Automotive Digital Cockpit Market Size, Share & Trends Analysis Report By Equipment, By Display Technology, By Vehicle Type (Passenger Cars, Commercial Vehicles), By Region, And Segment Forecasts, 2021 - 2028

Report Overview 

The global automotive digital cockpit market size was valued at USD 19.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.8% from 2021 to 2028. The Covid-19 pandemic has affected the overall automotive industry, leading to a subsequent decline in the growth of the market as a result of low automotive sales and new requirements. However, the increased adoption of in-vehicle telematics, infotainment system, safety and pollution sensors, navigation, and the internet of things is a prominent factor driving the demand for automotive digital cockpit solutions. Furthermore, the growing demand for improved comfort, safety, and convenience in vehicles, especially in emerging and developed economies, is anticipated to boost the growth of the market over the forecast period. The growing luxury and high-end car segment and rising use of autonomous vehicle technology are also likely to contribute to market growth.

The market for the automotive digital cockpit is growing at a rapid rate. With the shifting mobility market, digital cockpit systems are evolving to offer vehicle occupants new functionalities and safety capabilities along with improved entertainment experience options. A digital cockpit solution in an automobile consists of digital interfaces that allow OEMs to overcome the limitations of an analog instrument cluster. It offers a digital experience in a car covering digital assistants, multiple screens, and various input means. With digital interfaces, automotive OEMs and suppliers have the freedom to design interfaces that deliver a more appropriate illustration of real-time data. The digital interfaces also extend the scope to support multiple safety-critical features, including ADAS.

Technologies such as advanced infotainment systems, heads-up displays, gesture control systems, central controllers, telematics, and steering-mounted controls are used in passenger vehicles on a large scale for luxury, comfort, safety, and security benefits. Governments in several countries globally are putting in place regulations pertaining to vehicle security and safety. This has prompted the demand for automotive electronic devices, including digital cockpits, across the globe.

The demand for connected infotainment solutions and digital cockpits is increasing in the automotive market. As per estimates, over 90% of passenger cars on the road will be connected to the internet with the help of 3G/4G connectivity by the end of 2022. The rising usage and acceptance of Apple’s CarPlay and Google’s Android Auto standards is a trend that is expected to continue as technology advances. Moreover, the popularity of digital cockpits is expected to gain traction over the forecast period, creating favorable opportunities for market growth. Major car manufacturers are coming up with more sophisticated digital cockpit solutions. The Volkswagen Group and Audi provide virtual cockpits in models such as Audi TT, Audi A6, RS 6 Avant, RS Q8, and Lamborghini Huracan. BMW provides its customers with a Digital Live system, whereas Mercedes provides MBUX.        

The COVID-19 pandemic has changed the business dynamics in 2020, which is expected to impact the overall business scenario over the next few years. Lockdowns implemented in various parts of the world to curb the spread of the virus have led to disruptions in the supply chains and the temporary ceasing of production at several production facilities. As a result, shipments got delayed and production volumes were plummeted, taking a severe toll on automotive production. The dwindling demand for commercial and passenger vehicles has had a subsequent impact on the market as well. The overall automotive production volumes have declined globally on a year-on-year basis, mainly due to the decline in production volumes in Europe and North America, among other regions. Global car sales have dropped by about 33.3% over the year from January 2020 to April 2020, with around 9 million fewer cars sold as compared to January 2019 to April 2019. In the U.S., the sales of passenger cars dropped roughly by 50% year-on-year as compared to 2019.

Equipment Insights

The driving monitoring system segment dominated the market for the automotive digital cockpit and accounted for the largest share of 48.3% in 2020, in terms of volume. Driving monitoring systems are infotainment systems that offer a range of interactive features such as entertainment, navigation, cabin climate controls, and many safety and security features such as advanced driver assistance systems. Advancements in autonomous vehicles and connectivity technology in vehicles are expected to propel the demand for driving monitoring systems. Additionally, several automotive manufacturers aim to offer advanced driving monitoring system solutions in economic and mid-segment vehicle variants, thereby driving the market for the automotive digital cockpit.

The head-up display segment is projected to register a volume-based CAGR of over 11.7% over the forecast period. A head-up display is a transparent display that shows information directly in the driver's line of sight. With the help of a head-up display, drivers get all the critical information such as speed, indicator arrows for navigation, and warning signals without having to look down to the secondary display or instrument cluster. The integration of augmented reality with head-up displays in the future is expected to pave the way for enhanced safety and driving experience, driving the segment growth from 2021 to 2028.

