Automotive HMI Market Size, Share & COVID-19 Impact Analysis, By Product Type (Infotainment System, Instrument Cluster, HUD, and RSE Display), By Vehicle Type (Passenger Vehicle, and Commercial Vehicle), and Regional Forecast, 2021-2028

The global automotive human machine interface (HMI) market size was USD 10.47 Billion in 2020 and is projected to grow from USD 10.71 Billion in 2021 to USD 18.64 Billion in 2028 at a CAGR of 8.2% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with auto and auto parts industry witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, this market exhibited a lower growth in 2020 as compared to the average year-on-year growth during 2017-2020. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The main component of the Human Machine Interface system is display systems. It is used as a communication medium for information and entertainment. The ADAS system gathers data from various sensors and showcases them through display systems, which help the driver take better control of the vehicle.

By adding HMI solutions, automobile manufacturers provide improved control, safety, and precision to drivers, along with entertainment to passengers. New-age automotive HMI solutions are highly significant and contextual for users. The constantly increasing demand for customized in-vehicle digital systems, safe driving, and evolving connectivity trends, such as OTA updates and predictive maintenance, transform vehicles into smart machines.

Decreasing Sales of Automotive Vehicles amid COVID-19 to Hamper Market Growth

The outbreak of the coronavirus (COVID-19) disease has had a severe impact on the sales of automobiles globally, especially the passenger car segment, whose sales have been affected negatively due to the collapse of the global economy. This pandemic has caused uncertainty in the industry and a panic situation for all industrial value chain members involved. Therefore, industry key players are putting their utmost efforts into bringing the production back to normal, which was previously obstructed by the pandemic, by implementing and precautionary measures into the automotive components’ production. It is worth noting that people are optimistic that once the pandemic situation eases out, the automotive market is set to bounce back.

Although it is difficult to anticipate the span of the pandemic, recent announcements of the arrival of the COVID-19 vaccines in early 2021 are likely to favor the automotive industry. Moreover, companies are now resuming their production in numerous parts of the world where people are vaccinated, thereby implementing various safety procedures to safeguard workers. For instance, in June 2021, Honda announced that their EV built in partnership with GM, which was displayed at the Beijing auto show in 2020, is expected to enter production this year following all the safety protocols and regulations at the workplace.

LATEST TRENDS

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Technological Advancements in Connected and Autonomous Vehicles are Prominent Trends

Automobile manufacturers around the world are eyeing upon lucrative opportunities that connected, and autonomous mobility offers by increasingly investing in the development of relevant technology. The market is directly dependent upon the growth of connected and autonomous cars as the majority of the mentioned cars nowadays come with HMIs in them. Thus increasing investments in the latter would eventually befit the market growth. Furthermore, the automotive HMI element consists of the instrument cluster, infotainment system, HUD, RSE display, and others. Autonomous and connected vehicles require an interface to connect with the driver and the smooth functioning of advanced driver assistance systems (ADAS), and subsequently, these components play a major role in this process.

Furthermore, a head-up display is a transparent display that presents data without requiring users to look away from their usual viewpoints. Additionally, In May 2019, Ultrahaptics, a UK-based firm, announced that it aims to make the sensation of touch happen in mid-air. To create a virtual touch feeling, the technology uses ultrasound, which allows a screen to be manipulated without touching it. These are the trends that are likely to drive the growth of this market.

DRIVING FACTORS

Ability of Human Machine Interface to Provide Impeccable Driver Safety will Favor Growth

An advanced automotive Human Machine Interface platform, combined with in-car sensors, provides the driver a real-time augmented reality experience through a head-up display (HUD). The HUD helps the driver visualize the potential movement of other road users and provides information, such as upcoming cornering strategies and speed limit changes. This increases driver and vehicle safety by allowing the driver to focus on the road without additional dashboard displays. Thus, additional safety features and its demand in automotive would spur the automotive HMI market growth across the globe.

Ability to Increase Value Propositions for Automotive Manufacturers will Boost Growth

Human Machine Interfaces benefit the end-user and allows automotive manufacturers to showcase a distinct advantage in an increasingly competitive marketplace. Consumers’ preference towards the advanced car safety and technology will benefit automakers to leverage to add more features in HMI and further strengthen the market players’ positions in the market. Moreover, the flexibility and adaptability of the automotive HMI platform would also ensure cost-cutting for manufacturers over the long term by avoiding redundant software development costs and making a profit out of spares for existing components, sensors, and hardware.

Artificial Intelligence to Drive a Series of New In-vehicle Assistants

The use of AI in vehicles allows software expertise to use the car’s onboard capabilities to interact between this Interface system and the driver. Voice control systems, such as Google Assistant and Alexa, ensure an integrated in-car experience for occupants by providing speech recognition technology. Moreover, this advanced speech technology facilitates minimizing driver distraction and guaranteeing safer driving. Owing to the rising concerns of drivers’ safety, the rising adoption of this technology will help to boost its market growth in the future.

RESTRAINING FACTORS

Lack of Cyber Security in the system may threaten market growth

Although automotive HMI has experienced minimal situations of cybersecurity, with their ease of connecting to the internet, they pose a high risk of hacking. A flawed HMI may lead to the loss of confidential data and important security by providing an opportunity for hackers to crash systems. For instance, Researchers from Fluoroacetate hacked the Tesla Model 3 car via its onboard browser. They used a JIT bug in the browser renderer process to

execute code on the car's firmware and show a message on its display system. Team Fluoroacetate is the highly successful hacker pairing of security researchers.

