PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1189927
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1189927
The automotive digital instrument cluster market was valued at USD 2.76 Billion in 2021 and is estimated to surpass net valuation of USD 4.62 Billion by 2027 registering a CAGR of over 8% during the forecast period 2022-2027.
The digital instrument cluster has become smarter, as it comes with various driving modes; instrument clusters change according to the driving modes. As the overall display system of the vehicle is evolving with the introduction of multiple display systems, the cost of the instrument cluster is expected to decrease in the future.
Instrument clusters in vehicles are growing rapidly. The new instrument clusters are larger and come with higher resolution. They have evolved from large mechanical displays to electromechanical and now to completely digital displays.
The automotive industry has entered the era of autonomous vehicles and ADAS. Growing production of vehicles with integrated ADAS features in wake of rising awareness toward comfort and safety of passengers and government regulations mandating safety features expected to drive demand in the market. In addition, which can be reconfigured based on context and driver preferences while displaying the required information to ensure a safe driving experience.
Although, the COVID-19 pandemic has decreased the consumer purchasing power, contributed to a significant drop in oil prices, and consequently lowered gasoline prices. For traditional vehicles with internal combustion engines (ICEs), the drop in gasoline prices may decrease the total cost of ownership. Although EVs may still have lower total costs of ownership than traditional ICE vehicles in most segments, the advantages may not be as great and that may influence the sales. The impact on supply chain and deliveries has affected many vehicle manufacturers across the world, as they depend on suppliers for the parts. The outbreak has resulted in delays in customer and partner deliveries. Thus during the period there has been low production volumes and thus installation of digital instrument clustered felled marginally.
Although soon after, Q2 2021, market regain its growth phase as automotive production again started across the globe. Considering the aforementioned factors, market is expected to witness higher revenue growth capacity during the forecast period.
Leading automotive digital instrument cluster manufacturers are developing new technologies to make the driver experience safer and more informative.
The 3D instrument cluster displays 3D images without requiring any specific 3D glasses. In addition, The 3D instrument cluster system uses advanced camera technology to monitor the driver's line of sight and further help him display three-dimensional scales, objects, and pointers.
This 3D instrument cluster shall help advance the vehicles and drivers' safe during vehicle dynamics by creating a whole new level of human-machine interaction. This cluster can also work as an infotainment system for showcasing HD movies during standalone vehicle time.
Display manufacturers are increasing the depth of the image in digital clusters, enabling 3-D effects for a more interactive experience. For instance,
The Asia-Pacific region is the largest automobile producer in the world. China, India, and Japan are the major economies in the regional market that are anticipated to grow faster in the global market. Automobiles have an increasing demand for enhanced safety, comfort, and convenience features. OEMs are increasingly introducing advanced infotainment systems, telematics, gesture control systems, and central vehicle controllers.
COVID occurred in China has increasing created difficulty for market participants and put downward pressure on the Chinese economy. The automotive industry and supply chain also underwent the most demanding tests in history. In addition, some key automakers stopped production and had major logistics obstacles leading to the collapse of delivery capacity. Furthermore, the COVID pandemic significantly reduced the overall purchasing power and consumer confidence. Although the recovery has been followed with time, the market is still facing challenges due to the pandemic.
In April 2022, Chinese passenger car production reached 996,000 units, with sales registering 965,000 units. This accounts for the downfall of 41.9% and 43.4% respectively in production and sales compared to the previous year. In 2022, from January to April, passenger car production decreased by 2.6% year-on-year, registering 6,494 million units.
The automotive digital instrument cluster manufacturers are partnering with other market participants to develop next-generation smart instrument clusters for their future vehicles. For instance,
The automotive digital instrument cluster market is consolidated and dominated by a few players, such as Robert Bosch Gmbh, Visteon Corporation, and Continental AG. The market is significantly driven by factors like advanced technology, more use of sensors, growing investment in R&D projects, and the increasing demand for electric and autonomous vehicles. To provide more information to the driver of the significant automotive digital instruments, cluster manufacturers are developing new technology for the future and expanding their market reach. For instance,