Automotive HMI System Market Size, Share & Trends Analysis Report By Product Type (Instrument Cluster, Multifunction Switches , Steering-Mounted Controls , Central Display , Rear Seat , Entertainment Display , Head-Up Display), By Vehicle Type (Passenger Vehicle , Commercial Vehicle), By Technology (Optical, Acoustic , Mechanical, Others), By Access Type (Standard , Multimodal) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global automotive HMI system market revenue was valued at USD 23.25 billion in 2023. It is estimated to reach USD 66.57 billion by 2031, growing at a CAGR of 12.4% during the forecast period (2024–2032). The automotive industry is witnessing a paradigm shift towards electric and autonomous vehicles, which offer various benefits. Therefore, their adoption is increasing worldwide. These vehicles require advanced HMI systems, anticipated to drive global market growth. Moreover, strategic initiatives like mergers and acquisitions, partnerships, product launches, and expansion, among others, by the key market participants, are expected to offer market growth opportunities. North America's automotive HMI industry set for substantial expansion with innovations like In-Plane sensing technology. Asia-Pacific poised for rapid growth, fueled by strategic initiatives and new production plants like Antolin India's facility in Pune Chakan.

The Automotive Human-Machine Interface (HMI) system pertains to the interface that connects the driver with the various systems and controls of the vehicle. The term "driver interface" refers to the entire range of technologies and components that enable the driver to interact with the vehicle. This includes displays, touchscreens, buttons, knobs, speech recognition systems, and gesture control interfaces.

An automotive HMI system aims to offer a user-friendly and intuitive interface that allows the driver to manage different vehicle functions, such as entertainment, navigation, climate control, communication, and vehicle settings. The system's main objective is to reduce distraction and ensure safety. Modern automotive HMIs frequently incorporate sophisticated functionalities, including multimedia displays, touchscreen interfaces, voice commands, and communication with smartphones and other devices. These systems are engineered to optimize the driving experience, boost convenience, and streamline access to information and entertainment throughout travel.

Market Dynamics

Market Drivers

Growing Demand for Electric and Autonomous Vehicles 

The automotive industry is undergoing a substantial transformation towards electric and autonomous vehicles, which have numerous advantages like less emissions, greater fuel efficiency, improved performance, and reduced maintenance expenses. These cars necessitate advanced HMI systems due to their involvement in various kinds of contact and communication among the driver, the vehicle, and the environment. McKinsey & Company predicts that by 2030, approximately 12 percent of newly purchased passenger cars will be equipped with L3+ autonomous technology, and by 2035, over 37 percent will have sophisticated AD technologies.

Furthermore, based on data from the International Energy Agency (IEA), the electric vehicles share in overall sales has increased by over three times within three years, rising from approx 4% in 2020 to 14% in 2022. EV sales are projected to maintain robust growth until 2023. A total of 2.3 million electric automobiles were purchased during the first quarter, representing a growth of approximately 25% compared to the corresponding period of the previous year. Hence, the increasing need for electric and autonomous vehicles is anticipated to propel the automotive HMI market in the forthcoming years.

Market Restraint

High Cost and Complexity of Automotive HMI Systems 

A significant obstacle the automotive HMI market encounters is the excessive expense and complex nature of designing and incorporating HMI systems into automobiles. To operate efficiently, the HMI system requires a range of hardware and software components, including sensors, cameras, microphones, displays, CPUs, memory, operating systems, and applications. These components contribute to the vehicle's cost and weight while increasing power consumption and heat generation.

Additionally, the HMI system must function with several vehicle platforms, adhere to multiple standards and protocols, and guarantee compatibility with other devices and systems, such as smartphones, smartwatches, and cloud services. The aspects above contribute to the complexity and arduousness of creating and implementing HMI systems in automobiles. They also provide testing, validation, and certification obstacles. Moreover, the HMI system must adhere to multiple rules and guidelines, including the ISO 26262 functional safety standard, the SAE J3016 levels of driving automation, and the NHTSA visual-manual distraction recommendations. This is crucial to guarantee the safety and dependability of the system.

Market Opportunities

Strategic Initiatives by the Key Players

Market participants have increasingly adopted strategic initiatives such as mergers and acquisitions, collaborations, expansions, and more to improve their market share. For instance, in March 2021, UNITY, a platform for creating and operating real-time 3D content, announced a collaboration with HERE Technologies for location data and technology. The partnership aims to develop advanced embedded automotive human-machine interfaces (HMIs) with cutting-edge real-time 3D rendering capabilities. The partnership will also encompass developing advanced location technology for autonomous driving, simulations, city planning, and digital twins.

Similarly, in June 2022, Volvo, a European automobile manufacturer, announced a partnership with Epic Games, the developer of the popular game Fortnite. The agreement involves utilizing Epic Games' 3D creative platform, called 'Unreal Engine,' to enhance the performance of Volvo's next electric vehicles. Volvo Cars has adopted Epic's real-time 3D creation tool to design digital interfaces and generate real-time graphics within its vehicles. Volvo Cars is the inaugural European automaker to employ the Unreal Engine to advance the Human Machine Interface (HMI). Therefore, these factors are projected to generate market growth opportunities.

Regional Analysis

Based on region, the global automotive HMI system market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America's automotive HMI system industry share is expected to expand substantially during the forecast period. The greatest market share is likely to be held by North America, as this region is the base for several prominent automakers and HMI system vendors, including General Motors, Ford, Fiat Chrysler, Delphi, Visteon, and Harman. The region is known for its elevated customer demand, inclination towards sophisticated and innovative HMI systems, and strict regulations and standards for vehicle and passenger safety. Moreover, the regional market is experiencing expansion due to numerous key factors, including the growing acceptance of electric and autonomous vehicles, the expanding use of voice and gesture recognition technologies, and the increasing demand for AR heads-up displays.

