In-Vehicle Payment System Market Overview
The In-Vehicle Payment System Market size was valued at USD 6.08 Billion in 2023 and is projected to reach USD 19 Billion by 2032, registering a CAGR of 13.5% from 2023 to 2032.
In-car payment services allow drivers to order and pay for items such as food, coffee, gasoline, groceries, parking spaces, and tolls without having to exit their vehicle. The market is predicted to increase due to advancements in Internet of Things (IoT) technology and strong efforts by various automakers to integrate new, advanced infotainment systems into their vehicle models over the forecast period. Several automakers are teaming up with credit card firms like VISA and MasterCard to implement in-car payment systems into their vehicles. This technology effectively turns the vehicle into a wallet, eliminating the need for the driver to exit the vehicle to pay for gas or a parking spot. The driver or vehicle owner will no longer need to carry cash in his or her wallet. Although most gas stations accept card and smartphone payments, the in-vehicle payment system eliminates the need to carry cash in wallet. The rising use of contactless payment methods in the aftermath of the COVID-19 pandemic, as well as further advancements in smart vehicles, augur well for the market's growth.
Market Dynamics and Factors for In-Vehicle Payment System Market
Drivers:
- At the moment, there are large crowds at every toll plaza, fuel pump, and parking spot, and the in-vehicle payment system can help to avoid these crowds and save time. Passengers can use the in-vehicle payment system to make purchases from the dashboards of their automobiles without having to use cash or a credit card. Advances in technology, such as the Internet of Things and linked vehicle technologies, have led OEMs to form partnerships with retailers and payment businesses to provide in-vehicle payment services. The automotive in-vehicle payment business is being propelled by the growing trend toward autonomous vehicles. Artificial intelligence incorporated into the car controls the entire payment mechanism at toll plazas or fuel pumps.
Restraints:
- Consumers continue to be frustrated with the patchy coverage, especially among independent stores, as retailers progressively implement contactless payments. However, in the previous few years, there has been an increase. Furthermore, because a contactless card transaction does not require PIN authentication, there is a risk of fraudulent transactions if the card is lost or stolen. It's always a good idea to notify the issuing bank in such a situation. Most banks offer a 100 percent fraud guarantee, absolving any liability as long as it use responsibly.
Opportunities:
- Automobile makers are concentrating their efforts on developing built-in technology, such as voice-based controls, that might allow drivers to shop while on the road without jeopardizing road safety. Given the potential for a voice-activated dashboard to divert the driver's attention, drivers must always prioritize road safety when shopping while driving. According to a study conducted at the University of Utah, speech-to-text technology can create significant cognitive disruption because conversing with a dashboard requires more effort than conversing with a person. At this point, advancements in self-driving and connected automobile technologies will be critical in propelling the market forward over the forecast year. Over the forecast period, the market for in-vehicle payment services is expected to rise due to the increasing usage of driver assistance systems. Driver assistance systems assist drivers in a variety of ways, including hassle-free parking and making purchases directly from the control panel without the use of any extra devices or cards.
Challenge:
- Customers are still wary of using a contactless payment facility, even though it is backed by a robust fraud detection system and multi-layered security. This cautious attitude may hinder firms from implementing and supporting tap-to-pay payments. When it comes to mobile contactless payments, consumers confront certain technical challenges like customers need to have NFC-enabled smartphones to use the mobile tap-to-pay system. Such challenges need to be addressed by system enablers.
Segmentation Analysis of In-Vehicle Payment System Market
- By Mode of Payment, The credit/debit card segment dominates the Vehicle Payment System Market with around 53 percent. Debit and credit cards continue to be the most common payment methods, and they are widely used for both contact and contactless transactions. Over the projected period, the increased demand for card and card-less transactions, as well as post-cash transactions, among people of various ages, are expected to contribute to the market's growth. In 2021, the app/e-wallet sector accounted for a substantial portion of the market, and it is expected to grow at a CAGR of 14.2% from 2022 to 2030. Individuals are increasingly using in-vehicle payment services as a result of the expanding popularity of digital payment methods and the convenience and ease associated with wallet payments, contributing to the market's growth. As a result, a variety of apps or wallets, such as Amazon Pay, Google Pay, AliPay, Apple Pay, Venmo, and Samsung Pay, are popular for making payments. Meanwhile, as part of their efforts to aid consumers in shopping and making payments interactively, Amazon and Google have linked their sophisticated virtual assistants to their respective payment gateways and e-wallets.
