Narrative: 2026 Q1 Infotainment and Telematics Systems and Semiconductors Forecast

Automotive infotainment and telematics face memory market and geopolitical pressures, yet AIT system demand is forecast to grow 3.8% in 2026.

Turmoil in the memory market, along with continued geopolitical and tariff uncertainty, are the dominant factors impacting automotive infotainment and telematics (AIT) systems and semiconductor demand from vehicle output in this update. Despite these challenges, AIT system demand from vehicle production is forecast to grow by 3.8% in 2026 (for the combined OEM and Aftermarket system revenues). Increased semiconductor ASPs and more content per AIT system result in 18.5% growth in AIT semiconductor revenues in 2026 (including both OEM and Aftermarket demand).