Global Automotive Head-Up Display (HUD) Market is estimated to have grown to a size of ~US$ 1,000 million in 2022 from ~US$ 500 million in 2017. The market is expected to grow further to a size of ~US$ 4,000 million by 2028 at a CAGR of ~20% during the forecast period of 2022-2028, owing to the enhanced demand for connected vehicles and increased adoption of advanced safety features, the growing demand for luxury vehicles across the globe, the surge in focus on improving the in-vehicle experience, and the availability of cutting-edge technologies helping produce head-up displays at low cost.
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Key Growth Drivers
- According to estimates published in Forbes in 2021, the global sales of connected vehicles were expected to cross the mark of 76 million units within the next two years. The estimates implied that around 70% of new light-duty cars and trucks shipped worldwide would have embedded connectivity. Growth in the number of connected vehicles would also mean a growth in diverse advanced technology features, including head-up displays. Automotive HUDs are known for presenting crucial traffic information and data to the driver and with the growth in the sales of connected vehicles, data traffic is expected to exceed 1,000 times the present volume. The in-vehicle experience of these connected vehicles is expected to become more immersive in nature, and automotive HUDs are expected to play a big role in that.
- According to the Economic Intelligence Unit (EIU) insights, the sales of luxury cars managed to defy the global slump and continued to increase, especially on the back of demand from emerging markets. Automotive HUDs are a vital component of any luxury vehicle and any growth in the luxury cars segment would reflect positively on the automotive HUD market. The sales of luxury cars have also witnessed promising growth in large economies like China. According to the data presented by the China Passenger Car Association in 2021, the cumulative sales of luxury car brands, such as Tesla, crossed the mark of 2.6 million units, resulting in a year-on-year increase of 5 percent. This growth boosts the automotive HUD market significantly.
- One of the most prominent challenges faced by the automotive HUD market stems from its design limitations. For instance, windshield HUDs take up a significant volume of automotive cockpit space. Especially the hardware components of a full windshield augmented reality HUD consumes a significant part of the cockpit space, forcing the OEMs to drastically redesign the driver’s space altogether. Although the development of ultra-thin HUD looks promising in its efforts to reduce the space consumed, reducing the augmented reality head-up display could mean reduced clarity of image and illegibility for the driver. A proper balance has to be struck between the size of the HUD and its clarity of the image for the market to keep growing at a substantive pace.
- Like many other industries, the automotive HUD industry also had to lower production due to supply-chain disruptions and a reduced number of employees coming to work owing to the physical distancing regulations put in place because of COVID-19. The export of vital components also witnessed disruption. However, with the gradual easing of regulations, the market has gotten back on track, powered by the strong demand for luxury vehicles even during the pandemic.
Key Trends by Market Segment
By Technology: Technology-wise, the conventional HUD segment occupied the largest share of the market in 2021.
- The low installation cost of the conventional HUD system helps it augment its leadership over augmented reality HUD. Apart from ensuring safety to the passengers and the vehicles, conventional HUDs offer a more transparent view of the surroundings, enhancing their value to automotive manufacturers.
- The augmented reality HUDs, on the other hand, are known for their capabilities to efficiently showcase pedestrian warnings and blind spots to the vehicle driver. They also prove effective with their night vision features and provide better information about road signals, speed limits, and navigation. AR-based HUDs can seamlessly leverage data obtained from multiple sources, including Wi-Fi, cameras, maps, sensors, and GPS.
By Product Type: Product-wise, windshield HUDs occupied the larger chunk of the market in 2021.
- The dominance of windshield HUDs in the market is because of their prevalence in passenger cars. The primary purpose of a windshield HUD in a passenger car is to project light onto the interior of the car’s windshield. It helps the driver to see critical information relating to the vehicle and its surrounding environment. Manufacturers take special care to match the windshield curvature with the projection system so that the display is optimized for the driver.
- A combiner HUD, on the other hand, helps customize information, adjust the brightness, optimize the power consumption, and make the space occupied more compactable.
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By Dimension Type: Dimension-wise, 2-D HUDs occupied the larger chunk of the market in 2021.
