Automotive Human Interface System Market

Automotive Human Interface System Market Outlook (2023 to 2033)

The global automotive human interface system market stands at US$ 28.1 billion in 2023 and is extrapolated to reach US$ 66.5 billion by the end of 2033. Global demand for automotive human interface systems is forecasted to increase at a stellar CAGR of 9% over the next ten years.

The proliferation of technology in human life has increased exponentially in the past few years and this trend has also affected the automotive industry as automotive manufacturers are deploying several advanced technologies in vehicles to make them safer and more efficient. The evolution of technology has influentially changed the way infotainment systems are used in vehicles.

From radios and CD players, automotive infotainment has now evolved into smart devices capable of performing several functions that we could not have imagined a couple of decades ago. Automotive infotainment systems are used for communication, navigation, and entertainment, which makes them a huge part of automotive-human interaction systems.

The advent of autonomous and connected vehicles around the world is projected to bolster demand for automotive human interface systems across the forecast period and is slated to remain a key market driver through 2033. Increasing focus on driver safety, implementation of stringent road safety norms, adoption of advanced driver assistance systems by prime automotive companies, and advancements in technology are other factors that could propel market development over the next ten years.

Contrastingly, high costs associated with the installation of advanced human interface systems and cybersecurity concerns associated with these connected interface systems are anticipated to restrict sales of automotive human interface systems in the long run. High power consumption and the increased production time of vehicles due to installation of the human-machine interface (HMI) systems are some challenges that automotive human interface system manufacturers should overcome to grow at their full potential.

Report Attributes	Details
Automotive Human Interface System Market Size (2023)	US$ 28.1 Billion
Projected Market Value (2033F)	US$ 66.5 Billion
Global Market Growth Rate (2023 to 2033)	9% CAGR
Luxury/Sports Segment Market Value (2022)	US$ 8 Billion
Aftermarket Segment Market Value (2022)	US$ 18 Billion
Key Companies Profiled	Altran Technologies S.A. Denso Alpine Electronics Co. Ltd. Delphi Automotive PLC Synaptics Incorporated Visteon Corp. Nippon Seiki Valeo S.A. Magneti Marelli S.P.A Saint-Gobain SA. Honeywell International Inc.

How are Start-ups Elevating the Automotive Driving Experience?

“New Companies Focusing on Development of Advanced Human Interface Solutions”

New automotive human interface system suppliers are investing in the research and development of novel technologies that optimize the interaction of drivers with automobiles and create a more luxurious and safe driving experience.

• Ultrasense Systems, a human machine interface (HMI) start-up founded in 2017, recently unveiled an 'in-plane' sensing technology for automotive applications that is capable of replacing mechanical buttons and instrument clusters. This new technology has the potential to reduce the components used in the manufacturing of vehicles and give more flexibility to designers.

Incoming automotive human interface system companies are also focusing on collaborations, partnerships, and mergers to expand their business scope and increase their market share in the global landscape.

• Pony.ai, an autonomous technology start-up based in China, collaborated with SAIC AI Lab, a division of Chinese automotive manufacturer SAIC Motor, to develop a fleet of robotaxis. Pony.ai launched a concept car based on the SAIC Marvel R model with its L4-level autonomous technology.

More new developments by start-ups and their impact on supply chain management, pricing trends, and safety regulations have been revealed in this latest automotive human interface system market research analysis by Fact.MR, a market research and competitive intelligence provider.

Country-wise Insights

Why is Japan a Bankable Market for Automotive Human Interface System Suppliers?

“Rising Demand for Luxury Vehicles”

Japan and technology have been synonymous ever since the first consumer electronics came out and this is a prime factor that creates an opportunistic setting for automotive human interface system manufacturers in the country.

The presence of key car manufacturers such as Nissan and Toyota and rising per capita disposable income are influential factors that are projected to augment sales of automotive human interface systems in Japan across the forecast period. Changing consumer preferences and high demand for luxury cars with advanced infotainment and technologies are also anticipated to promulgate demand for novel HMI systems through 2033.

What Makes Europe a Profitable Regional Market?

