Automotive HUD Market to Reach $3,372 million by 2025, at a CAGR of 31.3%

“Automotive Head-Up Display Market”

The market is driven by increased customer awareness about road and vehicle safety, demand for improved consumer experience in vehicles, and high growth in the luxury and high-end cars segments, mainly in the emerging markets.

According to the new market research report “Automotive HUD Market by Technology (AR-HUD, Conventional HUD), HUD Type (Combiner, Windshield), Vehicle Class (Economy, Mid-Segment, Luxury Car), Dimension (2D and 3D), Vehicle Type, Sales Channel (OEM, Aftermarket), and Region: Global Forecast to 2025“, Published by MarketsandMarkets™, Automotive HUD Market is projected to reach USD 3,372 million by 2025 from USD 866 million in 2020, at a CAGR of 31.3% during the forecast period.

Technological advancements in current generation automotive cockpit electronics along with increasing trend of connected and autonomous vehicles are further expected to drive the Automotive HUD Market. The HUD technology is evolving from a conventional HUD to augmented reality HUD. The augmented reality HUD overlays the external environment of the vehicle with virtual imagery that appears to be a part of the driving situation. This type of HUD highlights the street signs, enables advanced navigation that appears as arrows flowing over the road, and detects and illuminates the vehicles ahead to alert the driver of the distance between vehicles. This is always again expected to keep the driver alert and enhances the user experience. These advanced HUD functions are also projected to play a significant role in developing the fully autonomous driving technology.

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The COVID-19 pandemic has resulted in halted production and plunging sales and has forced the key players in the global automotive field to rethink their strategies. Rescheduling the launch of models and projects, stabilizing dealer networks, managing cash carefully, and reviewing investment portfolios have affected the production and sales of passenger and commercial vehicles across the globe, which has resulted in a dip in the Automotive HUD Market in 2020 as compared to 2019. The development and implementation of safety features are expected to slow down as well.

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3D HUD segment, by technology, is estimated to be the fastest growing Automotive HUD Market during the forecast period.

The 3-D HUD technology is attractive to leading auto manufactures because it is compact, does not require eye tracking, and provides a deeper field of view than the existing HUD displays. With glasses-free 3-D technology, next-generation HUD units offer the possibility of full 3-D effects, projecting the images seen by drivers at safer distances from the windshield, therefore, causing less distraction. The 3-D AR HUD can display information at different distances depending on the driving speed (e.g., 40 m ahead when driving at 40 km/h in urban areas, 80 m ahead when driving at 80 km/h on highways).

The presence of any object can be detected with the help of 3-D projecting using sensors. This visually alerts the driver in advance, giving the driver additional time to make judgments and control the vehicle. Thus, the 3-D AR HUD is expected to reduce the accident rate and make driving safer. Currently, many HUD manufacturers, including WayRay, Continental, Visteon, and component providers, such as NVIDIA and Zecotek, are working on the development of 3-D and augmented reality HUDs. In 2018, Continental developed AR HUD with holographic projection by collaborating with DigiLens. Moreover, OEMs such as Toyota are focusing their R&D activities on 3-D HUD development. These factors will boost the growth of the 3-D HUD market.

Luxury Car segment, by vehicle class, is estimated to hold the largest market share during the forecast period.

The luxury car segment makes a major contribution to the Automotive HUD Market.  The luxury car segment includes brands like Audi, BMW, Land Rover, Mercedes Benz, and Jaguar, which are priced higher than USD 50,000. The luxury car segment integrates windshield HUD in the vehicle, as the market is less price-sensitive, which gives attractive profit margins. Many OEMs are now offering the HUD as a standard feature in premium models and their variants.

Windshield HUD’s safety-enhancing features such as LDWS, blind spot detection, navigation, and speed metrics in the driver’s field of view have made the driving experience even richer. With technological advancements in the automotive industry progressing at a rapid pace, the integration of a wider range of advanced driver assistance systems in the windshield HUD is projected by 2025. The technological innovation in the product and the safety features attached to it would increase the demand in this segment. Asia Pacific and Europe hold a major share in this segment due to the high production of luxury vehicles in these regions and the increasing demand from consumers for advanced safety and convenience in-vehicle features. Despite the high price of windshield HUDs, suppliers continue to invest heavily in full-windshield HUD systems, adding advanced features such as augmented reality.

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Europe is estimated to be the largest market for automotive HUD in 2020

Europe is expected to account for the largest market share by 2020, followed by Asia Pacific and North America. The automotive industry is one of the key industries in Europe. As per the European Commission, there are about 180 automobile facilities across the EU, and the automobile industry represents the largest investor in research & development. The European region is a hub for automotive giants and premium vehicle manufacturers. However, in recent years, it has witnessed a slump in the production of vehicles and an increase in competition from emerging markets such as Asia Pacific and the Rest of the World. The major growth drivers of the Automotive HUD Market in the region include the growing demand for technology, the rising need for safe and secure driving experience, and an increase in the development of connected cars. Germany is estimated to account for the largest share of the European Automotive HUD Market, by value and volume, during the forecast period. The market growth can be attributed to the increasing demand for advanced automotive in-vehicle electronics. The presence of key automotive players such as Continental AG enhances the market’s first mover advantage with advanced automotive applications. In addition, the German commercial vehicle market is expected to adopt augmented reality HUDs at a faster pace compared to other developed countries.

The Automotive HUD Market is dominated by globally established players such as Bosch (Germany), Continental (Germany), Denso (Japan), Visteon (US), Nippon Seiki (Japan), Panasonic (Japan), Pioneer (Japan), and Yazaki (Japan).

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