In-Vehicle Payment Services Market Expected to Reach $15.71 Billion By 2030

According to a recent report published by Allied Market Research, titled, “Global In-Vehicle Payment Services Market By Offering, Payment Mode, Vehicle Type and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030”, 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.

In-vehicle payment services allows vehicle drivers to purchase food, fuel, groceries, tolls, parking slots and coffee through digital payment. In-vehicle payment services companies are developing innovative payment technology for providing vehicle owners and drivers enhance payment transaction experience, which is driving the growth of the in-vehicle payment services market across the globe. In addition, surge in preference of contactless payment among the end users and rise in production of autonomous vehicles across the globe are some of the important factors that boost the growth of the market across the globe.

In addition, rise in need for hassle free payment system at parking spaces, toll plazas, and gas stations positively impacts the in-vehicle payment services market growth. However, rise in online fraud and cyber-attacks across the globe hampers the in-vehicle payment services 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 market during the forecast period.

By application, the global in-vehicle payment services market is divided into toll/parking, fuel/charging stations, food/ groceries and others. The fuel/charging stations segment is dominating the market share in 2020, and is expected to continue this trend in the upcoming years, owing to increase in use of cashless payment technology among drivers at fuel station. This increases the demand for contactless payment near fuel stations across the globe. However, food/groceries is expected to grow at the fastest CAGR during the forecast period due to increase in demand among commercial vehicle driver toward digital payment for paying bill at the restaurant.

Region wise, the in-vehicle payment services market was dominated by North America in 2020, and is expected to maintain this trend during the forecast period. This is attributed to increased demand for innovative payment services among the vehicle users and surge in utilization of e-wallet payment among the general public. However, Asia-Pacific is expected to grow at the fastest CAGR during the forecast period, due to penetration of new payment technology across China, Japan and India at the toll & parking booths.

The in-vehicle payment services has been negatively impacted by the outbreak of the COVID-19 pandemic, which has further led to economic instability. Significant rise in adoption of in-vehicle payment by end users has been observed, owing to rise in patients of corona virus and growth in health issues in carrying cash and paying through cash. In addition, banks and fintech industries are providing their customers with options of mobile payments and contactless payments all across the globe to speed up their transaction process and to enhance in-vehicle payment market. Moreover, post COVID-19, it is expected that preference for in-vehicle payment would increase as banks and fintech industries are more likely to reduce their operational cost to improve digital experience among their customers.

Key Findings of the Study

• By component, the solution segment accounted for the largest in-vehicle payment services market share in 2020.
• Region wise, North America generated highest revenue in 2020.
• Depending on application, fuel/charging stations generated the highest revenue in 2020.

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 players have adopted various strategies to increase their market penetration and strengthen their position in the in-vehicle payment services industry.