“Presence of Prominent Automotive Manufacturers in the Region”

European car manufacturers have established their name in the world as the finest automotive makers and this is what makes this regional market the most rewarding one for established as well as upcoming automotive human interface system vendors. The rising number of high net-worth individuals and the growing popularity of electric vehicles (EVs) in European countries are estimated to primarily bolster shipments of automotive human interface systems over the next ten years.

Germany is extrapolated to be the leading market in Europe throughout the forecast period owing to the presence of key vehicle makers such as BMW, Audi, Volkswagen, etc. Increasing focus on driver safety, strict government mandates to deploy advanced driver assistance and safety systems, and growing focus on sustainability are other prospects that could potentially alter market growth in European countries such as the United Kingdom, France, Italy, and Germany going forward.

What is the Demand Outlook for Automotive Human Interface Systems in the United States?

“Increasing Fleet of Connected and Autonomous Vehicles Driving Business Potential”

The United States has been known for the rapid adoption of advanced technologies in almost all industry verticals and this is true for the adoption of human-machine interface systems in automotive applications as well. High demand for European cars, growing sales of luxury vehicles, implementation of stringent vehicle safety standards, and growing installation of HMI systems in vehicles are some key factors that are predicted to uplift automotive human interface system sales in the United States over the coming years.

Increasing focus on reducing the carbon footprint and the growing popularity of EVs in the United States is also projected to favor market growth in the future. Growing sales of EVs and hydrogen-powered vehicles in the United States is a testament to how the automotive industry in the country is heading toward a new revolution that could create new opportunities for incoming automotive human interface system manufacturers going forward.

To gain a better understanding of how trends in the automotive sector of the United States are evolving we could take the case of Toyota Mirai. Toyota, a Japanese vehicle manufacturer launched the hydrogen-powered Mirai at the end of the year 2015.

The first year of production witnessed a sale of mere 782 units in the United States, but they have been steadily increasing and amounted to nearly 2,629 units being sold in 2021. The vehicle not only features a unique power source but also an updated human-machine interface that provides the driver with a unique interactive experience.

Category-wise Insights

Which Human Interface Systems Will Push Up Overall Demand?

“Central Displays & Heads-Up Displays to Account for Commanding Market Share”

Based on type, the market for automotive human interface systems is segmented into voice controls, central displays, steering-mounted controls, instrument clusters, heads-up displays (HUDs), rear-seat entertainment (RSE), and multifunction switches.

Cumulatively, central displays and heads-up displays account for more than half of the global market share at present and are estimated to maintain a similar stance throughout the forecast period. Increasing use of advanced display technologies, electrification of vehicles, and advancements in display technologies are anticipated to promote sales of HUDs and central displays in the future. Instrument clusters are also forecasted to account for a significant market share but are anticipated to witness a drop in market share as the popularity and adoption of heads-up displays increase around the world.

Competitive Landscape

Top-tier automotive human interface system manufacturers are focusing on developing and launching novel interface solutions that stand out from countless HMI systems available in the global marketplace.

• In January 2023, at Consumer Electronics Show (CES) 2023 in Las Vegas, leading German car manufacturer Volkswagen unveiled its all-electric ID 7 sedan. The car featured eye-catching electroluminescent paint and some updates to its human-machine interface design that were reminiscent of what we find in cars from car manufacturers such as Tesla, Porsche, and Rivian.

Key automotive human interface system vendors are also focusing on mergers, acquisitions, and collaborations to hasten the development and launch of advanced automotive human interface systems for connected and autonomous vehicle fleets.

• Sony and Honda announced a joint venture to build electric cars in 2022, and in January 2023, unveiled the car brand named 'AFEELA' at CES 2023 in Las Vegas. The car will introduce a brand new human-machine interface that is expected to offer AFEELA users a personalized in-car experience along with L3 and L2+ autonomous capabilities.

Automotive Human Interface System Industry Research Segments

• By Product Type :

  • Voice Controls
  • Central Displays
  • Steering-mounted Controls
  • Instrument Clusters
  • Heads-Up Display (HUDs)
  • Rear-seat Entertainment (RSE)
  • Multifunction Switches

• By Passenger Car Type :

  • Compact
  • Sedan/SUV
  • Luxury/Sports

• By Technology :

  • Acoustic
  • Visual
  • Mechanical
  • Haptic

• By Sales Channel :

  • OEM
  • Aftermarket

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA