Head-Up Display Market Size, Share & Trends Analysis Report By Components (Video generator, Projector Unit, Display Unit, Software, Others), By Type (Conventional, Windshield-based, Combiner-based, AR-based), By End-User (Automotive, Aviation) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global head-up display market share is expected to grow at a CAGR of 24.5% during the forecast period (2021–2030).

A head-up display, also known as a HUD, is a small, transparent display that presents essential driving information like navigation, speed, and RPM on the car's windshield. It prevents the driver from diverting his attention from the road by reflecting a reversed image at his eye level. Head-up displays are an imperative and convenient feature that ensures drivers' and passengers' safety. The global market for head-up displays has been categorized into four segments: components, types, applications, and regions.

GPS, multiple-axis sensors, altitude, and barometric pressure measurements are all included in HUDs. Speed, altitude, jump height, athletic power output, and heart rate are just a few examples of the data that sports-optimized is designed to display. Range finding and showing a preview of a race or golf course are examples of other features. There are many benefits to using a Head-Up Display, one of which is that it prevents you from turning your head in different directions to look for information about speed or navigation. When the eyes are taken off the HUD, they tend to return to the road more quickly because there is less head turning.

Advanced HUD systems mainly offer safety features like operating with an infrared camera to improve visibility in foggy conditions and projecting lines on the road. The main driver of the rise in demand for connected vehicles is features like these that make driving an automobile safe and quick. The number of cars registered globally and the rise in public awareness of road safety has also been significant factors in the market's expansion and the demand for Heads Up Displays internationally. This is primarily due to many economies' increased global population and disposable income.

Market Dynamics

Market Drivers

• • Growing Concerns for Driver and Passenger Safety

A head-up display is a kind of Advanced Driver Assistance System (ADAS), which ensures safe driving. It projects essential driving information on the windshield of a car to prevent distractions while driving. Distracted driving often leads to road accidents and fatalities. As per the Governors Highway Safety Association (GHSA), pedestrian casualties across the US increased by 55% between 2009–2018, owing to distractions while driving.

Therefore, in the midst of the rising fatalities, governments across the globe are formulating policies and initiatives to ensure the safety of drivers, passengers, and pedestrians, creating demand for head-up displays. For instance, at the Society of Indian Automobile Manufacturers (SIAM) annual convention held in 2018, a Union Minister announced that the use of ADAS might be made mandatory for all cars by 2022.

Market Restraints

• Space Constraints in Automotive Cockpits

The installation of a head-up display requires an enormous amount of space in automotive cockpits. However, the space available in the cockpit is small. The hardware of the HUD necessitates ample space—and to integrate HUD in vehicles, OEMs will have to redesign the cockpit. Redesigning is a highly complex and time-consuming task.

Additionally, the projections of the HUD are to be in the driver’s line of focus, which requires various hardware devices to be integrated into the automotive cockpit. Again, this mandates redesigning. Therefore, the space constraint is impeding the head-up display market share.

Future Market Opportunities

• AR-based Head-Up Display Creates Lucrative Opportunities for the Market

The integration of AR (augmented reality) in head-up displays has enriched the driving experience. AR-based head-up displays project an external view of the traffic conditions in front of the vehicle with virtual augmentations, ensuring safety and comfort. These display systems are trending due to their innovative features and easy-to-use access. Additionally, AR-based head-up displays have proven to be a competent counter to rising safety concerns, which is creating a high demand for the product.

Given the spike in demand for AR-based head-up displays, the industry is witnessing strategic partnerships that will further help in technological advancements, resulting in good-quality products. For example, in January 2021, a new AR-based head-up display technology was introduced by Panasonic Automotive. This system displays lane edges, objects on the road, and other critical information. The company used AI to share information with the drivers, and this technology will be seen in model vehicles by 2024. Therefore, AR-based head-up displays are creating lucrative opportunities for the head-up display market.

Regional Analysis

Supremacy of North America Over Others

The global head-up display market size has been segregated into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

The North American continent holds 36.10% of the market share and is the highest-grossing region. Rising concerns for safety and increasing fatalities are the major reasons driving this market. Canada is one of the fastest progress-making countries in North America. It is among the early adopters of new technology, making it one of the regions creating lucrative growth opportunities.

