Automotive Digital Instrument Cluster Market Forecast [2031]

Report Description

The global automotive digital instrument cluster market size was valued at around USD 3.22 Billion in 2022 and is estimated to reach USD 14.50 Billion by 2031, expanding at a CAGR of around 18.2% during the forecast period, 2023 to 2031. The growth of the market is attributed to the increasing consumer demand for electric vehicles (EVs) and high-end passenger vehicles.

The automotive digital instrument cluster is a collection of digital display systems which display different information to the driver and passengers about the current state of the vehicle, surroundings, maps, and entertainment among others. This information is adopted dynamically in order to guide the driver about speed, fuel levels, battery levels, weather conditions, and others to make the travel informed and safe.

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The digital instrument cluster in automobiles can be connected to the internet and they can perform a range of functions for drivers and passengers to enhance their overall travel experience. The quality of display and technology used in digital instrument clusters can enhance the premium value of the vehicle and enable automobile manufacturers to provide add-on value services to their customers on a daily basis.

The digital instrument cluster is advantageous over the traditional analog instrument cluster as it provides the latest and most accurate information about the vehicle to the drivers. The real-time update of the information on digital displays ensures fewer distractions while driving and also aids in minimizing accident risks.

Customizable and safety features are rising in the automotive digital cluster instrument of passenger and luxury vehicles. The information provided by the digital instrument cluster can be viewed as well as listened to, which makes it possible for anyone to easily understand it. Moreover, the information can be customized or personalized based on the requirements to understand it in a single glance.

COVID-19 Impact on Automotive Digital Instrument Cluster Market

The COVID-19 pandemic affected the growth of the global market, owing to the factors such as a decrease in vehicle sales, supply chain disruptions, and movement restrictions on the general public due to the lockdown regulations. Additionally, the disruptions in the logistics operations created raw materials and component shortages in the market, which resulted in a slowdown of automobile production worldwide.

The global automotive digital instrument cluster market is showing good recovery signs post the ease of lockdown regulations by the governments as well as increased digitization and the rise of internet availability across the globe.  

Automotive Digital Instrument Cluster Market Dynamics

The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global automotive digital instrument cluster market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2023 to 2031.

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Major Trends

Consumer preference for buying an electric vehicle is growing sharply across the world. The rising sales of electric vehicles (EVs) are giving a boost to the global automotive digital instrument cluster market. Electronic automobile manufacturers are adapting to the superior displays and technology in the digital instrument cluster to provide customers with a premium and comfortable experience.

The driving assistance functions offered by the digital instrument cluster are highly superior to the traditional analog instrument cluster in vehicles. The screens display high quality images to the drivers and passengers in order to help them stay better informed about their travel.

Information such as distance covered or remaining, fuel or battery levels, and current location details are consistently provided by the digital instrument cluster in the electric vehicles. The demand for premium experience with the electric vehicle such as high-definition displays, advanced technological features, and infotainment is fueling the global market growth.

Key Drivers

Quality automotive instrument cluster solutions offer enhanced safety to the vehicles and ultimately to their passengers, which is why the preference for digital solutions is increasing among automobile customers. Digital instrument clusters are easy to understand and do not require much attention, as the information can be understood within a fraction of a second.

The analog instrument cluster requires effort to understand, which is not always possible for drivers when they are driving for hours. An advantage provided by digital systems in vehicles is much higher than the traditional analog instrument cluster, which is expected to drive the demand in the global automotive digital instrument cluster market during the forecast period.

Existing Restraints

Along with the improvement in digital technology and hardware used for automotive digital instrument clusters, the cost required for them is also increasing. The high cost required for digital instrument clusters is expected to hamper the global market growth in the coming years.

The high cost needed for high-definition displays, integrated circuits, and their maintenance is estimated to restrain the global automotive digital instrument market growth in the coming years.

Moreover, the increasing cyber threat risks to digital solutions in the vehicle are giving rise to privacy concerns in automobile manufacturers and vehicle owners, which is anticipated to further hamper the global market growth.