- By Application, The food/coffee segment had a high revenue share of roughly 27 percent. Passengers and drivers increasingly prefer to order coffee and meals on their journey to work, offices, or other destinations. Due to the increasing traffic, drivers have concluded that waiting for food and coffee will be impossible. As a result, drivers prefer to place orders, pay for them in the vehicle, and pick up their goods on the way to save time and minimize inconvenience, boosting the popularity of in-vehicle payment services. The In-Vehicle payment system can be useful in Toll Plaza, Gas Stations as well as in parking lot. Hence, Such wide application will further boost the growth of the Vehicle Payment System Market.
Regional Analysis of In-Vehicle Payment System Market
- North America is dominating the In-Vehicle Payment System Market. The region has the highest percentage of connected vehicles. Furthermore, technological businesses situated in North America, such as Apple Inc. and Google Inc., have entered the automobile market with their ability to develop and compete with automotive companies. Also, the payment gateway companies like MasterCard and Visa are pushing new services in terms of contactless payments and IoT device-based payment systems which are receiving large popularity. For Instance, Visa and SiriusXM e-wallet collaborated to improve how customers spend their time in vehicles. This included the SiriusXM e-wallet, an in-vehicle payment solution that integrates into the dashboard and allows drivers and passengers to shop for coffee, find and pre-pay for petrol, discover and pay for parking, buy movie tickets, and pay tolls. Biometric authentication is used to activate and authenticate payments made using a Visa account, which helps to eliminate driver distractions. This partnership is being pitched to major automakers in the connected vehicle sector, mainly in North America.
- The Asia Pacific is one of the fastest-growing regions in the Vehicle Payment System Market. The expansion is projected to be aided by a growing population and rising levels of disposable income. Over the projection period, the adoption of the most advanced technology and further improvements in the way payments are made and processed will also play a key role in driving growth. Also, there is a large potential in the Asia Pacific due to the number of cars on the road which presents a lucrative market for big companies to invest in the region which further propels the growth of the Vehicle Payment System Market.
COVID-19 Impact on In-Vehicle Payment System Market
- The market for in-vehicle payment services has grown significantly in recent years; however, due to the outbreak of the COVID-19 pandemic, the market is expected to decline sharply in 2020. This is due to governments implementing lockdown in the majority of countries, as well as increased restrictions on foreign travel. During the COVID-19 outbreak, an increase in the number of COVID-19 patients around the world, as well as increased travel restrictions hampered the expansion of the in-vehicle payment services business. On the contrary, after COVID-19, the rise in digitalization in the travel industry is likely to give a lucrative opportunity to boost the market growth.
Players Covered in In-Vehicle Payment System Market are
- BMW AG
- CarPay Diem Cerence Inc.
- Daimler AG
- General Motors Company
- Gentex Corporation
- Harman International Industries Inc.
- Honda Motor Company Ltd.
- Hyundai Motor Company
- Jaguar Land Rover Automotive PLC
- Mastercard Inc.
- Telenav Inc.
- ThinxNet GmbH
- Visa Inc.
- Xevo Inc.
- ZF Friedrichshafen AG. and other major players.
Key Industry Developments in the In-Vehicle Payment System Market
- In October 2024, Kia has unveiled CarPay, an innovative in-car payment service that allows customers to pay for items and services directly from their vehicles, starting with the EV3. The initial application, in partnership with Parkopedia, enables drivers in Europe to easily locate and pay for parking via the vehicle’s navigation screen. This significant advancement enhances customer convenience, addressing common parking challenges in urban areas and streamlining the payment process for drivers.
- In September 2023, Hyundai Motor America announced the launch of Hyundai Pay, an innovative in-vehicle payment service available in the all-new 2024 Kona. Partnering with Parkopedia, Hyundai Pay allows U.S. drivers to locate, reserve, and pay for parking at 6,000 locations directly from their vehicle’s touchscreen. This secure payment platform enhances convenience and sets the stage for future features, including additional electric vehicle applications across nine more Hyundai models.
