Europe In-Vehicle Payment Market - Industry Analysis and Forecast (2024-2030)

Europe In-Vehicle Payment Market Definition:

The in-vehicle payment system is a payment technology-equipped automotive system. This system allows the driver to make payments or transactions with a variety of companies or applications, including toll gates, smart parking, gas stations, charging stations, and others.

 

Further, the Europe In-Vehicle Payment market is segmented by Payment Mode type, Vehicle Type, Application, and geography. On the basis of Payment Type, the Europe In-Vehicle Payment market is segmented under Credit/Debit Card, App/E-Wallet, QR Code/RFID, NFC, and Others. Based on the Vehicle Type, the market is segmented under the Light-Duty Vehicle (LDV) and Heavy-Duty Vehicle (HDV). Based on the Application, the In-Vehicle Payment System market is segmented under Fuel/Charging Stations, Toll/Parking, Food/Groceries and Others. By geography, the market covers the major countries in Europe i.e., Italy, Germany, United Kingdom, Russia, France and Rest of Europe For each segment, the market sizing and forecasts have been done on the basis of value (in USD Million/Billion).

 

 

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Europe In-Vehicle Payment COVID 19 Insights:

Due to the outbreak of the COVID-19 pandemic, the Europe market is falling rapidly in 2021. This is due to the majority of governments implementing lockdowns and increasing restrictions on international travel.

 

Furthermore, an increase in the number of COVID-19 patients in region, as well as increased travel restrictions, impact the growth of the in-vehicle payment services market during the COVID-19 outbreak. On the other hand, the rise in digitalization in the travelling business is expected to provide a lucrative opportunity to boost market growth following COVID-19.

 

Europe In-Vehicle Payment Market Dynamics:

Europe In-Vehicle Payment Market Drivers:

1. Rising Demand for Contactless Payment Solutions

Government-enforced extensive social distancing guidelines in the face of pandemic and growing public safety concerns are expected to fuel demand for contactless payment solutions, accelerating the adoption of in-vehicle payment services. Furthermore, the focus of major key players such as Mercedes, General Motors, Honda, Hyundai, and others on developing contactless connected vehicle payment solutions is expected to drive market growth.

 

The Contactless Payment Services Market In Europe was valued at US$ 6305.5 million in 2021. The Contactless Payment Services Market size is expected to grow at a CSGR of 11.7 % through the forecast period.

 

2. Increasing Traffic Congestion

In Europe, Rising traffic congestion on roads, toll plazas, gas stations, parking lots, and other locations encourages people to use these payment services. The use of this payment technology in these applications will save time and make it easier for customers to order and pay. As a result, the infrastructural development of these locations to accommodate in-car payment is expected to boost the market growth in the forecast period.

 

3.Automotive Digitalization

The increasing digitalization of automobiles, as well as the rising adoption of loT and maturing 5G connectivity, is expected to drive demand for in-car payment solutions in Europe region. Furthermore, rising awareness of various in-vehicle services in underdeveloped and developing economies, as well as expanding applications for these services is expected to drive market growth during the forecast period.

 

4.The rising trend of connected and autonomous vehicle adoption

Connected cars are vehicles that have technology built into them that allows them to communicate with other technologies. Connected cars use their connectivity to provide passengers with in-vehicle payment services.

 

As a result, the increasing adoption and development of connected cars are expected to increase demand for these types of payment services. Furthermore, major brands such as MasterCard, Visa, and others are investing in connected car payment technologies, which are expected to have an impact on market growth during the forecast period.

 

Autonomous Vehicle Market in Europe was valued at US$ 20.22 Mn. in 2021. The Autonomous Vehicle Market size is expected to grow at a CAGR of 22.12 % through the forecast period.

Europe In-Vehicle Payment Market Restraints:

1. The high cost of embedded systems may limit the market growth

The high cost of embedded systems in comparison to integrated systems is expected to stifle market growth over the forecast period. Furthermore, cyber security and vulnerability threats associated with using in-vehicle payment services, such as security issues involving personal data, card numbers, CVV, PIN, and others, are expected to limit in-vehicle payment system implementation during the forecast period.

 

Europe In-Vehicle Payment Market Segment Analysis:

By Payment Mode, The credit/debit card segment held the largest market in Europe and is expected to dominate the market through the forecast period. The segment's growth is being driven by consumer preference for using credit and debit cards for contactless payments.

 

Furthermore, its rising popularity among people of all ages in developing economies for safe and convenient transactions is expected to fuel segment growth during the forecast period.

