Automotive HMI Market Size, Share, Growth & Industry Analysis, By Product Type (Voice Control System, Central Display, Head-Up Displays, Steering Mounted Control, Others), By Access (Standard HMI, Multimodal HMI), By Vehicle (Passenger Cars, Commercial Vehicles) and Regional Analysis, 2024-2031

Automotive HMI Market Size

The global Automotive HMI Market size was valued at USD 23.73 billion in 2023 and is projected to reach USD 52.93 billion by 2031, growing at a CAGR of 10.54% from 2024 to 2031. In the scope of work, the report includes products offered by companies such as HARMAN International, Continental AG, Visteon Corporation, Luxoft Technology, Valeo SA, Clarion Co. Ltd., Intellias, Alpine Electronics, Magnetic Marelli S.P.A., Synaptic Incorporated, Altran Technologies, and others.

The demand for connected and autonomous vehicles (CAVs) is a significant factor fueling the growth of the global automotive HMI market. CAVs represent the next frontier in automotive technology, offering the potential for enhanced safety, efficiency, and convenience through connectivity and automation. On the other hand, autonomous vehicles have the capability to operate without human intervention to varying degrees, ranging from advanced driver assistance systems (ADAS) to fully autonomous driving.

The proliferation of connected and automated vehicles (CAVs) is reshaping the automotive industry, driving the need for advanced HMIs capable of supporting the complex interactions between drivers, passengers, and vehicle systems in these next-generation vehicles. These HMIs are required to provide intuitive interfaces for controlling and monitoring the vehicle's autonomous functions, as well as seamless connectivity with external devices and services. As automakers continue to invest in the development of connected and autonomous vehicles, the demand for innovative HMIs that enhance the user experience and enable the safe and efficient operation of these vehicles is expected to grow significantly.

An automotive human-machine interface (HMI) refers to the technology and design elements that enable interaction between humans and vehicles. It encompasses the various interfaces and controls present within a vehicle that allow occupants to communicate with and control the vehicle's systems and functions. This includes the dashboard display, infotainment system, touchscreens, physical buttons and knobs, voice recognition systems, and other input/output mechanisms.

Automotive HMIs play a crucial role in facilitating communication, providing feedback, and enhancing the user experience for both drivers and passengers. They allow users to access information such as vehicle status, navigation directions, entertainment options, climate control settings, and other vital data in a manner that prioritizes intuitive usability, convenience, and safety while driving.

With the evolution of technology, automotive HMIs are becoming increasingly sophisticated, incorporating features such as touch and gesture recognition, augmented reality displays, natural language processing, and artificial intelligence to provide more seamless and personalized interactions. These interfaces are essential components of modern vehicles, contributing to both the functionality and aesthetics of the vehicle interior and are continuously evolving to meet the changing needs and preferences of consumers in the automotive market.

Analyst’s Review 

The automotive HMI market is witnessing robust growth driven by technological advancements, changing consumer preferences, and regulatory mandates aimed at improving safety and usability in vehicles. With the rapid proliferation of connected and autonomous vehicles, there is a growing demand for advanced HMIs capable of supporting the complex interactions between humans and vehicles in these next-generation vehicles. Furthermore, the increasing emphasis on enhancing the user experience (UX) is driving automakers to invest in innovative HMI solutions that offer intuitive interfaces, seamless connectivity, and personalized features.

The automotive HMI market is expected to continue its growth trajectory in the coming years, with key players focusing on product innovation, strategic partnerships, and expansion into emerging markets to capitalize on the lucrative opportunities in the market. With advancements in display technologies, artificial intelligence, and connectivity, automotive HMIs are evolving to offer more immersive, interactive, and intelligent user experiences of connected and autonomous mobility.

Automotive HMI Market Growth Factors

The growing emphasis on enhancing user experience (UX) is a major factor fostering the demand for automotive HMIs. Automakers are responding to this demand by prioritizing the development of HMIs that offer intuitive navigation, personalized features, and seamless integration with other digital devices and services. Enhanced UX in automotive HMI encompasses elements such as simplified menu structures, visually appealing graphics, responsive touchscreens, and natural language processing for voice commands.

By focusing on UX, automakers aim to create a more enjoyable and efficient driving experience for users, while also improving safety by minimizing distractions and cognitive load. As the automotive industry continues to adopt digitalization and connectivity, the importance of UX in automotive HMIs is expected to grow, thereby fostering innovation and shaping the future of mobility.