In-Vehicle Payment System Market |
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Base Year: |
2023 |
Forecast Period: |
2024-2032 |
Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 6.08 Bn. |
Forecast Period 2024-32 CAGR: |
13.5% |
Market Size in 2032: |
USD 19 Bn. |
Segments Covered: |
By Mode of Payment |
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By Application Outlook |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the report: |
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Chapter 1: Introduction
1.1 Research Objectives
1.2 Research Methodology
1.3 Research Process
1.4 Scope and Coverage
1.4.1 Market Definition
1.4.2 Key Questions Answered
1.5 Market Segmentation
Chapter 2:Executive Summary
Chapter 3:Growth Opportunities By Segment
3.1 By Mode of Payment
3.2 By Application Outlook
Chapter 4: Market Landscape
4.1 Porter's Five Forces Analysis
4.1.1 Bargaining Power of Supplier
4.1.2 Threat of New Entrants
4.1.3 Threat of Substitutes
4.1.4 Competitive Rivalry
4.1.5 Bargaining Power Among Buyers
4.2 Industry Value Chain Analysis
4.3 Market Dynamics
4.3.1 Drivers
4.3.2 Restraints
4.3.3 Opportunities
4.5.4 Challenges
4.4 Pestle Analysis
4.5 Technological Roadmap
4.6 Regulatory Landscape
4.7 SWOT Analysis
4.8 Price Trend Analysis
4.9 Patent Analysis
4.10 Analysis of the Impact of Covid-19
4.10.1 Impact on the Overall Market
4.10.2 Impact on the Supply Chain
4.10.3 Impact on the Key Manufacturers
4.10.4 Impact on the Pricing
Chapter 5: In-Vehicle Payment System Market by Mode of Payment
5.1 In-Vehicle Payment System Market Overview Snapshot and Growth Engine
5.2 In-Vehicle Payment System Market Overview
5.3 NFC
5.3.1 Introduction and Market Overview
5.3.2 Historic and Forecasted Market Size (2017-2032F)
5.3.3 Key Market Trends, Growth Factors and Opportunities
5.3.4 NFC: Grographic Segmentation
5.4 QR Code/RFID
5.4.1 Introduction and Market Overview
5.4.2 Historic and Forecasted Market Size (2017-2032F)
5.4.3 Key Market Trends, Growth Factors and Opportunities
5.4.4 QR Code/RFID: Grographic Segmentation
5.5 App/e-wallet
5.5.1 Introduction and Market Overview
5.5.2 Historic and Forecasted Market Size (2017-2032F)
5.5.3 Key Market Trends, Growth Factors and Opportunities
5.5.4 App/e-wallet: Grographic Segmentation
5.6 Credit/Debit card
5.6.1 Introduction and Market Overview
5.6.2 Historic and Forecasted Market Size (2017-2032F)
5.6.3 Key Market Trends, Growth Factors and Opportunities
5.6.4 Credit/Debit card: Grographic Segmentation
Chapter 6: In-Vehicle Payment System Market by Application Outlook
6.1 In-Vehicle Payment System Market Overview Snapshot and Growth Engine
6.2 In-Vehicle Payment System Market Overview
6.3 Parking
6.3.1 Introduction and Market Overview
6.3.2 Historic and Forecasted Market Size (2017-2032F)
6.3.3 Key Market Trends, Growth Factors and Opportunities
6.3.4 Parking: Grographic Segmentation
6.4 Gas/charging stations
6.4.1 Introduction and Market Overview
6.4.2 Historic and Forecasted Market Size (2017-2032F)
6.4.3 Key Market Trends, Growth Factors and Opportunities
