The car dashboard has become a critical battleground for consumer engagement and revenue growth. As vehicle computer systems become more connected and sophisticated, mastering infotainment and digital aftersales — especially functions on demand (FoD), which let customers purchase or activate features after a sale — will shape how original equipment manufacturers (OEMs) compete, monetize, and differentiate in the decade ahead. Customers not only value these capabilities, they now expect them.
Automotive infotainment market set to hit $14 billion by 2030
The infotainment-enabled digital aftersales market in the automotive industry is projected to grow by roughly $5 billion, reaching nearly $14 billion by 2030, according to our 2025 Infotainment Survey, in which we polled 2,000 consumers across three countries. Growth is expected at about 10% CAGR across scenarios, with the range largely driven by shifts in consumer willingness to pay, the effectiveness of partnerships, and broader marketing efforts by OEMs.
Every second user will be willing to pay for infotainment features at an annual average rate per user (ARPU) of nearly $480, with premium and super-premium vehicles forming the core of the enabled fleet, and enablement rising from roughly 30% in 2020 to about 80% by 2025.
There’s an important caveat: FoD offerings are still relatively new, and people’s stated willingness to pay for them may be elevated by a desire to have the latest technology. OEMs should validate through pilots and A/B testing before scaling their offerings.
Automotive infotainment consumer demand — led by Gen Z and China
Nonetheless, our survey indicates that demand for FoD is robust. Roughly half of respondents either rate infotainment features as highly important or indicate they would pay for at least one such feature. The age effect is pronounced: Gen Z shows a 20% higher willingness to pay compared with Gen X, and a 50% higher willingness when compared with Baby Boomers, an alignment of digital-native attitudes with in-car experiences that OEMs can no longer ignore.
Regional dynamics also offer further diversified opportunities for OEMs. There’s a higher willingness in China to pay monthly subscriptions compared with the United States and Germany, and Chinese consumers are significantly more likely to switch brands for a better infotainment experience. Meanwhile, about 40% of respondents rate third-party service integration like Apple CarPlay or Android Auto as an important factor when purchasing a car with an infotainment system — an indicator that openness and ecosystem choices influence perceived value.
Automotive infotainment technology stack — from many ECUs to central computing
Under the hood, infotainment rides on a multi-layer digital stack that spans human-machine interface (HMI), application, middleware, operating system (OS), and hardware. Each layer plays a specific role — HMI engages the user; apps deliver services; middleware bridges apps and OS; OS abstracts hardware; and the hardware layer powers compute, storage, and connectivity.
The architectural shift underway is decisive. Historically, vehicles relied on a distributed network of more than 100 electronic control units (ECUs), which added complexity, latency, and cost. The future is centralized computing with multi core systems distributing functions to sensors and actuators, enabling faster performance, simpler integration, and more seamless over the air updates. This transition has implications across the ecosystem.
Automotive infotainment strategy — positioning and partnerships amid shifts
OEMs face a fundamental strategic question: where to position in the stack and where to partner. The landscape is crowded and innovation is moving fast; examples include Stellantis’ MobileDrive JV, Ford’s collaboration with Baidu around SYNC+, Qualcomm’s Snapdragon Digital Chassis, and Google’s Android Auto/Google built in.
At the same time, brand strategies diverge on platform openness. GM’s decision to stop offering Apple CarPlay/Android Auto in future EVs, BMW’s Panoramic iDrive debut, Ferrari’s move to drop built in navigation in favor of phone projection, and Audi’s plans to expand on demand features underscore differing bets about who should own the in car software experience. These moves hint at a larger contest: ecosystem ownership versus compatibility. The right stance likely varies by market, model line, and brand positioning.
FoD monetization through functions on demand
FoD translates use cases into monetizable services post-sale, allowing OEMs to package, price, and continuously update features delivered through the on-board infotainment system. There is a broad spectrum of infotainment use cases, and the role of the digital stack in enabling on demand commercialization cannot be understated.
Success hinges on aligning portfolio design with willingness to pay and perceived value:
- Build tiers and bundles that capture mass demand while offering premium add ons for tech hungry segments, especially Gen Z and Gen X
- Tailor regional offerings — China merits a richer, more advanced FoD slate given higher willingness to pay and a propensity to switch brands
- Balance proprietary user experience with third party integrations to meet consumer expectations and reduce churn
That said, even with promising signals, execution risk remains:
- Integration challenges and timing uncertainties may slow central computing rollouts
- Stated willingness to pay must be corroborated by real world conversions; pricing missteps or weak content can erode uptake
- Ecosystem choices (closed versus open) carry trade offs for brand perception, developer support, and feature breadth
Infotainment as the automotive “brand and business model“ interface
The industry’s center of gravity is shifting. Infotainment isn’t just a convenience feature anymore, but an integral offering in every modern car sold — offering a platform for recurring revenues, customer lifetime value, and brand affinity. The market’s trajectory to reach nearly $14 billion by 2030, the enthusiasm among younger cohorts, and China’s outsized demand set the stage for growth.
For OEMs, three imperatives stand out:
- Decide where to own versus where to partner across the stack
- Embrace central computing to reduce complexity and enable OTA-driven value creation
- Build disciplined FoD portfolios that reflect cohort and regional realities, supported by rigorous testing to validate willingness to pay
The payoff is compelling: better customer experiences, durable subscription economics, and a platform for continuous innovation, making infotainment-enabled digital aftersales a defining pillar of automotive’s next chapter.