Display Technology Insights

The TFT-LCD display segment dominated the market for the automotive digital cockpit and accounted for the largest revenue share of over 55.0% in 2020. TFT LCDs are commonly used in automotive digital cockpit displays to meet the temperature and durability standards of all prominent automotive displays. OEMs use a combination of LCD and TFT in displays based upon the range temperature sensitivity in vehicles and the function of the display. The basic digital instrument cluster and driver monitoring system center console are fitted with touchscreen displays that are typically equipped with LCD panels.

The OLED display segment is estimated to register a CAGR of around 12.0% from 2021 to 2028. The adoption rate is lower compared to other display technologies, such as LCD in consumer models. However, OLED automotive digital cockpit systems are expected to witness faster adoption in comparison to other display technologies over the forecast period. Various upcoming vehicles are now showcasing OLED display technology. For instance, Mercedes-Benz is planning to use LG OLED panels in its E-Class and S-Class passenger cars by 2021.

Vehicle Type Insights

The passenger cars segment dominated the market for the automotive digital cockpit and accounted for the largest revenue share of more than 80.0% in 2020. The increasing demand for connected car features in passenger vehicles and the onset of autonomous vehicles is expected to drive the segment growth. In addition, automotive manufacturers are increasingly focusing on offering an improved user experience to their customers, which has also boosted the demand for automotive digital cockpits.

The commercial vehicles segment is projected to register a CAGR of over 10.0% over the forecast period. The increasing demand for commercial vehicles and the growing focus of automotive companies on adding vehicle-to-vehicle communications in vehicles for fleet management is expected to boost the demand for automotive digital cockpit solutions, in turn, propelling segment growth.

Regional Insights

Asia Pacific dominated the market for the automotive digital cockpit and accounted for the largest revenue share of 54.6% in 2020. It is anticipated to continue its dominance over the forecast period with a CAGR exceeding 10.0%. This growth is attributed to the increasing production and sales of passenger vehicles in the region. The high demand for automobiles and increasing income levels have resulted in the rising growth of mid-sized premium and luxury car segments in the region. In 2020, China led the passenger car production with 19.9 million units. Many OEMs are offering the latest technological features in their vehicles. For instance, in October 2019, Audi announced the launch of the Audi A6 sedan with a signature Audi virtual cockpit.

In Europe, the market has captured a considerable share of the overall automotive digital cockpit market. The region is a manufacturing hub for prominent premium vehicle manufacturers and automotive OEMs. Automotive manufacturing activities in the region have been driven by high investments by OEMs such as Volkswagen, Daimler, BMW, Jaguar Land Rover, Honda, Nissan, and others. The majority of premium car manufacturers in the region install advanced automotive display features in vehicles, which is projected to drive the market.

Key Companies & Market Share Insights

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. The companies are focused on providing advanced and technologically driven products to enhance their offerings in the market. They are also undertaking strategic initiatives such as regional expansions, acquisitions, mergers, partnerships, and collaborations to strengthen their position in the market.

Moreover, these players are consolidating their market shares by undertaking M&A activities. For instance, in January 2021, Qualcomm Technologies, Inc. announced a strategic partnership with General Motors to deliver digital cockpits, Advanced Driver Assistance Systems (ADAS), and next-generation telematics systems for upcoming vehicles. In March 2021, Faurecia announced a strategic partnership with Immersion Corporation, a provider of haptics technology. The partnership would help Faurecia to develop interactive haptic user interfaces with the latest innovations from Immersion Corporation. Some of the prominent players in the automotive digital cockpit market include:

• Continental AG

• Denso Corporation

• Faurecia

• Garmin Ltd.

• HARMAN International

• Hyundai Mobis

• Panasonic Corporation (Panasonic Automotive Systems Europe GmbH)

• Pioneer Corporation

• Robert Bosch GmbH

• Visteon Corporation

Automotive Digital Cockpit Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the automotive digital cockpit market report by equipment, display technology, vehicle type, and region:

• Equipment Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)

  • Digital Instrument Cluster

  • Driving Monitoring System

  • Head-up Display (HUD)

• Display Technology Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)

  • LCD

  • TFT-LCD

  • OLED

• Vehicle Type Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)

  • Passenger Cars

  • Commercial Vehicles

• Regional Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa