Worldwide In-Vehicle Payments Industry is Projected to Reach $25.9 Billion by 2031

The global in-vehicle payments market is projected to reach $25,918.6 million by 2031 from $4,900.0 million in 2021, growing at a CAGR of 18.15% during the forecast period 2022-2031.

The recent surge in the adoption of in-vehicle payment services across developed economies and their growing global awareness is shifting automakers' focus to equip their upcoming models with the in-vehicle payment system.

For example, well-known automakers, including Honda, General Motors, Mercedes, and others, have already begun to offer in-vehicle payment services in recent years. This shift in original equipment manufacturer (OEM) focus toward developing in-car payment services is expected to drive growth in the in-vehicle payments market in the coming years.

The in-vehicle payment system is a payment technology-equipped automotive system. This system enables the driver to make payments or transactions with various companies or applications, including gas/charging stations, parking, toll collection, and others.

Furthermore, the system allows passengers to make purchases directly from their vehicle dashboard, saving time and making the process more convenient. As a result, the growing public demand for timely and efficient contactless transactions is driving the adoption of these services.

In-vehicle payment services enable drivers to order and pay for food, coffee, gasoline, groceries, parking spaces, and tolls without leaving the vehicle. MasterCard, Visa, and PayPal, among others, are collaborating with automakers around the world to develop and integrate new payment processes and methods in vehicles.

Passenger vehicles are currently credited with the highest share of the demand for in-vehicle payments. Some key factors that have enabled the technical acceptance of these vehicles are high demand, higher registration of passenger cars, and less operating difficulty as compared to commercial vehicles. The need for passenger vehicles is growing due to the demand for heavy and luxury vehicles and an increase in the number of cars driven by diesel engines. Additionally, increased population, urbanization, and disposable income have significantly increased passenger vehicle production.