Published: July 2017
Report Code: AT11108
Category : Automotive Electronics
Automotive HMI Market Overview
The automotive human machine interface (HMI) market size is expected to be valued at $39,695.0 million by 2023, witnessing a CAGR of 14.1% during the forecast period. HMI is a technology in which the driver of vehicle can have direct communication with vehicle system without any distraction while driving the vehicle. The automotive HMI studies the driver behavior and road and traffic environment with multiple HMI based input and output devices. The automotive human machine interface market comprises of various products, technologies, and end-users. The human machine interface is widely used in luxury vehicles and is expected to be introduced into mid-price vehicles during the forecast period. The automotive human machine interface not only connects the driver and car but also helps the driver to have information about the surrounding environment, such as traffic and weather conditions.
Automotive HMI Market Dynamics
In automotive HMI market, visual interface was the largest used technology. Based on product, instrument clusters held the largest share in the automotive HMI market in 2016, while head-up display is expected to grow at the highest rate during the forecast period due to stringent vehicle safety regulations and initiatives by various automotive associations towards vehicle and passenger security. Asia-Pacific and Europe collectively accounted for more than 69% in the global automotive human machine interface market in 2016, owing to increase in manufacturing of passenger cars in countries, such as the China, India, Germany, and U.K. Rise in passenger car export in developing countries such as India, Brazil and South Africa is driving the market growth. Stringent government regulations toward vehicle safety in these regions are expected to drive the market. Asia-Pacific had the largest share in the automotive HMI market in 2016 and is further expected to witness increased demand due to increase in installation of devices in mid-priced and luxury passenger cars in the region. Governments and associations across the globe have been increasingly formulating multi-dimensional policies toward vehicle and passenger safety, increasing fuel efficiency and improving overall performance of the vehicle.
The key trend driving the automotive HMI market is strong growth in luxury vehicles, as most of the vehicles are equipped with advanced safety features. With increase in import duties and other taxes levied on imported cars, luxury car manufacturers have opted for product localization strategy, which helps them to reduce the overall cost of the vehicle. Some of the leading automakers, including Audi, BMW, General Motors, Honda, Hyundai, Land Rover, Lexus, Mercedes-Benz, Nissan, Toyota Motors and Volvo, offer human machine interface systems as standard or optional equipment in some of their cars. Increasing disposable income of a section of the population, which is the target audience for such products, is aiding the growth of luxury cars in developed countries. Awareness toward advanced safety features and installing them in vehicles is one of the emerging ways to avoid road accidents and improve vehicle performance and efficiency.
Growth in connected vehicles is one of key drivers of the automotive human machine interface market. The connected vehicle allows the driver to access the real-time traffic information and assist in reaching the destination faster. Vehicle management systems provide detailed information about vehicle performance and automatically send data to insurance companies and fleet owners. Smartphone interface - hot spot - music, video, internet and social media are some of the additional features of connected cars, allowing the driver and passengers to have better access to the infotainment system as they are controlled by voice recognition software. In 2016, over 70% connected service sales came from premium vehicles. The trend is changing and demand for connected services is growing in mid-priced passenger cars, and is expected to capture over 40% of the market during the forecast period.
The adoption of human machine interface is hindered by the risk of malfunctioning systems, which can lead to road accidents. HMI has high cost of installation which is also affecting the growth of the market. The OEMs are trying to find different ways to reduce the overall cost of the product and it is expected that with the increase in adoption of the product, the price is expected to come down due to increase in demand for mid-price passenger cars.
Automotive HMI Competitive Landscape
The automotive human machine interface market is majorly dominated by Tier 1 players having presence across the globe. Some of the major players involved include Continental AG, Luxoft Holding, Inc., Delphi Automotive PLC., Valeo S.A., Visteon Corp., Synaptics Incorporated, Clarion Co. Ltd., Magneti Marelli S.p.A, Alpine Electronics, Inc. and Altran Technologies S.A. These major players are entering into different joint ventures, mergers and acquisitions, to expand their product portfolio and geographical presence to meet the growing demand.
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