SEGMENTATION

By Product Type Analysis

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Instrument Cluster Segment to Dominate the Market in the Upcoming Years

Based on the product type, the market is classified into the infotainment system, instrument cluster, RSE display, and HUD. The instrument cluster segment holds the largest share globally and is expected to retain its leading position in the automotive HMI market throughout the forecast period. However, the market share will decrease over the forecast period, which can be attributed to the growing demand for HUD, which will cut down the dependency on the instrument cluster. However, the high cost associated with the HUD and displays will help stabilize the demand for instrument clusters.

By Vehicle Type Analysis

Passenger Cars Segment is Expected to Hold the Largest Market Share

Based on the vehicle type, the market is segmented into passenger cars and commercial vehicles.

The passenger cars segment holds the largest share in the global market. Apart from personal use, these vehicles can be used for commercial purposes (CAB system) as well. The dominance can be attributed to multiple factors, including the increasing urban population and their commuting needs. Furthermore, electric cars, due to their low maintenance charges, low operating costs, and growing trend of using clean energy for the propulsion of vehicles, make them the preferred choice for the end-users.

Rapid urbanization, increasing disposable income of the urban population, and improved living standards have increased the spending capacity of individuals. The commercial vehicle segment has also witnessed a huge surge in demand over the past few years. This resulted due to the rising demand for commercial vehicles in most developed countries because of regional logistical needs. Thus, the commercial vehicle segment is expected to grow at a substantial rate during the forecast period.

REGIONAL INSIGHTS

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Europe stood at USD 2.38 Billion in 2020. The region also contributes significantly to the automotive HMI market as it is home to many leading car manufacturers. Countries such as Germany, France, and Italy are among the most predominant auto manufacturers and contribute a major share in their revenues. Also, the increasing popularity of EVs is likely to boost the development of the market in the region during the forecast period.

Also, the existence of high net-worth individuals buying luxury cars is likely to promote market growth. For instance, according to Statistica, 77 Billion units of vehicles were manufactured in the year 2020. Nearly 17.38 Billion unit vehicles were manufactured in Europe alone. Hence, this region is expected to exhibit a higher CAGR than other regions.

The North American region is one of the leading regions in the automotive and automotive components’ market. The regional growth can be attributed to the rising import of passenger cars and commercial vehicles with HMI from the European region due to the increasing regional demand.

The Asia Pacific region is expected to emerge as the fastest-growing region in the forthcoming years. Various favorable government initiatives implemented to revive the automobile industry, which faced the heat of COVID-19, are projected to drive market growth. To facilitate long-term growth in the industry and reduce emissions and oil dependence, the Government of India introduced initiatives like the National Electric Mobility Mission Plan (NEMMP), Automotive Mission Plan, and other initiatives. In the Automotive Mission Plan 2026, the government and industry aim to expand the exports to $80 Billion and set a target to multiply industry revenues to $300 Billion.

In the rest of the world, owing to the steadily growing automobile market, it is anticipated that this market is set to grow steadily at a CAGR of 8.4%.  

KEY INDUSTRY PLAYERS

Significant Technological Advancements by Leading Automotive HMI Companies to Brighten Their Market Prospects

Denso Corporation is a pioneer in providing automotive Human Machine Interface solutions and collaborates with other firms to leverage their mutual expertise. The platform utilizes Intel Atom processor A3900 and BlackBerry’s QNX Hypervisor for virtualization and enables different products to act together with proper timing for delegate a timely response.

The pandemic caused auto and auto part manufacturers to temporarily shut down their production last year, which caused a shortage of auto parts, spare parts, semiconductor chips, etc. However, the shortage hit the industry hard in the second half of 2020 due to a stronger-than-expected recovery in the vehicle market and due to the long lead time for producing automotive chips. This shortage caused HMI manufacturers to think differently and adapt to smart product designing. Smart product design is nothing but a plan to be flexible for the OEMs to rapidly pivot their HMI to other chips when silicon becomes scarce. Hence, technological advancements in this field will simply brighten the manufacturers’ market prospects.

LIST OF KEY COMPANIES PROFILED:

• Continental AG (Hanover, Germany)


• Visteon Corporation (Van Buren Charter Township, Michigan, United States)


• Denso Corporation (Kariya, Aichi, Japan)


• Harman (Stamford, Connecticut, USA)


• Alpine Electronics (Shinagawa City, Tokyo, Japan)


• Panasonic Corporation (Kadoma, Osaka, Japan)


• Valeo (Paris, France)


• Bosch, Inc. (Gerlingen, Germany)

KEY INDUSTRY DEVELOPMENTS:

• June 2021- Varroc Engineering Limited (Varroc) signed a Memorandum of Understanding (MoU) with Candera GmbH, a leading HMI partner, which is known for providing tools and developing Human Machine Interface for worldwide automotive and industrial customers, to share this Interface technology for Varroc’s TFT Instrument Cluster.


• May 2021 – Stellantis NV and Hon Hai Precision Industry Co., Ltd. (“Foxconn”), together with its subsidiary FIH Mobile Ltd., announced the signing of a non-binding MoU to form Mobile Drive. Moreover, this joint venture aimed to bring innovative in-vehicle user experiences enabled by HM interfaces and advanced consumer electronics.


• February 2018 – Grupo Antolin launched its new smart cockpit system, featuring advanced technologies involving lighting and Human Machine Interfaces. Elements, such as unique backlit surfaces, driver monitoring systems, display decoration modules, smart decoration panels, dynamic covers made of natural materials, and lighting projection, were presented in a single demonstration.


• December 2017- Denso Corporation collaborated with BlackBerry Limited to develop an integrated HMI platform using BlackBerry’s QNX interface for virtualization. It would enable different Human Machine Interface products to sync with appropriate timing for enabling timely response.

REPORT COVERAGE

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The global automotive HMI market report provides a detailed analysis of the industry and focuses on key aspects, such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors contributing to the market's growth over recent years.

Report Scope & Segmentation