Augmented Reality Automotive Market Size – Industry Share Report 2025

Augmented Reality Automotive Market

The Augmented Reality Automotive Market is projected to grow at a CAGR of 30.31% during the forecast period, to reach USD 7.98 billion by 2025. The growing consumer awareness of advanced in-vehicle safety technologies, the desire of automotive manufacturers to build safer vehicles, and stringent government legislation to reduce the number of road fatalities have led to the growth of advanced driver assistance systems (ADAS) in vehicles.

View Detail TOC @

The augmented reality head-up display (AR HUD) enables a vehicle to monitor its surroundings with vehicle-mounted sensors that provide real-time data. Advanced technologies such as the AR HUD help to enhance driver and passenger safety. Other factors impacting the augmented reality automotive market are the growing trend of connected cars and progress in developing semi-autonomous and autonomous vehicles.

The augmented reality head-up display will integrate a wide range of functions of the instrument cluster, navigation, adaptive cruise control, and lane departure warning in luxury vehicles. Additionally, improving in-vehicle sensor fusion algorithms will enable advanced functions such as platooning in commercial vehicles, emergency braking, and collision avoidance. The adoption of such safety technologies by OEMs will act as a catalyst to the demand for advanced AR HUD systems. The advanced AR HUD function with enhanced augmented visuals will integrate varied ADAS functions into a single viewing platform with diverse information about the vehicle and the external environment. HUD display panel manufacturers across the developed markets of North America and Europe use TFT-LCD technology for automotive display applications. However, with rapid progress in technology and rising demand for better visual aesthetics and appeal of automotive cockpit electronics, display manufacturers have developed display panels with advanced technologies such as LED, OLED, and AMOLED. Although these technologies offer the flexibility of design and provide enhanced brightness and color contrast, they are delicate and cannot withstand high temperatures. Due to stringent temperature resistance norms and durability standards for automotive applications, these advanced display technologies will see a significant surge in demand in the next decade. The penetration of such advanced display technologies is expected to be seen in markets such as the US, UK, and Japan where there is a high demand for advanced vehicles and rapid progress of semi-autonomous and autonomous cars.

Download PDF Brochure @

With the rapid growth of premium vehicle production in the region and the fast implementation of advanced technology, North America is estimated to be the largest market, by value, for augmented reality automotive functions. The North American market is projected to grow at the highest CAGR during the period under study. The US accounts for a major share of the North American market due to its large automotive production and increasing number of premium passenger cars and light-duty vehicles on the road. In recent years, most of the leading automotive original equipment manufacturers (OEM) have expanded their operations in the Asia-Oceania region. The Asia-Oceania augmented reality automotive market is driven by the demand from China and Japan. The Japanese automotive industry is technologically advanced and would adopt in-vehicle augmented reality at a faster pace than other countries in the region such as India and South Korea. Internet and technology giants such as Alibaba, Baidu, and Tencent are making progress in setting the foundation of IoT (Internet of Things) and big data collection in China. Led by the technological advancement in information technology, the automotive industry in China is expected to adopt augmented reality in automotive. The Chinese augmented reality market for automotive applications is expected to be driven by the demand from consumers purchasing luxury cars and premium vehicles.

Target Audience

  • Automotive AR HUD system manufacturers and component suppliers
  • Automotive display panel manufacturers
  • Automotive OEMs
  • Industry associations and other driver assistance systems manufacturers
  • The automobile industry and related end-user industries

To speak to our analyst for a discussion on the above findings, click Speak to Analyst