Adoption of smart technology features in vehicles and intervention of innovative technologies for advanced user interface drive the growth of the global automotive gesture recognition systems market is estimated to generate $ 4.3 billion by 2030.
According to Allied Market Research's report, the industry generated $ 990.4 million in 2020 and is anticipated to grow at a CAGR of 18.4% from 2021 to 2030.
Despite strong growth drivers, the decrease in production and sale of automotive due to troubleshooting, updating and maintenance of technology hinders the market growth. On the other hand, growth in developing countries and entering into agreements & contracts with automotive OEM present new opportunities in the coming years.
Some of the leading players in the space include Cipia Vision, Cognitec Systems, Continental, NXP Semiconductors, Qualcomm Technologies, Samsung Electronics, Sony Corporation, Synaptics, Usens and Visteon Corporation.
The outbreak of the COVID-19 pandemic led to global lockdown, which witnessed high financial losses and significant uncertainties in the business operations of the overall automotive industry.
The majority of governments restricted international commute to control the spread of the virus, due to which both the demand and supply of the automotive industry were impacted negatively, the report observed.
Market participants of automotive gesture recognition systems follow certain approaches to managing operations by slashed budgets, extended equipment lifecycles, decreased staff sizes, and reduced salaries in the short term to overcome a financial downturn.
Touchless Systems Segment To Lead
Based on components, the touchless systems segment held the highest market share in 2020, accounting for more than half of the global automotive gesture recognition systems market, and is estimated to maintain its leadership status throughout the forecast period. This is due to the rise in demand from automotive manufacturers to develop high-end safety for vehicle drivers. Moreover, this segment is projected to manifest the highest CAGR of 19.9% from 2021 to 2030.
Based on authentication type, the hand/fingerprint/leg recognition segment accounted for the largest share in 2020, contributing to more than one-third of the global automotive gesture recognition systems market, and is projected to maintain its lead position during the forecast period. This is due to the high range of technology availability based on hand/fingerprint/leg recognition and awareness within consumers of the system operations. However, the facial recognition segment is expected to portray the largest CAGR of 21.5% from 2021 to 2030, due to an unauthorised person's avoidance of vehicle access and minimising the risk of the vehicle being stolen.
Europe, North America To Maintain Dominance
Based on region, Europe, followed by North America, held the highest market share in terms of revenue 2020, accounting for more than one-third of the global automotive gesture recognition systems market. This is due to the rise in the adoption of autonomous and electric vehicles, eventually leading to the growth of the automotive gesture recognition systems market in Europe. Moreover, this region is expected to witness the fastest CAGR of 19.8% during the forecast period, the research firm said.
Courtesy: Allied Market Research. NB: Photo is representational; courtesy: Allied Market Research.