsresearch.com/report/in-vehicle-payment-services-market/segmentation
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