The passenger vehicle segment is expected to lead the market with a projected market value of $17.65 billion by 2031
FREMONT, Calif., March 16, 2023 /PRNewswire/ -- BIS Research, the global leader in providing market intelligence on deep technologies, has released its latest study titled In-Vehicle Payments Market - A Global and Regional Analysis.
According to this study, the recent surge in the adoption of in-vehicle payment services across developed economies and their growing global awareness is shifting automakers' focus to equip their upcoming models with the in-vehicle payment system. A prominent example of this is that well-known automakers, including Honda, General Motors, Mercedes, and others, have already begun to offer payment services in recent years.
In addition to this, debit and credit cards are the most popular payment methods, and they are widely used to make in-vehicle payments as these methods provide a convenient way to pay without cash or checks and are accepted almost everywhere.
According to BIS Research's report, digital cards are now being made by tokenizing a physical card, a technology standardized by EMVco, which is a consortium with control split equally among Visa, Mastercard, JCB, American Express, China UnionPay, and Discover, and it is widely used around the world.
This shift in OEMs' focus toward developing in-car payment services is expected to generate a significant growth of 18.15% in the in-vehicle payments market between 2022-2031.
Passenger Vehicles to Dominate the Global In-Vehicle Payments Market (by Vehicle Type)
Another very significant insight that this study highlights is that in terms of vehicle type, it is the passenger vehicles segment that is currently credited with the highest share of the demand for in-vehicle payments. In 2022, this segment alone accounted for a market share of $4.04 billion out of the overall $5.77 billion.
This trend is expected to continue for the next few years owing to the rise in demand for heavy and luxury vehicles and an increase in cars driven by diesel engines. Additionally, increased population, urbanization, and disposable income have significantly increased passenger car production, thereby fueling the market.
Want to learn more about this emerging trend? Request a free sample of the report here
https://bisresearch.com/requestsample?id=1426&type=download
You can also check out the detailed table of content for this report here
https://bisresearch.com/requestsample?id=1426&type=toc
Analyst's Take on the Market Projection
According to Dhrubajyoti Narayan, Principal Analyst, BIS Research, "The rate of digital payment innovation is driving a cost reduction that is expected to double the compound annual growth rate of the in-vehicle payments market. The emergence of new players results in new business models and a more competitive environment. Some examples of innovations are contactless payments, and QR codes, among others. Subscription and mobility-as-a-service are on the rise, and automakers must learn how to balance these new business models to ensure they continue to enhance customer experience and meet their revenue sales goals. Contactless payments are a safe payment method that uses a debit, credit, or smart card enabled by radio frequency identification (RFID) or near-field communication (NFC). Due to its speed and convenience, this digital payment method is gaining popularity. Moreover, proliferating demand for EV infrastructure and autonomous vehicles is expected to significantly augment the demand for in-vehicle payments in the coming years."
Speak to an expert analyst for more details.
About BIS Research:
BIS Research is a global B2B market intelligence and advisory firm focusing on deep technology and related emerging trends, which can disrupt the market dynamics in the near future. We publish more than 200 market intelligence studies annually that focus on several deep technology verticals.
Our strategic market analysis emphasizes on market estimations, technology analysis, emerging high-growth applications, deeply segmented granular country-level market data, and other important market parameters useful in the strategic decision-making for senior management.
BIS Research offers syndicate as well as custom studies and expert consultations to firms, providing them with specific and actionable insights on novel technology markets, business models, and competitive landscapes.
Contact:
Head of Marketing
Email: media@bisresearch.com
+1-510-404-8135
BIS Research Inc.
39111 PASEO PADRE PKWY STE 313,
FREMONT, CA, 94538-1686
Visit our Blog @ https://bisresearch.com/news
Get Expert Insights @ https://community.insightmonk.com
Connect with us on LinkedIn @ https://www.linkedin.com/company/bis-research
Connect with us on Twitter@ https://twitter.com/BISResearch
Logo:https://mma.prnewswire.com/media/495163/BIS_Research_Logo.jpg
Share this article