Emerging Opportunities

The rising innovations with the help of technological advancements in the automotive digital instrument cluster are anticipated to create opportunities for global market growth.

Globally, there is intense competition among key market players to build unique and attractive automotive digital instrument clusters to enhance customer experience. The rising use of technological advancements in enhancing the luxury feel of the vehicle is expected to help the global automotive digital instrument cluster market expand in the coming years.

Scope of Automotive Digital Instrument Cluster Market Report

The global automotive digital instrument cluster market research report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Automotive Digital Instrument Cluster Market Segment Insights

Vehicle Type Segment Analysis

Based on the vehicle type, the global automotive digital cluster is categorized into two-wheeler, commercial vehicles, passenger vehicles, and electric vehicles. The electric vehicles segment is expected to showcase rapid growth in the market, owing to the increasing sales of electric vehicles in the automotive industry. Electric vehicles run on batteries and are less hazardous to the environment.

Factors such as the rapid development of charging infrastructure, government support for EV production, strict emission rules, and rising environmental awareness are fueling the demand for EVs. The growing sales of EVs are expected to drive the global automotive digital instrument market during the forecast period.

The passenger vehicles segment is also projected to grow rapidly in the global market. The segment growth is attributed to increasing sales of passenger cars in emerging economies such as India and China.

The rising disposable income, improved lifestyle, and fast-growing urbanization is driving the demand for passenger vehicles in developing countries, which is expected to boost the segment growth in the global automotive digital instrument cluster market in the coming years.

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Display Type Segment Analysis

On the basis of display type, the global market is segmented into OLED, TFT-LCD, and LCD. The TFT-LCD segment is expected to hold the major share of the global market owing to the rising use of TFT-LCD displays in passenger vehicles and luxury vehicles.

TFT-LCD (Thin-film-transistor liquid-crystal display) uses thin-film transistor technology for improving the picture quality including contrast and addressability. TFT-LCD display provides high-quality crisp graphics and requires low cost owing to which its demand is anticipated to grow in the global automotive digital instrument cluster market.

The OLED segment is projected to grow second fast in the global market owing to their rising use in luxury electric vehicles’ digital instrument cluster. The OLED display has superior picture quality and brighter displays compared to LCD and TFT-LCD displays. The increasing demand for OLED displays in high-end vehicles is anticipated to drive segment growth during the projection period.

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Display Size Segment Analysis

In terms of display size, the global market is divided into 5-8 Inch, 9-11 Inch, and > 12 Inch. The > 12-inch segment is projected to expand at the fastest pace during the forecast period. The segment growth is attributed to the growing need for bigger displays in the digital instrument cluster of electric vehicles as well as passenger vehicles.

The bigger display enables multiple applications to run at the same time on the screen, and also ensures ease of grasping information displayed on the screen. The 5–8-inch segment is expected to grow at a considerable rate during the projection period, owing to their rising use in light commercial vehicles, and entry-level and mid-segment vehicles. The 5-8 inch display enhances the travel experience with intelligent vehicle technologies and requires lower cost.

Regional Analysis

On the basis of region, the global automotive digital instrument cluster market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific region led the market in 2021 and is projected to dominate the market during the forecast period.

The market growth in the Asia Pacific region is attributed to the increasing sales of high-end vehicles and passenger vehicles in the region. The rising disposable income and improved lifestyle are resulting in increasing vehicle sales in emerging economies such as India, China, and Japan, which is significantly aiding the market growth in the region.

Followed by Asia Pacific, Europe is the second largest growing region in the global market. The region is projected to show considerable growth during the forecast period, owing to the presence of the key market players and OEMs in the region.

Additionally, the rising sales of luxury vehicles in the region are also expected to further drive global market growth in the coming years. The luxury cars come with the latest and unique digital instrument cluster to significantly aid the driver and passengers in enhancing their overall travel experience.

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