According to current market research conducted by the CMI Team, the global Car as a Digital Wallet Market is expected to record a CAGR of 4.06% from 2024 to 2033. In 2023, the market size is projected to reach a valuation of USD 4.95 Billion. By 2033, the valuation is anticipated to reach USD 7.08 Billion.

Car as a Digital Wallet Market: Growth Factors and Dynamics

  • Increasing Consumer Demand for Convenience and Security: Customers select their payment media well due to security concerns and convenience. It is triggering the demand to leverage and adopt more tools digitally to strengthen, complement and facilitate various transactions, including the automotive industry. Customers are shifting their interest towards digital wallets that reduce the overall time for transactions & offer better security, which will benefit the Car as a Digital Wallet Market.
  • Expansion of Connected Car Features: Additional connected car services such as integrated Wi-Fi, intuitive graphical touch interfaces, and their links with Android and Apple smartphones give rise to digital car wallets. These features require sophisticated software tools as may be required to facilitate secure transactions, leading to the enhancement of market expansion.
  • Growth in Automotive eCommerce: The main driver of the market for car-based digital wallet solutions is the growing sophistication of automotive eCommerce, which aims to streamline the buying of cars and automotive spare parts as well as the receiving of automotive services. Car makers are including payment functionalities in automobiles to enable mobile payments for services like tolls, fuel, and parking.
  • Consumer Comfort with Technology: Consumers can easily accept the change of going without using cash since the use of technology, especially in daily life, is common. This familiarity is leading people to require automobiles that use digital wallets that conform to today’s innovative consumer lives.
  • Rising Awareness of Data Security: That is why the need for security in transaction platforms is rising daily as more people become aware of data breaches and their global impact. This makes it possible for consumers, as well as manufacturers, to seek options on how security in digital wallets can be enhanced; this opens the venue for the development of better technology for user information and transaction protection.
  • Technological Advancements: As more and more advancements have been achieved in the way we conduct payment electronically with features like encryption, the concept of tokens, among others, is enhancing the use of digital wallets. These technological advancements assist in attracting investment and proceeding for the further growth of the market as digital transactions are secured at the highest level and also easy to use.

Car as a Digital Wallet Market: New Product Launch

  • In September 2024, Sheeva.AI, a provider of in-vehicle payments and services, partnered with Intralink, an international business development consultancy, to promote Sheeva.AI’s in-vehicle payments and location-based services solutions in Japan.
  • In August 2024, California’s Department of Motor Vehicles (DMV) digitized 42 million car titles using the Avalanche (AVAX) network. This initiative, in collaboration with software development firm Oxhead Alpha, aims to modernize the state’s title transfer process. Users will soon be able to claim their digital titles through a new DMV application, allowing easy tracking and management without needing in-person office visits.
  • In January 2024, Qualcomm partnered with Daon to enhance in-car payments in Japan. Plans call for Qualcomm’s Snapdragon Digital Chassis to integrate with Daon’s identity verification technologies. This collaboration is intended to make in-car payments involving parking and fuel clearer by using secure biometric authentication. This, therefore, promises a more customized experience that’s also more secure for the user.

Report Scope

Feature of the ReportDetails
Market Size in 2024USD 4.95 Billion
Projected Market Size in 2033USD 7.08 Billion
Market Size in 2023USD 4.78 Billion
CAGR Growth Rate4.06% CAGR
Base Year2023
Forecast Period2024-2033
Key SegmentBy Application, Product Type, End User and Region
Report CoverageRevenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional ScopeNorth America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying OptionsRequest tailored purchasing options to fulfil your research requirements.

Car as a Digital Wallet Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Car as a Digital Wallet Market, with the industry experiencing positive and negative effects. Here are some of the key impacts:

  • Disruption in International Trade and Businesses: The COVID-19 pandemic had a significant impact on the market for cars as digital wallets. Governments restricted the movements of goods and people, disrupting the supply chain and manufacturing processes. This disruption affected the production and distribution of related technologies.
  • Demand Fluctuations: Risks such as pandemic uncertainties and a slowdown in the economy adversely affected spending levels and various industries, lowering the adoption levels of digital wallet technologies in vehicles.
  • Regulatory Framework and Market Restraints: New uncertainties that emerged due to shifts in regulatory structures during the pandemic limited market growth through raising operating expenses and workforce constraints.
  • Technological Advancements: Investors and stakeholders questioned how digital wallets could form a value proposition in automobiles, particularly as technology integration into automobile systems and safety measures offered further market creation points for connected car digital wallets.
  • Automation Push: The pandemic heightened the realization of automation in minimizing reliance on manpower, thus boosting the demand for automation by a slight degree within the digital wallet sub-topics.
  • Focus on Sustainability: It was also apparent that there was a move to greener and more environmentally friendly innovations in the automotive digital wallet market, considering the growing awareness and concern from the consumer end.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Car as a Digital Wallet Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Car as a Digital Wallet Market:

  • Qualcomm
  • Apple
  • Google
  • BMW Group
  • Tesla
  • Daimler AG
  • Ford Motor Company
  • Audi AG
  • Honda Motor Co. Ltd.
  • Hyundai Motor Company
  • Visa
  • Mastercard
  • IBM
  • PayPal
  • General Motors
  • Continental AG
  • Stellantis
  • Volkswagen AG
  • NXP Semiconductors
  • ZF Friedrichshafen AG
  • Others

The Car as a Digital Wallet Market is segmented as follows:

By Application

  • Parking Payments
  • Toll Payments
  • Fuel Payments
  • EV Charging

By Product Type

  • Integrated Payment Systems
  • App-based Wallets
  • NFC-enabled Payments

By End User

  • Private Vehicle Owners
  • Fleet Operators
  • Commercial Transport

Regional Coverage:

North America

  • U.S.
  • Canada
  • Mexico
  • Rest of North America

Europe

  • Germany
  • France
  • U.K.
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Taiwan
  • Rest of Asia Pacific

The Middle East & Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa

Latin America

  • Brazil
  • Argentina
  • Rest of Latin America