The In-Vehicle Payment Services Market is estimated to be valued at US$ 6.28 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
In-vehicle payment services allow users to make payment for goods and services directly from their vehicles. These services provide benefits such as easy, safe and secure way to pay for things like fuel, parking tolls and food delivery directly from vehicle's built-in system or connected mobile devices. The increasing demand for contactless payment solutions is driving the need for in-vehicle payment services.
Market key trends:
Growing popularity of connected vehicles is a major trend boosting the in-vehicle payment services market. Connected cars are equipped with internet connectivity that allows drivers to integrate their smartphones with vehicle's infotainment system. This enables making payments directly through the vehicle. Major automakers are focusing on development of advanced connected vehicle technologies with integration of payment functionalities. For instance, BMW Group launched new BMW Digital Key that allows smartphone to act as vehicle key and also facilitates in-vehicle payments for services. Growing investments by automakers as well as payment service providers in connected vehicle technologies is expected to support the demand for in-vehicle payment services over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to high initial capital investments required to enter the market. Bargaining power of buyers: The bargaining power of buyers is high as customers can easily switch between service providers. Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of substitute payment service providers. Threat of new substitutes: The threat of new substitutes is high with the emergence of new technologies like contactless payments. Competitive rivalry: is high among existing players.
SWOT Analysis
Strength: Established distribution network and brand loyalty. Wide service portfolio and technological capabilities.
Weakness: High research and development costs, vulnerability to cyber threats. Dependency on partnerships with automakers.
Opportunity: Untapped growth potential in developing markets. Rising adoption of e-commerce and m-commerce.
Threats: Stringent regulations around data privacy and security. Increased competition from tech giants.
Key Takeaways
The global In-Vehicle Payment Services Market Share is expected to witness high growth, exhibiting CAGR of 17% over the forecast period, due to increasing preference for contactless payment methods among customers. The Asia Pacific region is expected to be the fastest growing region due to the presence of emerging economies like China and India with high automobile production. Key players operating in the In-Vehicle Payment Services market are BMW Group, Mastercard, Daimler Ag, Amazon, Ford Motor Company, Volkswagen Ag, Honda Motor Co., Ltd., General Motors Company, and Hyundai Motor. By 2030, the In-Vehicle Payment Services Market Size is anticipated to reach US$ 35.12 Bn, owing to rapid urbanization and rising purchasing power in developing countries. Technological advancements are further enabling seamless integration of payment services within vehicle dashboards for safer and convenient transactions.
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https://www.newsstatix.com/in-vehicle-payment-services-market-trends-size-and-share-analysis/
