Automotive and Transportation

Automotive HMI Market is Expected to Reach USD 52.93 Billion by 2031

May 2024

Automotive and Transportation

As per the report published by Kings Research, the global Automotive HMI Market 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.

The rise of augmented reality (AR) displays represents a significant trend in the global automotive HMI market. AR technology overlays digital information onto the real-world environment, such as navigation instructions, hazard warnings, and points of interest, enhancing situational awareness and providing contextual information to drivers in real-time. AR displays offer a more intuitive and immersive user experience compared to traditional instrument clusters and navigation systems, allowing drivers to access relevant information while maintaining focus on the road ahead. Additionally, AR displays hold the potential to transform the interaction between drivers and their vehicles by enabling gesture-based controls, virtual object placement, and enhanced visualization of complex data. As automakers increasingly integrate AR technology into their vehicles, the market for AR-based HMIs is expected to grow rapidly, driven by the demand for safer, more connected, and engaging driving experiences.

Key Insights

  • Based on product type, the head-up displays segment is expected to register a significant cagr of 11.70% over the forecast period
  • Based on access, the standard HMI segment generated the highest revenue of USD 12.81 billion in 2023
  • By vehicle, the commercial vehicles segment is expected to witness the highest CAGR of 13.93% through the projection
  • On the basis of region, Asia-Pacific is anticipated to witness a robust CAGR of 11.34% over the forecast period

Regulatory Focus on Driver Safety and Distraction Mitigation to Fuel Automotive HMI Market Expansion

The regulatory focus on driver safety and distraction mitigation is a key factor fueling the expansion of the automotive HMI market. Governments and regulatory bodies worldwide are enacting stringent regulations and guidelines aimed at reducing distracted driving and enhancing the safety of vehicle occupants. These regulations mandate the implementation of advanced driver assistance systems (ADAS), such as lane departure warning, collision avoidance, and driver monitoring systems, which rely on intuitive and user-friendly HMIs to effectively communicate critical information to drivers and mitigate potential distractions. In response to this, automakers are investing heavily in the development of innovative HMI solutions that prioritize safety, usability, and compliance with regulatory requirements. By addressing the growing concerns surrounding driver distraction and safety, the regulatory focus on these issues is driving the adoption of advanced HMIs, thereby stimulating market growth.

Integration of Personalized AI Assistants to Offer Lucrative Opportunities for Automotive HMI Market Development

The integration of personalized artificial intelligence (AI) assistants presents lucrative opportunities for the development of the automotive HMI market. AI assistants, powered by machine learning algorithms and natural language processing (NLP) technology, enable drivers and passengers to interact with their vehicles using voice commands, gestures, and other natural interfaces. These AI assistants perform a wide range of tasks, including making phone calls, sending messages, adjusting climate settings, providing navigation directions, and accessing entertainment content, tailored to cater to the preferences and habits of individual users. By personalizing the driving experience and offering seamless integration with other digital devices and services, AI assistants are enhancing convenience, productivity, and connectivity in the vehicle. As automakers and technology companies continue to invest in the development of AI-driven HMIs is anticipated to observe significant growth, driven by the demand for more intuitive, intelligent, and human-like interactions between users and their vehicles.

Asia-Pacific to Record at a Staggering CAGR of 11.34% between 2024 and 2031

Based on region, the global automotive HMI market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Asia-Pacific is set to record a staggering CAGR of 11.34% between 2024 and 2031. Several factors are contributing to this anticipated growth rapid urbanization, rising disposable incomes, increasing consumer demand for connected and autonomous vehicles, and government initiatives to promote automotive innovation and electrification. Asia-Pacific offers immense opportunities for HMI vendors and automakers to capitalize on the burgeoning demand for advanced vehicle technologies and digital solutions. Furthermore, the region's vibrant technology ecosystem, with the presence of leading players in electronics, software development, and telecommunications, provides a favorable environment for fostering innovation and collaboration in the automotive HMI market. With a large and diverse population of tech-savvy consumers, Asia-Pacific is poised to experience a surge in the adoption of next-generation HMIs that offer enhanced connectivity, safety, and user experience.

Market Players Concentrating on Innovative Product Launches to Drive Market Development

The global automotive HMI market is fragmented with key players 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. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

Get the latest!

Get actionable strategies to empower your business and market domination

  • Deliver Revenue Impact
  • Demand Supply Patterns
  • Market Estimation
  • Real-Time Insights
  • Market Intelligence
  • Lucrative Growth Opportunities
  • Micro & Macro Economic Factors
  • Futuristic Market Solutions
  • Revenue-Driven Results
  • Innovative Thought Leadership