Rising demand for automotive cockpit electronics, autonomous vehicle technology, and ADAS is fuelling the growth of the global automotive digital cockpit market.
According to a new report by Grand View Research, the market size is expected to reach USD 36.1 billion by 2028.
The US-based market research and consulting company says the market is expected to expand at a CAGR of 8.8% from 2021 to 2028.
The changing consumer buying behaviour and increasing demand for enhanced in-vehicle experience, coupled with the global growth of the high-end, premium, and luxury car segments, are also expected to fuel the market's growth.
The key players in the automotive digital cockpit market include Continental, Denso, Faurecia, Garmin, Harman, Mobis, Panasonic, Pioneer, Robert Bosch and Visteon.
Head-up display
The head-up display segment is expected to register the highest CAGR of over 15% from 2021 to 2028, owing to the integration of augmented reality for enhanced safety and driving experience.
The LCD-TFT segment dominated the market in 2020. It is estimated to generate revenue of over $ 19 billion by the end of the forecast period due to the temperature and durability standards provided by LCD-TFT displays.
Passenger vehicles
According to Grand View Research, the passenger car segment accounted for the largest revenue share of around 80% of the overall market in 2020. The increasing demand for connected car features in passenger vehicles and the onset of autonomous vehicles is expected to drive the segment.
In the Asia Pacific, the market is accounted for the largest revenue share in 2020. This growth can be attributed to the increased production and sales of passenger vehicles in the region, the report stated.
The surge in demand for vehicle connectivity and navigation system in the automotive sector has led to increased visualisation technology usage. Unique consumer demands and advancements highly influence modern-day cars in digital technologies. The automotive industry is focused on offering more personalised experiences to drivers and vehicle occupants. Moreover, companies are developing innovative solutions to ensure seamless connectivity between the vehicle and external devices. The integration of vehicle systems can be considered as the most significant development. The digital cockpit architecture has become more capable and robust due to integrating ADAS functionality for enhanced safety and security and cloud-based services.
Technology
As per the report, the automotive digital cockpit technology is expected to gain significant demand as major automotive components and solution providers are engaging in the development of complete automotive cockpit solutions. For instance, in January 2021, Qualcomm Technologies announced the 4th Generation Qualcomm Snapdragon Automotive Cockpit Platforms launch. The new digital cockpit platforms offer software scalability and flexibility to support several real-time and high-level operating systems. In addition, the platforms also support multiple ECUs and domain integration, including digital instrument clusters, digital monitoring systems, Augmented Reality Heads-Up-Display, e-Mirror, and rear-seat displays.
Pandemic factor
Due to the coronavirus pandemic, lockdowns and social distancing norms have been implemented globally. As a result, the overall automotive production volumes have declined globally on a year-on-year basis, mainly due to decreased production volumes in North America and Europe, among other regions.
According to Organisation Internationale des Constructeurs d’Automobiles (OICA), automobile production globally dropped by more than 15%, i.e., 77.6 million units in 2020 compared to 91.7 million units in 2019. However, as restrictions ease in various economies, the market can expect a respite period for the short-term due to the increased demand for passenger cars from the middle-class population. This, in turn, increases the demand for automotive digital cockpits during the forecast period, the research firm observed.
Courtesy: Grand View Research. Photo is representational; courtesy: Continental.