In-vehicle Payment Services Market Size Is Poised To Reach $11.03 Billion By 2027: Grand View Research Inc.

 

The global in-vehicle payment services market size is expected to reach USD 11.03 billion by 2027, registering a CAGR of 19.9% from 2020 to 2027, according to a new report by Grand View Research, Inc. The increasing spending on convenience related to vehicles, rising disposable incomes, and the adoption of contactless payments are the key factors driving growth. Growing technological advancements and the adoption of mobile contactless payments are anticipated to further fuel the growth.

In-vehicle payment services are gaining adoption owing to the ease and convenience offered by various modes of payment services to the drivers and passengers. Automakers such as BMW, Mercedes, Ford, Honda, General Motors, and Jaguar Land Rover, have established services and solutions integrated into their vehicle models. With the increasing penetration of connected cars and advanced infotainment, the in-vehicle payment services are expected to flourish in the coming years. Currently, vehicle users are continually looking for a hassle-free experience in their busy schedules and an upgraded lifestyle. Thus, the ability to shop, order, and pay on the go without actually using card and cash transactions helps in reducing the time consumed and allows the commuters to travel safely. Hence, payment service providers such as MasterCard, Visa, PayPal are actively engaged in partnerships and collaborations with the OEMs to deliver efficiently in-vehicle payment services platforms.

The OEMs are designing and developing an ecosystem for payments in such a way that the driver and passenger may not need to get out of the vehicle and receives the desired services such as gasoline, parking spaces, and its payments, charging, toll collection booth, ordering food and coffee and others. However, the majority of parking systems, gas stations, toll collection booths have been incorporated with the mobile payment technology. E-wallet is gaining major attraction across the globe owing to convenience and ease of payment. Leading players such as Google-Google Pay, Amazon-Amazon Pay, and Apple Pay are gaining widespread adoption and are expected to be heavily adopted until 2027. The COVID-19 pandemic has already flourished the demand for contactless payments.

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For instance, General Motors partnered with MasterCard to develop a solution for in-vehicle payment. Visa, in collaboration with SiriusXM, has announced to launch a vehicle-based payments platform. Other manufacturers such as Honda, Volkswagen, and Ford have developed their in-vehicle payment platforms and solutions. Manufacturers are developing inbuilt systems such as voice-based control, which enables shopping on the road with safety for the drivers. Drivers need to keep their eyes and hands focused on the streets and highways while accomplishing their purchasing needs. The voice-activated dashboard can distract the driver. According to a study conducted at the University of Utah, speech-to-text technology causes a higher level of cognitive distraction than any other activity since more effort is required to talk to the dashboard than talking to a real person. However, the growth in the connected and self-driven car is expected to fuel the market growth in the coming years.

In-vehicle Payment Services Market Report Highlights

  • The parking application segment is anticipated to register the fastest CAGR of over 20% during the forecast period
  • The credit/debit card-based payments emerged as the largest segment in 2020. The segment is estimated to generate revenue of over USD 5.77 billion by 2027
  • North America held the largest revenue share in 2020. Rising disposable income and the adoption of technological innovation related to vehicles in the region are anticipated to drive the growth.

Passengers are also willing to make quick purchases wherein the drivers can help in collecting the purchases. Parking and its payment allow the drivers to park their vehicles hassle-free, which further helps in traffic management and reduced operational costs for parking space. Additionally, OEMs, in collaboration with manufacturers, are creating an on-dashboard marketplace for drivers. For instance, General Motors allows drivers to place requests and orders from this on-dashboard for different products and services, which includes hotels, rooms, stays, parking, and dinner reservations, among others.

With the growing adoption of connected cars and in-vehicle payment services, the primary concern occurs with data storage and security. Hackers can locate and track the payment information causing significant financial losses. However, cloud storage resolves the issues of data storage and management. Currently, the automotive industry, including connected cars and electric vehicles, contributes to the maximum data generation.

The food and coffee ordering application segment accounted for the largest revenue share of around 26% in 2020. Currently, many drivers and passengers prefer ordering food and coffee on their way to offices and workplaces, or when they go to a destination. However, increasing traffic lowers the probability of waiting for and buying food and coffee, thus ordering food through the vehicle, and picking up the same on the way reduces the total time taken, further increasing the popularity.

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The key players that dominated the global market in 2020 include Honda, Ford, Volkswagen, and General Motors. These players have developed their payment solutions in collaboration and partnership with payment solution providers. Amazon and Google have introduced voice control based integrated devices to the vehicle dashboard. It allows navigation, shopping, and performing other tasks, and is expected to pay for them through various modes of payment. Some prominent players in the in-vehicle payment services market include:

  • BMW AG
  • Daimler AG
  • Ford Motor Co.
  • General Motors
  • Honda Motor Co. Ltd.
  • Hyundai Motor Co.
  • Jaguar Land Rover Automotive PLC
  • Volkswagen AG
  • ZF Friedrichshafen AG
  • Google
  • Amazon
  • Visa
  • MasterCard
  • PayPal

For this report, Grand View Research has segmented the global in-vehicle payment services market based on the mode of payment, application:

In-vehicle Payment Services Mode Of Payment Outlook (Revenue, USD Billion, 2017 - 2027)

  • NFC
  • QR Code/ RFID
  • App-based/e-wallet
  • Credit/Debit Card-based

In-vehicle Payment Services Application Outlook (Revenue, USD Billion, 2017 - 2027)

  • Parking
  • Gas/Charging Stations
  • Shopping
  • Food/Coffee
  • Toll Collection
  • Others

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

For More Information:www.grandviewresearch.com

 

 

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