The need for standardization and interoperability across platforms presents a significant challenge for the automotive HMI market growth. With the increasing complexity of vehicle electronics and the growing number of devices and systems integrated into modern vehicles, ensuring seamless communication and compatibility between different components is essential. However, the lack of standardized protocols and interfaces hinders interoperability and creates compatibility issues, leading to fragmented user experiences and increased development costs for automakers.

Additionally, the diversity of stakeholders involved in the automotive ecosystem, including automakers, suppliers, software developers, and regulatory bodies, poses a challenge to the establishment of common standards and guidelines. To address this challenge, industry stakeholders are collaborating to develop and adopt standardized protocols, interfaces, and frameworks that enable interoperability and ensure seamless integration of automotive HMIs with other vehicle systems and external devices. By establishing common standards, the automotive industry aims to streamline development processes, improve compatibility, and enhance the overall user experience for both drivers and passengers.

Automotive HMI Market Trends

An emerging trend in the automotive HMI market is the adoption of natural language processing (NLP) interfaces. NLP technology enables vehicles to understand and respond to human speech, thereby allowing drivers and passengers to interact with their vehicles through natural language commands and queries. This trend is driven by the growing demand for more intuitive and convenient user interfaces that reduce the cognitive load on drivers and enhance the overall user experience. NLP interfaces enable hands-free operation of vehicle functions, such as making phone calls, sending text messages, adjusting climate control settings, and accessing navigation directions, without the need for manual input or touchscreen interaction.

By integrating NLP technology into automotive HMIs, automakers offer safer and more convenient ways for users to interact with their vehicles, particularly while driving. Furthermore, advances in machine learning and artificial intelligence are enabling NLP systems to become more accurate and contextually aware, thereby enhancing their usability and effectiveness in real-world driving scenarios. As NLP technology continues to mature, it is expected to play an increasingly prominent role in shaping the future of the automotive HMI landscape, enabling more natural and intuitive interactions between humans and vehicles.

Segmentation Analysis

The global automotive HMI market is segmented based on product type, access, vehicle, and geography.

By Product Type

Based on product type, the market is categorized into voice control system, central display, head-up displays, steering mounted control, and others. The central display segment dominated the market with a share of 43.56% in 2023 on account of the significant role central display systems play in the automotive HMI market.

Central displays, typically located on the dashboard or center console of the vehicle, serve as the primary interface for accessing and controlling various vehicle functions and infotainment features. These displays range from traditional touchscreen panels to more advanced systems incorporating augmented reality (AR) technology, providing drivers and passengers with visual information and interactive controls in a centralized location. The dominance of the central display segment can be attributed to several factors, including the increasing adoption of larger and more feature-rich display systems in modern vehicles, the integration of advanced connectivity and infotainment features, and the growing emphasis on user experience (UX) design.

Central displays offer a centralized and easily accessible interface for users to interact with their vehicles, enabling seamless navigation, entertainment, communication, and vehicle control functions. As automakers continue to prioritize the development of advanced central display systems with enhanced functionality and usability, the segment is expected to maintain its dominance in the market in the forthcoming years.

By Access

Based on access, the market is bifurcated into standard HMI and multimodal HMI. The multimodal HMI segment is anticipated to exhibit the highest CAGR of 11.12% over the forecast period as a result of the increasing adoption of multimodal human-machine interface (HMI) systems in the automotive industry.

Multimodal HMIs integrate multiple input modalities, such as touchscreen, voice recognition, gesture control, and physical buttons, to provide users with diverse interaction options for controlling and accessing vehicle functions. This approach allows users to choose the most convenient and intuitive input method based on their preferences, driving conditions, and task requirements, thereby enhancing usability and user experience (UX) in automotive applications.

The growth of the multimodal HMI segment is driven by several factors, including the rising demand for more natural and intuitive user interfaces, advancements in sensor and AI technologies enabling accurate and reliable gesture and voice recognition, and the increasing integration of advanced driver assistance systems (ADAS) and infotainment features in vehicles.

Multimodal HMIs offer several benefits such as improved accessibility, reduced driver distraction, and enhanced safety by providing alternative input methods that complement traditional touchscreen interfaces and minimize the need for manual interaction while driving. As automakers continue to invest in the development of multimodal HMI solutions, the segment is projected to experience significant growth over the review period.

