The solution is fully integrated into the dash through Volvo's Sensus Connected Touch.
Volvo's integration with Spotify is both voice-activated and touch-enabled.
The new system allows drivers to be able to stream music with a 3G/4G dongle or via the driver's mobile phone connection through their dashboard.
Drivers will be able to play any Spotify track they want just by just saying its name, allowing car owners the ability to remain connected when driving.
Sensus Connected Touch turns the seven-inch display into a state-of-the-art infrared, beam-scanned touch screen you can use even when wearing gloves - a world first in cars.
The new technology responds to demand from drivers for consumption of music on the road, combined with Volvo's core safety value.
It is easier and safer to use while driving, as drivers can access and operate the music system via the steering wheel and centre stack controls, without taking their eyes off the road or their hands off the steering wheel.
As well as Spotify, the technology also includes access to thousands of radio stations from all over the world.
The system is based on Android technology, which allows it to be regularly upgraded.
Other apps accessible via Sensus Connected Touch include Google maps, TuneIn, iGO navigation and an app store for new functions and updates.
Internet data can also be transferred via Wi-Fi between the mobile phone and Sensus Connected Touch and the Wi-Fi network can be shared with everyone in the car when using a dongle.
Sensus is the name Volvo uses for all its HMI (Human Machine Interface) functionality and Sensus Connected Touch is a dealer-fitted accessory.
It goes on sale in May 2013 and can be fitted in all new Volvos (V40, V40 Cross Country, S60, V60, XC60, V70, XC70 and S80) as well as being retrofitted in applicable used cars from model year 2011.
The announcement of this new generation technology comes after Volvo revealed the new 60s, 70s and 80s models to the public at the 2013 Geneva Motor Show.
"The intuitive user interface, a very rapid browser response and the wide choice of around 20 functions and apps are benefits that make Sensus Connected Touch outstanding compared with our main competitors' solutions," said Håkan Hellman, Product Manager Infotainment and Connectivity at Volvo Car Group.