Automotive HMI Market Overview
The global automotive HMI market size is estimated to be valued at $13,945.1 million in 2017, witnessing a CAGR of 13.8% during the forecast period. The increasing consumer preference for staying connected to the internet while travelling and the growing demand for enhanced safety features in automobiles are the major factors driving the growth of this market. Also, strict government regulations on in-car mobile phone usage is also propelling the demand for these devices.
GLOBAL AUTOMTIVE HMI MARKET, BY PRODUCT, $M (2013-2023)
On the basis of product, the automotive HMI market is segmented into instrument cluster, touch screen display, head-up display (HUD), steering mounted controls, rear seat entertainment (RSE), and multifunction switches. Among these, touch screen display has been contributing the highest revenue in the global market. However, the highest growth in revenue during the forecast period will be seen in the HUD product category. On account of rising emphasis on reducing driver distraction, most of the carmakers are focusing on integrating HUDs in their vehicles, including the mid-priced vehicles.
Among all interfaces, the visual interface has been generating the highest revenue in the automotive HMI market, and is also expected to be the fastest growing type during the forecast period. This can be attributed to the increased demand for convenient features and adaptive solutions along with increasing focus of carmakers on reducing distractions provided by these interfaces, such as instrument clusters and touch screen displays.
On the basis of access, the automotive HMI market is categorized into multimodal HMI and standard HMI. Standard HMI has been experiencing the higher sales globally, however, the volume sales of multimodal HMI are expected to advance at a higher growth rate during the forecast period. The concept of multimodal HMI is relatively young but has speedily developed with better evolved features, minimizing driver distraction and enhancing user experience.
In terms of size, Asia-Pacific has been dominating the global automotive HMI market till now, owing to increased manufacturing of passenger cars in countries such as the China. However, the fastest growing market during the forecast period is expected to be North America, led by the U.S. This can be attributed to the high-income levels and increasing customer demand for latest automotive HMI products in the country. Overall, the increasing automobile production along with the rising demand of passenger cars in the region is likely to push the growth of the market in North America.
Automotive HMI Market Dynamics
Some of the major trends observed in the automotive HMI market include the advent of innovative display technologies that are highly dynamic and adaptable, and improved dashboard layout flexibilities. For instance, at the Consumer Electronics Show in 2017, BMW shared the glimpse of HoloActive touch system, a free-floating touchscreen that is operated using air gestures. Several other HMI innovations are expected specifically from suppliers like Continental AG, Visteon Corporation, Robert Bosch GmbH, and others.
Increasing safety and security concern is one of the major factors driving the growth of the automotive HMI market. This aspect is increasingly gaining importance from the perspective of both, consumers as well as government. These products offer a variety of ways to communicate, such as voice interactions, touch screens, and mobile devices that help drivers to notice and understand important information, thereby reducing distractions while driving.
Advanced driver assistance systems (ADAS) such as automatic brake and lane assist are already gaining popularity in the automotive industry. Many alert systems inform drivers about speed traps, traffic situations, permissible speed limit (on a certain route), and traffic signals. As ADAS features become more prevalent in vehicles, it is crucial for the driver to be able to understand the implementation of this technology. Automotive HMIs facilitate interactions between the drivers and ADAS. The development of interactive HMI systems integrated with smart features is expected to propel the growth of the automotive HMI market during the forecast period.
As automotive HMI products and systems are costly, they majorly find their application in premium cars. The high upfront and maintenance costs of such systems may act as a huge budgetary constraint for emerging economies in Asia-Pacific and South America. Also, there is a lack of skilled machinists capable of handling advanced HMI technologies. Thus, these factors hinder the mass adoption of such products, thereby, adversely affecting the automotive HMI market.
Automotive HMI Competitive Landscape
The automotive HMI industry is mainly dominated by major players having global presence. These major players are entering into different joint ventures, and mergers and acquisitions, to expand their product portfolio and geographical presence. For instance, DENSO Corporation and NEC Platforms Ltd., a subsidiary of NEC Platforms Ltd., announced a joint venture, DENSO NEXT CO. LTD, to develop automotive information and communication equipment such as instrument clusters and HUDs. Some of the major players in this market include Continental AG, Panasonic Corporation, Visteon Corporation, Robert Bosch GmbH, and DENSO Corporation.