By Vehicle

Based on vehicle, the market is divided into passenger cars and commercial vehicles. The passenger cars segment garnered the highest revenue of USD 18.79 billion in 2023. Passenger cars, including sedans, hatchbacks, SUVs, and minivans, represent the largest segment of the automotive market in terms of sales volume and consumer demand. As a result, they contribute to the surging demand for automotive HMIs, which are integral components of modern vehicle interiors.

The dominance of passenger cars in the automotive HMI market can be attributed to several factors, including the increasing adoption of advanced infotainment, connectivity, and driver assistance features in passenger vehicles, the growing emphasis on enhancing user experience (UX), and vehicle comfort, and the rising consumer expectations for seamless integration of digital technologies in automotive interiors. As automakers continue to introduce new models and enhance existing ones with advanced HMI features, the demand for passenger cars is projected to increase.

Automotive HMI Market Regional Analysis

Based on region, the global automotive HMI market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

The Europe Automotive HMI Market share stood around 35.41% in 2023 in the global market, with a valuation of USD 8.40 billion due to the booming automotive industry, technological advancements, and stringent regulatory standards. As a major hub for automotive manufacturing and innovation, Europe benefits from a robust ecosystem of automakers, suppliers, and technology providers, thereby driving the adoption of advanced automotive technologies, including human-machine interface (HMI) systems.

European automakers are known for their focus on design, engineering excellence, and emphasis on user experience (UX), leading to the widespread integration of sophisticated HMIs in vehicles produced in the region. Furthermore, Europe's prominence in regulatory standards related to vehicle safety, emissions, and connectivity incentivizes automakers to invest in advanced HMI solutions that comply with these requirements while offering superior functionality and usability.

Additionally, Europe's affluent consumer base, high adoption rates of luxury and premium vehicles, and growing demand for electric and connected vehicles are contributing to the region's dominance in the automotive HMI market. As Europe continues to drive innovation and fuel the adoption of advanced automotive technologies, including HMIs, the region is expected to maintain its leading position in the global automotive HMI market through the forecast timeline.

North America is likely to experience significant growth at a 10.45% CAGR between 2024 and 2031 owing to several factors, including the increasing adoption of connected and autonomous vehicles, the presence of leading automotive technology companies, and growing consumer demand for advanced infotainment and driver assistance features. The region's mature automotive market, coupled with high disposable incomes and a notable inclination toward innovation, has created a favorable environment for the adoption of advanced human-machine interface (HMI) systems in vehicles.

North American automakers and technology firms are at the forefront of developing and deploying connected vehicle technologies, artificial intelligence, and advanced driver assistance systems (ADAS), thus driving the integration of sophisticated HMIs that support these functionalities. Additionally, North America's regulatory environment, characterized by a focus on safety and consumer protection, is prompting automakers to invest in HMI solutions that enhance user experience (UX), while also ensuring compliance with regulatory standards.

Furthermore, the region's growing interest in electric and autonomous vehicles, particularly in urban centers and tech-savvy communities, creates lucrative opportunities for HMI vendors to offer innovative solutions tailored to the needs of these segments. As North America maintains its leading position in automotive innovation and technology adoption, it is poised to emerge as a key market for automotive HMIs in the coming years.

Competitive Landscape

The global automotive HMI market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Manufacturers are adopting a range of strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.

List of Key Companies in Automotive HMI Market

• HARMAN International
• Continental AG
• Visteon Corporation
• Luxoft Technology
• Valeo SA
• Clarion Co. Ltd.
• Intellias
• Alpine Electronics
• Magnetic Marelli S.P.A.
• Synaptic Incorporated
• Altran Technologies

Key Industry Developments

• February 2024 (Partnership): VI-grade, a leading provider of simulation-driven vehicle development solutions, and Varjo, a pioneer in professional VR and XR technology, announced a partnership aimed at propelling human-machine interface (HMI) development in automotive. Utilizing Varjo's cutting-edge headsets, the collaboration aims to elevate the immersive experience of VI-grade's driving simulators, thereby contributing to industry progress.

The global Automotive HMI Market is segmented as:

By Product Type

• Voice Control System
• Central Display
• Head-Up Displays
• Steering Mounted Control
• Others

By Access

• Standard HMI
• Multimodal HMI

By Vehicle

• Passenger Cars
• Commercial Vehicles

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America