6.4.4 Gas/charging stations: Grographic Segmentation
6.5 Shopping
6.5.1 Introduction and Market Overview
6.5.2 Historic and Forecasted Market Size (2017-2032F)
6.5.3 Key Market Trends, Growth Factors and Opportunities
6.5.4 Shopping: Grographic Segmentation
6.6 Food/Coffee
6.6.1 Introduction and Market Overview
6.6.2 Historic and Forecasted Market Size (2017-2032F)
6.6.3 Key Market Trends, Growth Factors and Opportunities
6.6.4 Food/Coffee: Grographic Segmentation
6.7 Toll Collection
6.7.1 Introduction and Market Overview
6.7.2 Historic and Forecasted Market Size (2017-2032F)
6.7.3 Key Market Trends, Growth Factors and Opportunities
6.7.4 Toll Collection: Grographic Segmentation
6.8 Other
6.8.1 Introduction and Market Overview
6.8.2 Historic and Forecasted Market Size (2017-2032F)
6.8.3 Key Market Trends, Growth Factors and Opportunities
6.8.4 Other: Grographic Segmentation
Chapter 7: Company Profiles and Competitive Analysis
7.1 Competitive Landscape
7.1.1 Competitive Positioning
7.1.2 In-Vehicle Payment System Sales and Market Share By Players
7.1.3 Industry BCG Matrix
7.1.4 Ansoff Matrix
7.1.5 In-Vehicle Payment System Industry Concentration Ratio (CR5 and HHI)
7.1.6 Top 5 In-Vehicle Payment System Players Market Share
7.1.7 Mergers and Acquisitions
7.1.8 Business Strategies By Top Players
7.2 BMW AG
7.2.1 Company Overview
7.2.2 Key Executives
7.2.3 Company Snapshot
7.2.4 Operating Business Segments
7.2.5 Product Portfolio
7.2.6 Business Performance
7.2.7 Key Strategic Moves and Recent Developments
7.2.8 SWOT Analysis
7.3 CARPAY DIEM CERENCE INC.
7.4 DAIMLER AG
7.5 GENERAL MOTORS COMPANY
7.6 GENTEX CORPORATION
7.7 HARMAN INTERNATIONAL INDUSTRIES INC.
7.8 HONDA MOTOR COMPANY LTD.
7.9 HYUNDAI MOTOR COMPANY
7.10 JAGUAR LAND ROVER AUTOMOTIVE PLC
7.11 MASTERCARD INC.
7.12 TELENAV INC.
7.13 THINXNET GMBH
7.14 VISA INC.
7.15 XEVO INC.
7.16 ZF FRIEDRICHSHAFEN AG
7.17 OTHER MAJOR PLAYERS
Chapter 8: Global In-Vehicle Payment System Market Analysis, Insights and Forecast, 2017-2032
8.1 Market Overview
8.2 Historic and Forecasted Market Size By Mode of Payment
8.2.1 NFC
8.2.2 QR Code/RFID
8.2.3 App/e-wallet
8.2.4 Credit/Debit card
8.3 Historic and Forecasted Market Size By Application Outlook
8.3.1 Parking
8.3.2 Gas/charging stations
8.3.3 Shopping
8.3.4 Food/Coffee
8.3.5 Toll Collection
8.3.6 Other
Chapter 9: North America In-Vehicle Payment System Market Analysis, Insights and Forecast, 2017-2032
9.1 Key Market Trends, Growth Factors and Opportunities
9.2 Impact of Covid-19
9.3 Key Players
9.4 Key Market Trends, Growth Factors and Opportunities
9.4 Historic and Forecasted Market Size By Mode of Payment
9.4.1 NFC
9.4.2 QR Code/RFID
9.4.3 App/e-wallet
9.4.4 Credit/Debit card
9.5 Historic and Forecasted Market Size By Application Outlook
9.5.1 Parking
9.5.2 Gas/charging stations
9.5.3 Shopping
9.5.4 Food/Coffee
9.5.5 Toll Collection
9.5.6 Other
9.6 Historic and Forecast Market Size by Country
9.6.1 U.S.
9.6.2 Canada
9.6.3 Mexico
Chapter 10: Europe In-Vehicle Payment System Market Analysis, Insights and Forecast, 2017-2032
