Automotive HMI Market Size, Share & Growth | Forecast [2031]

Report Description

The automotive HMI market size was around USD 24 billion in 2021 and is projected to reach USD 65 billion by 2030, expanding at a CAGR of 11% during the forecast period, 2022 – 2030. The growth of the market is attributed to the rising adoption of connected autonomous vehicles.

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Human-machine interface systems are a tool that offers seamless connectivity in a world where the Internet of Things is dominant. Data interchange and the conversion of unstructured and unvalued data into useful and actionable insights are possible due to HMI. Automotive HMIs provide natural interactions between passengers, drivers, and their cars through speech recognition technology, swipe & gesture functions, push rotary controllers, and even in-car touch screens & buttons. These technologies make driving safer and distraction-free while also significantly improving the in-car user experience.

The automobile human-machine interface (HMI) is a device or software interface that enables the operation of the vehicle and any associated sensors or components by the software. The HMI system is heavily dependent on display devices. HMI systems are used for both informational and recreational purposes. The display systems can be used by the driver to perform activities that enhance vehicle control. After implementing HMI, the driver no longer interacts with the vehicle in the usual way. Additionally, this technology informs the driver about their surroundings, such as the weather and traffic. Some of the most popular automotive HMI technologies include occupant recognition, power seat control, keyless entry, and head-up display systems.

COVID-19 Impact

The Covid-19 pandemic affected the demand and supply of global automotive HMI market. Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to an unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.

Market Dynamics

The market research report on the global automotive human machine interface market provides a detailed analysis by focusing on revenue growth, facts, figures, and historical data to determine major drivers, existing restraints, key opportunities, and competitive analysis. The report includes recent developments that can shape the overall performance of the market during the assessment period, 2022 to 2030.

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Major Drivers:

HMI's Capability to Provide Perfect Driver Safety

Through a head-up display (HUD), an advanced automotive HMI platform and in-car sensors give the driver a real-time augmented reality experience. The HUD aids the driver in visualizing the potential movement of other road users and gives information, such as future cornering techniques and speed limit changes. This improves driver and vehicle safety by enabling the driver to concentrate on the road without unnecessary dashboard displays. As a result, the desire for safety features in cars is projected to drive the global automotive HMI market.

A New Generation of In-Vehicle Assistants Powered by Artificial Intelligence to fuel the Market

The application of AI in vehicles enables software specialists to interface between the driver and Interface system using the onboard capabilities of the vehicle. Occupants get an integrated in-car experience due to the speech recognition technology offered by voice control systems such as Alexa and Google Assistant. Additionally, by decreasing driver distraction and ensuring safe driving, this innovative voice technology helps to reduce accidents.

Existing Restraints:

Lack of cyber-security to impede the market growth

Although cybersecurity incidents with automobile HMI have been relatively rare, they still carry a high risk of hacking because of the availability of internet connectivity. A defective HMI creates a chance for hackers to crash systems, which results in the loss of sensitive information and vital security. For instance, Fluoroacetate researchers hacked the vehicle utilizing the Tesla Model 3's built-in browser. They ran code on the car's firmware and displayed a message on its display system using a JIT flaw in the browser renderer process.

Key Opportunities:

Technological advancements in autonomous and connected vehicles to create immense growth opportunities

Increasing R&D investment and technological advancement in automobiles are estimated to create lucrative growth opportunities during the forecast period. The growth of the market is directly dependent on the growth of autonomous and connected vehicles market as most cars nowadays have integrated HMIs. The RSE display, HUD, infotainment system, and instrument cluster make up the automotive HMI element. These factors are estimated to create immense growth opportunities for the market players in the coming years.

Scope of the Report

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

Market Segment Insights

The instrument cluster segment dominated the market in 2021

Based on product type, the market is segregated into Heads-up Display (HUD), Rear-seat Entertainment (RSE) display, steering mounted control, instrument cluster, central display, and voice control. The instrument cluster segment dominated the market in 2021 and is projected to continue its dominance during the forecast period owing to growing sales of electric vehicles. Improved visual displays are being used in vehicle instrument clusters by major automotive industry participants for a better user experience.

The Heads-up Display (HUD) segment is estimated to grow at a rapid pace during the forecast period. Growth of the segment is attributed to increased efforts to decrease traffic accidents and growing consumer awareness of passenger and vehicle safety.

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The visual segment accounted for a key market share in 2021

On the basis of technology, the market is bifurcated into acoustic and visual. The visual segment held a key market share in 2021. Data can be shown graphically on linked devices such as tablets, computers, and laptop monitors owing to the visual HMI system. It provides real-time data to the users.

The acoustic segment is estimated to expand at a high CAGR during the projected period. The major industry players are adopting advanced technology such as acoustic technology which is fueling the automotive HMI market. This technology aids in reducing the workload on the HMI system's visual and sensory components.

The passenger vehicles segment to grow at a rapid pace in the coming years

In terms of vehicle type, the market is fragmented into commercial vehicles and passenger vehicles. The passenger vehicles segment to grow at a rapid pace in the coming years. Growth of the segment is attributed to the increasing urban population and their commuting demands. Furthermore, with the increasing trend of using clean energy for vehicle production, end customers growing inclination towards electric cars due to their cheap operating and maintenance expenses is boosting the segment.

The commercial vehicles segment is projected to hold a substantial market share during the projected period. Growth of the segment is attributed to improved standard of living, rising disposable income, and rapid urbanization. Commercial vehicle demand has increased in the past few years. As a result, the commercial vehicle segment is anticipated to expand at a rapid pace.

The market in Europe held around USD 3 billion in 2021

Based on regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Europe held around USD 3 billion in 2021. Growth of the market is attributed to the presence of key players in the region. A significant portion of their income comes from countries such as Italy, France, and Germany, which are among the most prominent countries for automotive production. The rising popularity of EVs is also anticipated to significantly boost the market in the region. Additionally, the existence of high-income people purchasing luxury vehicles is expected to boost the market. According to Statistica, vehicle production reached 77 billion units in 2020. About 17.38 billion automobiles were produced just in Europe.

The market in Asia Pacific is expected to hold a key market share during the forecast period. The market is expected to grow as a result of a number of positive government initiatives designed to rebuild the automobile sector, which was hit hard by COVID-19 pandemic. To reduce oil dependence and emission government of India has introduced initiatives such as Automotive Mission Plan, National Electric Mobility Mission Plan (NEMMP), and Others.

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