In-vehicle Payment Services Market Size to Grow by USD 2.31 billion

The in-vehicle payment services market potential growth difference will be USD 2.31 billion from 2020 to 2025, as per the latest market analysis report by Technavio.

The report estimates the market to project a decelerating growth momentum at a CAGR of 89.94% during this period. The high correlation between consumer electronics and connected car solutions is a major driver fueling the in-vehicle payment services market growth.

However, low adoption of in-vehicle payment services is a major hindrance to the in-vehicle payment services market growth.

The RFID type segment held the largest in-vehicle payment services market share in 2020. The segment will continue to account for the highest revenue throughout the forecast period. The growth of this segment can be attributed to the increasing use of this technology in new vehicles ensures payment of toll plazas digitally and also avoids the vehicle's waiting time. Several vendors in the market are using RFID technology for in-vehicle payment services. For instance, Daimler AG uses an electronic payment platform, Mercedes pay, that supports in-vehicle payment for parking as well as payment for fuel conveniently via app. Mercedes pay operates using RFID technology.

BMW AG, Daimler AG, Ford Motor Co., General Motors Co., Gentex Corp., Honda Motor Co. Ltd., Hyundai Motor Co., JAGUAR LAND ROVER AUTOMOTIVE PLC, Volkswagen AG, and ZF Friedrichshafen AG are some of the major market participants.