In-Vehicle Payment Services Market Forecast (2024-2031)
The in-vehicle payment services market size is expected to grow at a CAGR of 17.3% from 2023 to 2031. The in-vehicle payment services market includes growth prospects owing to the current in-vehicle payment services market trends and their foreseeable impact during the forecast period. The in-vehicle payment services market is a large and expanding sector. The in-vehicle payment services market is growing due to increasing trends of contactless payment post-COVID outbreak, a growing customer base to achieve convenience in vehicles, and growing technology innovation.
In-Vehicle Payment Services Market Analysis
In-vehicle payments are one of the technical innovations that are gaining enormous popularity among consumers due to the advantages it provides to digital payment technology. In-vehicle payments enable vehicle owners to buy goods and services from inside the vehicle without any payment equipment. The drivers can use in-vehicle payments to pay or transact at gas/charging stations, parking, restaurants and bars, toll gates and others.
In-Vehicle Payment Services Market Industry Overview
- The in-vehicle payment services market is a growing industry and is becoming more important. The in-vehicle payment services encompass various services such as paying for fuel at gas stations, covering toll charges, handling parking fees, and even making purchases from drive-thru restaurants or other vendors.
- The in-vehicle payment services market is gaining traction due to the increasing amount of time people spend in their cars, whether it's for commuting, travel, or running errands. With the rise of connected vehicles and smart technology, there are ample opportunities for companies to develop innovative solutions that streamline the payment process and enhance the overall driving experience.
- Key players in this market are constantly working on developing new solutions, such as mobile apps, integrated payment systems, and partnerships with merchants, to meet the evolving needs of consumers and businesses.
In-Vehicle Payment Services Market Driver
Increasing Trends Of Contactless Payment Post-COVID Outbreak To Drive The In-Vehicle Payment Services Market
- The COVID pandemic highlighted the importance of contactless payment. As more consumers prefer quick, convenient, and hygienic payment options, the demand for seamless payment solutions within vehicles is expected to surge. Contactless payment methods, such as tap-to-pay cards, mobile wallets, and wearable devices, offer users a hassle-free way to complete transactions without the need for physical contact or handling cash.
- Contactless technology enables drivers and passengers to effortlessly pay for fuel, tolls, parking, and other services without having to handle cash or interact with traditional payment terminals. This not only enhances convenience but also contributes to a safer and more hygienic payment experience, especially in light of health concerns and the emphasis on reducing germ transmission.
- Thus, the growing preference for contactless payment methods, driven by convenience, hygiene, and safety considerations, is expected to drive the in-vehicle payment services market.
In-Vehicle Payment Services Market Report Segmentation Analysis
- Based on the mode of payment, the in-vehicle payment services market is segmented NFC, QR Code/RFID, App/E-wallet Based, Credit/Debit Card Based. The NFC segment is expected to hold a substantial in-vehicle payment services market share in 2023.
- Near-field communication (NFC) technology allows a device such as a smartphone or a smartwatch to communicate with a payment terminal by being held close to it. This eliminates the need for drivers to physically hand over cash or a card to a cashier, reducing the risk of exposure to viruses or other contaminants.
In-Vehicle Payment Services Market Share Analysis By Geography
The scope of the in-vehicle payment services market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant in-vehicle payment services market share with a large population of car owners and a strong culture of convenience and innovation. Moreover, the increasing adoption of connected car technology has further boosted the demand for in-vehicle payment services in North America.
In-Vehicle Payment Services Market Report Scope
The "In-Vehicle Payment Services Market Analysis" was carried out based on mode of payment, application and geography. On the basis of plan type, the market is segmented into fully insured plans, mixed-insured plans, and self-insured plans. On the basis of enterprise size, the market is segmented into large enterprises and SMEs. Based on distribution channels, the market is segmented into agents, direct sales, banks, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
In-Vehicle Payment Services Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the in-vehicle payment services market. A few recent key market developments are listed below:
- In September 2023, Hyundai partnered with Parkopedia to launch Hyundai Pay’s first service, which lets drivers locate, reserve, and pay for parking at 6000 designated locations – all from the comfort of their vehicles. The service keeps personal details secure using tokenization, which replaces card account details with a unique digital identifier or token.
[Source: Hyundai, Press Release]
- In November 2023, Skoda Auto introduced in-car payments with a brand-new Pay to Fuel service. Pay to Fuel allows drivers to pay for fuel via the car’s infotainment system, skipping the queue at the cashier. The service is available in six European countries, with more in the pipeline.
[Source: Skoda Auto, Press Release]
In-Vehicle Payment Services Market Report Coverage & Deliverables
The in-vehicle payment services market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "In-Vehicle Payment Services Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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