In-Vehicle Payment Services Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030
Page: 215 | Report Code: BFSI241104 | Research Suite: Report (PDF) & Market Data (Excel)
The in-vehicle payment services market was valued at USD 1.8 billion in 2022, and a CAGR of 22.2% is expected during the forecast period. It is an automated system equipped with e-commerce technologies. The system facilitates the user to execute transactions for various applications such as toll gates, smart parking, gas stations, and charging systems. With the growth of IoT and automotive technology, more vehicles are becoming connected, allowing them to tolls, parking, fast food, and retail.
Increasing demand for convenient, fast, and contactless payments, these services allow drivers to purchase things without leaving the cars, reducing wait time at gas stations, drive-throughs, and toll booths. Integrated voice-activated assistance like Alexa, Google Assistant, and Apple CarPlay into vehicles enable voice-controlled payment services. Partnerships among various industries like automakers, financial service providers, fuel stations, and quick service restaurants, along with toll operators, are expanding the in-vehicle payment services network.
Growth Drivers
With the growth of digital wallet and contactless payment preferences, consumers are increasingly using non-cash payment methods. In-Vehicle Payment solutions integrate these digital payment options, aligning with the trend towards cashless transactions. As autonomous vehicles become more prevalent, there is a growing need for automated, in-vehicle payment systems that do independently handle the payments for services like charging, tolls, and parking, making payment integration a necessity.
Increasing investment by governments in smart cities and toll infrastructure promotes the use of automated payment systems for traffic management. These developments support in-vehicle payment solutions for toll roads, congestion zones, and parking, fueling market growth. Advanced encryption and authentication methods such as biometric verification and tokenization ensure secure transactions, making consumers more comfortable using in-vehicle payment services.
Enhanced
security is critical to the widespread adoption of these services. Integrated
voice-activated assistance like Alexa, Google Assistant, and Apple CarPlay into
vehicles enable voice-controlled payment services.
Segmentation
Vehicle Type
·
Passenger Cars
·
Commercial Vehicles
·
Heavy Duty Trucks
·
Buses
Payment Mode
·
Credit Card/Debit Card
·
App/E-Wallet
·
QR CODE/ RFID
·
Others
Application
·
Toll/Parking
·
Fuel/Charging Stations
·
Food/Groceries
·
Others
Connectivity Technology
·
Bluetooth
·
WI-FI
·
Cellular Network
·
USB and NFC
Regional Outlook
·
Asia Pacific
·
North America
·
Latin America
·
Middle East and Africa
·
Europe
In-Vehicle Payment Services Market
Vehicle Type Segmentation
On the basis of the vehicle type, the In-Vehicle Payment Services Type is segmented into passenger cars, commercial vehicles, heavy-duty trucks, and buses. Passenger cars make up a significant portion of vehicles on the road, especially in Europe. They are often used daily, and frequent use creates demand for services like fuel, parking, toll payments, and quick stops at restaurants or coffee shops.
Many passenger car users are urban commuters who regularly encounter situations where in-vehicle payments save time, such as parking in city centers or paying for tolls. These transactions are frequent enough to benefit from the convenience of in-vehicle payments. The passenger car market has been a major focus for connected car technologies, with manufacturers like BMW, Audi, and Mercedes-Benz leading the way. This segment is often the first to adopt new tech features, including in-vehicle payment systems.
The passenger car segment has seen significant investment in partnerships with payment providers, fueling networks, and parking services. Passenger car owners are more willing to pay for in-vehicle convenience services. This demand drives innovation and integration, making passenger cars an ideal segment for early adoption. Passenger Car Segment is leading the EV market, and in-vehicle payments offer a seamless way to pay for EV charging.
As
EV infrastructure expands across Europe, passenger cars benefit from integrated
payments at charging stations, making them a natural fit for these services.
Commercial vehicles are also one of the leading segments in the market. With
the growth of digital wallet and contactless payment preferences, consumers are
increasingly using non-cash payment methods.
Regional Outlook
On the basis of the regions, the In-Vehicle Payment Services
Market is segmented into 5 parts: Asia Pacific, North America, Latin America,
the Middle East and Africa, and Europe. The North American region is the
leading segment in the market and is expected to maintain its dominance during
the forecast period. This leadership is attributed to high vehicle ownership
rates, advanced infrastructure for digital payment solutions, and the adoption
of connected car technologies. In the United States of America and Canada,
there is a strong consumer preference for contactless payments supported by
secure digital payment ecosystems. The presence of tech-savvy companies that
offer integrated in-vehicle services and a high number of partnerships between
automotive and financial services firms.
Asia Pacific due to rising disposable income and rising urbanization is a rapidly growing market and is expected to expand significantly due to increasing penetration of connected cars, digital payment infrastructure development, and urbanization. Europe is another leading segment due to the increasing culture of digital payment and growth in online shopping. Countries like Germany, France, Italy, Spain, England, Russia, and Turkey are witnessing significant growth in the market. The presence of key players in Europe is driving the demand in the market.
Increasing adoption of connected cars in the region is creating opportunities. Consumer demand for convenience and the rising number of electrical vehicles are driving growth in the market significantly. Rising disposable income and increasing urbanization are driving growth in the market. Presence of key players in Asia Pacific and Australia. Europe’s witnessing technological growth and integration of NFC, RFID, and e-wallets. Leveraging AI, companies provide personalized offers and services.
Dedicated service providers such as Parkopedia and other apps for fuel and
charging stations are also involved in these services. Handling payment data
requires robust cyber security to protect users’s information. Europe’s
regulatory environment around data and payment, such as GDPR compliance,
affects how companies implement these services. Increased demand for autonomous
vehicles and smart city infrastructure is driving growth in the market
significantly.
Middle East and Africa, and Latin America is also witnessing
significant growth in countries like Saudi Arabia, UAE, Israel, Egypt, South
Africa, Brazil, and Argentina due to increasing growth in the automotive
sector.
Key Players
·
Daimler AG
·
BMW AG
·
JAGUAR LAND ROVER AUTOMOTIVE PLC.
·
General Motors Company
·
Honda Motor Co. Ltd
·
Hyundai Motor Group
·
IBM Corporation
·
Master Card Inc.
·
Visa Inc.
· Other Players