In recent years, the use of in-vehicle entertainment systems has significantly increased in both China and the United States, where the infotainment business is a fast-expanding industry. Yet it’s important to note that the two markets differ significantly in certain important ways.
The size of the market is one of the main distinctions. With a total market value of more than $20 billion in 2020, the infotainment industry in China is significantly bigger than the market in the United States. This is partially attributable to China’s greater population and expanding middle class.
The kinds of infotainment systems that are popular in the two markets are another significant distinction. Domestic producers like SAIC Motor and Great Wall Motor, who frequently concentrate on more simple entertainment systems that are more inexpensive for consumers, dominate the industry in China.
In contrast, foreign automakers like Ford, General Motors, and Toyota dominate the US infotainment industry with their emphasis on more sophisticated, more expensive, but feature-rich infotainment systems.
The infotainment industry in China lags behind the U.S. in terms of technology, but it is gradually catching up. Chinese automakers are making significant investments in R&D to raise the caliber and functionality of their infotainment systems.
Chinese automakers are also concentrating on incorporating cutting-edge technology into their infotainment systems, such as 5G and AI, which will eventually add new features and capabilities to the Chinese market.
China’s infotainment market is more controlled than the market there in terms of laws and rules. Strict rules governing infotainment systems have been put in place in China, including requirements for safety features like autonomous emergency braking and lane departure warning. In contrast, the infotainment industry in the US is less controlled, with the government mostly delegating the decision of what features to include in the systems to the manufacturers.
Finally, it’s important to note the variations in customer preferences across these two marketplaces. While American customers are more prepared to pay a premium for sophisticated features and capabilities, Chinese consumers prefer to value cost and basic functions above advanced ones.