The global automotive digital cockpit market in 2021 was valued at US$20.94 billion, and is likely to reach US$37.65 billion by 2026.
As vehicles evolve into moving data terminals, the rising penetration of intelligent cockpit, which consists of heads-up display (HUD), domain control unit (DCU), in-vehicle infotainment (IVI), digital instrument cluster (DIC), and digital mirror among others can be seen. The digital cockpit is an all-digital, software-defined dashboard system that assists drivers and passengers with critical driving operations. The digital cockpit integrates instrument clusters, infotainment, navigation, ADAS, proactive AI, comfort controls, and more into a single platform via multi-modal interfaces.
Increased use of in-vehicle telematics, infotainment systems, safety and pollution sensors, navigation, and the internet of things is a major driver of demand for the automotive digital cockpit market in recent years. As passenger automobiles evolve, the next generation of automobiles will be more autonomous, networked, electric, and software dependent.
This is anticipated to raise demand for the in-car experience in newly redesigned automobiles. The automotive digital cockpit market is projected to grow at a CAGR of 13.22% during the forecast period of 2022-2026.
Global Automotive Digital Cockpit Market Dynamics:
- Growth Drivers: Automotive digital cockpit industry intended audience is people living in urban areas with higher disposable income. People with higher disposable income are capable of affording such cars and constant rise in their income have provided the industry many opportunities to grow. Increased disposable income of intended audience has been a driver of the market for digital cockpit technology. Further, the market is expected to increase due to growing production of automobiles, improved ADAS functionalities, transformation of digital cockpit architecture, autonomous driving, rise in demand for in-vehicle infotainment system (IVI) etc. in recent years.
- Challenges: As consumer demand and expectation are constantly rising, the pressure on original equipment manufacturer is also increasing in terms of how to deliver always over the top performance while maintaining their market share. This is a challenge to the market as companies have to take into account a combination of factors such as product orientation, user needs, R&D costs and competitive pattern. Thus, constant pressure of improving user experience could act as an obstacle to the growth of the automotive digital cockpit market. Additionally, other factors like, cyber security threats, etc. are some challenges to the market.
- Trends: A major trend gaining pace in automotive smart cockpit market is the intelligent cockpit content per vehicle to more than double from current in China. In terms of position and content value per vehicle, automotive cockpits will experience major changes. This changes in China would have a global impact as China is one of the major hub of automobile manufacturing in coming years. More trends in the market are believed to grow the automotive digital cockpit market during the forecasted period, which may include in-car commerce and on-demand connected car services, 5G upgrades, personalized smart digital cockpit, rise in android automotive operating system, fall in prices due to intense competition, software-defined vehicles, etc.
Impact Analysis of COVID-19 and Way Forward:
The COVID-19 pandemic had a negative impact on the global automotive digital cockpit market. As a result of the pandemic and 2019 recession, there was a heightened fall in demand for automobiles which resulted in lower production rate of automobiles across the globe.
Further, supply disruption created major gaps in the manufacturing of automobiles. In the coming years, the market is predicted to grow at a faster rate, owing to changes created during the pandemic. Some changes would be observed in the post-COVID era, such as widespread loss of consumer confidence on purchasing advanced and luxurious car features, redirection resources to support ongoing operations, more R&D funds, etc.
Competitive Landscape and Recent Developments:
The market for automotive digital cockpits is moderately fragmented, with few competitors accounting for considerable market share. The key players offer a wide range of automotive digital cockpit components such as driving monitoring systems, digital instrument clusters, and Head-Up Display (HUD) units for passenger cars and commercial vehicles.
Further, the major players are investing heavily in R&D of products and incorporation of new technologies. Various businesses are concentrating on sustainable growth initiatives such as new launches, product approvals, and other things like patents and events. Acquisitions, partnerships, and collaborations were among the external growth strategies observed in the industry. These initiatives have opened the road for market participants to expand their business and customer base.
Also, players are consolidating their market shares through M&A activity. Qualcomm Technologies, Inc., for example, established a strategic agreement with General Motors in January 2021 to supply digital cockpits, advanced driver assistance systems (ADAS), and next-generation telematics systems for forthcoming cars. Faurecia established a strategic agreement with Immersion Corporation, a developer of haptic technology, in March 2021. The collaboration would enable Faurecia to build interactive haptic user interfaces using Immersion Corporation’s newest breakthroughs.
Further, key players of the automotive digital cockpit market are:
- Visteon Corporation
- Robert Bosch Gmbm
- Continental AG
- Panasonic Corporation (Panasonic Automotive Systems Europe)
- Samsung Electronics (Harman International)
- Aptiv PLC
- DXC Technology Company (Luxoft Holding Inc.)
- Hyundai Motor Company (Hyundai Mobis)
- Gramin Ltd.
- Denso Corporation
- Nippon Seiki Co. Ltd.
- Pioneer Corporation