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2021

In-vehicle Payment Services Market

In-Vehicle Payment Services Market By Offering (Solution and Service), Payment Mode (Credit/Debit Card, App/E-Wallet, QR Code/RFID and Others), Vehicle Type (Light Duty Vehicle (LDV) and Heavy Duty Vehicle (HDV)) and Application (Fuel/Charging Stations, Toll/Parking, Food/ Groceries and Others): Global Opportunity Analysis and Industry Forecast, 2021-2030

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Author's: Pramod Borasi| Shadaab Khan | Vineet Kumar
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In-Vehicle Payment Services Market Outlook – 2030 

The global in-vehicle payment services market size was valued at $2.89 billion in 2020, and is projected to reach $15.71 billion by 2030, growing at a CAGR of 18.7% from 2021 to 2030. The in-vehicle payment services is digital payment technology that allows the automobile vehicle drivers to purchase vehicle products from the vehicle without using the payment devices. In addition, in-vehicle payment helps vehicle users to streamline fund transaction service and increases operational efficiency at fuel station, which accelerate the growth of the market across the globe. Furthermore, surge in use of credit card payment technology among the vehicle users across China, Japan, and India accelerates the growth of the in-vehicle payment services market across the globe.

Surge in preference of contactless payment among the end users and rise in need for hassle free payment system at parking spaces, toll plazas, and gas stations are some of the important factors that boost the growth of the market across the globe. In addition, surge in production of autonomous vehicles across the globe positively impacts the in-vehicle payment services market growth. However, growing online fraud and cyber-attacks across the globe hampers the market growth. On the contrary, rise in adoption of technologically advanced cars such as self-driven and connected cars is expected to offer remunerative opportunities for the expansion of the in-vehicle payment services industry during the forecast period.

In-Vehicle-Payment-Services-Market

By component, the solution segment garnered the largest in-vehicle payment services market share in 2020, and is expected to maintain its dominance in the upcoming years, owing to increase in collaboration between vehicle manufacturer and payment service provided to develop and build an in-vehicle payment solution. However, the service segment is expected to provide lucrative opportunity to boost the growth of the market during the upcoming year owing to rise in investment by banks and financial institution to develop innovative payment solution for automobile vehicle.

Region wise, the in-vehicle payment services market was dominated by North America in 2020, and is expected to retain its position during the forecast period, owing to increase in adoption of the digital payment technology such as credit card, debit card and mobile payment across the U.S. and Canada at fuel station. However, Asia-Pacific is contributing largest market share during the upcoming years owing to continuous innovation in smart vehicles such as voice-based controls that allows driver to purchase while driving without violating road safety norm.

The report focuses on growth prospects, restraints, and trends of the global in-vehicle payment services market analysis. The study provides porter’s five forces analysis to understand impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the global in-vehicle payment services market share.

In-Vehicle Payment Services Market
By Offering
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Solution segment will dominate the market throughout the forecast period

Segment Overview

The in-vehicle payment services market is segmented on the basis of offering, payment mode, vehicle type, application and region. By offering, the market is bifurcated into solutions and service. By payment mode, it is categorized into credit/debit card, app/E-Wallet, QR code/RFID and others.  Based on the vehicle type, the market is divided into light duty vehicle (LDV) and heavy duty vehicle (HDV).   By application, the in-vehicle payment services market is divided into toll/parking, fuel/charging stations, food/ groceries and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

In-Vehicle Payment Services Market
By Payment Mode
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App/E-Wallet segment will generate the highest market share by the end of 2030

Competitive Analysis

The key players profiled in the in-vehicle payment services market analysis are Amazon Web Service Inc., Daimler AG, Ford Motors Company, General Motors, Google LLC, Hyundai Motor, IBM Corporation, Mastercard, VISA Inc. and Volkswagen AG. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.

In-Vehicle Payment Services Market
By Vehicle Type
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Light Duty Vehicle (LDV) segment will lead the market during the forecast period

COVID-19 Impact Analysis

The in-vehicle payment services market has witnessed significant growth in past few years; however, due to the outbreak of the COVID-19 pandemic, the market is projected to witness a sudden decrease in 2020. This is attributed to implementation of lockdown by governments in majority of the countries and rise in restriction on international travel. In addition rise in number of COVID-19 patients across the globe and increase in travel restrictions hinder the growth of the in-vehicle payment services market during COVID-19 outbreak. On-contrary, rise in digitalization in the travel industry is expected to provide lucrative opportunity to boost the growth of the market after COVID-19.

In-Vehicle Payment Services Market
By Application
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Food/Groceries segment will grow at a highest CAGR of 25.4% during 2021 - 2030

Top Impacting Factors

Growing Preference of Contactless Payment Among the End Users        

Rise in preference of contactless payment among the vehicle users is considered as an important factor to boost the growth of the market. In addition, increase in adoption of contactless payment among the vehicle users as it offers several application such as reducing the cost of cash handling and improving the speed of fund transaction service drives the growth of the market. Moreover, rapid adoption of contactless payments in travel & hospitality sectors owing to its various benefits which include reduced transaction time, increased convenience, and leveraging customers experience at fuel station terminal during transaction propels the growth of the market. 

