Market Trends of Automotive Digital Cockpit Industry
Increasing Global ADAS Production Volume will Fuel Camera Based Driving Monitoring System Demand
- Autonomous cars and connected vehicles are gaining consumers' interest and are anticipated to gain wider acceptance over the forecast period. With the rising technological advancements in the automotive industry and increasing purchasing power parity, end-users tend to spend more on the latest technologies, which enhance the driving experience and increase safety.
- Advanced driver-assistance system (ADAS) features such as collision warning, lane assistance, blind spot detection, etc., significantly impact consumer behavior and are expected to enhance vehicles' performance by reducing vehicle downtime by alerting the owner of any faults in the vehicle.
- However, the number of ADAS components will keep growing as these previously only available systems in high-end models are now being used in entry-level vehicles. These systems bring added safety and security to daily driving. Many of these systems allow the vehicle to make driving adjustments according to the condition. Functions such as steering, braking, and accelerating can be performed by the vehicle in certain situations. For instance,
- The lane-keep assist feature, which, when activated, provides steering assistance to keep a vehicle in its lane, was installed in 56% of new cars sold in Europe in the first half of 2021, 52% in Japan, 30% in Mainland China, and 63% in the United States.
- In July 2021, Magna International Inc. announced its plans to acquire safety tech major Veoneer Inc. Magna International Inc. entered into a definitive merger agreement with Veoneer Inc., where the company plans to acquire Veoneer Inc., a leading player in automotive safety technology. With this acquisition, Magna's aimed to strengthen and broaden its ADAS portfolio and industry position.
- Such factors are likely to contribute to the growth curve of the digital cockpit market over the forecast period.
Asia Pacific is expected to be the largest market during the forecast period
With the majority of the population resident in the region about 65%, the vehicle production in the region is expected to be the highest in the world, because of the high demand and increasing income levels of the people living in the region, which enhance the demand in mid-sized premium and luxury car segment in the region.
In Asia-Pacific China is expected to be at the forefront due to China's large automotive market, high consumer demand for advanced technologies, and government support for electric vehicles and smart transportation. Many OEMs are present in the region which are implementing the latest technology to attract new customers and forming strategic partnerships with major players in the market to gain strategic advantage. For instance,
In April 2023, Volkswagen's software venture in China with Thundersoft, through its subsidiary CARIAD. The partnership aims to develop and enhance digital cockpit technologies for Volkswagen's vehicles in the Chinese market. This move aligns with the growing demand for advanced digital cockpit solutions in China, as automakers prioritize connectivity, infotainment, and user experience to cater to the evolving preferences of Chinese consumers.
In October 2022, Nvidia and Qualcomm are playing significant roles in shaping the software-defined vehicle market, particularly in China. It discusses the increasing importance of digital cockpits in the Chinese automotive industry, driven by factors such as advanced connectivity, AI-based features, and user experience enhancements. Nvidia and Qualcomm's expertise in automotive computing platforms and software solutions positions them as key players in the Chinese digital cockpit market.
Hence, during the forecast period it is expected that the Asia pacific region will be the largest growing market.
