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The global automotive human–machine interface (HMI) market generated revenue worth $13.9 billion in 2017 and is expected to grow to $29.6 billion by 2023, with a CAGR of 13.8% between 2018 and 2023. The growth of the market is mainly aided by the increasing sale of premium cars in many countries, due to the increasing disposable income.
During the forecast period, the automotive HMI market is expected to witness the fastest growth in North America, due to the increasing sales of premium cars in the U.S. and growing customer preference for automotive HMI features. Moreover, the North American automotive industry is one of the most productive across the globe; the presence of major automakers, such as Fiat-Chrysler Automotive N.V., General Motors Company, and Ford Motor Company, would continue benefitting the regional market during the forecast period.
Dynamics of Automotive HMI Market
The growing demand for enhanced user experience and safety features is a major driver for the automotive HMI market. 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 traffic situations, permissible speed limit (on a certain route), and traffic signals. With the help of such alerts, drivers are able to follow traffic rules and regulations. As ADAS features become more prevalent in vehicles, it is crucial for the driver to be able to understand the functioning of this technology. Automotive HMIs are enabling interactions between drivers and ADAS, thus growing in demand in the market.
The existing prospects for unique branding and product differentiation are creating lucrative opportunities for the players in the automotive HMI market. HMI systems bring infotainment and convenience in a safe and seamless fashion, thus creating value for the end user. HMI systems, such as instrument clusters and RSE units, lend a more premium value to the car. Hence, car companies are collaborating with OEMs to include innovative interface concepts, larger screens, multiple screens, and comprehensive augmented reality features to increase their sales.
Automotive HMI Market Segmentation Analysis
Based on product, touch screen displays held the largest revenue share in the automotive HMI market during 2013–2017. However, the heads-up display (HUD) category is expected to witness the fastest growth due to the increasing adoption of the product in premium cars.
On the basis of access, standard HMI access accounted for the larger revenue share in the automotive HMI market in 2017. Multimodal HMI is expected to witness faster growth during the forecast period, because OEMs and automotive manufacturers are progressively deploying complex multi-modal HMIs, which work together to prioritize information and reduce the drivers’ workload.
In terms of end use, premium cars accounted for the largest revenue share in the automotive HMI market in 2017. The major factor influencing the sales of premium cars with automotive HMIs is the rising income level of consumers. As the development cost of advanced HMI systems is high, they majorly get installed in luxury vehicles.
Global Scenario of Automotive HMI Market
The Asia-Pacific (APAC) region contributed the highest revenue to the automotive HMI market during the historical period, followed by Europe and North America. This can chiefly be attributed to the higher sales of passenger cars in APAC compared to other regions. With the growing purchasing power of the population in the region, it is predicted that the demand for automobiles will see considerable growth here in the near future. During the forecast period, the market is expected to witness the fastest growth in North America, due to the increasing sales of premium cars in the U.S. and surging customer preference for cars equipped With HMI features.
Competitive Landscape of the Automotive HMI Market
In the global automotive HMI market, a single vendor does not necessarily offer all products. Many vendors collaborate with others for software and hardware components, to form the end product. Moreover, the market for HMI products, such as steering-mounted controls, is highly fragmented due to the presence of a number of regional and globally operating players. Some of the major players operating in the market are Panasonic Corporation, Robert Bosch GmbH, Delphi Automotive PLC, DENSO Corporation, Continental AG, Texas Instruments Inc., Visteon Corporation, Alpine Electronics Inc., EAO AG, and Yazaki Corporation.
Key Questions Addressed/Answered in the Report