In 2019, the US reported more than 3000 deaths due to distracted driving, resulting in the US imposing more strict regulations. Thus, the head-up display market is seen to have a huge demand. The growth of the market helps in connected vehicles and reduces driver distractions, avoiding any fatalities. All the safety regulations and adoption of new technology have served the need for the head-up display market to grow. It has an expected CAGR of 24.5% and shows great potential to rise.

The U.K. is becoming a more attractive niche in the European market as more cutting-edge technological systems are adopted in the automotive industry. To enhance their driving experience, consumers increasingly favor cars with cutting-edge safety features and driving aids. As a result, numerous car manufacturers in the U.K. are spending money on R&D to enhance their product lines. For instance, a start-up in the U.K. called Envisics raised $500 million in Series B funding to advance holographic technology for HUDs in the automotive industry. Moreover, the automotive industry giant Mercedes-Benz recently declared that it would be the first to include AR HUD in its 2021 S-Class series.

According to projections, China will hold a significant portion of the East Asian head-up display market. The market will continue to grow as China's defense and military investments increase. Higher sales are being produced due to deploying technologically advanced navigation and control systems in commercial and defense aircraft. The market will also continue to grow due to rising investments in the automotive industry and rising sales of semi-autonomous vehicles, which are preferred by increasing disposable income.

Segmental Analysis

The global head-up display market size has been classified on the basis of components, types, applications, and regions.

Based on components, the market has been segmented into video generators, projector/projection units, display units, software, and others. The display unit is the highest-selling component. This is because it is eco-friendly and has high transparency. It is predicted that the market will generate a CAGR of approximately 25% during the forecast period. The display unit displays a processed picture on the automobile's windshield or the combiner. Moreover, this technology is more efficient and environmentally friendly than LEDs and LCDs.

Based on type, the market has been divided into conventional head-up displays, windshield-based head-up displays, combiner-based head-up displays, and AR-based head-up displays. The AR-based head-up displays hold dominion over other types of head-up displays. It is expected to grow at a CAGR of 25.8% by 2030. The demand for AR-based head-up displays is increasing due to its rising applications in lane departure detection and alerts, vehicle proximity detection, blind-spot detection, 360 view, pedestrian detection and alerts, route navigation alerts, and road signs simulations.

Based on application, the market is segmented into the aviation and automotive industry. The automotive industry is the fasted growing segment and is expected to grow at a CAGR of 24.2% over the forecast period.

Aerospace is further divided into civil and military aviation; the global head-up display market is anticipated to increase thanks to the aviation industry. The aviation industry can significantly benefit from HUD technology, the primary technology to show pilots crucial information. HUD has long supported both civil aviation and the military/defense industries. Recently, HUD technology has also started to be used on commercial aircraft.

Impact of covid-19

In the wake of COVID-19, the global market analysis witnessed a slowdown in demand, with companies delaying the innovations and investments in the market. The automotive industry, which is the end-user of head-up displays, noted a steep decline in production. The consumer demand for automobiles also declined due to the economic crisis caused by the pandemic.

Market Recovery Timeline and its Challenges

The post-pandemic period will be crucial for the global market analysis. The recovery can be hindered by supply chain disruptions, which will affect the market dynamics and the prices of the product. Furthermore, unfavorable financial conditions, drop in sales, prices, and product demand, and ascended expenses due to restrictions in distribution and transportation capabilities, will pose challenges for the global market.

In addition, limited production, support operations, labor shortages, and many constraints for other end-user sectors, suppliers, and vendors may fail to meet the consumer demand. Overall, the recovery will be challenging for the global market. Nonetheless, the growing demand for ADAS in autonomous vehicles and the rapid adoption of connected vehicles is liable to present lucrative opportunities in the next decade. The application of head-up displays in smart helmets, military applications, the aviation industry, etc., is also expected to boost the head-up display market size in the upcoming year.

Recent Developments

• In January 2022, Automotive 3D Augmented Reality Head-Up Displays were announced by C.Y. Vision (3D AR-HUD). It offers the broadest field of view in augmented displays available for all weather and distances.
• In April 2022, Bosch acquired Five, accelerating the creation of software for automated driving.
• In December 2022, New Cockpit Design was Made Possible by Continental Head-up Display Across the Entire Windshield.
• In November 2022, Together with Curtiss-Wright Corporation, QinetiQ Inc., Elbit Systems of America, and Elbit Systems of America, BAE Systems is developing the Optionally Human-crewed Fighting Vehicle for the U.S. Army (OMFV).