Automotive Digital Instrument Cluster Market Overview
Global automotive digital instrument cluster market size is estimated to be valued at $2,024.6 million in 2017, and is expected to witness a CAGR of 21.8% during the forecast period. The market is mainly driven by the increasing sales of premium cars; furthermore, the growth in sales of electric cars is also expected to benefit the sales of automotive digital instrument cluster. In electric vehicles, more display content is needed than conventional fuel vehicles. Hence, premium electric vehicles such as HEVs and PHEVs are more likely to be equipped with digital instrument clusters.
On the basis of display type, the automotive digital instrument cluster market has been categorized into TFT-LCD, LCD, and OLED. Of these, TFT-LCD has been the dominant category till now in the market, with an estimated revenue contribution of more than 60% in 2017, mainly attributed to the increasing demand for high contrast displays.
GLOBAL AUTOMOTIVE DIGITAL INSTRUMENT CLUSTER MARKET, BY DISPLAY TYPE, '000 UNITS (2013-2023)
Based on display size, the automotive digital instrument cluster market has been categorized into 5-8 inch, 9-11 inch, and more than 12 inch categories. Currently, the screen size between 9-11 inches provides the best cost-to-value ratio to automakers, and hence, has been seeing the highest volume sales in the market, accounting for an estimated share of more than 60.0% in 2017.
On the basis of car price, the automotive digital instrument cluster market is categorized into premium cars and medium cars. Digital instrument clusters majorly find installation in premium vehicles, and the category has been accounting for the highest share in the market so far. However, driven by the falling prices of these clusters, their adoption in the medium category cars will grow faster during the forecast period. For instance, Audi is now installing digital instrument clusters in its medium category cars such as Audi A3 and Audi A4. Other medium-priced cars installing these clusters are Volkswagen Golf and Volkswagen Tiguan.
Globally, Europe has been the largest market for automotive digital instrument cluster, with an estimated revenue contribution of more than 40.0% in 2017. The high sales of premium cars is benefiting the automotive digital instrument cluster market in the region. High income levels in European countries is driving the sales of premium cars in the region; moreover, professional sales network catering to the demand of fleet managers who sell/rent premium cars on lease to the corporate sector, is another factor driving the sales of premium cars in Europe. Germany and the U.K. are the major markets for these clusters in Europe.
Automotive Digital Instrument Cluster Market Dynamics
One of the major drivers for the growth of the automotive digital instrument cluster market is the increasing sales of premium cars. The sales of premium cars are increasing in many countries due to increasing disposable incomes. The global sales of high-end cars, namely Lexus, Land Rover, Volvo Cars, Cadillac, Infiniti, Audi, and Porsche, increased by nearly 5% in 2017.
Moreover, due to rising competition in this category, car manufacturers are integrating innovative HMI products and features in car cabins, thus increasing the penetration of digital instrument clusters in premium cars. A typical customer of premium and luxury cars is less cost-sensitive and expects the latest technologies and comfort features to be present in the car cabin. As digital instrument clusters are expensive and at nascent phase of growth, they find their installation in premium cars before budget cars. Hence, the increasing demand and sales of premium cars is resulting in the growth of the automotive digital instrument cluster market.
High cost of digital instrument clusters is one of the major restraints to the growth of the automotive digital instrument cluster market. A digital instrument cluster is considerably more expensive than analog and hybrid instrument clusters. The high-cost of installing such systems could become a huge budgetary constraint for emerging economies in Asia-Pacific and South America. Along with high installation costs, the mass adoption of these systems also gets hindered due to a lack of skilled machinists capable of handling advanced technologies embedded in these clusters. Thus, the above-mentioned factors adversely affect the market growth.
The advent of driverless cars offers a lucrative opportunity for the growth of the automotive digital instrument cluster market. Though driverless cars are at a nascent stage, however, automobile vendors and technology companies are already working on this transportation system of the future. This is expected to lead to a big change where driving becomes fully automatic and vehicle occupants do not have to manoeuvre the steering wheel anymore. With the advent of autonomous vehicles, the sales of digital instrument clusters are expected to accelerate, as these clusters help to handle the large volumes of data created by such vehicles.
Automotive Digital Instrument Cluster Market Competitive Landscape
The automotive digital instrument cluster market is characterized by the dominance of established players such as Continental AG and Visteon Corporation, which have the technological expertise in software and hardware for building digital instrument clusters. The established players in market are collaborating with software companies to gain a competitive advantage in the market.
The other major players in the industry are Magneti Marelli S.p.A, Robert Bosch GmbH, Delphi Automotive PLC, DENSO Corporation, Yazaki Corporation, and Nippon Seiki Co. Ltd., among others.