Market Trends of Automotive Human Machine Interface Industry
This section covers the major market trends shaping the Automotive Human Machine Interface Market according to our research experts:
High cost of Installation is Likely to Hinder the Growth
As the HMI systems are becoming more advance the overall coast and installation rates are going high owing to which the HMI systems are not registering the significant growth rate in the major developing economies such as India, China, Brazil, Argentina, etc., as the buyers are more price sensitive in these countries.
India is emerging as one of the fastest growing country and has become the fourth largest automotive market. However, India is highly price sensitive country and due to the recent adoption of government norms regarding pollution control (like BS-VI in India) has already hiked the vehicles costs. Because of the overall vehicle price hike, the HMI system which includes the display and touchscreens has become costlier than the earlier used analog instrument clusters.
Moreover, many vehicle OEMs are focusing on integrated central displays eliminating the instrument clusters behind steering. The manufacturing cost of primary display systems that provides an integrated view of car components and also a medium for ADAS visualization for safer driving.
North America is Likely to Emerge as Market Leader
North America is one of the early adaptors to many technologies even if they are high on cost. The people living in the region responds quickly to the new technology coming in the market and are often termed as early adaptors of new technology. Human machine interface is also in its initial days in automotive industry and companies are still performing R&D on the technology to enhance the user experience. During the forecast period it is expected that the region will experience highest growth with respect to other regions.
Europe is expected to be the second leader because of the presence of several luxury and passenger car makers such as Volkswagen, BMW, Audi etc. the region is expected to grow during the forecast period as these companies are spending heavily on technologies to enhance the user experience and comfort. For instance,
- In March 2020, Cerence signed a global contract with a valuation of USD125 million with a large European car manufacturer for its industry-leading voice- and AI-based automotive assistants.
