Global in-vehicle payments services market was valued at USD 3,097.0million in 2020. It is expected to grow at a compound anual growth rate (CAGR), of 16.3% between 2021 and 2028. In-vehicle payment allows drivers to pay for fuel, food, gas, groceries, parking, tolls, and other items without leaving their vehicle. The market will grow due to the advancements in the Internet of Things (IoT), and the aggressive efforts of various automakers to incorporate advanced infotainment systems into their vehicles models. Market growth will be driven by the growing preference for contactless payments in the wake the COVID-19 pandemic, as well as continued innovation in smart cars.
The global pandemic has had a devastating impact on the global economy. Due to the restrictions and lockdowns imposed by different governments around the world to stop the spread of the virus, supply chains have been disrupted and manufacturing activities have been temporarily suspended at many production sites. COVID-19 had a short-term negative impact on the market. However, the increasing preference for payment to avoid coronavirus exposure and social distancing rules being promoted by different governments are expected to help drive the market growth in in-vehicle payments services in the post-COVID-19 period.
Many payment solutions providers such as PayPal, Visa and MasterCard are working with automakers all over the globe to integrate new payment methods and processes into their vehicles. In May 2017, General Motors Co. partnered with MasterCard to develop and market in-vehicle payments solutions. Visa partnered with SiriusXM in January 2019 to create a vehicle-based payment platform. Other manufacturers such as Ford Motor Co. and Honda Motor Co. Ltd. have also created in-vehicle payment platforms and solutions.
Automobile manufacturers are working hard to develop voice-based controls and built-in systems that allow drivers to shop while they drive. This will not compromise road safety norms. A voice-activated dashboard could distract drivers' attention so they must always consider road safety when shopping while driving. University of Utah research has shown that speech-to text technology can lead to cognitive disruption. It requires more effort to talk to a dashboard than it does to speak to an individual.
The market's growth will be driven by the advancements in connected and self-driving car technology. Market growth is expected to be driven by the increasing adoption of driver support systems. Driver support systems assist drivers in many ways. They allow for hassle-free parking, and they can make purchases directly from the control panel.
In 2020, the credit/debit card market accounted for 54% of the total revenue. Credit and debit cards are still the most used payment methods and are widely used to make contactless payments. Market growth is expected to be driven by the increasing preference of card-less transactions, cards, and cash transactions across all age groups. The market share in App/e-wallets was significant in 2020. It is expected to grow at a CAGR of more than 17% between 2021 and 2028.
Individuals are increasingly turning to in-vehicle payments services due to rising demand for digital payment methods. Many apps and wallets are widely used to make payments, including Amazon Pay (Google Pay), AliPay, Apple Pay (Apple Pay), Venmo, Samsung Pay (Venmo), and others. Amazon and Google have connected their intelligent virtual assistants with their respective payment portals. This is part of their efforts to assist consumers in making payments and shopping interactively.
In 2020, the food/coffee category accounted for more than 26% of total revenue. Due to increasing traffic problems around the world, passengers and drivers are increasingly looking for on-the-go beverages. This will drive the demand for in-vehicle payments services to avoid inconvenience and save time.
Parking segment will experience the highest CAGR of 18% between 2021 and 2028. The growth of commercial and passenger vehicles will be a major factor in the future growth of the parking sector. According to OICA data, China's commercial vehicle sales increased by 18.7% in 2020. Parking spaces are in high demand due to the increasing number of commercial and passenger vehicles. Parking spaces that can be adapted to accept in-vehicle payments will reduce the long lines.
North America had a greater revenue share than 39% in 2020. This region has the highest penetration of connected vehicles. Technology companies such as Apple Inc. and Google Inc. are also based in North America and have entered the automotive market to compete with other companies.
Asia Pacific is expected to experience the fastest CAGR at 18.1% between 2021 and 2028. The region's growth is expected to be driven by the growing population and rising disposable income. The region's growth will be driven by the adoption of new technologies and innovations in payment processing.
Market leaders are placing a strong focus on the development of payment solutions in collaboration and partnership with different payment solution providers. Amazon and Google have introduced devices that can be connected to the vehicle console via voice control. This allows for navigation and shopping as well as payment through various payment gateways. The following are some of the key players in the in-vehicle payments services market:
BMW AG
Daimler AG
Ford Motor Co.
General Motors Co.
Honda Motor Co. Ltd.
Hyundai Motor Co.
Jaguar Land Rover Automotive PLC
Volkswagen AG
ZF Friedrichshafen AG
Amazon
Visa
MasterCard
PayPal
Up Market Research published a new report titled “In-vehicle Payment Services Market research report which is segmented by Mode Of Payment (Credit/Debit Card, App/e-Wallet), by Application (Parking, Food & Coffee), By Players/Companies Volkswagen AG, among others, Honda Motor Co Ltd, Ford Motor Co, General Motors Co”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | In-vehicle Payment Services Market Research Report |
By Mode Of Payment | Credit/Debit Card, App/e-Wallet |
By Application | Parking, Food & Coffee |
By Companies | Volkswagen AG, among others, Honda Motor Co Ltd, Ford Motor Co, General Motors Co |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 201 |
Number of Tables & Figures | 141 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Mode Of Payment (Credit/Debit Card, App/e-Wallet), by Application (Parking, Food & Coffee).
In-vehicle Payment Services Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
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Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the In-vehicle Payment Services Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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