What Has Driven the Growth of the In-Vehicle Payment Services Market in Recent Years?
The in-vehicle payment services market has seen considerable growth due to a variety of factors.
• Recent years have seen a significant increase in the market size for in-vehicle payment services. The market is expected to expand from its 2024 size of $4.27 billion to $4.73 billion in 2025, reflecting a compound annual growth rate (CAGR) of 10.8%.
The impressive growth during the historical period is associated to factors such as consumer convenience and the increased popularity of connected vehicles.
What is the Market Size Forecast for the In-Vehicle Payment Services Market?
The in-vehicle payment services market is expected to maintain its strong growth trajectory in upcoming years.
• Over the next few years, experts predict swift expansion in the market size of in-vehicle payment services. By 2029, the market is projected to be worth $7.14 billion, indicating a compound annual growth rate (CAGR) of 10.8%.
This predicted growth through the forecast period is due to factors such as ongoing advancements in connectivity, enhanced security in in-car commerce, regulatory backing and standardization, and integration with the concept of smart cities. The forecast period also signifies important trends such as advancements in mobile technology, increased partnerships and collaborations, security improvemnts through blockchain, association with fintech corporations and the emergence of subscription-based models.
Which Factors Are Boosting Growth In The In-Vehicle Payment Services Market?
The escalating inclination towards touch-free transactions is significantly propelling the growth of the in-vehicle payment services sector. This shift towards touch-free transactions accelerated during the COVID pandemic, and the seamless and sophisticated support from the payment mechanisms further boosted it. For instance, the U.S. current-account deficit surged by $15.9 billion to $237.6 billion in the first quarter of 2024, recording a larger trade deficit in goods, as reported by the US government in June 2024. This leap represented 3.4 percent of the current-dollar GDP, a rise from 3.2 percent in the preceding quarter, with the revised deficit for the fourth-quarter standing at $221.8 billion. Hence, the augmenting preference for contactless payments is likely to bolster the growth of the in-vehicle payment services market in future.
What Key Areas Define The Segmentation Of The Global In-Vehicle Payment Services Market?
The in-vehicle payment services market covered in this report is segmented –
1) By Mode Of Payment: QR Code Or RFID, App-Based Or E-Wallet, Credit Or Debit Card-Based, Other Modes
2) By Form Factor: Embedded System, Tethered System, Integrated System
3) By Vehicle Type: Passenger Cars, Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles (HCVs), Automated Guided Vehicles
4) By Application: Shopping, Gas Or Charging Stations, Food And Beverages, Toll Collection, Parking, Other Applications
Subsegments:
1) By QR Code Or RFID: QR Code Payments, RFID Tags
2) By App-Based Or E-Wallet: Mobile Payment Apps, Digital Wallets
3) By Credit Or Debit Card-Based: Contactless Card Payments, Chip And PIN Transactions
4) By Other Modes: Biometric Payments, Cash Payments
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How Are Emerging Trends Reshaping The Dynamics Of The In-Vehicle Payment Services Market?
Leading firms in the in-vehicle payment services sector are using strategic alliances and partnerships to roll out advanced in-vehicle payment solutions and gain an upper hand in the market. For example, in July 2023, India's CarIQ Technologies Pvt. Ltd., a software business, teamed up with Visa Inc., a credit card service firm headquartered in the US, to release Vehicle Wallet. This feature allows vehicles to handle payment accounts and conduct transactions with merchants without requiring physical cards. Collaborating with Visa allows the technology to further penetrate the connected vehicle market by adding personalized payment experiences based on vehicle data. Its unique "Know Your Machine" function offers vehicle-based identity verification for secure, hassle-free transactions.
Who Are the Key Players in the In-Vehicle Payment Services Market?
Major companies operating in the in-vehicle payment services market include:
• Mastercard Inc.
• The Mercedes-Benz Group AG
• Jaguar Land Rover Automotive PLC
• Honda Motor Co. Ltd.
• Hyundai Motor Company
• ZF Friedrichshafen AG
• Amazon. com Inc.
• Google LLC
• International Business Machines Corporation
• Telenav Inc.
• Xevo Inc.
• CarPay Diem Cerence Inc.
• PayPal Holdings Inc.
• Bayerische Motoren Werke AG
• Ford Motor Company
• General Motors Company
• Volkswagen AG
• VISA Inc.
• Harman International Industries Inc.
• Audi AG
• Panasonic Corporation
• CarIQ Technologies Pvt. Ltd.
• BlackBerry Limited
• Parkwhiz
• Rivian Automotive Inc.
• PayByCar
What Is The Most Dominant Region In The In-Vehicle Payment Services Market?
North America was the largest region in the in vehicle payment services market in 2024. The regions covered in the in-vehicle payment services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