 

In Europe, The app/e-wallet segment is expected to grow at the fastest CAGR during the forecast period. App and e-wallet payment methods have grown in popularity in recent years due to their high convenience and transaction speed.

 

The rising popularity of these digital payment apps and e-wallets, such as Google Pay, Apple Pay, and Amazon Pay, combined with the ability to pay via mobile devices and on-demand apps, is expected to drive segment growth during the forecast period.

 

Total transaction value in Digital Payment Market was valued at US$ 1675 Bn in 2023. The Total transaction value in Digital Payment Market size is expected to grow at a CAGR of 15.83 % through the forecast period.

 

The QR code/RFID segment is also expected to grow at a high rate in the forecast period. QR codes, like e-wallets, allow for quick and flexible transactions. Furthermore, growing QR code and RFID adoption in a variety of applications such as gas/charging stations, parking lots, toll plazas, and others is expected to drive segment growth through the forecast period.

 

The NFC segment is also expected to grow significantly due to its ability to perform instant payments and transactions using mobile devices.

 

 

By Application, The segment of gas/charging stations held the largest market share in 2023 and it is expected to dominate the market through the forecast period. Rising traffic congestion on roads and gas/charging stations is likely to boost segment growth during the forecast period.

 

Additionally, the increasing adoption of next-generation electric vehicles as a result of changing government emission control standards is expected to have an impact on segment growth. Furthermore, automakers' efforts to roll out in-vehicle fuel payment services for customer convenience, as well as increased connected vehicle sales in the world, are expected to accelerate market growth during the forecast period.

 

The parking segment is expected to grow at the fastest rate. Parking infrastructure development, combined with rising demand for parking spaces in urban areas, is expected to drive segment growth. Additionally, increased passenger and commercial vehicle sales are expected to drive segment growth.

 

The commercial vehicle market was valued at US$ 671.3 Bn in 2023. The commercial vehicle market size is expected to grow at a CAGR of 25.35 % through the forecast period. The passenger vehicle market was valued at US$ 475.40 Bn in 2023. The Passenger vehicle market size is expected to grow at a CAGR of 9.8 % through the forecast period.

 

In Europe, The food and coffee segment also experienced significant growth during the forecast period. Demand for on-the-go foods and beverages among drivers and passengers are expected to drive segment growth.

 

Furthermore, increased traffic congestion encourages people to use in-vehicle payment services to buy food and coffee. The toll collection segment is expected to grow at a rapid pace due to the development of toll plaza infrastructure to be compatible with various modes of payment and consumer preference for contactless delivery.

 

Europe In-Vehicle Payment Market Key Players Insights:

The market is characterized by the existence of a number of well-known firms. These companies control a large portion of the market, have a wide Payment Mode portfolio, and have a regional presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.

 

The market's major companies have a significant impact because most of them have extensive regional networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the europemarket, key players in the market, particularly in this region, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.

 

The objective of the report is to present a comprehensive analysis of the Europe In-Vehicle Payment market to the stakeholders in the industry. The report provides trends that are most dominant in the Europe In-Vehicle Payment market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Europe In-Vehicle Payment Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the Europe In-Vehicle Payment market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Europe In-Vehicle Payment market. The report studies factors such as company size, market share, market growth, revenue, Payment Mode volume, and profits of the key players in the Europe In-Vehicle Payment market.

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their Payment Mode quality is in the Europe In-Vehicle Payment market. The report also analyses if the Europe In-Vehicle Payment market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Europe In-Vehicle Payment market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Europe In-Vehicle Payment market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Europe In-Vehicle Payment market is aided by legal factors.

 

Europe In-Vehicle Payment Market Scope:

Europe In-Vehicle Payment Market
Market Size in 2023	USD 1.30 Bn.
Market Size in 2030	USD 4.39 Bn.
CAGR (2024-2030)	18.9%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Payment Mode Credit/Debit Card App/E-Wallet QR Code/RFID NFC Others
	By Vehicle Type Light-Duty Vehicle (LDV) Heavy-Duty Vehicle (HDV)
	By Application Fuel/Charging Stations Toll/Parking Food/Groceries Others
	By Country Italy Germany United Kingdom Russia France Rest of Europe

 

Europe In-Vehicle Payment Market Key Players:  

• ZF Friedrichshafen AG (Friedrichshafen, Germany)
• BMW AG (Munich, Germany)
• Daimler AG (Stuttgart, Germany)
• JAGUAR LAND ROVER AUTOMOTIVE PLC (Coventry, UK)
• Daimler AG (Stuttgart, Germany)
• Alcraft Motor Company Ltd.(U.K.)