In-Vehicle Payment System Market: Global Industry Analysis and Forecast (2023-2029) Trends, Statistics, Dynamics and Segmentation

In-Vehicle Payment System Market Definition:

 

Global In-Vehicle Payment System Market size is estimated to grow at a CAGR of 19.38 % over the forecast period. 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 In-Vehicle Payment System market is segmented by Payment Mode, Vehicle Type, Application, and geography. On the basis of Payment Mode, the In- Vehicle Payment System market is segmented under Credit/Debit Card, App/E-Wallet, QR Code/RFID, NFC, and Others. Based on the Vehicle Type, the In- Vehicle Payment System 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 following Regions: North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD Billion).

 

 

To get more Insights: Request Free Sample Report

 

In-Vehicle Payment System Market Dynamics:

 

Rising Demand for Contactless Payment Solutions will Fuel Market Growth

 

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 was valued at US$ 1.34 Trillion in 2021. The Contactless Payment Services Market size is expected to grow at a CSGR of 20.3 % through the forecast period.

 

Increasing Traffic Congestion to Drive Market Growth

 

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.

 

Automotive Digitalization will Drive Market Growth

 

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. 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.

 

The rising trend of connected and autonomous vehicle adoption will drive market growth

 

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 was valued at US$ 76.13 Bn in 2021. The Autonomous Vehicle Market size is expected to grow at a CAGR of 40.2 % through the forecast period.

 

In-Vehicle Payment System Market Restraints:

 

 

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.

 

In-Vehicle Payment System Market Segment Analysis:

 

By Payment Mode, The credit/debit card segment held the largest market share of 56.65 % in 2021 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.

 

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.

 

Digital Payment Market was valued at US$ 88.2 Bn in 2021. The Digital Payment Market size is expected to grow at a CAGR of 15.2 % 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 2021 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$ 634.3 Bn in 2021. The commercial vehicle market size is expected to grow at a CAGR of 6.5 % through the forecast period. The passenger vehicle market was valued at US$ 32.70 Bn in 2021. The commercial vehicle market size is expected to grow at a CAGR of 9 % through the forecast period.

 

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.

 

In-Vehicle Payment System Market Regional Insights:

 

North America dominated the market in 2021, with market size of USD 1.39 billion, and this dominance is expected to continue during the forecast period. North America's technological advancement is likely to boost the market growth in the region.

 

The market is being driven by the high penetration of connected vehicles in the United States. Furthermore, the presence of the largest payment service providers, such as Mastercard, Visa, and others, as well as their collaboration with automakers such as General Motors, Honda, and others to develop in-vehicle payment systems, is expected to drive market growth during the forecast period.

 

 

In 2021, Europe held the second-largest market share. The presence of a strong automotive sector and increasing penetration of new generation connected vehicles are expected to propel the market growth during the forecast period. 

 

Germany has the most connected vehicles in Europe, followed by France and the United Kingdom. Furthermore, automakers' focus on rolling out in-car payment services in major European countries is expected to drive market growth.

 

Asia Pacific is expected to grow at an impressive CAGR through the forecast period. In-vehicle payment system Market in the Asia Pacific region is expected to grow at a CAGR of 22.2 through the forecast period. The increasing penetration of connected vehicles in major APAC countries such as China, India, and Japan, among others, is expected to drive market growth in the region.

 

Furthermore, the region's high traffic congestion and the growing preference for contactless payment solutions are likely to accelerate the adoption of these types of payment services in the coming years.

 

In-vehicle payment systems are still being implemented in APAC's developing economies. However, the growing popularity and adoption of connected automobiles, as well as improvements in connectivity and infrastructure, are expected to create lucrative opportunities for the market in the coming years.

 

Middle East and Africa, and South America, are expected to grow at a steady CAGR through the forecast period. In MEA, the market is still in its early stages. However, the growing adoption of connected vehicles in South America as a result of the region's strengthening automotive sector is expected to fuel market growth in the forecast period.

 

 

In-Vehicle Payment System 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 global 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 global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the global market, key players in the market, particularly in North America and Europe, 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 Global In- Vehicle Payment System market to the stakeholders in the industry. The report provides trends that are most dominant in the Global In- Vehicle Payment System 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 Global In- Vehicle Payment System 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 Global In- Vehicle Payment System 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 Global In- Vehicle Payment System market. The report studies factors such as company size, market share, market growth, revenue, Payment Modeion volume, and profits of the key players in the Global In- Vehicle Payment System 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 Global In- Vehicle Payment System market. The report also analyses if the Global In- Vehicle Payment System 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 Global In- Vehicle Payment System market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Global In- Vehicle Payment System market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Global In- Vehicle Payment System market is aided by legal factors.

 

In-Vehicle Payment System Market Scope:

 

In-Vehicle Payment System  Market Scope
Market Size in 2022	USD 4.91 Bn.
Market Size in 2029	USD 16.99 Bn.
CAGR (2023-2029)	19%
Historic Data	2018-2022
Base Year	2022
Forecast Period	2023-2029
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
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In-Vehicle Payment System Market Key Players: 

• ZF Friedrichshafen AG (Friedrichshafen, Germany)
• BMW AG (Munich, Germany)
• Daimler AG (Stuttgart, Germany)
• JAGUAR LAND ROVER AUTOMOTIVE PLC (Coventry, UK)
• General Motors Company (Michigan, U.S.).
• Honda Motor Co. Ltd. (Tokyo, Japan)
• Hyundai Motor Group (Seoul, South Korea)
• IBM Corporation (New York US)
• Mastercard Inc. (New York, U.S.)
• Visa Inc. (California US)
• CarPay Diem (Koerich, Luxembourg)
• Cerence Inc (Massachusetts, United States)
• Daimler AG (Stuttgart, Germany)
• Gentex Corporation (Zeeland, United States)
• Harman International Industries, Inc. (Connecticut, United States)