The automotive head-up display (HUD) market is expected to register a CAGR of over 24%, during the forecast period, 2019-2024.
- Head-up displays have been popular since the mid-20th century, and were primarily used in aircraft. However, during the 1950s, attempts were made to test this technology for cars. Currently, most of the luxury car manufacturers, such as BMW, Audi, Volvo, Mercedes-Benz, etc., equip their vehicle model range with HUD.
- The HUD market is expected to achieve high growth rates across the world. The technology is not entrenched, and is still in the growing phase in many of the developing markets.
- The North American and European automobile markets are two of the most technology-sensitive markets, and the HUD systems can be witnessed only in select automobiles in these markets. The higher growth rates for HUDs in the Asia-Pacific are expected, owing to the increasing demand for, and sales of, luxury cars. However, in effect, the North American market is expected to witness higher levels of activity in the HUD market.
- Existing manufacturers of aircraft HUD systems are expected to tap the automobile HUD market. However, reducing costs and downsizing of technology are expected to be the major challenges being faced by these manufacturers.
Key Market Trends
Increased Adoption Rate of Windshield HUD
Auto manufacturers and HUD suppliers have been continually working in developing better systems for cars. These HUDs have evolved beyond the bulky navigation that was available a few years ago. These systems are now capable of displaying compass direction, warning messages, and radio information, etc., on the windshield.
Utilizing advanced technologies, like liquid crystal display (LCD) and light emitting diodes (LED), delivers the advantage of displaying bright vibrant images on the windshield. The consistent technological advancements have evolved them to be less expensive to manufacture. The new projection technologies, including micro mirror-based devices, based on electromechanical systems are coming into the market, which will aid in creating brighter displays with the usage of more colors. The factors that are expected to drive the growth of display systems market are the low cost and innovative display technologies.
Head-up displays were earlier available majorly in luxury cars, but now, OEMs have been thinking and making them standard even in economy cars. In 2018, Japanese manufacturer, Toyota, launched Camry with the largest windshield HUD, when compared to many other cars available in the market. The company has also made windshield HUD as a standard for its Prius model.
Continental AG offers Adaptive Cruise Control, which uses AR-based HUD to display and monitor the speed and distance ahead of the cars. A crescent-shaped icon on the display changes its color to provide uninterrupted feedback when the vehicle ahead gets too close. The display panel plays a critical role in the augmented usage of the driver assistant systems in the vehicle.
United States Driving the North American Market
According to a study conducted by NHTSA, about 80% of the accidents happening in the United States are caused due to driver distraction. With the rapid technological developments happening in the automotive industry, HUDs have helped drivers in not only viewing vehicle information, but also the nearby environment information. Drivers can be alerted with several notifications, such as a phone call, driving speed, navigation, imminent collision when the vehicle ahead is braking, etc.
The prominence of the United States in automotive safety makes North America, one of the leading geographies in the automotive HUD market scenario, after Europe. Stringent safety norms mandated by various international agencies are expected to boost the adoption rate of safety systems for driver assistance, which, in turn, is expected to help maneuver the market for these systems in the country by 2024. With a steady transformation in the automotive industry of the country, there is considerable market penetration and mass adoption of safety systems, especially among the passenger vehicle segment. Commercial vehicles, like pick-up trucks, have also started adopting these systems to improve the driver's visibility and reduce accidents at night.
Automobile manufacturers, such as Ford and GM, are increasingly equipping their vehicles with built-in infotainment systems to provide consumers with enhanced driving experiences. The increasing demand for these advanced systems is expected to result in an increased demand for the HUD systems, which are intricately integrated with in-vehicle entertainment and vehicle information systems. The growing trend of connectivity in vehicles, with the increased integration of smartphones and tablets with in-vehicle entertainment and information systems, helps drive increased demand for advanced driving assisted systems. Currently, manufacturers are focusing on developing HUDs that can detect pedestrians. The growth of the market for these driver-assisted systems is expected to increase the demand for HUD systems, thus, easing the process for monitoring the information provided.
The Automotive HUD market comprises few global players and several regional players. Continental AG, Nippon Seiki Co. Ltd, HUDWAY, LLC., Denso Corporation, and Visteon Corporation are the leading players in the market. These companies have managed to gain an advantage by managing their product portfolio, developing new products, and expanding their footprint across several countries across the world.
In October 2018, Continental developed an augmented reality HUD that features new waveguide technology, which enables large-area augmentation in the driver's field of view.
In February 2019, Nippon Seiki announced an investment of JPY 1 billion, in order to expand the production capacity of its HUD and to establish a new production facility, which can manufacture onboard gauges and displays in Lodz, Poland. The new facility will start full-scale operations by October 2020.
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Table of Contents
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
- 4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 HUD Type
- 5.1.1 Windshield
- 5.1.2 Combiner
- 5.2 Vehicle Type
- 5.2.1 Passenger Cars
- 5.2.2 Commercial Vehicle
- 5.3 Geography
- 5.3.1 North America
- 188.8.131.52 United States
- 184.108.40.206 Canada
- 220.127.116.11 Mexico
- 18.104.22.168 Rest of North America
- 5.3.2 Europe
- 22.214.171.124 Germany
- 126.96.36.199 United Kingdom
- 188.8.131.52 France
- 184.108.40.206 Spain
- 220.127.116.11 Russia
- 18.104.22.168 Rest of Europe
- 5.3.3 Asia-Pacific
- 22.214.171.124 China
- 126.96.36.199 Japan
- 188.8.131.52 India
- 184.108.40.206 Rest of Asia-Pacific
- 5.3.4 Rest of the World
- 220.127.116.11 Brazil
- 18.104.22.168 Argentina
- 22.214.171.124 Saudi Arabia
- 126.96.36.199 South Africa
- 188.8.131.52 Other Countries
6 COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
- 6.2 Company Profiles
- 6.2.1 Nippon Seiki Co. Ltd
- 6.2.2 Continental AG
- 6.2.3 Yazaki Corporation
- 6.2.4 DENSO Corporation
- 6.2.5 Robert Bosch GmbH
- 6.2.6 Visteon Corporation
- 6.2.7 Panasonic Corporation
- 6.2.8 Pioneer Corporation
- 6.2.9 HUDWAY, LLC.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS