PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1488630
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1488630
The global automotive digital cockpit market is projected to witness a CAGR of 9.62% during the forecast period 2024-2031, growing from USD 30.26 billion in 2023 to USD 63.11 billion in 2031. The dashboards have constantly evolved over the years with the addition of new technologies. Technological advancements such as sensory technologies, ADAS, cruise control, and augmented reality have transformed the modern dashboard. The digital dashboard helps in building a two-way communication bridge between the vehicle and the driver, allowing him to focus more on driving. The addition of voice recognition and gesture control units has enhanced the infotainment and monitoring systems. The limitations of an analog instrument cluster can be overcome by OEMs with the help of digital interfaces found in a car's digital cockpit solution. It provides a digital experience in the vehicle with multiple screens, digital assistants, and input methods.
OEMs and suppliers to the automotive industry can create interfaces that provide a more suitable representation of real-time data when using digital interfaces. The immersive interaction, advanced safety, and higher comfort and ambiance are expected to increase the adoption of the latest digital cockpit solutions. For modern-day, always-connected professionals, the digital cockpit transforms commute time into productive work sessions by integrating cloud-based collaborative tools that allow for real-time document sharing and virtual meetings.
For instance, in December 2023, Intellias introduced a new digital cockpit with Rightward's Kanzi One technology at CES 2024 to power the development of dynamic, consumer-friendly automotive instrument panels. The Intellias portable is a fully functioning digital cockpit powered by Rightware's Kanzi 1 HMI kit and Qualcomm's 4th-generation Snapdragon Auto Cockpit Platform.
Enhanced In-Car Experiences and Extended Reality Efficiency to Fuel Market Expansion
The user-centric interaction along with advanced integration capabilities have improved the in-car experience for the end-users. The digital cockpit makes it easy to connect external devices and networks. Features such as smartphone integration, speech recognition, and internet connectivity extend the capabilities of the cockpit and provide drivers and passengers with more information and entertainment options. The in-car experience is one of the many reasons why end users adopt vehicles with digitally advanced cockpits. The future of automotive industry is moving towards a more interconnected and intelligent future. The digital cockpit is becoming the center of innovation. In addition, the development of autonomous vehicles and other technological breakthroughs in cars and other vehicles, digitization of compatible parts, and increasing vehicle sales, especially of passenger cars and luxury cars, anticipated to boost the growth of the automotive digital cockpit during the forecast period.
For instance, Lexus Motor announced a new Digital Cockpit inside the two EV concepts it showed at Japan Auto Show. The new VR experience for drivers is offered through the digitalization of the intelligent Cockpit, which enhances the driving experience. The new digital cockpit is called the Black Butterfly and is a combination of artificial intelligence and various innovative software systems that deliver the spaceship experience.
Hardware and Software Evolution to Bring New Opportunities to Market
The rigorous research and development programs have advanced the functioning of communication systems in automotive digital cockpits. Higher adoption of electric vehicles has led to the evolution of vehicle dashboards. Hence, the companies are building and upgrading their infotainment software and hardware solutions to deliver ease and convenience. For instance, in February 2024, Volkswagen India introduced a new connectivity solution named by "My Volkswagen". The solution in the form of an application for customers becomes the one-stop solution for major driver needs. The solution enables customers to get more feature access with each drive while analyzing the performance in real time.
Smartphone connectivity with infotainment and car control units has revolutionized the market. Software solutions such as Apple's CarPlay, Android Auto, Automotive OS, and Google Android Auto are some of the examples of digital cockpit systems. A digital cockpit encompasses a wider range of functionalities and technologies. The digital cockpit is the result of the integration of high-tech hardware and software that combines the instrument cluster's functions, the head-up display, and the infotainment system into one integrated system.
Camera-Based System to Gain Major Traction in Global Automotive Digital Cockpit Market
Based on equipment type, the camera-based monitoring system is anticipated to hold a decent share of the market during the forecast period. Camera-based monitoring systems are infotainment systems that offer a range of interactive features such as navigation, safety and security, and parking assistance. The integration of the equipment with 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 camera-based monitoring solutions in economic and mid-segment vehicle variants, thereby driving the market for the automotive digital cockpit. Other than it, the advanced infotainment systems such as head-up displays, gesture control systems, central controllers, telematics, steering-mounted controls, and other equipment are adding value to vehicles. Security and safety regulations around connected infotainment solutions are likely to transform digital cockpits.
For instance, in February 2024, a real-time monitoring video, AI-based driver behavior monitoring and in-vehicle alerts for trucks, Rosmerta Technologies Ltd's new AI-based DMS and Alert System is integrated with a vehicle tracking management system, initially designed for fleet operators.
Asia-Pacific Leads in Global Automotive Digital Cockpit Market with Higher EV Adoption
Based on region, Asia-Pacific dominates global automotive digital cockpit market. The factors leading to the higher adoption comprise higher economic activities, expanding manufacturing units, the government's helpful policies, and the entrance of foreign players. The increasing disposable income and rapidly growing automotive research and development facilities are anticipated to expand the market to hold further and create new prospects for the market.
India, China, and Japan will likely lead due to the rising automotive market size, high consumer preference for innovative technologies, and the government's support for EVs and smart mobility. There are many original equipment manufacturers (OEMs) in the region that are adopting cutting-edge technology to gain new customers and building strategic alliances with market leaders to gain a strategic edge. Furthermore, automotive giants partner with technological giants to deliver new digital cockpit solutions to vehicles.
For instance, in August 2023, Hyundai Group announced its technological collaboration with Qualcomm's Snapdragon cockpit platform for PBV infotainment. The state-of-the-art automotive cockpit platforms are designed to consume as little power as possible while providing high-quality graphics and engaging multimedia and audio. The company utilizes artificial intelligence and machine learning to enrich end-user experience.
Future Market Scenario (2024 - 2031F)
Technological integration with the addition of artificial intelligence, machine learning, and cloud computing is likely to add higher value to the market.
New features such as parking assist, multi-sensor and camera functions, and autonomous driving facilities are projected to flourish in the market during the forecast period.
Rapidly rising adoption of EVs and the introduction of additional features in the mid-class vehicle segment are expected to fuel the market growth.
Higher sales of passenger vehicles including EVs are anticipated to fuel Asia-Pacific automotive digital cockpit market. For instance, in April 2023, Volkswagen Group's Software front CARIAD announced its JV with ThunderSoft in China. The purpose of the joint ventures is to develop bespoke software products and services in the fields of connectivity and infotainment.
Key Players Landscape and Outlook
The global automotive digital cockpit market comprises major automotive equipment companies. The companies work on adding more driver convenience through additional digital features voice control, smartphone connectivity, virtual control, and real-time monitoring systems. Furthermore, the companies collaborate, acquire, and partner to expand their supply chain, distribution channel, and the overall market hold.
For instance, in June 2023, Continental introduced a new generation of high-performance computers (HPCs) that optimize system performance for an integrated set of vehicle functionalities. The goal is to strike a balance between the user experience, system performance, cost, and short development cycle of new smart cockpit HPC.
In January 2023, Samsung Electronics subsidiary Harman announced a collection of new cockpit technologies to improve safety and comfort and a range of new entertainment options for drivers and riders. The company presented these cockpit technologies at the Consumer Electronics Show 2023.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.