SAN FRANCISCO, Oct. 8, 2020 /PRNewswire/ -- 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.
Key suggestions from the report:
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 2019. The segment is estimated to generate revenue of over USD 5.77 billion by 2027
North America held the largest revenue share in 2019. Rising disposable income and the adoption of technological innovation related to vehicles in the region are anticipated to drive 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.
Grand View Research has segmented the global in-vehicle payment services market based on mode of payment, application, and region:
In-vehicle Payment Services Mode Of Payment Outlook (Revenue, USD Billion, 2017 - 2027)
Digital Payment Market – The global sports analytics market size was valued at USD 774.6 million in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 31.2% from 2019 to 2025.
Real-Time Payments Market – The global Real-Time Payments (RTP) market size was valued at USD 6.90 billion in 2018 and is projected to expand at a CAGR of 29.3% from 2019 to 2025.
Payment Security Market – The global payment security market size was estimated at USD 15.79 billion in 2017. It is expected to expand at a CAGR of 12.3% over the forecast period.
Gain access to Grand View Compass, our BI enabled intuitive market research database of 10,000+ reports
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.