10.1 Key Market Trends, Growth Factors and Opportunities
10.2 Impact of Covid-19
10.3 Key Players
10.4 Key Market Trends, Growth Factors and Opportunities
10.4 Historic and Forecasted Market Size By Mode of Payment
10.4.1 NFC
10.4.2 QR Code/RFID
10.4.3 App/e-wallet
10.4.4 Credit/Debit card
10.5 Historic and Forecasted Market Size By Application Outlook
10.5.1 Parking
10.5.2 Gas/charging stations
10.5.3 Shopping
10.5.4 Food/Coffee
10.5.5 Toll Collection
10.5.6 Other
10.6 Historic and Forecast Market Size by Country
10.6.1 Germany
10.6.2 U.K.
10.6.3 France
10.6.4 Italy
10.6.5 Russia
10.6.6 Spain
10.6.7 Rest of Europe
Chapter 11: Asia-Pacific In-Vehicle Payment System Market Analysis, Insights and Forecast, 2017-2032
11.1 Key Market Trends, Growth Factors and Opportunities
11.2 Impact of Covid-19
11.3 Key Players
11.4 Key Market Trends, Growth Factors and Opportunities
11.4 Historic and Forecasted Market Size By Mode of Payment
11.4.1 NFC
11.4.2 QR Code/RFID
11.4.3 App/e-wallet
11.4.4 Credit/Debit card
11.5 Historic and Forecasted Market Size By Application Outlook
11.5.1 Parking
11.5.2 Gas/charging stations
11.5.3 Shopping
11.5.4 Food/Coffee
11.5.5 Toll Collection
11.5.6 Other
11.6 Historic and Forecast Market Size by Country
11.6.1 China
11.6.2 India
11.6.3 Japan
11.6.4 Singapore
11.6.5 Australia
11.6.6 New Zealand
11.6.7 Rest of APAC
Chapter 12: Middle East & Africa In-Vehicle Payment System Market Analysis, Insights and Forecast, 2017-2032
12.1 Key Market Trends, Growth Factors and Opportunities
12.2 Impact of Covid-19
12.3 Key Players
12.4 Key Market Trends, Growth Factors and Opportunities
12.4 Historic and Forecasted Market Size By Mode of Payment
12.4.1 NFC
12.4.2 QR Code/RFID
12.4.3 App/e-wallet
12.4.4 Credit/Debit card
12.5 Historic and Forecasted Market Size By Application Outlook
12.5.1 Parking
12.5.2 Gas/charging stations
12.5.3 Shopping
12.5.4 Food/Coffee
12.5.5 Toll Collection
12.5.6 Other
12.6 Historic and Forecast Market Size by Country
12.6.1 Turkey
12.6.2 Saudi Arabia
12.6.3 Iran
12.6.4 UAE
12.6.5 Africa
12.6.6 Rest of MEA
Chapter 13: South America In-Vehicle Payment System Market Analysis, Insights and Forecast, 2017-2032
13.1 Key Market Trends, Growth Factors and Opportunities
13.2 Impact of Covid-19
13.3 Key Players
13.4 Key Market Trends, Growth Factors and Opportunities
13.4 Historic and Forecasted Market Size By Mode of Payment
13.4.1 NFC
13.4.2 QR Code/RFID
13.4.3 App/e-wallet
13.4.4 Credit/Debit card
13.5 Historic and Forecasted Market Size By Application Outlook
13.5.1 Parking
13.5.2 Gas/charging stations
13.5.3 Shopping
13.5.4 Food/Coffee
13.5.5 Toll Collection
13.5.6 Other
13.6 Historic and Forecast Market Size by Country
13.6.1 Brazil
13.6.2 Argentina
13.6.3 Rest of SA
Chapter 14 Investment Analysis
Chapter 15 Analyst Viewpoint and Conclusion
In-Vehicle Payment System Market |
|||
Base Year: |
2023 |
Forecast Period: |
2024-2032 |
Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 6.08 Bn. |
Forecast Period 2024-32 CAGR: |
13.5% |
Market Size in 2032: |
USD 19 Bn. |
Segments Covered: |
By Mode of Payment |
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By Application Outlook |
|
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By Region |
|
||
Key Market Drivers: |
|
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Key Market Restraints: |
|
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Key Opportunities: |
|
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Companies Covered in the report: |
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Frequently Asked Questions :
The forecast period in the In-Vehicle Payment System Market research report is 2024-2032
BMW AG, CarPay Diem Cerence Inc., Daimler AG, General Motors Company, Gentex Corporation, Harman International Industries Inc., Honda Motor Company Ltd., Hyundai Motor Company, Jaguar Land Rover Automotive PLC, Mastercard Inc., Telenav Inc., ThinxNet GmbH, Visa Inc., Xevo Inc., ZF Friedrichshafen AG., and other major players.
The In-Vehicle Payment System Market is segmented into Mode of Payment, Application Outlook, and region. By Mode of Payment, the market is categorized into NFC, QR Code/RFID, App/e-wallet, Credit/Debit card. By Application Outlook, the market is categorized into Parking, Gas/charging stations, Shopping, Food/Coffee, Toll Collection, Other. By region, it is analyzed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain, etc.), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).
In-car payment services allow drivers to order and pay for items such as food, coffee, gasoline, groceries, parking spaces, and tolls without having to exit their vehicle. The market is predicted to increase due to advancements in Internet of Things (IoT) technology and strong efforts by various automakers to integrate new, advanced infotainment systems into their vehicle models over the forecast period.
The In-Vehicle Payment System Market size was valued at USD 6.08 Billion in 2023 and is projected to reach USD 19 Billion by 2032, registering a CAGR of 13.5% from 2023 to 2032.