Published Date : 18 Jan 2023
The global in-vehicle payment services market size is expected to be worth around USD 19.66 billion by 2032 from USD 4.4 billion in 2022 with a CAGR of 27.90% between 2023 and 2032.
The most preferred mode of payment for in-vehicle payment services is the use of debit cards and credit cards. It happens to be the most popular mode and it will continue to be used extensively in the coming years. Consumers prefer card and cordless transactions irrespective of age group. Apart from the use of debit cards and credit cards for making payment the east wall it or the use of applications will also have a good amount of market share in the coming years.
Growing awareness regarding the availability of digital payment platforms will be given the upper hand for this segment. Consumers are adopting digital payment options for in-vehicle payment services. Increased use of Google Pay Amazon pay Samsung pay will be favorable for the market growth in the coming years.
Maximum revenue is generated through the sales of coffee as well as food with in-vehicle payment services. Vehicle users prefer placing orders for food and coffee with the help of this option and paying for the same through the help of this platform in order to save time.
The popularity of these services is expected to grow for the parking segment. Increased sales of commercial vehicles and passenger vehicles will create a greater demand for these services. The use of these services for the parking purpose will benefit the driver by saving the time required for waiting in the queues
In-Vehicle Payment Services Market Report Scope
|Market Size in 2023||USD 5.09 Billion|
|Market Size by 2032||USD 16.66 Billion|
|Growth Rate from 2023 to 2032||CAGR of 16.2%|
|Forecast Period||2023 to 2032|
|Segments Covered||By Mode of Payment, By Offering, By Vehicle Type and By Application|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
North American region is expected to have the largest market share for the in-vehicle payment services market in the coming years period this region has dominated the market with a share of about 39% in the past. Increased adoption of connected cars is expected to drive market growth in the coming years. The presence of the technology companies like Google and apple in the North American region has provided the automotive market with many innovative products.
This market is expected to generate a revenue of about 2 billion U.S. dollars by the year 2030 due to an increase in investments in automotive technologies by manufacturers of cars and vehicles. An increase in the initiatives taken by the government that support the growth of the market will also be one of the reasons for the growth of the market during the forecast period. There has been an increase in investments for developing the telecommunications sector as well as the road infrastructure and this shall be favorable for the growth of the market in the coming years.
The automotive industry of the North American region is well established and it shall have a positive impact on the in-vehicle payment services market in the North American region. The Asia Pacific region is expected to grow at the how list compound annual growth rate during the forecast period registering a growth percentage of 14.5%. Constant research and development activities have provided advanced technologies and innovative products for payments that are supporting the growth of the market in this region.
Growth in the preference for contactless payments from the users of the vehicle will be one of the main reasons for the growth of the market during the forecast period. As the time required for handling the cash is reduced due to the use of this contactless payment option most of vehicle users prefer this option.
It helps in increasing the speed of transactions and it is expected to drive market growth. This contact list payment option is used on a large scale in the travel and hospitality industry at that happens to be more convenient and easy for customers to access services at the fuel stations as well as other places.
Most of the consumers across the globe make use of debit cards and credit cards to make such payments. Digital payment technology has led to increased use of mobile payments and the payments made through the use of these cards for in-vehicle payment services. Due to the connectivity which is provided at the fuel stations as these fuel stations have high-speed Internet, many vehicle users make use of this contactless payment option at most of the tollbooths, fuel stations as well as parking lots.
Increased use of smartphones has also been instrumental in reducing the time required for fund transactions and it is a convenient option due to the availability of the Internet. There is a growing demand for variable payment devices which shall drive the market growth in the coming year.
The increased use of these contactless payment options which makes use of voice-based systems may not be safe as it may lead to a few accidents. The use of this technology which makes use of the instructions made through the use of speech causes or destruction of a higher level which may cause a few security issues. And this is expected to be a restraint in the growth of the market in the coming years period
The market for in-vehicle payment services is a promising market as many manufacturers are developing autonomous cars or self-driving cars. Constant research and developmental activities will be instrumental in coming up with more innovative products. Most of the users of these vehicles are expected to adopt these services due to the benefits provided through the use of this service.
Designing all the infrastructure required for in-vehicle payments is complex and it has a few issues related to the technology. As the use of this technology causes distraction the manufacturers have to focus on providing designs that are simple and do not distract the driver. Also, the information needs to be secure in order to prevent any wrongful use of the data. The system has grown to be complicated due to the connectivity and integration.
In the year 2021 an announcement for investing an amount of 11.9 million U.S. dollars in ryd.in, which is a leading provider of these services in the European market by BP ventures. It shall be helpful in providing an expansion to the service provider across the international markets.
Major Key Players
By Mode of Payment
By Vehicle Type
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