Automotive Head-up Display (HUD): An Emerging Market with Promising Growth Potential

Automotive HUD Market

The Automotive Head-up Display (HUD) Market is estimated to be worth USD 866 million in 2020 and is projected to reach USD 3,372 million by 2025, at a CAGR of 31.3% during the forecast period. 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 car segments, mainly in the emerging markets.

A head-up display ensures that the driver can access all the required information on the windshield at the eye level. As a result, the driver’s focus remains on the road at all times and is not distracted by the various in-vehicle displays that provide information. The head-up display is being adopted widely across vehicle segments. The augmented reality head-up display projects the same information in the driver’s field of view, certain feet away from the vehicle. There is a great demand for HUD that enhances the user experience with new ways of displaying visual information without causing a distraction to the driver. The growing demand and the increasing competition among OEMs have resulted in reduced prices of display panels such as LCD and TFT-LCD display panels, HUDs (heads-up displays), smaller displays, and hybrid and digital instrument clusters, among others. Further, there have been advancements being carried out in automotive cockpit electronics technology such as AR head-up displays, advanced gesture controls, and haptic feedback. Most of the ultra-premium and advanced vehicles have two or more unique displays to provide divergent information such as Heating, Ventilation, and Air Conditioning (HVAC), parking guidance, infotainment, vehicle diagnostics, and so on.

Some of the leading manufacturers and suppliers of the automotive HUD market are Bosch (Germany), Continental (Germany), Denso (Japan), Visteon (US), Nippon Seiki (Japan), Panasonic (Japan), Pioneer (Japan), Yazaki (Japan), and others.

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The automotive HUD market in Europe is estimated to be the largest in the year 2020, by value. The market growth in the region can be attributed to the high luxury vehicle production capabilities coupled with the presence of leading HUD manufacturers such as Bosch and Continental. Further, increasing purchasing power and high demand for luxury and convenience features will propel the growth of the market in this region. The European HUD market is projected to grow from USD 321 million in 2020 to
USD 1,178 million by 2025. Increased production levels of automobiles, high adoption of advanced technologies in automotive electronics, and rapid progress of semi-autonomous and autonomous vehicles are also expected to boost the demand for automotive HUD in this region.

The automotive HUD market, by HUD type, is estimated to grow from USD 842 million in 2020 to USD 3,318 million by 2025. The windshield HUD segment is estimated to hold the largest market share during the forecast period owing to its preference by OEMs. In addition, this type of HUD integrates multiple functions, provides higher resolution and better visuals, and can also be used for augmented reality HUD. However, the price of the windshield HUD is higher than that of the combiner HUD. Combiner HUDs are preferred in mid-segment vehicles because of cost-effectiveness and offer cost-effective systems with a compact field of view and limited color definition. The combiner HUD segment is projected to grow at the highest CAGR of 44.8% during the forecasted period.

The luxury car segment is estimated to be the largest segment of the automotive HUD market during the forecast period. This segment is estimated to reach USD 2,851 million by 2025. The leading vehicle manufacturers introduced their innovative and advanced features in this segment to stand out from the rest, which eventually fuels the growth of this segment. The mid-segment car market is projected to register the fastest growth. The growth of this segment can be attributed to the use of combiner HUDs, which provide enhanced optical quality and increased brightness on a smaller display placed on the dashboard. This technology helps to meet compact space requirements, which in turn increases its adoption by OEMs.

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Recent Developments:

  1. In May 2020, Pioneer and Continental agreed upon a strategic partnership to develop innovative cockpit solutions for the Asian market. Continental would integrate Pioneer’s entire infotainment subdomain into its high-performance computer for vehicle cockpits as part of the agreement.
  2. In March 2020, Continental launched its next-generation display featuring autostereoscopic 3D technology in the HMC Genesis GV80 high-line variant. The technology displays three-dimensional scales, pointers, and objects; for example, displaying a stop sign warning in the driver’s line of sight. No special glasses are required to see the three-dimensional warning signal.
  3. In October 2019, Nippon expanded its development center in Tokyo, Japan, for its HUD business. The new Tokyo R&D center would be responsible for tasks such as integrated cockpit development, next-generation HUD development, and product development enhancement.
  4. In January 2019, Visteon opened an automotive software development center in Timisoara, Romania. The center primarily focuses on software development for advanced cockpit electronics, including digital instrument clusters and infotainment & information displays, and supports the development of new technologies for connected and autonomous driving.
  5. In October 2018, Continental revealed an industry-first full-color demonstrator of an automotive-specific Head-up Display (HUD) based on waveguide technology. This demonstrator is the result of the joint development with DigiLens. The Continental AR-HUD with waveguide technology significantly reduces the packaging size. With this new, innovative technology, Continental achieves an augmentation area of 15° x 5° (= 2.60 x 0.87 m at a projection distance of 10 m) while bringing down the device size to a mere 10 l magnitude. Continental’s demonstrator enables augmentations within a field of 2.60 x 0.87 m at a projection distance of 10 m and solves the previous size issue of the AR-HUD.