In-Vehicle Payment Services Market
By Region
2030
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific region would exhibit the highest CAGR of 22.1% during 2021 - 2030

Furthermore, the leading payment service provider across the globe has launched contactless payment technology for the transportation industry. For instance, in July 2020, Visa, Inc., one of the leading payment technology providers across the globe have launched contactless payment methods for travelling industry. The contactless payment technology allows the vehicle users to securely transfer fund at fuel station. These are some of the important factors that boost the growth of the in-vehicle payment services market across the globe. 

Rise in Need For Hassle Free Payment System at Parking Spaces, Toll Plazas, and Gas Stations

Increase in adoption of digital payment technology such as mobile payment, debit card and credit card propels the growth of the in-vehicle payment services market across the globe. In addition, due to availability of high speed internet connectivity at the fuel station, most of the vehicle users have been using digital payment service to pay at various fuel pumps, toll booths and other parking spaces which accelerate the growth of the market across the globe.  

Furthermore, rise in smartphone penetration among the vehicle users, increased convenience & reduced transaction time provided by online payment payments and increased demand for mobile & wearable payment devices are accelerating the growth of the in-vehicle payment service across the globe. Thus, rise in need for hassle free payment system at parking spaces, toll plazas and gas station fosters the growth of the market across the globe.

Key Benefits For Stakeholders     

  • The study provides an in-depth analysis of the global in-vehicle payment services market forecast along with the current & future trends to explain the imminent investment pockets.
  • Information about key drivers, restraints, & opportunities and their impact analysis on global in-vehicle payment services market trends is provided in the report.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
  • The quantitative analysis of the market from 2021 to 2030 is provided to determine the market potential.

In-Vehicle Payment Services Market Report Highlights

Aspects Details
In-Vehicle Payment Services Market By Offering
By Offering
  • Solution
  • Service
    • Professional Services
    • Managed Services
In-Vehicle Payment Services Market By Payment Mode
By Payment Mode
  • Credit/Debit Card
  • App/E-Wallet
  • QR Code/RFID
  • Others
In-Vehicle Payment Services Market By Vehicle Type
By Vehicle Type
  • Light Duty Vehicle (LDV)
  • Heavy Duty Vehicle (HDV)
In-Vehicle Payment Services Market By Application
By Application
  • Fuel/Charging Stations
  • Toll/Parking
  • Food/ Groceries
  • Others
In-Vehicle Payment Services Market By Region
By Region
  • North America  (U.S, Canada)
  • Europe  (UK, Germany, France, Italy, Spain, Netherlands, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players
Key Market Players

Ford Motors company, VISA Inc., IBM Corporation, Mastercard, General Motors, Google LLC, Hyundai Motor, Daimler AG, Amazon Web Service Inc., Volkswagen AG

Analyst Review

In accordance with several interviews that were conducted of the top level CXOs, rise in preference of contactless payment among the end users and rise in need for hassle free payment system at parking spaces, toll plazas, and gas stations are becoming major trends in the in-vehicle payment services across the globe. In addition, increase in adoption of digital payment technology such as debit card, credit card, and digital wallet among the vehicle owners and drivers is expected to drive the growth of the in-vehicle payment services market across the globe.

Key providers of payment market such as General Motors, Google LLC, Hyundai Motor, and IBM Corporation account for a significant share in the market. Several leading in-vehicle payment services provider across U.S. and Canada have launched advance data protection technology which propels the growth of the market. In addition, several leading fuel payment solution providers have launched vehicle payment technology to streamline money transaction service at the fuel station which enhances the growth of the market. For instance, in June 2021, Payment24, one the leading fuel payment solution provider in U.S. have launched PCI- pay by car payment technology. It allows petrol companies and organizations to operate their own fuelling payment service and reduce the risk of fraud and theft issues.

In addition, the in-vehicle payment system is highly fragmented due to key developments such as partnership, product launch and collaboration, which accelerate the growth of the market across the globe. Moreover, the vehicle payment service providers across the globe have announced partnership with cyber security company to deliver secure payment service for vehicle users, which boost the growth of the market.

For instance, in February 2021, CarIQ Technologies Pvt. Ltd., payment vehicle solution provider for fleet have announced partnership with BlackBerry Limited to launch high secure vehicle payment system, to deliver a simplified digital payment experience for the drivers. Furthermore, North America is expected to dominate the market during the forecast period while emerging countries in Asia-Pacific and Latin America are projected to offer significant growth opportunities.

 

Author Name(s) : Pramod Borasi| Shadaab Khan | Vineet Kumar
Frequently Asked Questions?

The In-Vehicle Payment Services Market is estimated to grow at a CAGR of 18.7% from 2021 to 2030.

The In-Vehicle Payment Services Market is projected to reach $15.71 billion by 2030.

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Surge in preference of contactless payment among the end users, and rise in need for hassle free payment system at parking spaces & toll plazas etc. boost the market growth.

The key players profiled in the report include Amazon Web Service Inc., Daimler AG, Ford Motors Company, General Motors, and many more.

On the basis of top growing big corporations, we select top 10 players.

The In-Vehicle Payment Services Market is segmented on the basis of offering, payment mode, vehicle type, application and region.

The key growth strategies of In-Vehicle Payment Services market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.

Asia-Pacific region would grow at a highest CAGR of 22.1% during the forecast period.

App/E-Wallet segment will dominate the market by the end of 2030.

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In-vehicle Payment Services Market

Global Opportunity Analysis and Industry Forecast, 2021-2030