Furthermore, the market players are taking initiatives and creating unique HMI systems to boost their market position. For instance, in December 2022, UltraSense Systems introduced In-Plane sensing automotive technology. This technology allows for multi-mode sensing and HMI control on vehicles' SmartSurface (or A-Surface). It substantially reduces the size and weight of components, facilitates modern designs, and provides highly customizable options. As a result, it reduces the number of components required and simplifies the manufacturing process.

One important development that minimizes the space needed while producing a complete HMI experience is the use of in-plane sensing. InPlane sensing makes it possible to create designs that support a variety of Smart Surface HMI interactions when combined with the TouchPoint line of HMI controllers. This includes many materials, going beyond capacitive plastic and glass. Smart Surfaces can function with various materials, ranging from natural substances like wood and leather to metals and other pliable surfaces. As a result, these factors contribute to the expansion of the regional market.

Asia-Pacific is projected to see the most rapid growth rate due to its position as the largest and fastest-growing automotive market globally. Notably, countries like China, India, Japan, and South Korea contribute significantly to this region's global vehicle production and sales. Moreover, the market participants engaged in various strategic initiatives to augment their market dominance. For instance, in January 2024, Antolin India, a worldwide automotive industry leader Antolin subsidiary, increased its business activities by inaugurating a new production plant in Pune Chakan. Antolin's first lighting, HMI systems, and electronics facility in India has a workforce of over 200 highly skilled and experienced individuals. This plant was established two years ago.

Moreover, in December 2022, Continental, a technology corporation, increased its presence in India's Human Machine Interface (HMI) sector. This expansion is supported by the recent start of supplying Instrument Clusters for Hyundai's new Verna and Venue vehicles. Thus, the factors above boost the market expansion.

Segmental Analysis

The global automotive HMI system market is segmented by product type, vehicle type, technology, and access type.

Based on product type, the global automotive HMI system industry is bifurcated into instrument clusters, multifunction switches, steering-mounted controls, central displays, rear seats, entertainment displays, and head-up displays. 

HMIs integrated into instrument clusters offer drivers vital data, including vehicle speed, engine RPM, fuel level, temperature, and warning notifications. The displays are usually digital and can be personalized to match the driver's preferences. Many current instrument clusters combine navigation systems, displaying maps, turn-by-turn directions, and other location-based information. This facilitates drivers in navigating routes more efficiently without requiring distinct GPS equipment. Moreover, HMIs facilitate the integration of entertainment systems by showing information about radio stations, music tracks, incoming calls, and messages. Certain systems also offer smartphone integration, enabling drivers to manage music playback and access other applications safely.

Based on vehicle type, the global market is bifurcated into passenger cars and commercial vehicles.

Passenger cars, commonly known as cars, are motor vehicles primarily designed for transporting persons rather than commodities. Typically, the vehicles can accommodate one to eight individuals, which includes the driver. Passenger vehicles are available in various sizes and designs, including compact hatchbacks, luxury sedans, SUVs (sports utility vehicles), and minivans. These vehicles are used for individual transportation, commuting, recreation, and family excursions. Moreover, the passenger cars segment is projected to experience the most significant growth rate in the forecast period. This is because passenger cars are the primary users of automotive HMI systems, which provide drivers and passengers with numerous advantages, including improved safety, convenience, comfort, and entertainment.

Based on technology, the global market is bifurcated into mechanical, optical, acoustic, and others.

Automobile acoustic technology encompasses a range of methods and technologies employed to control and improve the auditory environment inside a vehicle cabin. These technologies aim to diminish undesirable noise, vibrations, and harshness (NVH) while enhancing the audio system's quality. Acoustic technology significantly enhances the driving experience by creating a quieter, more comfortable, and enjoyable environment for passengers during driving.

Based on access type, the global automotive HMI system industry is bifurcated into standard and multimodal.

The goal of multimodal access is to enhance the efficiency, convenience, and sustainability of transportation by promoting the utilization of several transportation modes and diminishing dependence on vehicles with only one passenger. The multimodal segment will experience the most significant growth rate in the forecast period. This is because multimodal interfaces allow drivers to utilize numerous modes of interaction, including voice, touch, gesture, and eye tracking, to operate various vehicle functions. This improves the adaptability and effectiveness of the HMI system while also decreasing the amount of work and mental effort required from the driver.

Impact of covid-19

People's lives and companies were affected by the COVID-19 outbreak worldwide. During the COVID-19 outbreak, delivery service companies confront several obstacles. Due to the tight restrictions, more people are purchasing online. In response, e-commerce and online retail & grocery enterprises faced a big issue in delivering groceries on time. By assigning delivery executives optimal routes, route optimization software helped to reduce vehicle idling time and enhance delivery executive productivity, therefore promoting the route optimization software business during the pandemic crisis.

Recent Developments

December 2023- AAC Technologies, a prominent player in the field of haptics products such as RichTap, announced a strategic collaboration with UltraSense Systems, pioneers in SmartSurface touch interfaces. UltraSense HMI Controllers and AAC RichTap work together to provide a user touch experience that includes multiple modes of touch and haptic feedback, resulting in an enhanced user experience.

January 2024- HMI, a producer of integrated circuits for power management, released the HL8743. This automotive low-dropout regulator (LDO) qualified as Grade 1 according to the AEC-Q100 standard. It can operate as both a single-channel and dual-channel regulator, and it includes the feature of current sensing.