- The traditional two-dimensional (2D)HUDs exhibit the information keeping a certain distance away from the driver. The driver needs to assess the projection along the optical axis at a certain point. On the other hand, a three-dimensional display projection occurs exactly in front of the driver.
- Although two-dimensional HUDs occupy the larger share of the market, 3-D HUDs are one-step ahead of their 2-D counterparts. In 2-D HUDs, there are chances of a mismatch in the projection when the driver moves his/her head from the usual position. In 3-D HUDs, there are no chances of such a mismatch.
By Vehicle Type: In 2021, passenger cars accounted for the larger share of the market.
- The presence of passenger cars on roads worldwide is significantly higher than commercial vehicles like LCVs or trucks. Higher availability makes it a natural leader in the market. According to the latest numbers made available by the International Organization of Motor Vehicle Manufacturers, nearly 75% of all motor vehicle production in the world belongs to the passenger car segment.
- Technological innovations in making HUDs more OEM-friendly will continue to drive growth in the passenger cars segment as advanced HUDs with AR functions are expected to become a standard passenger car feature.
By Sales Channel: Original Equipment Manufacturers (OEMs) accounted for the larger share of the market in 2021.
- The OEM sales channel is expected to retain its dominance over the aftermarket owing to the increased adoption of HUD solutions by luxury to mid-segment automotive manufacturers.
- More and more OEMs are adopting automotive HUDs as they help make enhanced safety features a saleable proposition to consumers. HUD outputs notably reduce distraction and help the driver to better concentrate on the road.
By Region: In 2021, North America accounted for the largest share of the market.
- The dominance of the North American region in the market is led by the USA market’s growth in the automotive industry. The adoption of safety features is fast becoming a regular practice in the United States market, both in passenger cars and commercial vehicles.
- High percentage of accidents caused by driver distraction in USA is a major concern, resulting in sales growth for automotive HUDs, especially in commercial vehicles like pick-up trucks. The growing trend of connected vehicles in developed countries is also resulting in growth for the market in the North American and Europe region.
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The Global Automotive Head-Up Display (HUD) market has ~100 players, including globally diversified players, regional players, and country-niche players having expertise in addressing the exact needs for country-specific vehicle types and traffic conditions.
Large global players constitute ~20% of the market in terms of the number of competitors, while regional players hold the largest share. Some of the major players in the market include Robert Bosch GmbH, Continental AG, Denso Corporation, Visteon Corporation, Nippon Seiki Co., LTD., Panasonic, Pioneer Corporation, Yazaki Corporation, Garmin, LG Display, etc.
Recent Developments Related to Major Players
- In January 2022, Panasonic introduced its Augmented Reality HUD 2.0 at CES 2022, one of the most influential tech events in the world. The HUD comes with a patented eye-tracking technology that significantly improves the augmented reality experience of the vehicle. The technology, as claimed by Panasonic, helps optimize the AR imagery for clarity and accuracy.
- In February 2022, Continental announced its head-up display for trams. According to Continental, the HUD will help better intra-urban traffic by ensuring that drivers are able to focus their full attention on what is happening on the road.
The Global Automotive Head-Up Display (HUD) market is expected to grow at a rapid pace during the forecast period. Multiple factors will drive growth in this segment, including a steady rise in the adoption of connected vehicles that come with advanced safety features, the growing demand for luxury vehicles across the globe – especially in the emerging auto markets, the surge in focus on improving the in-vehicle experience, and the availability of cutting-edge technologies helping vehicle manufacturers to reduce head-up display manufacturing cost.
Note: This is an On-Demand/Planned report, so the figures quoted here for a market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for Pre-booking clients, and the report delivered within a maximum of 2 working weeks.
Ken Research has recently published report titled, “Global Automotive Head-Up Display (HUD) Market Size, Segments, Outlook, and Revenue Forecast 2022-2028” The Automotive Head-Up Display (HUD) Market is segmented into technology, product type, range, dimension type, vehicle type, sales channel, and region. In addition, the report also covers the size and forecasts for the four major regions of the market. The revenue used to size and forecast the market for each segment is US million.
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