The global in-car gaming market is anticipated to grow at a significant CAGR of 2.2% during the forecast period. One of the major factors contributing to the growth of the in-car gaming market is the rapid technological advancements in the automobile industry. The automotive market has seen some quick technological breakthroughs from being able to roll the windows up and down to completely autonomous driving technology. These advancements have made it possible to connect a smartphone to the car's dashboard. Car manufactures are now trying to deliver something unique to stand out in this highly competitive market which is driving the idea of a computer on wheels. For instance, major car manufactures like BMW, Mercedes and Audi are in the process of developing their in-car gaming systems which is driving the growth of the in-car gaming market.

The next step for automotive technology is to enable virtual reality integration in a smart car. Moreover, few other major players of the industry such as Volvo, Volkswagen, and Tesla already provide in-dash navigation systems, music systems, various sensors, and electronic control units that can be customized to provide a complete virtual reality gaming experience.    

Impact of COVID-19 Pandemic on Global In-Car Gaming Market

COVID-19 had negatively impacted the in-car gaming market. The lockdown restrictionshad disrupted the manufacturing process of in-car gaming market as it halted the supply chain of the industry. However, Due to the rapid rise in COVID-19 cases, the government across the globe had introduced the drive-in testing facility. This procedure involves long queues of cars at testing centers grew and waiting time is too long. This created a demand for in-car gaming to reduce this boredom.  The in-car gaming market is predicted to show "U" shaped recovery. 

Segmental Outlook 

The global in-car gaming market is segmented based on type, vehicle class, and vehicle type. Based on the type, the market is classified as a portable gaming system and a fixed gaming system. Based on the vehicle class, the market is segmented as premium/luxury, mid-range, and entry. Based on the vehicle type, the market has been segmented as passenger vehicle and commercial vehicle. Among the vehicle class segment, the premium/luxury vehicle segment dominates the overall in-car gaming market owing to the increased demand for in-game systems and VR entertainment systems in thia vehicle class. Another factor driving the growth of premium/luxury segment is the higher value and various unique features and functionality offered in this vehicle which supports installation of in-car gaming systems.

Global In-Car Gaming Market Share by Vehicle Class, 2020 (%)

The Premium/Luxury Segment Holds the Major Share in the Global In-Car Gaming Market

Among the vvehicle class segment, the premium/luxury segment dominates in the global in-car gaming market. The dominant position can be attributed to the required investments in automobile technology, virtual reality systems, and advanced electronic units. These automobile components are expensive compared to the components used in mid-range and entry level cars. Due to the higher cost of research and development of gaming integration technology, making it difficult to provide such innovations in mid-range and entry level cars. 

Regional Outlooks

The global in-car gaming market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East &Africa, and Latin America).  The market can be analyzed for a particular region or country level as per the requirement.

Global In-Car Gaming Market Growth, by Region 2021-2027

The North-American Region Holds the Major Share in the Global In-Car Gaming Market

The North-American region currently holds the majority of shares in the global in-car gaming market. The US is the major contributor in this regional market as the US automotive sector generates highest sales in terms of value. According to the OECD, around 1.9 million passenger cars were sold in US during 2020. As the US has a massive automotive market, manufactures are constantly trying to innovate to stand out from their competition which is leading in automotive innovation like in-car gaming. For instance, Tesla, one of the leading electric vehicle manufactures has launched their in-car gaming which can be played by the passenger when the car is in motion and by the driver when the car is stationary.

Market Players Outlook

The major companies serving the global in-car gaming market include Tesla Inc., Nintendo of America Inc., Mercedes-Benz AG, BMW AG, Atari Inc., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, Mercedes-Benz became an ESL partner in 2017, showing its commitment towards eSports. The company also queried major shares in SK Gaming GmbH in 2019, which made the Stuttgart-based company being the first automobile manufacturers to invest in eSports team

The Report Covers

    • Market value data analysis of 2020 and forecast to 2027.

    • Annualized market revenues ($ million) for each market segment.

    • Country-wise analysis of major geographical regions.

    • Key companies operating in the global in-car gaming market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

    • Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

    • Analysis of market-entry and market expansion strategies.

    • Competitive strategies by identifying ‘who-stands-where’ in the market.